debunking a myth- why pairing lean six sigma with innovation makes sense for business

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  • 8/13/2019 Debunking a Myth- Why Pairing Lean Six Sigma With Innovation Makes Sense for Business

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    Debunking a Myth: Why Pairing Lean Six Sigma withInnovation Makes Sense for Business

    Robert Hildebrand, iGen Family Xerographic Integration Manager, Xerox Corp.Thu, 2010-02-18 09:06

    Xerox sees 50% return on investment using Lean Six Sigma techniques during an innovation project.

    The notion of Lean Six Sigma and innovation being used in the same process, or even the same sentence,is considered by many to be an oxymoron. How is it that a process-focused methodology like Lean SixSigma can help promote creativity that drives innovation? Xerox has discovered how, and it's a processthat other companies can learn from. The company has seen impressive results by pairing its Lean SixSigma initiatives and innovation teams together to drive product development. Recently, the use of LeanSix Sigma techniques during an innovation project resulted in millions of dollars in total savings andnearly 50% return on investment for Xerox.

    At Xerox, engineers have embraced Lean Six Sigma methods and tools to deliver a product that not onlymeets the needs of customers, but does so in the most efficient and economical way possible. During thedevelopment of the next generation product for Xerox's portfolio, the iGen4 press, the team utilizedDesign for Lean Six Sigma to address and exceed customer expectations.

    Voice of the Customer

    Design for Lean Six Sigma is a technique that specifically focuses on improving efficiencies and reducingcosts related to the design and delivery of new technology. Gathering Voice of the Customer (VOC)feedback, or data that describes customers' needs and perceptions of products and services, is animportant step in Design for Lean Six Sigma. It helps decipher current market demands to developspecific metrics that drive development.

    The iGen4 development team used VOC to understand what key audiences expected from the productand defined the goals for improvement. Team members "walked the customer's process" to observe pressoperators in action, allowing them to fully understand their needs. Surveys were conducted to gatherinput from both current and prospective customers. The team also analyzed information taken fromiGen3 press customer service calls to gain an understanding of current usage to help determine where tofocus efforts.

    Integrating Customer Input into Development Phase

    The VOC data indicated that productivity and image quality, including color control, were the top twoareas of interest from customers. Design for Lean Six Sigma played an important role in the next phaseof the project as well -- using the data to make smart decisions during the development process. One

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    additional goal of this project involved managing the design churn, and the resulting complexity inconfiguration and testing, in the most efficient and effective way possible.

    Lean Six Sigma-based models and simulations were critical to understanding the performance of thesystem as a whole. Rather than optimizing each sub-process independently, a significant effort was madeto examine the ways the sub-processes work together and use that information to optimize the entiresystem -- generating the ideal output to create the best possible customer experience.

    Achieving Results

    Using Design for Lean Six Sigma throughout the development process allowed the product to go tomarket on time, hit customer quality metrics and improve customer productivity. It also allowed for thesignificant cost savings and return on investment mentioned above -- millions of dollars in total savingsand nearly 50% return on investment for Xerox.

    How Business of all Sizes Can Replicate this Success

    Introducing Lean Six Sigma methodologies into the innovation process is something that companies of

    all sizes can do. Whether the project is the size of the iGen4 press, or something on a smaller scale, thereare Lean Six Sigma principles that can be applied to aid in all types of innovation.

    Here are some tips for setting a project up for success:

    Develop strong teams : the team members are the most important part of any project. Usingthe Belbin Team Role system when selecting project participants can help develop a group that

    will work at the highest potential. Developed in the 1970's by Meredith Belbin, a researcher in theU.K., the system is meant to identify a person's strengths, weaknesses, roles and skills. The systemoperates on the basis that a mix of roles proves to be more effective than a group of like-mindedmembers. An optimal group size is five to seven people with a variety of the nine set behaviors

    defined by Belbin. When participants know everyone's strengths, weaknesses and comfort zones,they develop a better understanding of the group dynamics and are able to communicate moreeffectively to avoid problems.

    Gain commitment from the entire organization: It is critical to gain buy-in from the top todemonstrate the value of Lean Six Sigma and the dedication the company intends to make towardit. Leaders can champion the changes and motivate groups to work together.

    Set goals and monitor improvements: Innovation is known to take unpredictable twists andturns, but there are processes that guide it. Processes have characteristics that can be measured,analyzed and controlled. Use this knowledge to set reasonable goals - identify what is possible inthe short-term and what the ideal long-term goal is. After the project is under way, monitorprogress against goals and make adjustments as necessary.

    Innovation -- creativity at its best -- fuels growth and drives business results. Lean Six Sigma is shakingits longtime criticism as a "creativity suppressor" off as it helps get new solutions into the hands ofcustomers faster. Properly used over time, Lean Six Sigma is a source of sustainable competitiveadvantage.

    Robert Hildebrand is iGen Family Xerographic Integration Manager at Xerox Corporation.

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    Source URL: http://www.industryweek.com/companies-amp-executives/debunking-myth-why-pairing-lean-six-sigma-innovation-makes-sense-business

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