Best practices for Six Sigma, Lean Manufacturing, and customer-based business processes come under the umbrella of “Performance Management.” You can’t stress the importance of a good performance management system enough. The performance management process involves a set of tools and techniques that help determine the value creation process of any given project. Performance management processes help in the analysis of factors such as the scope, budget, and functionality to find out if the investment is justified or not. Hence, this process is the root core of any Six Sigma implementation.
Working Processes & Improving
The first step towards performance management is to define and determine what the desired result should be. This is followed by setting short and long-term benchmarks. This helps in aligning the working processes and improving their productivity. Once these are determined, they need to be managed. Any deviation from the prescribed norms is spotted immediately, and the concerned person(s) is told about it. If the same are not rectified, then the performance is unsatisfactory, and immediate corrective measures are taken.
Lean concepts heavily rely on the implementation of efficient work processes. They also involve the collection of all necessary information to be used in performing improvement tasks. Information needs to be converted to facts, figures, and data and then analyzing them to find out what the problems are. The main idea behind this is that if an issue is identified early, finding the solution to it increases significantly. This is what Lean focuses on; getting rid of the problems as soon as they are identified.
Six Sigma is based on two principles of statistical methodologies: the principle of limiting the risk and identifying the mistake. These two concepts are used to identify and rectify any potential errors in the processes. Hence, Six Sigma is very different from Lean and can be implemented in various organizations with great success.
Lean & Six Sigma
Both Lean and Six Sigma are very useful for determining the root causes of processes and eliminating them. For example, in Lean terms, the root causes are identified using customer requirements, and the process is designed accordingly to match the customer’s requirements. Whereas, in Six Sigma, the process is designed to improve a process that has been used for many years. Thus, the best way to improve the performance management process is to use both these processes in parallel.
Standard Operating Procedures
Six Sigma requires the collaboration of several departments to function properly. Hence, there is a need for an overall approach in improving processes that include creating a framework, standard operating procedures, and the training of the employees involved in the various processes. The next step would be implementing the framework to create a set of standard methods that should be employed in all the processes. With the implementation of these methods, improvements in the performance of the organization will follow.
Improve Management Process
Despite the popularity and success of these two processes, there are still many organizations that do not implement these into their overall performance management systems. They argue that it is not possible to combine these two in the present scenario. However, this argument is not valid as these processes have been proven to be highly effective. Organizations that have made use of these methods for better performance management in the past are now adopting these methods to improve the quality of the work they deliver. This is one of the best ways to improve the performance management process.
Implementing these two into a single organization can help reduce the overall cost incurred for the performance management process. Thus, it is certainly one of the best ways to improve the performance management process in an organization. It is also possible for the present environment to utilize these two processes for getting the maximum benefits. Organizations should always remember that these two processes can work wonders if implemented properly. The efficiency of the whole organization will get increased when the two processes are implemented well.