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PRATIQUES LEAN ET SIX SIGMA - BENCHMARK LEAN SIGMA

BENCHMARK FOR QUALITY

We give numbers about the quality level in Sigma terms for 14 different sectors, all across the world.

This can be considered has the market level expectation for the quality level.


Lean Sigma in different sectors:

If the origin of Lean Sigma is with the mechanical and high tech industries, it is since a few years widely used in all sectors. We have selected 14 sectors, summarized in table 2 to establish the benchmarks.


Lean method:

Lean method has for objective to reach optimum efficiency in the production and logistic areas. Its three main business criteria are:

  • time delivery,
  • amount of stock and work-in-progress,
  • cash flow in production and stock.

Six Sigma method:

Six Sigma method has for objective to reach the right level of quality, at a first step, then to go to excellence at a second step. The market has expectations about quality criteria such as reliability, ease of use, availability, flexibility… The business metric of quality is unique and universal: DPMO (Defect Per Million of Opportunity against market expectations).  

   Main quality criteria  

   Description

  Safety

  The product (or service) must in any case expose to any danger for the security or the health of the consumer.

  Reliability

  The product (or service) is not facing any breakdown while been used.

  Availability

  The product (or service) is available when needed (no maintenance activities going on, not over used…).

  Delay

  The product (or service) is delivered on time.

  Attractiveness

  The product (or service) has to appeal to the consumer and to be attractive (design of the product) .

  Ease of use

  The product (or service) is easily to use, to understand its function.

  Environmental harmony

  The product (or service) is manufactured with environmental concern. Its refurbish phase is also with environment protection.

  Compliance

  The product (or service) is complying with the regulations (legal information, security information…).

  Others

  …

Combining Lean and Six Sigma will lead to quick delivery and low cash-flow with no defect.


Benchmark for quality:

One of the advantages of the Six Sigma universal scoring (DPMO) is to easily benchmark performance levels against competition. NUMERAL ADVANCE, with its participation in the different ISO working groups on Six Sigma, has built some benchmarks on all industries containing about 150 companies around the world.

Quality level per sector for the period from 2005 to 2009

(Table 2)

 

Channel stage 

    Sector :

Supplier

Producer

Retailer

  Food processing

 

*

*

  Chemical & Pharma

*

*

 

  Mechanical

*

 

 

  Electronic

*

Medium

 

  Infra & building

Low

*

 

  Energy

 

*

 

  Automobile

*

*

Medium

  Aerospace

 

*

 

  Banking & insurance

 

High

 

  Finance

 

*

 

  Telecom & media

 

*

 

  IT services

 

Medium/High

 

  Retail and service

 

 

*

  Administration

 

*

 

                             

* : levels available on complete table, during a diagnostic phase.

Low

Medium

High

Very High

2,78< Sigma < 3,82

3,82 < Sigma < 4,59

4,59 < Sigma < 5,22

Sigma < 5,22

Sigma level

Defects per million of opportunities

3

66 807   

4

6 210   

5

233   

6

3,4   


 Diagnostic phase of business efficiency with the benchmark :

Lean and Six Sigma are quantitative methods (statistical and analytical) for tracking defects and optimizing workflow. The steps of the diagnostic phase are :

  • to focus on quality criteria expected from the market (see table 2)
  • to benchmark its quality and efficiency level and to compare it with the market level,
  • to evaluate the value of each selected criteria,
  • to link financial and operational objectives through the quality criteria,
  • to use the future Lean Sigma ISO standard (ISO 13053).

Experiences of using Lean Sigma as an improvement method have demonstrated a decrease in overall costs from 25 to 40% without new investment.


Cotation for a benchmark :

Cotation for a benchmark is depending upon :

  • the type of criteria,
  • the sector
  • the region (Americas, Europe, Africa and MO, Asia)
  • the accuracy required for the Sigma level.

Note : NUMERAL ADVANCE benchmark does not cover yet all sectors in all regions. Ask for details.

Ask for a pricing of a benchmark on : numeraladvance@gmail.com