Financial Impact Analysis of Lean Six Sigma Projects

The analysis of Lean Six Sigma (LSS) projects from a financial perspective does some very important things.  First, Financial Impact Analysis (FIA) is a tool that allows executives and managers to examine the financial impacts of proposed projects prior to dedicating valuable resources, helping to make valid justifications and decisions for those projects.  Second, FIA monitors and reports ongoing improvement processes in tracking true, actual, savings and revenue impacts to specific areas. Further, particularly during lean times, FIA can...

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Lean Accounting for a Lean Organization

Traditional use of accounting systems has been to… account.  Essentially, accounting tools collect, manage and track financials, assets, inventory, and so on.  But there’s a growing opportunity to mine accounting’s data for areas of improvement, for areas of prioritization, and to expose the resultant success or lack thereof.  In other words, we can leverage accounting as a decision-making tool and as an expository mechanism regarding adjustments and progressions for the organization’s benefit. This is where Lean accounting comes...

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The 5S’s: Lean Thinking Applied to Idea Development

It happens. You have a thought – an idea for something new. Slowly, it transforms itself into a vision in your mind; something very specific takes shape. It may be a product or service. It may be a delightful tune, a fragrant smell, a loan approval process or a simpler way to do something. It is a product or service that you or your company can provide, sell or market, and hopefully, make a profit or save money doing so. This transformation from idea to a real product, service, improvement, method, or whatever its final form or essence...

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Idea Development Lifecycle – Lean Six Sigma in Motion

Idea Development Lifecycle – Lean Six Sigma in Motion The Idea Development Lifecycle is a process used to bring your product or service concept to life with as little waste or defects as possible. At its heart, this process manages the changes that occur throughout development and production. Every time a change is made to your product specifications, it invites waste and defects to creep into the process or product. How exactly does an idea move from concept to reality? There are 7 stages to idea development: Concept...

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What My Dad Taught Me About Lean Thinking

What My Dad Taught Me About Lean Thinking Thinking Lean and doing it right the first time have some things in common: money, savings and profit. First developed for Lean manufacturing, the 5S’s can be applied to the idea development lifecycle process as well. They help ensure that after your idea initiates and proceeds through each development stage: 1) concept, 2) design, 3) build, 4) integrate and test, 5) make, and 6) verify for approval to release into production, that the final product, service or process, and sustains the essence and...

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