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Case studies

All articles about: case studies.

CASE STUDY – The authors discuss how rooftop window producer VELUX harnessed Lean Thinking and Industry 4.0 to empower shop floor workers, after rediscovering the kaizen spirit following a digitalization initiative that didn’t work out.

CASE STUDY – UK law firm Weightmans has transformed its new legal case intake process using the Lean Transformation Framework, revolutionizing both operations and people development.

CASE STUDY – Thanks to a commitment to Lean Thinking and a solid coaching system, this hospital in China has been able to initiate a remarkable transformation.

CASE STUDY – This Brazilian agrobusiness has developed a unique and clever management system that puts people at the heart of the work.

CASE STUDY – Faced with safety and quality issues, this Brazilian manufacturing plant installed a dojo, and the results are very promising.

CASE STUDY – Manuelita Sugar Mill in Colombia adopted Daily Management to bolster leadership effectiveness and operational outcomes, addressing siloed thinking and communication challenges.

CASE STUDY – The story of Norwegian furniture manufacturer Haugstad Møbel that, thanks to Lean Thinking, was able to transform its culture and unlock the potential of sustainable growth.

CASE STUDY – Thanks to Lean Thinking, this Spanish construction company was able to deliver a challenging project in one year, well ahead of schedule. Here’s how they did it.

WEB SERIES - In this episode, we head to Chilean Patagonia to visit a manufacturer of fish feed that turned to Lean Thinking to improve yield and eliminate inventory gaps and stock-outs.

CASE STUDY – When it had to develop a production process for a new product from scratch, this Dutch company leveraged lean tools and practices. And the results were impressive.

CASE STUDY – To bring consistency to the service provided to customers across their network of workshops, this Brazilian company has turned to Lean Thinking. Along the way, they found in it a different approach to leadership.

WEB SERIES – In the second episode of our docuseries on lean in Chile, we learn how, with a clear purpose and strong commitment from leadership, SKC is transforming its processes and mindset and building a competitive advantage.

CASE STUDY – By leveraging Daily Management (DM), Supergasbras was able to change its trajectory and add more value to the customer in a critical sector for society.

WEB SERIES – Season 2 is here! In the first episode of this season, we visit a company in Chile that shows us how sustainability can be the cornerstone of an improvement project... and not just an afterthought.

WEB SERIES – In the fourth and final episode of Season 1 of our docuseries, we visit home improvement and gardening retailer Leroy Merlin and learn about their efforts to lean out their supply chain.

CASE STUDY – The Hospital de Bellvitge in Barcelona is relying heavily on hoshin and Kata to create a working environment based on collaboration and joint problem solving.

WEB SERIES – Episode 3 of our docuseries on lean in Brazil takes us to the second largest bank in the country. Learn how Bradesco is striving to improve its processes to provide more value to its customers using Lean Thinking.

WEB SERIES – In Episode 2 of our docuseries on lean in Brazil, we learn how the pioneering efforts of a cancer clinic have inspired the city of São José dos Campos to transform into a lean healthcare cluster.

WEB SERIES – Today, we launch a new documentary series on lean around the world, with the first season focusing on lean in Brazil. In the first episode, we visit the lean clinic on a mission to reduce the burden on cancer in our lives.

CASE STUDY – A people-centric approach to work, improvement, and the adoption of automation is allowing this Norwegian company to thrive in a changing industry and environment.

CASE STUDY – This Shared Service Center in Poland has leveraged lean, technology, and automation to completely transform itself and provide an ever-better customer experience.

CASE STUDY – The Covid-19 pandemic has accelerated the application of Virtual Healthcare across the world. In South Australia, this has been implemented in urgent care.

CASE STUDY – The transfer of a patient from one care setting to another is a delicate time. Insurance company SulAmérica has used its extensive lean experience to improve transitional care, and here’s how they did it.

CASE STUDY – This transport and logistics company in Colombia has turned to Lean Thinking to become more adaptive and ensure an easier post-acquisition integration of new cultures.

CASE STUDY – Starting in January this year, the Mexican plant of this manufacturer of lighting and electrical solutions has initiated a lean transformation that has already led to impressive results in terms of productivity.

CASE STUDY – This digital organization has embarked on a cultural transformation that is allowing them to become more agile while keeping people and stimulating interactions at the heart of their work.

CASE STUDY – How do you give hundreds of primary care units the tools and knowledge they need to make improvements? The Catalan Health Service found the solution in hoshin kanri.

CASE STUDY – A Chilean company selling and servicing vehicles and equipment for a variety of industries has made of humility the leading trait of its cultural transformation, with great results.

CASE STUDY – We hear from a construction company in Chile that embarked on a lean journey in 2018 to transform its culture and improve the work on its many sites.

CASE STUDY – This Dutch SME is transforming its picking operation – partly with the introduction of a U-shaped design – to increase the number of orders it can fulfil every day.

NOTES FROM THE GEMBA – The author visits a private engineering school to learn about their approach to teach Lean Thinking and apply it to their own work.

CASE STUDY – This 104-year-old Chilean provider of integral solutions for the mining industry has turned to hoshin kanri to effectively connect everyone’s work with the overall business strategy.

CASE STUDY – This primary care unit in Brazil is hoping to become a model for other units in their system. Take note, this is how Lean Thinking can spread across healthcare systems.

CASE STUDY – This Norwegian firm learned that allowing every person and area to move up their own lean learning curve can steer the business away from fire-fighting and towards more strategic thinking.

CASE STUDY – This project in Brazil, part of a city-wide effort to improve patient flows, led to impressive results in the waiting time to access cancer care.

CASE STUDY – For the past year, Elementia Materiales, a producer of materials for the construction industry, has begun a lean journey that’s already brought impressive quality results.

FEATURE – This Siemens Group-owned medium-sized manufacturer of electrical low-voltage devices has been experimenting with hoshin kanri. In this article, they share their experience and lessons learned.

CASE STUDY – This Chilean agrobusiness company achieved great results in a very short time by applying lean to standardize its processes and improve its productivity. They are now berry fond of the methodology.

CASE STUDY – Combining the lean and agile methodologies, HP’s site in Barcelona has streamlined and greatly improved its product development. Along the way, they transformed their culture, too.

CASE STUDY – The turning point in this Colombian construction company’s transformation came when they started to embrace lean as a culture rather than just a set of tools.

CASE STUDY – This packaging company in Catalonia has been able to cleverly balance the resolution of urgent problems and the advancement of the lean transformation. But what to do when the burning platform is no more?

CASE STUDY – Brazil-based construction company Andrade Gutierrez has been able to sustain its transformation by consistently developing internal capabilities and making Lean Thinking its strategy.

CASE STUDY – The reimbursement department of the largest independent insurance company in Brazil has brought together lean and digitalization to improve its service to customers.

CASE STUDY – Clinical trials are known for their rigorous analysis and approval process. The experience of Roche Brasil teaches us what lean and agile thinking can do to speed it up.

CASE STUDY – Lean Thinking travels far and wide. Here’s how the experience and insights of an Indiana-based farmer have supported a USAID project to improve outcomes for farmers across Nigeria.

CASE STUDY – This hospital in Argentina has leveraged the power of Lean Thinking to greatly enhance patient care, even in the pandemic, and receive internationally renowned accreditations.

CASE STUDY – How does a small food shop in Sichuan turn into a $30 billion chain with around 900 restaurants in several countries? By always going the extra mile for customers!

CASE STUDY – Pall Corporation used lean product and process development principles to create the process to produce billions of doses of the Oxford/AstraZeneca vaccine for Covid-19 in record time.

CASE STUDY – Some blamed lean for the shortages of personal protective equipment (PPE) in first wave of the pandemic. This small Norwegian producer of disposable bedsheets used it to establish and ramp up the production of medical gowns for healthcare workers.

CASE STUDY – Have you ever considered how Lean Thinking could apply to politics? The author explains how the result of a mayoral race in southern Italy was ultimately determined by the lean approach adopted by one of the candidates.

CASE STUDY – This Barcelona hospital began its journey with ambitious projects and is starting to see the fruits of its labor, with the pandemic acting as an unexpected but powerful catalyst for change.

CASE STUDY – This hotel in Spain has been able to leverage Lean Thinking in its restaurant to successfully adapt to the new Covid-19 regulations enforced in the country, becoming more efficient along the way.

CASE STUDY – An Esquel factory in GuiLin, China injected lean principles and practices into its processes to become more efficient and environmentally-friendly.

CASE STUDY – Not even a pandemic can prevent a lean organization from learning: this hotel in Tenerife has decided to make the most of its forced closure to review and improve its processes.

CASE STUDY – By streamlining its internal processes, an agribusiness company in Brazil managed to reduce its material handling cycle time by 75% and the associated costs by 66%.

CASE STUDY – The implementation of lean in the internal logistics of a pharmaceutical company in Brazil proved key to increasing productivity and quality in the organization.

CASE STUDY – This insurtech venture has found in Lean Thinking a way to tackle its many scaling issues. It’s grown from two to fifty-five people in less than four years, ultimately thanks to a strong focus on quality.

CASES STUDY – Struggling to win the hearts and minds of his people, the author took lean home, learned as much as he could about it and brought it back to his business with the idea of making everybody's lives easier.

CASE STUDY – The author, who leads the CI team in a large real estate company, discusses the lean transformation of the business and role of the improvement team in it.

CASE STUDY – This Italian manufacturer has found in lean a way to ensure business continuity and provide support to a distraught workforce in the midst of the coronavirus outbreak.

CASE STUDY – Here’s the story of a mature lean company from Michigan. The author tells us about Zingerman’s Mail Order’s lean transformation, their challenges and their successes.

CASE STUDY – In a Brazilian insurance company, a team worked hard to streamline the revision of dental claims – a great example of Lean Thinking in an administrative process.

CASE STUDY – The story of this Norwegian window and door manufacturer shows how a deep and ongoing commitment to a lean transformation can help a company thrive against all odds.

CASE STUDY – This article briefly outlines the different stages of the lean transformation at Mercedes Benz Brazil, as the company looked for the best approach to engage everyone in continuous improvement.

FEATURE – How lean daily management helped a Brazilian construction company to stabilize production in a tailing dam elevation project.

CASE STUDY – A boutique law firm in Milan has initiated a lean transformation to turn around its processes, improve service to its clients and make life easier for the team.

CASE STUDY – This company in Botswana has embraced lean thinking passionately to build the capacity and ability to deal with higher demand for its converted vehicles. The author tells us about their journey.

CASE STUDY – From client and supplier to partners-in-lean: how solving a problem together transformed the relationship between a Dutch hospital and the laundry supplying clean garments to it.

CASE STUDY – Seven years ago, this Italian manufacturer ran an experiment to reduce inventory in its warehouse. Today, lean thinking permeates every aspect of life at FPZ.

CASE STUDY – What is the approach to people development used at Volvo Cars? The authors explain how the organization has created a production system fully owned by operators and managers.

CASE STUDY – Effectively deploying and executing your strategy requires mastering quick follow-ups at different levels of the organization – in other words, Daily Management.

CASE STUDY – Logistics can be the key to achieving success and creating a competitive advantage in a company. This case study tells the story of a port terminal in Brazil that has used lean to achieve significant gains in managing its road flow.

CASE STUDY – Catalonia’s largest hospital is undergoing a successful transformation – supported by pioneering hoshin experiments – that has already turned it into a poster child for lean healthcare in the region.

CASE STUDY – TechnipFMC has introduced the Concept Paper in its lean product development process. This article shares some of the learnings resulting from the experience.

CASE STUDY – Thousands of kaizens, a relentless focus on learning and the determination to continuously improve have made of this Norwegian company something of a lean fairytale.

CASE STUDY – What to do when you operate in a competitive market and are located in a remote corner of Europe, thousands of miles from your customer? One word: lean.

CASE STUDY – This Dutch company awards social benefits to the unemployed. Thanks to lean thinking, they were able to radically transform the service they offer them.

CASE STUDY – The CEO of a hospital in Johannesburg looks back to the last five years to reflect on a lean healthcare transformation that is creating positive outcomes for patients.

CASE STUDY – This automotive parts supplier based in southwest Spain is discovering the power of lean thinking applied to recruitment and Human Resources.

CASE STUDY – Starting with a series of pilot sites, the NHS is hoping to engage the Kata coaching approach to really spread an improvement culture to staff and patients.

CASE STUDY – The story of this NGO shows how visualizing the work enables improvement and removes barriers among teams. It is a first, fundamental step towards a lean transformation.

FEATURE – Philips has embarked in an ambitious development program for lean executives, which is helping the organization make substantial progress in their transformation.

FEATURE – Successfully engaging people and building a solid daily management system is allowing a Velux factory in Poland to fulfill its strategic goals.

CASE STUDY – This Polish debt collection company is refocusing its work around true customer needs and increasing problem visibility by implementing hoshin kanri.

FEATURE – A dedicated pathway and the introduction of lean healthcare principles is bringing people together to provide better care to older, frail people in an Irish hospital group.

FEATURE – By leveraging lean product and process development principles, Nichirin Spain is becoming more flexible managing last-minute changes in product design requested by customers.

FEATURE – One year into its lean journey, this Lithuanian mining company is winning the hearts and minds of its people. Here, the management team reflects on how they are doing it.

FEATURE – Dreamplace Hotels in Tenerife have been on an improvement journey for several years, but only recently did they find a way to truly become a learning organization: lean thinking.

FEATURE – Hospitals are often part of larger healthcare systems, which makes it critical to learn how to bring lean to such diverse and complex environments. We hear from a large hospital group in Ireland.

CASE STUDY – This Turkish producer of sanitaryware has boosted its quality so dramatically it’s now a player in the German market. It did so by bringing drastic change to its production system.

FEATURE – How an amusement park in Norway is using lean visual management to support actors during their busy schedule and to give visitors an experience they will never forget.

FEATURE – Building on the benefits of the Last Planner System™, lean thinking is supporting people at Turner Construction Company as they solve problems in a structured way.

FEATURE – A laboratory testing services firm in Istanbul has turned to lean management to reduce complexity, shorten lead-times, and make its growth sustainable.

CASE STUDY – A Turkish producer of gas valves for kitchen appliances has discovered the power of the lean principles of pull and flow, reaching results beyond its imagination.

FEATURE – The application of lean management to education is not new, but we all know how hard changing legacy systems is. This greenfield lean school aims higher, trying to rethink learning altogether.

FEATURE – The power of cross-pollination: learning from a manufacturing company has helped a cancer treatment center in Brazil to thrive in its lean transformation.

CASE STUDY – The author looks back at the impressive lean transformation of the Hungarian plant of Coloplast, a Danish company offering medical devices and services.

CASE STUDY – An elementary school in Budapest is trying to bring innovation to the education by harnessing the power of lean thinking combined with a solid digital strategy.

CASE STUDY – A physician tells PL the story of how the East Denver Medical Office became a catalyst for the lean transformation at Colorado Permanente Medical Group.

CASE STUDY – How do you keep up with a market changing at the speed of light? The Chief Inventor of an Australian digital company explains how they are using lean to safeguard their future.

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Lean Six Sigma Project Examples | 17 Full Case Studies

Ready to begin your first Lean Six Sigma project? Looking for examples for inspiration or reference to get you started? Here are some project storyboards from different industries and from home. Remember, Lean Six Sigma can help you with more than just work!

• Reducing Underwriting Resubmits by Over 20%  

Governments

• A Call to Change: Pioneering Lean Six Sigma at Los Angeles County  
• Can Lean Six Sigma Be Applied in County Government?  
• How the City of San Antonio Increased Payments for Street Maintenance Using Lean Six Sigma  
• Reducing Bid Tab Creation Cycle Time by 22%  
• Reducing Cycle Time for Natural Disaster Response by 50%  

Manufacturing

• Increasing First Run Parts From 60% to 90% With Lean Six Sigma  
• Reducing Bent/Scratched/Damaged (BSD) Scrap for Building Envelopes  
• Reducing Lead Time in Customer Replacement Part Orders by 41%  
• Reducing Learning Curve Ramp for Temp Employees by 2 Weeks  
• Reducing Purchase Order Lead Time by 33% Using Lean Six Sigma  
• Herding Cats Using Lean Six Sigma: How to Plan for and Manage the Chaos of Parallel Processes  
• Lean Six Sigma Increases Daily Meat Production by 25%  
• Lean Six Sigma Helps Feed People In Need 45% Faster  
• Accelerating Lean Productivity With Immersive Collaboration  
• Reducing Incorrect Router Installations by 60% for Call One  
• Reducing Software Bug Fix Lead Time From 25 to 15 Days  

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Best Lean Six Sigma Case Studies: How Leading Companies Achieved Success

Six Sigma is a proven methodology for improving business processes by reducing variation and eliminating defects. While understanding its principles is essential, seeing Six Sigma in action through real-world case studies offers a deeper and more practical understanding of its potential.

Case studies are invaluable as they showcase how companies across industries have successfully implemented Six Sigma to tackle specific challenges, optimize processes, and drive measurable improvements. In this blog, we explore several impactful Six Sigma case studies, providing insight into the strategic application of Six Sigma and the results achieved.

Top Six Sigma Case Studies

To truly grasp the power of Six Sigma, it's essential to look at how it has been applied in real-world scenarios. These top Six Sigma case studies highlight some of the most impactful examples from leading organizations. They showcase the versatility of Six Sigma across various industries and illustrate how companies have used its tools and techniques to solve critical challenges, enhance operational efficiency, and significantly improve their bottom line.

Explore these case studies to see Six Sigma's transformative results in action.

1. Toyota's Six-Sigma Success

The case study on Six Sigma in Toyota Motor Corporation explores how the automotive giant implemented Six Sigma principles to enhance its manufacturing processes and maintain its leadership in quality and efficiency. Toyota is renowned for its commitment to quality management and lean manufacturing, and Six Sigma has played a key role in furthering these initiatives.

Here are the key takeaways from the case study:

Challenges Addressed

Toyota faced several challenges related to production efficiency, process variation, and defect reduction. The company needed to ensure that its vehicles met the highest quality standards while maintaining cost-effectiveness and minimizing waste.

Six Sigma Implementation

To address these challenges, Toyota incorporated Six Sigma into its existing lean practices. The Six Sigma methodology focused on:

• Reducing process variation to ensure consistency in production
• Eliminating defects to improve overall product quality
• Data-driven decision-making to identify the root causes of inefficiencies

Toyota used the DMAIC (Define, Measure, Analyze, Improve, Control) process to systematically improve specific areas of production. By collecting and analyzing data, the company was able to identify problems and areas of waste in its processes.

Results Achieved

The implementation of Six Sigma led to several positive outcomes for Toyota, including:

• Increased production efficiency: Streamlined processes resulted in faster production cycles
• Reduction in defects: The company experienced fewer defects per vehicle, contributing to higher customer satisfaction
• Cost savings: Reducing waste and improving efficiency led to significant cost reductions in the manufacturing process
• Continuous improvement culture: Six Sigma reinforced Toyota's philosophy of continuous improvement (Kaizen), driving ongoing innovations and improvements

Impact on the Organization

The Six Sigma initiative not only improved Toyota's manufacturing processes but also had a broader impact on the company's global operations. It helped Toyota maintain its reputation for reliability and quality, key attributes that continue to differentiate the company in the highly competitive automotive industry.

2. Six Sigma Revolutionized Motorola's Operations

The case study on Six Sigma in Motorola provides an in-depth look at how Motorola pioneered the Six Sigma methodology, which became one of the most influential business strategies for quality management across industries. Motorola's application of Six Sigma is widely regarded as one of the earliest and most successful implementations of the methodology, revolutionizing the company's approach to quality and operational efficiency.

Motorola faced significant quality issues during the early 1980s, particularly high defect rates in its manufacturing processes. These defects increased operational costs, delayed production schedules, and led to customer dissatisfaction. In a competitive market, Motorola needed to revamp its approach to quality management to remain competitive and profitable.

To address these challenges, Motorola adopted and developed the Six Sigma methodology. This approach focused on:

• Minimizing defects: Aiming to achieve less than 3.4 defects per million opportunities
• Standardizing processes: Improving consistency and reducing variability across production lines
• Data-driven decision-making: Using statistical tools to identify root causes of defects and inefficiencies

Motorola pioneered the DMAIC methodology, defining problem areas, measuring defects, analyzing data, improving processes, and controlling outcomes to ensure long-term success. The company also made significant investments in employee training, ensuring that Six Sigma became a company-wide initiative that engaged all levels of staff.

Motorola saw significant improvements after implementing Six Sigma, including:

• Reduction in defects: Motorola reduced its defects by more than 90%, which led to higher product reliability and performance
• Cost savings: The company reported savings of around $16 billion over a 10-year period, driven by lower rework and defect-related costs
• Improved efficiency: Manufacturing cycles were shortened, and operational efficiency significantly improved due to streamlined processes
• Customer satisfaction: With improved product quality and reliability, customer complaints decreased, and brand loyalty increased

Motorola's Six Sigma implementation not only enhanced its internal operations but also set a new standard for quality management in the global business community. The success of the Six Sigma methodology led other major corporations, including General Electric, to adopt similar strategies.

3. Six Sigma Case Study of Amazon.com

Amazon.com is a global leader in e-commerce, renowned for its customer-centric approach and efficient operations. The company has utilized Six Sigma principles to streamline its processes, enhance customer satisfaction, and maintain its competitive edge in the market. This case study focuses on how Amazon integrated Six Sigma into its business model to improve operational efficiency and ensure consistent service quality.

Amazon.com faced several operational challenges due to its rapidly expanding supply chain and increasing customer demands. Managing the complexity of a vast network of products and delivery points led to inefficiencies and delays in order fulfillment. Additionally, the company struggled with ensuring timely and accurate deliveries while reducing order processing errors. These challenges affected customer satisfaction and required a strategic approach to streamline processes and maintain service quality.

To address these operational issues, Amazon adopted Six Sigma methodologies to optimize its processes. Key strategies included:

• Defining critical processes: Amazon identified key areas like order fulfillment, inventory management, and shipping, where defects or inefficiencies were most likely to occur
• Measuring performance: Using Six Sigma's data-driven approach, Amazon collected metrics on order accuracy, delivery times, and customer satisfaction to understand baseline performance
• Analyzing root causes: Amazon applied statistical analysis tools to identify the root causes of inefficiencies in its processes, particularly in its supply chain and logistics operations
• Improving processes: Solutions were implemented to address identified inefficiencies. For example, Amazon focused on reducing order processing times, improving inventory management, and optimizing shipping routes
• Controlling outcomes: Once improvements were in place, Amazon established control mechanisms to ensure that processes remained efficient and sustainable over time

The integration of Six Sigma into Amazon’s operations resulted in several key benefits:

• Increased operational efficiency: Amazon significantly reduced processing times and optimized its supply chain, leading to faster order fulfillment and reduced costs.
• Reduction in order errors: By identifying and addressing the root causes of order inaccuracies, Amazon reduced defects in the order fulfillment process, leading to more accurate deliveries.
• Improved customer satisfaction: With faster delivery times and more reliable service, Amazon enhanced customer satisfaction, which helped solidify its reputation as a leader in e-commerce.
• Scalability: The improvements driven by Six Sigma allowed Amazon to scale its operations more effectively as it expanded globally, ensuring consistent service quality across all markets.

Amazon’s successful implementation of Six Sigma not only improved its operational efficiency but also helped the company maintain its commitment to customer satisfaction. By applying Six Sigma principles, Amazon optimized key aspects of its supply chain, reduced defects, and maintained high service standards, even as the company scaled rapidly. This case study demonstrates how Six Sigma can be applied in e-commerce to drive efficiency and support growth.

Ford Motors, a global leader in automotive manufacturing, sought to enhance its operational efficiency and product quality in response to growing competition and increasing customer expectations. By integrating Six Sigma principles into its processes, Ford aimed to improve quality control, streamline production, and reduce costs. This case study explores how Ford utilized Six Sigma methodologies to address key operational challenges, drive continuous improvement, and ultimately, deliver a better customer experience.

Ford Motors faced multiple challenges, including high defect rates in its vehicle manufacturing processes, which led to increased customer complaints and warranty claims. These quality issues not only harmed the company's reputation but also resulted in significant cost inefficiencies due to rework and warranty expenses. The rising production costs and customer dissatisfaction affected Ford's profitability, prompting the need for a structured approach to address these problems and improve operational efficiency.

Ford implemented Six Sigma to improve product quality and reduce operational inefficiencies. The company adopted the following Six Sigma strategies:

• DMAIC approach: Ford used the Define, Measure, Analyze, Improve, Control (DMAIC) methodology to identify and address defects in its manufacturing processes
• Focus on critical processes: By focusing on key areas such as manufacturing, supply chain management, and vehicle design, Ford aimed to reduce variability and ensure consistency in production
• Cross-functional teams: Ford trained employees across different departments in Six Sigma, enabling them to work together in identifying and solving quality issues

The implementation of Six Sigma at Ford resulted in significant improvements:

• Reduction in defects: Ford successfully reduced vehicle defects by applying Six Sigma tools to identify root causes and eliminate them, leading to higher product quality
• Cost savings: By reducing rework and warranty claims, Ford saved millions in production and service costs
• Improved customer satisfaction: The enhanced quality of vehicles contributed to increased customer satisfaction and reduced warranty claims
• Cultural change: Six Sigma also fostered a culture of continuous improvement within Ford, with employees becoming more proactive in identifying and solving problems

The adoption of Six Sigma had a lasting impact on Ford's operations. It enabled the company to not only improve the quality of its vehicles but also strengthen its competitive position in the market. The reduction in defects and improved process efficiency allowed Ford to enhance its brand image and customer trust while achieving significant cost savings.

This blog has showcased real-world Six Sigma case studies, demonstrating its transformative power. From manufacturing to service industries, organizations have successfully implemented Six Sigma to drive efficiency, enhance quality, and reduce costs. By studying these case studies, you can learn from their experiences, understand common challenges, and discover strategies to apply in your own organization.

Want to achieve the same success as the companies in these Six Sigma case studies? Enrol in our Six Sigma and Quality Management Certification Training and gain the skills to improve efficiency and reduce defects. Start your certification journey today!

FAQs On Six Sigma Case Studies

1. what is the purpose of six sigma case studies.

Six Sigma case studies demonstrate how companies have successfully applied the Six Sigma methodology to improve processes, reduce defects, and enhance overall efficiency. They provide real-world examples of its effectiveness in achieving business goals.

2. How Can Six Sigma Case Studies Benefit Businesses?

By reviewing Six Sigma case studies, businesses can gain insights into how others have overcome similar challenges, learn best practices, and understand the tangible benefits of implementing Six Sigma, such as cost savings and improved quality.

3. What Industries Can Benefit From Six Sigma Case Studies?

Six Sigma case studies are valuable across a wide range of industries, including manufacturing, healthcare, finance, retail, and logistics. Any industry looking to improve processes, reduce errors, and enhance quality can benefit.

4. Can Small Businesses Benefit From Six Sigma Case Studies?

Yes, small businesses can learn from Six Sigma case studies by applying similar strategies to improve their operations, reduce waste, and enhance customer satisfaction, even with limited resources.

Six Sigma and Quality Management Certification Courses FAQs

What are Quality Management Certifications?

Quality Management Certifications validate an individual's expertise and proficiency in implementing quality management principles and practices within organizations. These certifications typically cover various aspects of quality management, such as quality standards, methodologies, tools, and techniques.

Is Quality Management and Six Sigma Certifications Worth It?

Yes, obtaining a Six Sigma and Quality Management certification is definitely worth it. These certifications demonstrate your commitment to excellence and ability to drive quality improvement initiatives within your organization. They enhance your credibility, marketability, and potential for career advancement in quality management.

Who Can Enroll in a Quality Management and Six Sigma Course?

Anyone interested in enhancing their quality management skills can enroll. This includes quality assurance professionals, process engineers, managers looking to implement quality improvements, and individuals aiming to shift into a quality-focused role.

What Are the Skills Required for Quality Management Professionals?

Skills required include a thorough understanding of quality management methodologies, statistical analysis, problem-solving, effective communication, and leading cross-functional teams toward continuous improvement goals.

Which are the common courses related to quality management and Six Sigma?

The common courses include:

• Lean Management
• ISO Standards
• Total Quality Management (TQM)
• Quality Management Systems (QMS)
• Root Cause Analysis (RCA)

How do I choose the right Six Sigma and quality management course?

When choosing a Six Sigma and Quality Management course, consider factors such as accreditation, course content, instructor expertise, mode of delivery (online or classroom), scheduling flexibility, and cost. Selecting a course that aligns with your learning objectives, career goals, and preferred learning style is essential.

How to Get Six Sigma and Quality Management Certification?

To obtain a Six Sigma and Quality Management certification, follow these steps:

• Ensure you meet the eligibility criteria as per the certification body
• Attend the required training from a recognized provider such as Invensis Learning
• Apply for the chosen quality management certification
• Prepare for the examination with study guides and practice tests
• Take the certification exam
• Maintain the certification by fulfilling continuing education requirements

Building a Career in Six Sigma Quality Management: What Qualifications Do I Need?

A career in Six Sigma Quality Management typically requires a combination of education and practical experience. Relevant degrees in business or engineering are common, alongside certifications such as Six Sigma, ISO auditor, or relevant ones. Key skills include analytical thinking, problem-solving, and effective communication.

What Are the Best Foundational Quality Management and Six Sigma Courses for Beginners?

For beginners, foundational courses such as Lean Fundamentals, Six Sigma Awareness, or Six Sigma Yellow Belt provide a solid introduction. These courses cover the basics of quality management methodologies and are ideal for those new to the field.

What Are the Best Intermediate Six Sigma and Quality Management Courses Available?

Intermediate courses include the Six Sigma Green Belt or the Kaizen Certification. These courses build upon basic knowledge and focus more on applying quality management principles in real-world scenarios.

What Are the Best Advanced-Level Six Sigma and Quality Management Courses?

Advanced-level courses include the Six Sigma Black Belt and Master Black Belt certifications. These are suited for professionals with substantial experience in quality management and focus on leadership and strategic aspects of quality improvement.

What Is the Job Market Outlook for Quality Management and Six Sigma?

The job market outlook for quality management and Six Sigma professionals are very positive, with a growing need for professionals skilled in improving processes, reducing waste, and ensuring product and service quality across numerous industries.

What Are the Top Job Titles in the Field of Six Sigma & Quality Management?

Top job titles include Quality Manager, Six Sigma Consultant, Lean Specialist, Quality Analyst, Process Improvement Manager, and ISO Auditor. These roles involve overseeing quality processes, implementing improvement initiatives, and ensuring compliance with industry standards.

What kind of career opportunities are available in quality management and Six Sigma?

Quality management and Six Sigma offer various career opportunities across various industries and sectors. Some common career paths include Quality Assurance Manager, Quality Engineer, Process Improvement Specialist, Compliance Officer, Supplier Quality Manager, and Quality Control Inspector.

Which Companies Are the Top Employers of Quality Management and Six Sigma Professionals?

Top employers include manufacturing, healthcare organizations, IT, consulting, and government agencies. Companies such as General Electric, Toyota, and Siemens are known for their strong focus on quality management.

Do Quality Management and Six Sigma Courses Require Technical Experience?

Technical experience is optional for quality management courses. These courses focus more on process improvement, statistical analysis, and understanding quality standards than technical or engineering skills. However, a basic understanding of the industry you are working in can be advantageous.

What career path should a quality management and Six Sigma professional take?

A quality management professional can start by gaining foundational knowledge and skills through relevant education and training programs. They can then pursue entry-level positions such as Quality Control Inspector or Quality Assurance Assistant to gain practical experience. As professionals advance in their careers, they can pursue certifications and take on roles with increasing levels of responsibility, such as Quality Engineer, Quality Assurance Manager, or Process Improvement Specialist. Continuous learning, professional development, and networking are essential for progressing along the career path in quality management.

Why is Invensis Learning the best Quality Management and Six Sigma training company?

Invensis Learning is the top choice for Quality Management training, revered for its commitment to excellence and innovation. Here are a few reasons why they are one of the best Quality Management training providers:

• Accreditation by esteemed bodies such as IASSC, and EXIN, ensures credibility and recognition in the industry
• A comprehensive range of courses, including Six Sigma Awareness and LSSGB, cater to diverse learning needs and career objectives
• Expert instructors provide practical insights in engaging learning environments, enhancing knowledge retention and application
• Comprehensive exam support ensures thorough preparation and confidence for certification exams
• Gain a competitive edge in Quality Management, advancing your career prospects and opportunities for professional growth
• Training is available in different modes: online and onsite, offering flexibility to suit individual preferences and organizational requirements
• Trainers deliver instruction in various languages such as Spanish, German, Arabic, and more, ensuring accessibility and inclusivity for learners worldwide

What are Six Sigma Certifications?

Six Sigma certifications are credentials that demonstrate expertise in Six Sigma methodologies, which focus on improving processes and reducing defects in various industries. These certifications come in different levels, including:

• White Belt: Introductory level, covering basic Six Sigma concepts
• Yellow Belt: Provides a fundamental understanding and supports project teams
• Green Belt: Involves intermediate skills for leading projects and improving processes
• Black Belt: Advanced certification for leading complex projects and guiding Green Belts
• Master Black Belt: Highest level, focusing on strategic implementation, mentoring, and training

Each level signifies a deeper understanding and capability in applying Six Sigma principles to drive efficiency and quality improvements.

What Are the Skills Required for Six Sigma Professionals?

Six Sigma professionals need a diverse set of skills to effectively implement and manage process improvement projects. Key skills include:

• Analytical Skills: To analyze data and make decisions
• Problem-Solving: To identify and solve process issues
• Project Management: To plan and execute projects
• Statistical Knowledge: For measuring and analyzing performance
• Process Mapping: To document and improve processes
• Communication: To collaborate and present findings
• Change Management: To manage and implement process changes
• Leadership: To lead teams and drive success

These skills help Six Sigma professionals implement effective process improvements and drive organizational success.

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Case Studies: Successful Lean Business Model Examples

1. successful lean business model examples:introduction to lean business model, 2. successful lean business model examples:case study 1: toyota's lean manufacturing system, 3. successful lean business model examples:case study 2: amazon's lean supply chain management, 4. successful lean business model examples:case study 3: zappos' lean customer service approach, 5. successful lean business model examples:case study 4: airbnb's lean marketplace model, 6. successful lean business model examples:case study 5: netflix's lean content production strategy, 7. successful lean business model examples:case study 6: dropbox's lean product development process, 8. successful lean business model examples:case study 7: starbucks' lean store operations, 9. successful lean business model examples:case study 8: uber's lean disruption of the transportation industry, 10. successful lean business model examples:case study 9: spotify's lean agile methodology for software development, 11. successful lean business model examples:conclusion: key learnings from successful lean business models, 12. successful lean business model examples:implementing lean principles in your own business.

1. Understanding lean Business model

In today's fast-paced and highly competitive business environment , companies are constantly seeking ways to improve efficiency and maximize value. One approach that has gained significant popularity is the implementation of a lean business model. Derived from the principles of lean manufacturing, the lean business model focuses on reducing waste, streamlining processes, and delivering value to customers.

2. Core principles of Lean business Model

The lean business model is built on a set of core principles that guide decision-making and operational strategies . These principles include:

2.1. Value Creation: The primary focus of a lean business model is to create value for the customer . This involves understanding the customer's needs and preferences and aligning the company's processes and offerings accordingly.

2.2. Waste Elimination: Waste is any activity or process that does not add value to the customer. Lean businesses strive to identify and eliminate waste in all its forms, including excessive inventory, overproduction, defects, and unnecessary processing steps.

2.3. Continuous Improvement: A key aspect of lean business model is the commitment to continuous improvement . This involves constantly seeking ways to optimize processes, reduce costs, and enhance customer satisfaction .

2.4. Just-in-Time (JIT): JIT is a production strategy where materials or components are delivered to the production line just in time for their use. This minimizes inventory holding costs and reduces the risk of obsolete or unused inventory.

2.5. Employee Empowerment: Lean businesses recognize the importance of empowering employees to contribute to process improvement. Employees are encouraged to identify and address inefficiencies, suggest improvements, and participate in problem-solving initiatives .

3. Successful Lean Business Model Examples

Now let's take a look at some real-world examples of companies that have successfully implemented lean business models :

3.1. Toyota: toyota is often cited as the pioneer of lean manufacturing and the Toyota Production system (TPS). By implementing lean principles , Toyota achieved significant improvements in productivity, quality, and customer satisfaction. The company's focus on waste reduction, continuous improvement, and employee empowerment has made it a global leader in the automotive industry.

3.2. Zara: Zara, a fast-fashion retailer, has revolutionized the fashion industry with its lean business model. By adopting a just-in-time production approach, Zara minimizes inventory levels and reduces lead times. This allows the company to quickly respond to changing fashion trends, reduce the risk of unsold inventory, and maintain a high level of customer satisfaction.

3.3. Amazon: Amazon has built its success on its ability to deliver products quickly and efficiently. Through its lean business model, the company has optimized its supply chain, reduced waste, and continuously improved its operations. Amazon's focus on customer-centricity and operational excellence has made it a dominant player in the e-commerce industry.

4. Conclusion

The lean business model offers a systematic approach to improving efficiency, reducing waste, and delivering value to customers. By adopting the core principles of the lean business model and learning from successful examples like Toyota, Zara, and Amazon, companies can achieve sustainable growth and competitive advantage in today's dynamic business landscape .

Successful Lean Business Model Examples:Introduction to Lean Business Model - Case Studies: Successful Lean Business Model Examples

1. Toyota's Lean Manufacturing System: A Revolutionary Approach to Efficiency

Toyota's lean Manufacturing System is widely regarded as one of the most successful examples of implementing lean principles in a business setting. By focusing on eliminating waste and continuously improving processes, Toyota has been able to achieve remarkable levels of efficiency and productivity. Let's dive into a case study that highlights the key aspects of Toyota's lean approach and the impressive results it has delivered.

2. Just-in-Time (JIT) Production: Minimizing Inventory, Maximizing Efficiency

One of the core principles of Toyota's Lean Manufacturing System is just-in-time (JIT) production. Rather than stockpiling large inventories, Toyota aims to produce only what is needed, when it is needed. This approach helps minimize waste, reduce storage costs , and improve overall efficiency.

For example, Toyota's production line is designed to respond to customer demand in real-time . By closely monitoring customer orders and adjusting production accordingly, Toyota ensures that the right amount of inventory is available at any given time. This not only saves costs but also prevents overproduction and reduces the risk of obsolete inventory.

3. Kaizen: Continuous Improvement at All Levels

Another crucial element of Toyota's Lean Manufacturing System is the concept of kaizen, which translates to "continuous improvement." Toyota encourages every employee, regardless of their role, to constantly seek ways to improve processes and eliminate waste.

An excellent example of kaizen in action is Toyota's suggestion system. Employees are actively encouraged to submit suggestions for improvement, and those that are implemented are rewarded. This creates a culture of innovation and empowers employees to take ownership of their work, fostering a sense of pride and commitment to excellence.

4. Quality Control: Zero Defects, Zero Tolerance

Toyota's commitment to quality control is legendary. The company has a zero-tolerance policy for defects and strives for perfection in every aspect of its manufacturing processes. By implementing rigorous quality control measures, Toyota ensures that its products consistently meet or exceed customer expectations .

For instance, Toyota employs a system known as "jidoka," which empowers employees to stop the production line if a defect is detected. This approach allows for immediate identification and resolution of issues, preventing the production of faulty products and minimizing waste.

5. The Toyota Production System: A Blueprint for Lean Success

Toyota's Lean Manufacturing System, often referred to as the Toyota Production System (TPS), serves as a blueprint for other companies seeking to implement lean principles. By combining JIT production, kaizen, and a relentless focus on quality control, Toyota has revolutionized the automotive industry and set new standards for efficiency.

In conclusion, Toyota's Lean Manufacturing System serves as an exemplary case study of successful implementation of lean principles. By adopting JIT production, fostering a culture of continuous improvement , and prioritizing quality control, Toyota has created a highly efficient and effective manufacturing system. Other businesses can look to Toyota's example to learn valuable lessons and apply lean principles to their own operations, reaping the benefits of improved efficiency, reduced waste, and increased customer satisfaction .

Successful Lean Business Model Examples:Case Study 1: Toyota's Lean Manufacturing System - Case Studies: Successful Lean Business Model Examples

2. Amazon's lean Supply chain Management

In this case study, we will dive into how Amazon, the world's largest online retailer, has successfully implemented a lean supply chain management system. By streamlining their processes and focusing on efficiency, Amazon has been able to meet customer demands while minimizing waste and maximizing productivity.

1. Inventory Management: One of the key aspects of Amazon's lean supply chain is their efficient inventory management system . They use advanced algorithms and data analytics to predict customer demand and ensure that they have the right amount of inventory at the right time. This helps them avoid overstocking or understocking items, reducing waste and optimizing storage space .

For example, Amazon implemented an inventory replenishment system called vendor Managed inventory (VMI) with some of its suppliers. Under this system, suppliers have direct access to Amazon's inventory data and are responsible for managing and restocking inventory levels. This eliminates the need for Amazon to monitor and order inventory manually, improving efficiency and reducing the risk of stockouts.

2. Warehousing and Distribution: Amazon operates a vast network of fulfillment centers strategically located near major cities and transportation hubs. This allows them to minimize the distance between the warehouse and the customer, reducing transportation costs and delivery times. Additionally, Amazon has invested heavily in automation technologies such as robots and conveyor belts to optimize their warehouse operations.

For instance, Amazon's Kiva robots are used to retrieve and transport items within the warehouses, replacing the need for human workers to manually pick and pack products. This automation not only speeds up the order fulfillment process but also minimizes errors and reduces labor costs.

3. Transportation and Logistics: To ensure efficient delivery of products, Amazon has developed a comprehensive transportation and logistics network. They leverage a combination of in-house delivery services, partnerships with third-party carriers, and advanced routing algorithms to optimize delivery routes and reduce transportation costs.

An example of Amazon's innovative approach to transportation is their use of drones for last-mile delivery. They have been testing drone delivery in select locations, aiming to deliver small packages directly to customers' doorsteps in a matter of minutes. This not only improves delivery speed but also reduces the reliance on traditional delivery methods, such as trucks, which can be costly and less environmentally friendly.

4. Continuous Improvement: Amazon's lean supply chain management is not static. They are constantly looking for ways to improve their processes and eliminate waste. They encourage employees at all levels to identify and implement efficiency-enhancing measures.

For example, Amazon regularly conducts Kaizen events, where cross-functional teams come together to identify areas of improvement and implement changes. These events have led to significant process improvements, such as reducing packaging waste , optimizing order picking routes, and enhancing inventory accuracy .

In conclusion, Amazon's lean supply chain management has played a crucial role in their success as the world's largest online retailer. By focusing on inventory management, warehousing and distribution, transportation and logistics, and continuous improvement, they have been able to meet customer demands efficiently while minimizing waste and maximizing productivity. Their innovative approaches, such as VMI, warehouse automation, drone delivery, and Kaizen events, have set them apart in the industry and serve as excellent examples of successful lean business models.

Successful Lean Business Model Examples:Case Study 2: Amazon's Lean Supply Chain Management - Case Studies: Successful Lean Business Model Examples

3. Zappos' lean Customer service Approach

Zappos, an online retailer known for its exceptional customer service , is a prime example of how a lean business model can be applied to customer support operations. By adopting a lean approach to customer service , Zappos has been able to streamline their processes, reduce waste, and ultimately deliver a superior customer experience .

Here are some key aspects of Zappos' lean customer service approach :

1. robust Knowledge base : Zappos understands that customers value self-service options . To empower their customers to find answers on their own, Zappos has built a comprehensive knowledge base . This knowledge base includes detailed FAQs, troubleshooting guides, and product information. By providing customers with the information they need, Zappos reduces the number of support requests and allows their support team to focus on more complex issues.

2. Empowered Support Agents: Zappos believes in empowering their support agents to make decisions and take ownership of customer issues. Support agents have the authority to resolve customer problems without having to escalate to higher levels of management. This not only speeds up the resolution process but also demonstrates a commitment to customer satisfaction .

For example, a Zappos customer had ordered a pair of shoes for an upcoming event but realized that they wouldn't arrive in time. The customer contacted Zappos' support team, who quickly offered a solution. Instead of waiting for the original order to be returned, Zappos sent a replacement pair via expedited shipping at no extra cost to the customer. This proactive approach not only resolved the issue efficiently but also exceeded the customer's expectations.

3. Continuous Improvement: Zappos is constantly seeking ways to improve their customer service operations. They regularly collect feedback from customers and use it to identify areas for improvement. This feedback loop allows Zappos to address issues promptly and make necessary adjustments to their processes.

For instance, Zappos noticed that some customers experienced difficulties navigating their website during the checkout process. In response, they made significant changes to their interface, simplifying the steps required to complete a purchase. This proactive approach to continuous improvement ensures that Zappos' customer service remains efficient and user-friendly.

In conclusion, Zappos' lean customer service approach has played a significant role in their success as an online retailer. By focusing on self-service options, empowering support agents, and continuously improving their processes, Zappos has been able to provide exceptional customer service while optimizing their operations. As a result, they have built a loyal customer base and set a benchmark for customer service excellence in the e-commerce industry.

Successful Lean Business Model Examples:Case Study 3: Zappos' Lean Customer Service Approach - Case Studies: Successful Lean Business Model Examples

4. Airbnb's Lean Marketplace Model

1. Introduction to Airbnb's Lean Marketplace Model

Airbnb is a prime example of a company that has successfully implemented the lean marketplace model. Founded in 2008, Airbnb is an online marketplace that connects people looking for accommodations with individuals who have spare rooms, apartments, or homes to rent. The company has revolutionized the hospitality industry by offering a platform where hosts can monetize their extra space and travelers can find unique and affordable accommodations all over the world.

2. The Lean Principles Applied by Airbnb

Airbnb has embraced several key principles of the lean business model to create a thriving marketplace. These principles include:

A. minimal Viable product (MVP): When Airbnb started, the founders focused on creating a basic website that allowed hosts to list their properties and travelers to book them. This MVP enabled Airbnb to test the market and validate the demand for their service without investing heavily in a fully developed platform.

B. Continuous Improvement: Airbnb has consistently gathered feedback from hosts and guests to improve its platform and user experience . By actively listening to their users' needs and preferences, Airbnb has been able to make iterative changes that enhance the marketplace and keep both hosts and guests satisfied.

C. Iterative Development: Instead of waiting to launch a perfect platform, Airbnb chose to release early versions of its website and mobile apps and gather user feedback to guide future updates. This approach allowed them to quickly learn from their mistakes, make necessary adjustments, and adapt to the evolving needs of their users.

3. The Importance of Trust and Safety

One of the critical factors for Airbnb's success is building trust and ensuring the safety of its users. To address this, Airbnb implemented various measures to establish a secure and reliable marketplace:

A. Verified Profiles and Reviews: Airbnb requires hosts and guests to create profiles with verified identities, providing transparency and accountability within the community. Additionally, guests can leave reviews, which help future guests make informed decisions and promote trust among users.

B. Secure Payments: Airbnb facilitates secure transactions by handling all financial transactions between hosts and guests. This eliminates the need for cash exchanges and reduces the risk of fraud or payment disputes.

C. Host Guarantee and Host Protection Insurance: To further enhance trust, Airbnb provides a Host Guarantee that covers eligible damages up to a certain amount. They also offer Host Protection Insurance to protect hosts in case of liability claims.

4. scaling and Global expansion

Airbnb's lean marketplace model has allowed the company to scale rapidly and expand globally. By focusing on building a strong foundation and continuously improving their platform, Airbnb has been able to attract hosts and guests from all corners of the world. Today, Airbnb operates in more than 220 countries and has millions of listings available for travelers.

In conclusion, Airbnb's lean marketplace model has played a significant role in its success as a global hospitality platform. By embracing the principles of minimal viable product, continuous improvement, and iterative development, Airbnb has created a trusted and reliable marketplace that offers unique accommodations and memorable experiences for travelers worldwide.

Successful Lean Business Model Examples:Case Study 4: Airbnb's Lean Marketplace Model - Case Studies: Successful Lean Business Model Examples

5. Netflix's Lean content Production strategy

1. Introduction

Netflix has revolutionized the entertainment industry with its lean content production strategy. By leveraging data analytics and adopting a unique approach to content creation , the streaming giant has been able to produce high-quality shows and movies while keeping costs under control . In this case study, we will explore how Netflix has successfully implemented a lean content production strategy and the key factors contributing to its success.

2. data-Driven Decision making

One of the key elements of Netflix's lean content production strategy is its heavy reliance on data. The company collects and analyzes vast amounts of user data to understand viewer preferences, interests, and viewing habits. This data-driven approach allows Netflix to make informed decisions about which shows and movies to produce, ensuring that their content aligns with audience demand. For example, Netflix used data to identify a strong interest in true crime documentaries, leading to the production of popular series like "Making a Murderer" and "Tiger King."

3. Agile Production Process

Netflix's lean content production strategy also emphasizes an agile approach to production. The company embraces a flexible production process that allows for quick adaptation and iteration. This means that Netflix can respond to changing audience preferences and trends in real-time , ensuring that their content remains fresh and relevant. For instance, Netflix famously greenlit the series "Stranger Things" after seeing the success of '80s nostalgia films like "Super 8" and "It."

4. Outsourcing and Partnerships

To optimize efficiency and reduce costs , Netflix also leverages outsourcing and strategic partnerships . By working with external production companies and independent studios, Netflix can tap into their expertise and resources while maintaining a lean internal team. This approach allows Netflix to scale up production quickly and cost-effectively. An example of this is the partnership between Netflix and the British production company Left Bank Pictures, which resulted in the critically acclaimed series "The Crown."

5. Testing and Iteration

Another important aspect of Netflix's lean content production strategy is continuous testing and iteration. The company often releases pilot episodes or small-scale productions to gauge audience response before committing to full seasons or larger-budget projects. Through this iterative process, Netflix can identify and address any issues or concerns early on, ensuring that their final content meets audience expectations. The series "House of Cards" is an example of this approach, as Netflix analyzed user data and found that viewers who enjoyed the original British version were also fans of director David Fincher and actor Kevin Spacey, leading to the successful production of the American adaptation.

6. Conclusion

Netflix's lean content production strategy has proven to be a game-changer in the entertainment industry. By leveraging data analytics, adopting an agile production process, outsourcing and partnering with external studios, and continuously testing and iterating, Netflix has been able to produce a vast library of high-quality content while keeping costs controlled. This case study serves as a testament to the power of lean business models and how they can drive success even in highly competitive industries.

Successful Lean Business Model Examples:Case Study 5: Netflix's Lean Content Production Strategy - Case Studies: Successful Lean Business Model Examples

6. Dropbox's lean Product development Process

1. Identifying the Problem: Dropbox started as a simple file-sharing service but quickly realized that their users needed more than just a place to store and share files . They identified the problem of users having to manually sync their files across different devices and decided to develop a solution that would make file syncing seamless and hassle-free.

2. minimum Viable product (MVP): Instead of spending months or even years developing a fully-featured product, Dropbox focused on building a Minimum Viable product (MVP) that addressed the core problem of file syncing. Their MVP was a simple desktop application that allowed users to easily sync their files across devices.

3. Continuous Validation: Dropbox launched their MVP to a small group of early adopters and closely monitored their usage and feedback. They constantly iterated on the product based on user feedback and validated their assumptions.

For example, during the early stages of development , Dropbox noticed that many users were not aware of the need for file syncing. To address this, they added a feature that automatically uploaded photos from users' phones to their Dropbox account, thereby showing the value of file syncing in a practical way.

4. Scaling and Iterating: As Dropbox gained traction and more users signed up, they continued to iterate and improve their product . They added features such as file sharing, collaboration, and integration with other popular apps. Each new feature was carefully designed and tested to ensure it provided value to users without compromising the simplicity and usability of the product.

5. Continuous Improvement: Dropbox's lean product development process doesn't end with the initial launch. They constantly monitor user feedback, track metrics, and analyze data to identify areas for improvement . They regularly release updates and new features based on user needs and market trends . This continuous improvement approach has allowed Dropbox to stay ahead of competitors and maintain their position as a leader in the cloud storage industry.

For instance, Dropbox introduced a feature called "Smart Sync" that allows users to selectively sync files on their computer, saving valuable storage space. This feature was developed in response to user feedback and has been widely appreciated by Dropbox users.

In conclusion, Dropbox's lean product development process is a prime example of how a company can successfully identify a problem, build a Minimum Viable product , continuously validate and iterate, scale and iterate further, and continuously improve their product based on user feedback . By following this lean approach, Dropbox has been able to create a product that meets the needs of their users while staying ahead of the competition .

Successful Lean Business Model Examples:Case Study 6: Dropbox's Lean Product Development Process - Case Studies: Successful Lean Business Model Examples

7. Starbucks' Lean Store Operations

Starbucks, the multinational coffeehouse chain, is a prime example of a company that has successfully implemented lean principles in its store operations. By focusing on efficiency and waste reduction, Starbucks has been able to enhance customer experience while maintaining high standards of quality .

1. Streamlined Layout and Equipment Placement:

Starbucks stores are designed to maximize efficiency and minimize waste. The layout is carefully planned to ensure smooth flow of customers and minimize waiting times. Equipment, such as coffee machines and preparation stations, are strategically placed to minimize movement and optimize workflow. This enables baristas to serve customers efficiently, reducing waiting times and improving overall customer satisfaction .

2. Standardized Processes:

Starbucks has a comprehensive set of standardized processes and procedures that ensure consistency across all stores. From brewing coffee to preparing beverages, each step is carefully defined and documented. This helps in reducing errors, improving quality, and speeding up service. Baristas are trained extensively to follow these processes, resulting in a consistent experience for customers regardless of the location.

3. Just-In-Time Inventory Management:

Starbucks employs a just-in-time inventory management system to minimize waste and ensure freshness. Rather than stockpiling large quantities of ingredients and supplies, Starbucks orders them based on real-time demand. This not only reduces storage costs but also minimizes the risk of spoilage and waste. By closely monitoring inventory levels and adjusting orders accordingly, Starbucks can maintain optimal stock levels and avoid unnecessary waste.

4. continuous Improvement and employee Involvement:

Starbucks encourages a culture of continuous improvement and actively involves its employees in the process. Baristas are encouraged to provide feedback and suggestions for improvement, which are then considered and implemented when feasible. This not only empowers employees but also helps in identifying and eliminating bottlenecks and inefficiencies in store operations.

5. Technology Integration:

Starbucks has embraced technology to enhance its lean store operations. The mobile ordering and payment system allows customers to place orders in advance and pay through their smartphones, reducing waiting times and improving efficiency. Additionally, Starbucks uses data analytics to analyze customer preferences and trends , enabling them to optimize inventory management and customize offerings based on demand.

By implementing lean principles in its store operations, Starbucks has been able to enhance customer experience, reduce waste, and improve overall efficiency. The company's commitment to continuous improvement and employee involvement has been instrumental in driving its success. With its streamlined layout, standardized processes, just-in-time inventory management, and technology integration, Starbucks serves as a prime example of a lean business model in the retail industry.

Successful Lean Business Model Examples:Case Study 7: Starbucks' Lean Store Operations - Case Studies: Successful Lean Business Model Examples

8. Uber's Lean Disruption of the Transportation Industry

1. Introduction to Uber

Uber, the ride-hailing giant, has become synonymous with disruption in the transportation industry. It has revolutionized the way people commute and has challenged traditional taxi services worldwide. Uber's success can be attributed to its lean business model, which has enabled the company to quickly scale and adapt to changing market conditions . In this case study, we will explore how Uber disrupted the transportation industry using a lean approach.

2. Identifying the Problem

When Uber was founded in 2009, the founders identified a problem with the existing taxi services they were unreliable, expensive, and lacked convenience. By leveraging modern technology, Uber aimed to solve these pain points by providing a seamless and affordable ride-hailing service.

3. Minimum Viable Product (MVP)

Uber started with a minimum viable product (MVP) that had a simple user interface and basic functionality. The initial version of the Uber app allowed users to request a ride and connect with available drivers. This MVP approach allowed Uber to quickly test the market and gather feedback from early adopters.

4. Continuous Improvement

Uber constantly iterated on its product based on user feedback and market demand. The company introduced new features such as fare splitting, surge pricing, and driver ratings to improve the overall user experience . By continuously improving its product , Uber was able to stay ahead of its competitors and retain its customer base.

5. Scalability and Flexibility

Uber's lean business model enabled the company to scale rapidly in multiple cities around the world. Instead of owning a fleet of vehicles, Uber leveraged the power of the sharing economy by enabling private car owners to become drivers. This asset-light approach allowed Uber to expand quickly and enter new markets without significant upfront costs.

6. Disrupting the Traditional Taxi Industry

Uber disrupted the traditional taxi industry by offering a more convenient and affordable alternative. By leveraging technology and data , Uber optimized the matching process between drivers and riders, reducing wait times and providing a more reliable service. Additionally, the cashless payment system eliminated the hassle of dealing with cash, further enhancing the user experience .

7. Challenges and Controversies

Uber's rapid growth and disruption of the transportation industry have not come without challenges and controversies. The company has faced regulatory hurdles, protests from traditional taxi drivers, and allegations of unethical business practices . However, Uber's ability to adapt and respond to these challenges has allowed it to maintain its dominant position in the market .

8. Conclusion

Uber's lean disruption of the transportation industry serves as a prime example of how a lean business model can revolutionize an industry. By focusing on continuous improvement, scalability, and flexibility, Uber was able to quickly gain market share and transform the way people commute. Despite facing challenges along the way, Uber's lean approach has made it a dominant player in the transportation industry.

Successful Lean Business Model Examples:Case Study 8: Uber's Lean Disruption of the Transportation Industry - Case Studies: Successful Lean Business Model Examples

9. Spotify's Lean agile Methodology for Software development

1. Introduction to Spotify's Lean Agile Methodology

Spotify is a well-known music streaming platform that has gained immense popularity over the years. One of the key factors contributing to Spotify's success is its efficient software development process. Spotify adopted a lean agile methodology, which has proven to be highly effective in delivering quality software products in a fast-paced and dynamic environment.

2. Squads, Tribes, Chapters, and Guilds

At Spotify, the development teams are organized into small, cross-functional units called squads. Each squad is responsible for a specific feature or functionality within the application. These squads are further grouped into larger units called tribes, which are aligned with a particular area or domain. The tribes consist of multiple squads that work closely together to achieve common goals.

To ensure knowledge sharing and continuous learning, Spotify also introduced the concept of chapters and guilds. Chapters are formed based on specific skills or areas of expertise, and they cut across different squads and tribes. On the other hand, guilds are informal communities of interest where individuals with similar interests or roles come together to exchange ideas and best practices.

3. The Role of Agile Coaches

Spotify recognizes the importance of having experienced Agile Coaches who provide guidance and support to the development teams. These coaches help the squads and tribes embrace agile practices and principles, and they also play a crucial role in facilitating collaboration, communication, and continuous improvement.

Agile Coaches at Spotify are not authoritative figures but rather servant leaders who empower the teams to make their own decisions and take ownership of their work. They facilitate regular retrospectives, where the teams reflect on their performance, identify areas for improvement, and experiment with new practices or approaches.

4. Spotify's Agile Rituals

Spotify follows a set of agile rituals to ensure effective collaboration and alignment across the organization . One such ritual is the Daily Stand-up, where team members gather to discuss their progress, challenges, and plans for the day. This helps in fostering transparency and keeping everyone updated on the project status.

Another important ritual is the Biweekly Demo, where squads showcase their work to stakeholders and gather feedback. This enables early validation and ensures that the development is aligned with the expectations of the users and the business.

5. continuous Integration and continuous Deployment

Spotify emphasizes the importance of continuous integration and continuous deployment (CI/CD) to ensure fast and reliable software releases. The development teams practice continuous integration by merging their code changes frequently, which is then automatically tested to identify any integration issues.

Once the code passes the tests, it is deployed to a staging environment for further validation. Spotify uses automated testing and monitoring tools to ensure the quality and stability of the software. The final step in the CI/CD pipeline is the deployment to production, which is done seamlessly and with minimal manual intervention.

6. experimentation and Data-Driven Decision making

Spotify encourages a culture of experimentation and data-driven decision making. The development teams are empowered to try out new ideas and features, and they leverage user data and feedback to make informed decisions . By constantly iterating and learning from user behavior, Spotify can quickly adapt its product to meet the evolving needs and preferences of its users.

In conclusion, Spotify's lean agile methodology has played a significant role in its success as a music streaming platform. The organization's focus on collaboration, continuous improvement, and data-driven decision making has enabled it to deliver high-quality software products that resonate with its users. By adopting similar principles and practices, businesses can enhance their software development processes and drive innovation in their respective industries.

Successful Lean Business Model Examples:Case Study 9: Spotify's Lean Agile Methodology for Software Development - Case Studies: Successful Lean Business Model Examples

1. Start with a Strong Foundation: One of the key learnings from successful lean business models is the importance of starting with a strong foundation. This means having a clear vision and mission for your business, as well as a deep understanding of your target market and their needs. Without a strong foundation, it can be difficult to build a sustainable and scalable business .

For example, let's look at the case of Airbnb. When the founders of Airbnb first started out, they had a clear vision of creating a platform that allows people to rent out their spare rooms or properties to travelers. They understood that there was a gap in the market for affordable and unique accommodations, and they built their business model around this insight. This strong foundation allowed Airbnb to quickly gain traction and disrupt the traditional hotel industry.

2. embrace Continuous improvement : Another key learning from successful lean business models is the importance of embracing continuous improvement . Lean businesses are constantly looking for ways to optimize their processes, reduce waste, and increase efficiency. This not only helps them stay competitive in a rapidly changing market , but it also allows them to deliver better products or services to their customers .

A great example of a company that embraces continuous improvement is Amazon. From its early days as an online bookstore, Amazon has constantly evolved and expanded its business model to meet the changing needs of its customers. They have invested heavily in technology and automation to streamline their operations and improve their delivery times. This continuous improvement mindset has allowed Amazon to become one of the largest and most successful e-commerce companies in the world.

3. test and Validate ideas : Successful lean business models also prioritize testing and validating ideas before fully committing resources to them. This helps minimize the risk of failure and ensures that the business is investing in ideas that have the highest potential for success.

Take the example of Dropbox. Before launching their cloud storage service, the founders of Dropbox conducted a simple yet effective test. They created a demo video showcasing the product and posted it on a popular tech forum. The overwhelming positive response they received validated their idea and helped them secure funding to further develop their product . This test not only saved them time and resources, but it also gave them the confidence to pursue their business idea.

4. focus on Customer feedback : Finally, successful lean business models prioritize gathering and incorporating customer feedback into their decision-making processes. By listening to their customers, lean businesses can understand their pain points , identify areas for improvement, and develop solutions that truly meet their needs.

A prime example of a company that excels in this area is Apple. Apple is known for its customer-centric approach and its ability to anticipate and meet the demands of its customers. They actively seek feedback from their customers through surveys, focus groups, and user testing. This constant feedback loop allows Apple to continuously innovate and deliver products that resonate with their target market .

In conclusion, successful lean business models have several key learnings that can be applied to any business. By starting with a strong foundation, embracing continuous improvement, testing and validating ideas, and focusing on customer feedback, businesses can increase their chances of success in a competitive market. These learnings can serve as guiding principles for entrepreneurs and business leaders looking to build a lean and agile organization.

Successful Lean Business Model Examples:Conclusion: Key Learnings from Successful Lean Business Models - Case Studies: Successful Lean Business Model Examples

1. Define your value stream

To implement lean principles in your business, the first step is to understand your value stream. This involves mapping out the entire process from start to finish and identifying any non-value-added activities or waste. By doing so, you can identify areas for improvement and focus on eliminating waste to create a more streamlined and efficient workflow.

For example, let's consider a manufacturing company that produces furniture. By mapping out their value stream, they realize that there are several steps in the process that do not add value, such as excessive handling of materials and unnecessary transportation. By eliminating these non-value-added activities , they can reduce lead times, improve quality, and ultimately increase customer satisfaction .

2. Implement just-in-time production

Just-in-time (JIT) production is a key principle of lean manufacturing. It involves producing only what is needed, when it is needed, and in the quantity needed. By implementing JIT, businesses can minimize inventory levels, reduce waste, and improve overall efficiency.

For instance, a clothing retailer can implement JIT by closely monitoring customer demand and adjusting production accordingly. Instead of producing large quantities of clothing and holding excess inventory, they can produce smaller quantities based on real-time demand data. This approach not only reduces waste but also allows the retailer to quickly respond to changing customer preferences and minimize the risk of overstocking.

3. Empower your employees

One of the fundamental principles of lean is empowering employees and involving them in continuous improvement efforts . By giving employees the authority and responsibility to identify and solve problems , businesses can tap into their knowledge and experience to drive innovation and efficiency.

For example, a software development company can implement lean principles by organizing regular brainstorming sessions where employees are encouraged to identify and propose solutions to common challenges. By involving everyone in the problem-solving process , the company can harness the collective intelligence of its workforce and continuously improve its development processes.

4. Implement visual management

Visual management is another essential aspect of lean principles. It involves using visual cues, such as signs, charts, and color-coded indicators, to communicate information quickly and effectively. By implementing visual management, businesses can improve communication, enhance transparency, and reduce errors.

For instance, a hospital can implement visual management by using color-coded tags on patient files to indicate their current status (e.g., waiting for test results, ready for discharge, etc.). This helps healthcare providers easily identify and prioritize patient needs, reducing the risk of delays or errors in patient care.

5. Continuously improve through Kaizen

Kaizen, which means "continuous improvement" in Japanese, is at the core of lean principles. It involves making small, incremental changes to processes on an ongoing basis to drive continuous improvement and eliminate waste.

For example, a call center can implement Kaizen by regularly analyzing customer feedback and identifying areas for improvement in their customer service processes . By making small changes, such as simplifying call scripts or providing additional training to agents, the call center can enhance customer satisfaction and improve efficiency over time.

Implementing lean principles in your own business requires a systematic approach and a commitment to continuous improvement. By defining your value stream, implementing just-in-time production, empowering your employees, implementing visual management, and embracing Kaizen, you can create a lean business model that maximizes efficiency, minimizes waste, and delivers exceptional value to your customers.

Successful Lean Business Model Examples:Implementing Lean Principles in Your Own Business - Case Studies: Successful Lean Business Model Examples

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The Lean Post / Articles / To Successfully Apply Lean Thinking in Distribution, Go to Where the Action Is!

Executive Leadership

To Successfully Apply Lean Thinking in Distribution, Go to Where the Action Is!

By David Drickhamer

July 12, 2022

Two years after its first kaizen workshop, Plumbers Supply Company has made significant progress toward a lean business conversion. Starting with daily management walkabouts and standardized work, the 84-year-old, family-owned distributor has laid the groundwork for steady gains for years to come.

For a distributor, when your company slogan is “Everything Under the Sun,” you better be able to deliver. But what does being able to deliver actually mean when it comes to measuring day-to-day performance? The answer to that question offers a glimpse into the lean journey of Plumbers Supply Company .

Plumbers Supply At-a-Glance

• Headquarters: Louisville, Kentucky
• 13 locations in Kentucky and Indiana
• Serves plumbing, fire protection, and HVAC contractors and industrial/institutional customers
• Employs 100 at headquarters and six to 30 at each branch
• Family-owned

Based in Louisville, Kentucky, Plumbers Supply has 13 branches in Kentucky and Indiana that stock parts and supplies for plumbing, fire protection, and HVAC contractors, as well as industrial and institutional customers and facility managers. Several years ago, with an average line-item fill rate of over 95 percent, the company’s fire protection department was achieving best-in-class performance, at least according to the standard industry benchmark. Unhappy customers, however, had a different opinion. That’s because not having four or five out of every 100 items needed for a construction project could stop them from starting or completing a job.

The issue came to the attention of Jay Johnson, the company’s president, during the daily management “walkabout” that he implemented two years ago at the very beginning of the company’s lean initiative. “I’d be in that department three days per week, and every day it was the same issue,” Johnson recalls.

For a month, they tracked performance on the department’s walkabout review (WAR) board, a visual management tool that the Louisville branch uses to monitor expectations, performance, and issues as they come up. “Then we completely changed how we measure service performance at the department, branch and company levels to a 100% complete order fill rate…, and we were able to focus on improving performance for particular categories of product.”

Changing to a more customer-oriented measure of order fulfillment is just one indicator of the progress Plumbers Supply has made in a relatively short time. This Lean Enterprise Institute case study explores how lean can take root and transform the performance of a small (less than 250 employees), privately-held distribution business that bears very little resemblance to the automotive assembly line typically associated with lean management .

The Building Is Paid For

The original structure at the Plumbers Supply headquarters in Louisville dates back to 1898. Expanded regularly over the years, today it’s a warren of 31 rooms and storage zones with varying weight and height restrictions spread across four levels — accessible by stairs and freight elevator — plus 11 additional storage locations outside. Here employees use shopping carts and flatbeds to pick orders for some 45,000 stock-keeping units (SKUs) — every kind of plumbing and HVAC product and part you can imagine, including a selection of identical items made in the U.S., as preferred by some customers, or imported.

After they’ve picked the orders, the company delivers some directly to job sites. Customers can also pick up their orders at a will-call drive-through or go inside to the service counter. As part of an attempt to better forecast customer demand, a historical SKU study found that some 70 percent of the company’s product demand is unpredictable. Add in some dramatic seasonal fluctuations and nightly transfer shipments between locations, and you can start to get a feel for the procurement and inventory management challenges at Plumbers Supply.

Given the physical constraints of the facility and an uncompromising commitment to customer service, when it comes to making improvements, the company has one significant advantage over larger, more corporate organizations: a strong, family-oriented culture with a flat hierarchy and accessible leaders. It employs roughly 100 people at its headquarters in Louisville and six to 30 people at each other branch location. The company and its leaders have a reputation for treating both its customers and employees with respect and promoting from within. As one manager shared during our visit, “When I was having trouble with an employee’s performance, my boss asked me how I’d manage the situation if she was my aunt, for example, because that’s how we treat people.”

A Local Source of Inspiration

So why and where would a family-owned distribution business begin its lean journey? Through a local business group, Jay Johnson became friends with Jim Lancaster, CEO and owner of Lantech. Headquartered in Louisville, Lantech manufactures and markets pallet stretch-wrapping equipment, which Jim Lancaster’s father invented in the early 1970s. LEI’s James Womack and Daniel Jones featured the company’s early lean efforts in an entire chapter of their popular book, Lean Thinking (Free Press, 1996).

The main issue in a lot of businesses is that management isn’t connected to what’s happening in the business every day.

“The place to start [with lean] in any business is where your problems are. The main issue in a lot of businesses is that management isn’t connected to what’s happening in the business every day,” said Lancaster when asked about how Plumbers Supply got started. “What you’re trying to do is make changes in the business and convert people’s thinking, and give them a successful experience.”

Walking the floor of Lantech with Jim Lancaster in 2009, Jay Johnson recalls being impressed by the work cells, material flow , and cleanliness, even though it bore little resemblance to the workflow in his distribution operation . But as they walked from one area of the factory to the next, he was really struck by how Lancaster worked with the company’s employees to address and solve problems on the spot. It wasn’t a loose, management-by-wandering-around exercise.

“When I saw the decisions being made,” says Johnson, “and the fact that Jim had the rest of the afternoon to improve and work on strategic planning [that is, all of the things he couldn’t spend as much time doing in the past because he was firefighting and getting bombarded at his desk with issues and problems], I knew the daily walk was the place to start.”

Before the daily management walkabout, with 18 direct reports, Johnson wouldn’t have a chance to talk to some people for weeks. And he devoted a good chunk of every day toward addressing all of the issues that popped up that day, he recalls. So, today, if something needs management attention, everyone knows that the president and his team will be there later that day or tomorrow; they will be able to see the issue for themselves firsthand and address it.

“I’ve gone from having 10 to 20 gotta-minute meetings a day, to a one-and-a-half hour walkabout, with opportunities to see what’s going on, to see the gaps, and provide coaching then and there,” Johnson says.

Depending upon who’s on-site, the daily walkabout includes the president, operations manager, and CFO visiting each functional area of the business. The walks were awkward in the beginning, Johnson reports, and it took some time to get the cadence down. People often used the opportunity to point the finger at failures in other departments. However, over time the focus on process failures and improving the process, not what any individual might have done wrong, has slowly changed the culture. Everyone is less worried about defending their turf, says Johnson, and is even excited about fixing what’s wrong and improving the business.

“It takes guts for a company leader to do this, and to be ok with making mistakes,” Lancaster adds. “It’s not always where people think a CEO should be spending time.”

The Golden Triangle

The daily walkabout spotlighted some of the opportunities and barriers for improving service quality, which has always been the number one goal of the lean initiatives at Plumbers Supply. These opportunities included multiple handoffs, excessive travel and handling, and poor coordination between departments.

“There are differences between mapping a rack and pinion gear facility versus a warehousing and distribution business. They are obviously very different processes,” Johnson adds. “That’s been a struggle [for us], how to value-stream map our business and processes to identify the waste .”

At the same time that they began the management walks, the company introduced lean tools in an ongoing series of kaizen workshops designed to train leaders on how to use the lean tools effectively. For help, they pulled in Mike Garland, currently an independent lean consultant with 25 years of experience using lean tools to transform large and small businesses. Garland is on-site roughly one week each month, coaching and leading workshops.

For a distribution operation — or any business really — it’s important to have an experienced advisor, or “ sensei ,” as they are known in the lean world. In addition to teaching the fundamental principles, they can help figure out solutions when you run into a wall, says Lancaster. “It’s like anything. It’s all about depth and levels of knowledge and understanding,” he adds.

Garland’s initial focus at Plumbers Supply was helping to implement standardized work . This effort wasn’t just about documenting optimal procedures or creating checklists but incorporating visual cues within the work that indicate that it has been done — and done correctly.

“For improvements to hold,” explains Garland, “there has to be a standard. When the standard is followed, the work itself leaves a visual signal behind so support people (team leaders, supervisors, etc.) can see that the work was done correctly. If it’s not done correctly, they don’t beat up the operator, they explore what occurred that caused the work to be done out of standard.”

Garland describes this virtuous cycle of improvement and reinforcement as the Golden Triangle (see diagram below). For example, at Plumbers, the first area where they applied the concepts and tools was—logically enough—the main point of customer value creation: the order picking process. Here standardized work has reduced the time it takes new employees to learn all the storage locations and processes and become real contributors to the organization, from six months to three weeks. In addition, the changes reduced by half the employee walking distance per day for packing and staging orders.

As John Skees, Louisville’s operation manager, states, “creating standardized work should be done alongside the employee you are trying to support and the focus should be on making their job easier.”  John says that Golden-Triangle thinking allows managers to create a standard that can be built into the work environment, so it is easier to do the work correctly than to do it incorrectly. “This provides a better-quality service to our customers and a better work environment for our employees,” he adds.

The Golden Triangle: How Improvements are Maintained

Leadership Skill Development

The picking process at Plumbers Supply begins and ends at the “workbench” area. This order dispatch area is the heart of the business in terms of fulfillment and has been the subject of multiple kaizen workshops. One of the process changes here, for example, was re-prioritizing the sequence of orders, which previously were cherry-picked at random, to being organized by customer priority and picking efficiency .

“People pick better and faster now,” says Shaina Smith, warehouse manager. “Before, 10 to 20 errors in a day were normal. Now, five to six picking errors is a bad day.”

In addition to the major process changes and making everything visual, including the work of supervisors, Smith stresses that making improvements is just as much about the small things as the grand design. She says the key is to do something, make some improvement, every day.

Making such incremental progress — as other companies on their lean journeys have discovered — depends in large part on how supervisors manage the people who report to them. At Plumbers Supply, that has meant a renewed understanding that the primary job of leaders, especially on the floor, is to make everyone’s job easier and safer. When something goes wrong, as Johnson puts it, they try to conduct “autopsies without blame.” Walking the floor daily gives him a better understanding of how the supervisors manage the people who report to them.

“Lean gives us the vocabulary for how we should react to problems,” he says. “Now I can see if managers are adequately supporting people and the work they need to do.”

Beyond the Warehouse

Building on the management walkabout, the lean game plan at Plumbers Supply started with performance reporting on the WAR boards and standardized work, which was soon followed by 5S practices, problem-solving methods, team leader /supervisor training, and basic pull techniques. Kaizen workshops using these tools have tackled the warehouse and administrative areas, such as accounting. For example, Melanie Leasher, the controller at the time, first applied 5S to her office to set an example.

“I had cabinets in there from the previous controller that I’d never even looked in,” she recalls.

Leasher then helped the people in her department apply 5S to their work areas. Such changes can be threatening, because they generally mess with how everyone does their work, and the visual cues—like dedicated locations for everyone’s stapler—can seem pointless. But the benefit, in this case, became immediately obvious when they had to locate an important document at the desk of an employee who was out on vacation. Because of the 5S work, it was easy to see each stage of the work. And finding the document only took a minute. Next, Leasher applied 5S to the supply room, which hadn’t had a good cleanout in decades.

Supply Closet Before 5S

Supply Closet After 5S

Concurrent with the lean-related activities, Leasher and Jay Wilson, the company’s CFO, implemented a series of process changes and improvements to the company’s accounting and finance department that, over time, eliminated much of the need for a full-time controller. As a result, her old position was eliminated, and she was promoted to director of Continuous Improvement .

“In year two of our lean effort the struggle has been having the resources and talent after kaizens are done to do some of the follow-up work and having the structure to maintain and continue the improvements that we’ve put in place,” Johnson explains. With the limited resources of a small company, the strain on managers to make improvements, maintain the gains, and keep up with all of their other responsibilities, was slowing implementation. “We were still getting things done but the speed was just not at the level that I’d like to see.”

Leasher now works full-time planning and supporting the execution of kaizen workshops, with a particular focus on developing more line leaders who can use the lean tools to make their jobs easier. This will, the thinking goes, allow them more time to make daily improvements as a regular part of their job. She will also ensure all of the follow-up work is completed and support the company’s 12 other branches as lean is more fully introduced in those locations(see the Rollout Plan below). This process, management expects, should free up even more resources the company can dedicate to supporting the transformation process across the company.

Plumbers Supply Rollout Plan

Building Momentum

So far, Plumbers Supply hasn’t tried to tie the results of its lean efforts to any specific financial metrics. Such is the luxury of a private, family-owned business. Still, margin percentages are up because of lean cost savings and more consistent pricing. Leadership knowledge and development have also benefitted from the initiative.

On the operations side, productivity has increased by over 20% as revenues have grown. In addition, with the switch from a line item to the more customer-oriented 100% complete order fill rate metric, the company now has an actionable standard that will drive further service quality improvement. Dead inventory has also been cleared out.

It’s obvious from the significant progress achieved in a relatively short time and the push into the branch locations this year that Plumbers Supply is in it for the long haul, and the gains will continue to add up. As Johnson often says, “If you can improve at a faster rate than your competition, they become irrelevant over time.

Keep learning with the Leadership Q&A with Jay Johnson, president.

Editor’s Note:  This  Lean Post  is an updated version of an article published on November 29, 2012, one of the most popular posts about this vital lean practice. 

Lean Warehousing and Distribution Operations

Improve a distribution center's efficiency, quality, safety, and space utilization.

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About David Drickhamer

David Drickhamer is a leadership and management writer, editor, researcher, and journalist with over 20 years of experience.

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