Lean Six Sigma to Sustainability in Business


Posted by: meikah | 17 March 2008 | 9:36 pm

Over at GreenBiz.com, Patricia Calkins shares smarter ways to go green and become sustainable. She outlines seven ways to sustainability in business. First is exploring the entire value chain of your business, and on the second spot is using disciplined, quantitative analysis to identify your best opportunities, specifically Lean Six Sigma.

lean six sigma and sustainabilityAnalytical tools and methodologies developed for proven quality management programs like Lean Six Sigma can help you identify problems and opportunities that will produce the biggest benefits in the shortest time frame.

Pareto charts, for example, help focus attention on the small number of sources that cause the biggest problems. The chart is a tool based on the famous Pareto Principle — best known as the “80-20 rule,” which was named for Vilfredo Pareto, the Italian economist who noted that 80 percent of the income in Italy went to 20 percent of the population.

A number of organizations have also developed environmental calculators to help businesses and consumers assess their environmental impact on a number of key factors, including paper use. These calculators provide information that can facilitate the development of smart green projects.

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Related post:
Pareto Chart and Six Sigma


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Filed under: Lean Six Sigma, Pareto chart, Sustainable Business

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Pareto Chart and Six Sigma


Posted by: meikah | 5 March 2007 | 3:41 am

If your organization is going though some quality improvement, I’m sure you have asked the following questions:

  • What is the largest issue facing your company or organization?
  • What 20% of sources are causing 80% of the problems?
  • Where should we focus our efforts to achieve the greatest improvements?

These questions can be answered by using a Pareto chart, also called the 80/20 Rule. The assumption is that most of the results in any situation are determined by a small number of causes.

For example, 80% of process defects arise from 20% of the process issues or 80% of delays in schedule arise from 20% of the possible causes of the delays.

BusinessKnowledgeSource.com shares that a Pareto chart:

…is a type of bar chart where the values being plotted are arranged in descending order.

…graphically summarizes and displays the importance of the differences between different groups of data.

…is constructed by splitting your data into groups. These groups are also known as segments, bins or categories. The left-side vertical axis of the Pareto chart is then labeled Frequency, Cost or some other unit of measure depending on your data.

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Source:
BusinessKnowledgeSource.com Manufacturing Info, “What is a Pareto chart and how is it used in Six Sigma” with link provided by Six Sigma Zone

Filed under: Data, Pareto chart, Statistics, Tools/Toolkits

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