For cost saving can we use Lean six sigma methodology

Dear Sameer

 

Lean Six Sigma implementation has many benefits, cost saving being one of the major benefits. Lean Six Sigma helps us improve any process in following ways (I have also mentioned how each one can contribute to cost savings)

 

1. Improve efficiency of the process i.e. removal of 7 wastes from the process. Removal of these wastes means that we are incurring less costs in producing the same number of units (or reduction in per unit cost)

 

2. Improve effectiveness of the process i.e. there are less number of defective products being made which would save costs on rework, warranty and replacement claims and handling customer complaints etc.