Six Sigma provides benefits no matter which industry it is being used, even if it is the foodservice industry. This is particularly true for restaurants. But how exactly can a restaurant use Six Sigma to its benefit? Here are four use cases that can help paint the picture.

1. Improving Efficiency

Focussing on efficiency is different depending on what restaurant it is. For instance, If it is a fast-food joint, the food needs to be prepared at a quicker pace in order to serve customers and make deliveries faster while making sure to reduce costs. Efficiency for owners of a dining establishment will pay attention to providing customers with a high-quality dining experience in the most efficient manner possible, from the service to the food.

2. Increasing Profits

A big part of managing a restaurant is making sure there is minimal inventory waste. Because of the tools and techniques provided by Six Sigma, there is greater control of inventory, allowing for the reduction of waste and minimization of costs. For instance, Six Sigma’s tools and techniques can allow restaurant managers to anticipate how busy the restaurant will be on a particular day. They can do this by analyzing the data collected over a specific period of time. This can allow restaurant managers to order the exact amount of inventory needed for that day to reduce waste and realize more profits.

When it comes to service delivery, staff are a critical component. The level of customer service is directly proportional to sales. Six Sigma can help restaurants improve customer service in order to improve sales through the DMAIC methodology. For instance, proven methods of enhancing customer services can be embedded in the Control phase while the restaurant staff is being trained in DMAIC

Customer service is not the only thing that has a direct effect on sales. Marketing does too. Using Six Sigma’s data-driven approach, restaurants can measure and analyze data to target their ideal customer with the right marketing strategy. This way, resources are not wasted on targeting the wrong people and there is a good return on investment (ROI). As more data from the marketing campaign comes through, the strategy can be continuously improved based on further analysis to achieve an even greater ROI.

3. Testing New Products

Most times, if restaurants want to see if customers will like a new menu item, they just put it on the menu then see what happens. However, Six Sigma uses a different approach. Restaurant managers can look at the data (e.g. accounting data) to see if the product they just introduced is increasing sales enough to warrant a permanent spot on the menu.

4. Reduced Costs

Established methodologies like Six Sigma do a great job of strengthening relationships in key business areas to cut costs. For instance, if the restaurant’s accountant has an efficient and standardized approach to record-keeping that is highly-accurate, they can minimize costs and save the restaurant a significant amount of money.

Conclusion

Six Sigma can help restaurants and other businesses in the foodservice industry in many ways. As you can see, it works well to help restaurants improve efficiency, increase profits, test new products and reduce costs. All of these use cases help the business become more profitable and gain a competitive edge.

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What constitutes a good system of measurement? It must be data driven, it must measure the right things, and it must be visible to everyone associated with the process (directly and indirectly).

We’ll look at all of these in turn.

The Definition of Effectiveness

The basic definition of effectiveness in the context of Six Sigma implementation is as follows:

Measurements that show how well process output(s) meet the needs of customers, both internal and external.

In other words, a process output that meets the Critical-to-Quality Trees (CTQs) of the customer and creates customer satisfaction that contributes to the effectiveness of the process. Those outputs and the actual level of performance can be measured and in fact, must be measured to ensure that the process conforms to Six Sigma requirements.

It should be noted that some Six Sigma experts disagree about the appropriateness of using the term “customer satisfaction” when defining effectiveness. They argue, among other things, the following:

• Satisfaction is not a data-driven business measurement
• Satisfaction is an emotional state
• Satisfaction does not take into account other aspects such as price, brand or quality
• Satisfaction has no relation to business goals and strategies

These practitioners opt instead to focus on customer value, as they consider it a more objective and measurable standard of performance. We are not going to go into a detailed discussion of the relative merits of each of these viewpoints, but it is important that you at least have some awareness that differences exist.

Regardless of which definition you prefer, to determine effectiveness you must decide what level of performance is required. Think in terms of:

• Target value – How big, how long, how wide, and so forth.

• Variation – How many are bigger or smaller, how many are longer or shorter, how many are wider or narrower, and so forth.

• Range of Tolerance – What is the maximum acceptable amount bigger or smaller, maximum acceptable amount longer or shorter, maximum amount wider or narrower, and so forth.

When you have determined what level of performance is required you can then select the appropriate measurements to ensure that the specific level is consistently achieved.

Key Measurements of Performance

The key measurements of performance that you select when measuring six sigma implementation efficacy will vary depending on things like:

• The customer CTQs
• The product
• The service
• Market share
• Competitive Pressures

In all cases, the performance measurements of six sigma implementation must be data-driven and objective rather than qualitative and subjective. Examples might include:

• On time delivery
• Accuracy
• Defects
• Returns
• Added/optional services or features
• Number of sales
• Close rate for sales leads
• Weight of product
• Quantity of product
• Market penetration
• Number of distributors/retailers
• Repeat sales

Once you have made a list of several performance measurements to track regularly, you are ready to move on, right? Wrong!

Determine the Right Combination of Measurements

It takes more than just a list of performance measurements to properly measure the effectiveness of Six Sigma implementation. Each individual measurement may be useful and have some value, but to measure the overall effectiveness of process improvement activities it is critical that you put together the right combination of measurements.

You have to measure the right thing to get the right results. For instance, if you measure the speed of production but not the quality of production you can quickly end up with the fastest production line around that is churning out low quality products. Or, if you measure the dollar value of sales but not the repeat sales from each customer, you can end up with high-volume sales people who don’t pay close enough attention to customer service, leading to customers who take their business elsewhere.

If you measure the wrong things, or measure individual things out of proportion to each other, you will create results that are not in line with your expectations and that do not fulfill the requirements of Six Sigma process improvements.

Visibility is Important

Remember that the people who use a process have a strong need to understand how and why their efforts are essential, and to track their performance. The key measurements you select to determine effectiveness of your six sigma implementation are also valuable for communicating this important information to them. This is a powerful way to motivate the right behaviors that will institutionalize Six Sigma process improvements.

The best methods of communication are those that are accessible, visible, and clearly illustrate performance levels at a glance. Some of the most common tools for making measurements highly visible include:

• Charts
• Graphs
• Tables
• Illustrations

Some organizations print large copies of such things and post them in various places around the office or facility. Others place them on the home page of their company intranet or web portal. Still others push them out to employees via e-mail, newsletters, video monitors, broadcast announcements, and similar methods. Choose the method(s) that work best for your business and your employees for an effective six sigma implementation that’s measurable to boot.

Learn more information about 6Sigma.com’s Lean Six Sigma training coursework, available as classroom, onsite, or six sigma online training options.

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What is Value Stream Mapping?

This visual tool creates two maps (current state and future state) of the complete end-to-end flow of a product or service through the value stream. Comparing and contrasting these two maps helps to understand the course of materials and information, and uncover wasteful actions (or inactions) that reduce efficiency and waste money.

VSM takes into account everything related to the value stream, not just one or two processes. It starts at the beginning and works through to the end, charting a comprehensive path that includes every single direct and indirect influence. It makes waste and problem areas easy to spot by showing gaps between current and future states. It does not provide solutions, but rather provides information to identify and select appropriate Lean Six Sigma projects.

Is VSM different from standard Six Sigma Process Mapping?

Yes. VSM considers a much broader range of information and delves deeper into the details of both direct and indirect components of the value stream. Some practitioners describe VSM as looking at the “forest” of an entire system rather than just a specific “tree” or process within that system.

The following table offers a comparison between the key characteristics of Value Stream Mapping and Six Sigma Process Mapping.

How does VSM help to identify Six Sigma Projects?

VSM is a very effective way to identify Six Sigma projects because it is a comprehensive end-to-end map of the entire value stream. It allows you to see all parts of the system, not just individual processes directly related to creation and delivery of a product or service. VSM uncovers waste and problems that otherwise would remain obscured because they exist in functions or areas that have a support role in the value stream, such as management systems, information systems, administration, etc.

One of the key reasons VSM is so effective is that it illuminates the flow of decision-making in the value stream as well as the actual flow of processes that produce the product or service. Many companies who use VSM find that a great deal of waste lies within the decision-making arena, and without VSM, these problems would likely continue unnoticed.

VSM Step #1 – Pick a Value Stream to Map

The first step is to pick a value stream to map. A manufacturing company might choose a value stream related to making a particular product or category of products, while a service-oriented company might choose a value stream related to a particular product line or family of services.

In either case, the value stream chosen for VSM does not necessarily have to be one which is struggling or has readily apparent problems. For example, Toyota has publicly stated its belief that VSM must be applied to a value stream at least seven separate times to maximize the stream and develop proficiency in VSM application.

VSM Step #2 – Map the Current State of the Value Stream

Once the value stream is selected, the next step is to map the current state of that value stream. This map goes into great detail and includes comprehensive information about all aspects of the value stream, including:

• Direct components and processes
• Support functions and peripheral components
• End-to-end flow of materials
• End-to-end flow of information

VSM Step #3 – Map the future state of the value stream

This step takes a future view, mapping the value stream to show its desired future state. It is a map of how the value stream should flow, including the same aspects of the current state map from the previous step. With both maps in hand (current and future) it is possible to see where gaps exist between what is and what should be so that those gaps can be addressed in the next step.

VSM Step #4 – Close the gap

With gaps and problems identified, potential changes can be considered and put into motion. Most VSM processes uncover far more gaps than it is possible to address all at once, so it is critical to evaluate the information and prioritize actions.

Some gaps are quite easy to fix with a minimum of time, energy and expense. For example, maybe a particular step in the manufacturing process requires a worker to walk 30 feet to pick up materials but those materials could easily be stored in a location that is only 10 feet away. The reduced distance makes the worker more efficient and is an easy fix.

Some gaps are more complex or have less obvious solutions, so they become candidates for a Six Sigma project. Having a list of candidate projects makes it much easier for an organization to allocate existing resources and plan for future requirements.

Learn more information about 6Sigma.com’s Lean Six Sigma training coursework, available as classroom, onsite, or online options.

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The answer lies in a newer 6 Sigma methodology known as Design For Six Sigma (DFSS). The specific steps of DFSS can vary quite a bit, depending on the company, consultant or training group using it. In this article, we will help you better understand how DFSS differs from other methodologies, and discuss three of the most popular sets of steps to perform DFSS.

How is 6 Sigma DFSS Different?

DFSS is expressly intended for designing or re-designing a process from scratch. It is highly data-driven in its approach, but allows a slightly lower Sigma level (minimum 4.5) than DMAIC methodology. This lower level is acceptable since the end result is a new product or service launch.

The following table gives you an “at a glance” view of how lean 6 sigma processes DFSS and DMAIC compare to each other.

DFSS

• Used to design or re-design a process from scratch
• Phases/steps can vary widely, depending on the company, consultant, or training group
• Data-driven, analytical, and highly structured
• Goal Sigma level 4.5 or higher
• Several methodologies to choose from, based on the needs of the business or industry

DMAIC

• Used to fix and improve an existing process
• Phases/steps are well-defined and widely recognized
• Data-driven, analytical, and highly structured
• Goal Sigma level 6.0 or higher
• Single methodology with little or no variation

What Lean 6 Sigma Methodologies are Used in DFSS?

There are a number of DFSS lean 6 sigma methodologies in common use, the most popular of which are:

• DMADV – Define, Measure, Analyze, Design, Verify
• IDOV – Identify, Design, Optimize, Validate
• DCCDI – Define, Customer, Concept, Design, Implementation

Each of these methodologies may be altered or revised, usually depending on the DFSS practitioner and/or the industry in question. For the purposes of this article, however, we will focus on the three main versions listed above.

Lean 6 Sigma: DMADV

This methodology is quite popular among DFSS practitioners. It is generally considered one of the closest in concept and application to DMAIC, which is probably why it is so often used by those who are already comfortable with that traditional lean 6 sigma method.

The specific steps of DMADV are as follows:

• Define: In this first phase, the project goals are defined. Strong consideration is given to the needs of internal as well as external customers, with the boundaries of the yet-to-be designed process clearly outlined. It should be noted that these boundaries should be firm and well defined, but they may be adjusted later if necessary as the new process unfolds and becomes clearer.

• Measure: This phase is at the core of every 6 Sigma project, and the DMADV methodology is no exception. In some cases, gathering the necessary data will be a bit easier because the affected customers (internal and external) are not already vested in an established process and they are more willing to be open and honest about their real needs. In other cases, however, the necessary data is more difficult to gather, especially if the new process is one that will supplant another well established process.

• Analyze: In this phase, the project team carefully considers the data and various options for the new process, with the focus on determining which option(s) best meet customer needs. It is extremely important to remember that there are two sets of customers to consider – internal and external.

• Design: With information from the first three phases sell understood, the project team moves on to actually designing the process. The process must be written and described in specific detail, again paying attention to the needs of both internal and external customers.

• Verify: In this final phase, the newly designed lean 6 sigma process is tested thoroughly to ensure the actual performance meets the project goals and meets the needs of internal and external customers. Tests are performed in small, controlled experiments before a full-scale launch.

DMADV

Define

• project goals
• project boundaries
• needs of internal and external customers

Measure

• data driven
• internal and external sources

Analyze

• statistical analysis
• process options
• best fit for internal and external customer needs

Design

• design the process
• detailed information and specifics
• appropriate to customer needs

Verify

• test for performance
• test for customer needs
• controlled experiments prior to full scale launch 

Lean 6 Sigma: IDOV

This lean 6 sigma methodology has a strong following in the manufacturing industry. Its four phases may seem at first glance to be less comprehensive than the five phases of other methodologies, but when used properly that is not the case.

The specific steps of IDOV are as follows:

• Identify: In this first step, the project team must clearly identify the intended customer(s) for the new process. Detailed specifications are collected and used to determine the characteristics of the process that are critical to quality (CTQ).

• Design: This step uses the CTQs as key information for listing functional requirements for the process under development. The requirements are then used to create several potential processes, which are evaluated and narrowed down based on one or more selection processes.

• Optimize: This step is highly data driven, as is expected in any Six Sigma project. Statistical tools, modeling, simulations and controlled testing are employed to ensure the process design will achieve optimal performance.

• Validate: In this final step, the project team thoroughly validates the designed process, going back to the CTQs identified in the first step to ensure they will all be met.

IDOV

Identify

• intended customers
• specifications
• CTQs

Design

• use CTQs to determine functional requirements
• create process options
• evaluate options
• select best option

Optimize

• data-driven
• statistical analysis
• modeling and simulations
• maximize performance

Validate

• test for CTQs
• ensure compliance

Lean 6 Sigma: DCCDI

This methodology is growing in popularity across multiple industries. Despite the different letters in the acronym, many practitioners find DCCDI to be similar in practice to DMADV. There are enough difference between the two, however, for DCCDI to stand on its own as a distinct lean 6 Sigma methodology.

The specific steps of DCCDI are as follows:

• Define: This first step is where the goals of the DFSS project are identified and delineated clearly. This is important, as it lays the foundation for subsequent steps in the methodology.

• Customer: This step involves detailed analysis of customers and their specifications for the end product of the process to be designed. The analysis should include both internal and external customers.

• Concept: In this step, the first concepts of the new process are developed. There are generally several concepts to start with that are then narrowed down through detailed reviews and various selection processes.

• Design: This step takes the process design that emerges from the previous step and subjects it to rigorous testing to ensure it meets the needs of all customers. It must conform to required business specifications as well.

• Implementation: This final step takes the newly developed process and brings it to full scale use. The specific method(s) used in implementation will vary depending on the process, the industry and the organization.

DCCDI

Define

• project goals

Customer

• analyze specifications
• internal and external

Concept

• initial process designs
• detailed reviews
• selection process

Design

• test for performance
• test for customer specifications
• test for business specifications

Implementation

• scale up from test levels
• launch and implement

Learn more information about 6Sigma.com’s Lean Six Sigma training coursework, available as classroom, onsite, or online options.

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