MGMT – 500
Abstract
Lean Six Sigma is a methodology that creates processes within an organization to cut waste and improve the company’s performance. However, studies have shown that over the past decade applying Lean Manufacturing and Six Sigma can create problems for companies financially and potential problems for employees. Companies should take great care before implementing a Lean Six Sigma solution because in some instances, going lean can do more harm than good both financially for the organization as well as destroying employee loyalty and moral. The Effect of Lean Six Sigma on the Employee and the Organization The methodology of Lean Six Sigma is the merger of two business tools that includes Lean Manufacturing and Six Sigma. Six Sigma focuses on improving current business processes and performance while Lean Manufacturing focuses on the improvement of the processes of an organization by using highly skilled employees to increase speed and quality. Combining the two methodologies creates an organization that focuses on quality, efficiency and speed to lower operational costs and increase profits. By following the Lean Six Sigma methodology, many companies have attempted to create a lean, waste-free environment ultimately at the expense of the employee and occasionally at the expense of the organization.
Variability and Failing the Lean Test Creating a process is not always the answer to every organization. Organizations attempting to reduce waste may find themselves stuck trying to understand precisely where vital financial cuts need to take place. Variability can actually prevent Lean Six Sigma from working in a business environment and can sometimes impact flow in a negative way (Locher, 2007, p. 54). As demand in many organizations can be unpredictable, many employees will find the need to multitask in order to get the job done. Multitasking itself creates highly
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