Lean Six Sigma Case Studies in Service Industries

Lean Six Sigma in Service

Lean Six Sigma can be implemented anywhere, wherever there is a business process and a problem.

We use the methodology in engineering companies from a simple rack manufacturing company to a complex rocket engine manufacturing company; retail showrooms to back-office processes, computer manufacturers, food manufacturers, construction companies, banks and hospitals.

I am sharing some sample project and the benefits we achieved by implementing Lean Six Sigma methodology in various Non-Manufacturing, Non-Engineering, Service Industries. Also listing down some Lean Six Sigma Case studies in Service industries.

Lean Six Sigma in Retail Industry

  • Increase walk-ins by
    • Changing customer perceptions (pricing and delays)
      • Improving Pricing policies
      • Reducing waiting time (quick response to RfQs, enquiries, small order purchases and billing)
      • Market samples analysis
  • Improving floor space utilisation
    • ‘Sales per Sq.ft’ improvement
    • ‘Sales per staff’ improvement
  • Improving the impact of Visual Merchandise
    • Experimental Validation
    • Sales per Sq.ft display metric improvement
    • Display value per Sq.ft metric improvement
  • Reducing Cost of Operations by
    • Reducing shrinkages
      • System shrinkages
      • Operational shrinkages
      • Cost per employee/cost per sq. ft area
    • Improving Inventory turns
      • Order – GRN excess reduction
      • Order/supplier / purchase team-wise aging improvements
    • Reducing inventories
      • Right-sizing warehouse inventory based on Lean Scheduling
      • Vendor assessment and customised cyclic ordering
      • Reducing request to receipt lead-time for stores (from the warehouse)
      • Optimising purchase process
      • Optimising RoLs (Reorder levels)
  • Improving the shopping experience
    • Customer-Centric Processes from entry to exit
      • Customer-focused facilities – Parking, refreshments, escorting, etc
      • Improving ambience of the outlet
      • Reducing waiting time in billing and packing/delivery counters
      • Customer feedback rating
      • Customer grievances and complaints
  • Improve conversion ratio
    • Reduce ‘no-bill’s by avoiding/minimising stock-outs
  • Enhancing employee involvement
    • Happier employee programs
      • Improving employee loyalty
      • Reducing infant attrition
      • Improving competency score/competency match across the company
    • Defining metrics based on  KRAs and KPIs
      • Customer satisfaction rating
      • Customer feedback rating
      • Customer grievances and complaints

Some More Cases of Lean Six Sigma in Retail Industry

  • Reducing System Faults
  • Determining the sales impact of markdown reductions
  • Determining the sales impact of bundling products with accessories
  • Streamlining the hiring process
  • Mitigate consumer frustration and reduce cost
  • Streamline the item-order cycle
  • Reconfigure the loading dock layout, Eliminate extra handling of merchandise
  • Freight moving from suppliers to distribution centres
  • Reduce cycle time in getting merchandise into the buildings
  • Better handle client account queries and questions over the phone
  • Attribute control in order to find out if an item is either good or defective
  • Identifying factors influencing recycle rates
  • Lowering lead times
  • Supply chain improvements

Lean Six Sigma Case Studies in HR Function

  • A company has reduced its recruiting cycle time by 56% by
    • simplifying the job application and better defining the sales representative position.
    • use of simple technology to streamline some processes
    • by improving the company’s social media presence and
    • Identifying and utilising the most effective talent source for their company.
  • Another company reduced the TAT of the recruitment process by more than 66% by
    • considering the candidates as Customers and defining VALUE from their perspectives
    • eliminating/reducing waiting time – waiting for feedback, indecisions on hold prospects, waiting for offer releases and waiting on application information releases
    • end-to-end process streamlining and re-engineering the recruitment process.

Some more Cases of Lean Six Sigma in HR Function

  • Reducing delays in Truck TAT (Material handling, major focus area Main Gate Entry and Exit Process)
  • Improving on-time arrival of people in the office
  • Improving / Achieving Competency score of the organisation
  • On-time and complete issuance of uniforms & PPE kits to plant staff
  • Improving the robustness of performance management system
  • Reducing safety incident (near-miss and accidents) in the factory and improving the robustness of corrective actions to avoid recurrence of such events
  • On-time settlement of PF benefit for the retiring staff
  • Improving timely completion, 100% coverage of recruit Induction process
  • Improving reliability and on-time redressal of employee grievances
  • Improving adherence to legal and statutory compliances
  • Improving employee satisfaction towards appraisal process
  • Improving on-time availability of agents in telecom
  • Reducing infant attrition rate in sales and operations department

Lean Six Sigma in Finance & Insurance

  • Process Risk assessment and mitigation in a global bank
  • Avoidance of wrong entries in ERP system in a global bank
  • Improving On-time payment to suppliers in a Retail company
  • Achieve 100% Statutory Compliance in a service company
  • Reducing collection TAT and reduce the risk associated with the collection process in an NBFC
  • Reducing TAT of client on-boarding in an NBFC
  • Reducing claim settlement TAT across verticals in a major insurance company (Life, Fire, Motor, Marine, Medical)
  • Improving on-time issuance of policies