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Lean, Six Sigma and the Service Bay

Posted by John Snow on Tue, Mar 11, 2008 @ 04:18 PM
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Six Sigma symbol

What’s the more important trait for a maintenance organization: efficiency or consistency? I pose this as a classic either/or question, when the best answer is probably both. Given the choice however, most people would probably pick efficiency without any hesitation. But they’d be wrong.

The logic behind choosing efficiency is understandable – reducing mean-time-to-repair (MTTR) improves equipment uptime, which increases revenue and profits. Therefore, if MTTR is the key to profits then efficiency must be the most important. (Who cares how the repair gets done as long as it gets done fast.) While focusing on “faster, faster, faster” raises the risk of poor quality, that’s not the reason efficiency is the wrong answer. Rather, I want to challenge the underlying assumption that MTTR is the best key performance indicator (KPI) for tracking aftermarket performance. I hope to demonstrate to you that variability in the maintenance function (still using time as the measurement) is a better KPI for optimizing the service organization.

For more than 10 years, two concepts have dominated the discussions of manufacturing engineers: 1) Lean and 2) Six Sigma (LSS). These practices have proven incredibly valuable to the companies that implemented them but LSS is not just for manufacturing anymore. Lean Six Sigma holds huge opportunity for aftermarket services as well.

I have been talking about LSS with analysts for several years, hoping to see a real dialog begin about the implications for the aftermarket. Unfortunately, none has been willing to take the lead on this topic (probably because analysts don’t offer a solution to the problem). Therefore, Enigma will start the Lean Six Sigma dialog by sharing the lessons we’ve learned from customers, partners and consultants.

In future blog posts I’ll describe the impact that Lean and Six Sigma can have on the aftermarket and explain why consistency is more important than efficiency. I hope this discussion will shine a light on the importance of LSS initiatives for aftermarket services and in the process help readers take away some knowledge that they can apply within their own company. Consistency and efficiency are critical to improving aftermarket revenues and profits. Lean Six Sigma can teach us how to balance these traits and thereby optimize the service organization.

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