are evenly distributed over the busi- need more people, training, time or
ness like butter on bread, less than money; you need a better process.
four percent of the business is caus- Redesign the process so that it’s
ing over 50 percent of the mistakes, impossible, even for an untrained
errors, defects, rework and lost profit. employee, to make the mistake.
The only way to find and fix these Redesign the product so that it’s
process problems is to start counting impossible to put it together incor-
and categorizing the mistakes. rectly. Redesign the service so that
First, start counting every mistake, employees cannot miss a step or do
error, glitch or defect. Then catego- one twice. Redesign the Web site so
rize each mistake and give it a label. customers cannot make a mistake
Where did it occur? Was the error in when ordering. It takes more creativ-
ordering, purchasing, billing, fulfilling ity and thought to figure out how to
or paying? Did it occur in a certain mistake-proof your process, but it
location, machine, plant or shift? will prevent problems forever. It will
Next, summarize the mistakes. A prevent customer calls to the service
short period of data collection will desk. It will prevent the loss of cus-
start to pinpoint the most error-prone tomers to competitors.
processes, steps, machines or whatever. Do not try to do this everywhere,
Then ask, why? Untrained personnel, however. That will only invoke the
not enough staff, or lack of time or dark side of the 4-50 Rule—50 per-
money are the most common wrong cent of the effort will only produce 4
E-a6n8s0w4-e1rs00to8:th E-es 6e80q4u-e1s0ti0o8ns. 8Y/o1u9d/o08n’t 4:17pePrMcenPtaogfeth1e benefit.
Step 4: Repeat
The good news is you can start
today to simplify, streamline and
optimize your business to make it
recession-proof. The bad news is
you will never be done. Products
change. Services change. Markets
change. Technology changes. There
will always be something to simplify,
streamline or optimize.
The economy will recover, but will
you survive until then? These methods
are easy to apply to start trimming the
red ink without cutting corners or killing
the cash cow. When the next downturn
comes, as they always do, will you be
recession-proof?
JAY ARTHUR, is the author of Double Your
Profits and Lean Six Sigma Demystified.
Signup for his free Lean Six Sigma online
lessons at www.qimacros.com/freestuff.html
or reach him at jay@qimacros.com.
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