Lean Six Sigma Case Studies Government

Lean Six Sigma Case Studies Government-38
Unlike the profit-maker, the government agency is foremost concerned with its customers, existing to serve their interests.

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Improvement efforts, such as Six Sigma projects, completed by government agencies therefore can carry a double impact.

The process within the government agency is made more efficient.

In this way, affected private sector entities can operate with both a minimum number of regulations and with efficiently administered regulations, lowering their compliance costs.

The efforts of a government to reduce and improve regulations are often referred to as .

Because the reduction in turnaround time equates directly to customer waiting time, this saving translated directly to the transport companies’ bottom line. Internally, the saving manifested itself as a leaner, shorter process; staff members were able to spend more time on value-added work.

Externally, the savings resulted in reduced waiting time for permits, enabling improved achievement of delivery deadlines.If good data is available, Six Sigma may be useful.If not, Lean or other continuous process improvement techniques may be more appropriate.And in so doing, the agency is helping drive down the costs of its important customers – a win-win situation.This type of red tape reduction can be illustrated using the heavy vehicle permits example.Hence, improvement efforts ultimately center on improving the bottom line of the organization.A Cause-and-effect Relationship for Profit and Not-for-profit Organizations – Source: The Balanced Scorecard (Harvard Business School Press, 1996); Balanced Scorecard Step by Step for Government and Nonprofit Agencies (Wiley, 2003)(Wiley, 2003), proposed a different cause-and-effect relationship for government and nonprofits. Rather, the entity exists “to serve” and Customer is elevated to top billing.Far from being unable to plan and implement improvement methodologies, government agencies have a unique opportunity to benefit from doing so.While it is true that improvement efforts can be frustrated by changes in administration and that processes are subject to change, there are still many opportunities for those with an eye for improving customer relations.Looking at this red tape reduction in terms of the Balanced Scorecard shows an opportunity to refocus the scorecard for government environments.When Robert Kaplan and David Norton first proposed the scorecard with its four perspectives –, Financial, Customer, Internal Business Processes, and Learning and Growth – they were primarily looking through the lens of a profit-making entity.

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