Lean Six Sigma Optimization
Wondering “How did Continuous Enterprise Optimization (CEO) come to fruition?” You may be curious about Lean Six Sigma principles. Here’s a brief chronological description.
In the 1930’s, Frederick Taylor developed scientific management (Industrial Engineering) to bring work efficiency to industry. He was able to analyze work tasks by exploring the elements. But, product design and quality were still lacking.
In the 1950’s, Dr. W. Edwards Deming developed statistical process improvement methods for product design and quality. He stipulated 14 key points for supporting a quality culture. Deming brought quality to product design and manufacturing in Japan. The coveted Deming prize for quality is named after him. His successes in Japan were then revered in the United States.
In the 1980’s, quality improvement process consciousness expanded throughout entire enterprises. Customers demanded quality products and services. Total Quality System (TQS) became the best practice in progressive companies worldwide.
At the same time, Bill Smith’s work at Motorola to improve quality and minimize variability popularized Six Sigma. Taiichi Ohno also developed the Toyota Production System (TPS) through continuous improvement and relentless waste elimination. TPS revolutionized the automobile industry in Japan.
Total Quality Management (TQM) became the norm in the 1990’s. Using lessons learned from the Toyota Production System, Womack and Jones introduced Lean Manufacturing into several industries in the United States. Dr. Michael Hammer expanded process improvement to the entire enterprise with Business Process Reengineering. Continuous Measurable Improvement became a cornerstone in the defense industry to achieve quantifiable results.
In the early 2000’s, companies started to promote and practice Lean Six Sigma principles (LSS). They deployed the Lean process improvement and waste elimination concepts, tools and techniques. They also deployed the Six Sigma quality improvement and variability minimization concepts, tools and techniques. Continuous Service Improvement began in the public sector with similar concepts and tools. A fine example is the city of Ft. Wayne, Indiana.
Continuous Enterprise Optimization (CEO)
In 2009, Ed Lai, PE, MSIE and Rosalene Glickman, Ph.D. recognized the power of combining Optimal Thinking with Lean Six Sigma concepts, tools and techniques. While working with individuals and corporations, they had observed the erosion of successful Lean Six Sigma projects. Many companies were no better off.
Without Optimal Thinking, even the best results were unsustainable. As a result, they jointly developed Lean Six Sigma Optimization. While developing LSSO, Ed and Rosalene created a new universal paradigm to achieve optimum results for the entire enterprise. This is when Continuous Enterprise Optimization (CEO) was born.
In the Optimal Thinking workplace, Continuous Enterprise Optimization provides the best concepts, tools and techniques to optimize quantifiable results. CEO provides optimal contingency plans to deal with the consequences of failure. The organization is fully prepared for risk and leverages the best opportunities for success.
Employees focus on the highest priorities. They pursue the most important business challenges. Employees develop optimal strategies and do their best, regardless of the circumstances.
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