Open Letter to a Government Secretary
Firstly a 6+ Sigma Government will work to minimize excess inventory. Toyota works very closely with its Suppliers. As a return on that investment, their Suppliers decrease their prices year-over-year.
Move your Suppliers into three categories:
- Strategic Suppliers that could benefit you with just-in-time deliveries,
- Strategic Suppliers that are not capable of just-in-time deliveries, and
- All other Suppliers.
Put your major focus on Suppliers in category 1. These Suppliers are the ones that have products that get consumed relatively quickly such as Office Supplies. Also, just in time works best with products that are consumed at a consistent rate. It’s not that you don’t want a product delivered just in time is that your Supplier needs a consistent rate to optimize their production.
Consequently, the contracts are between you and your Suppliers, constantly push them to increase quality.
A 6+ Sigma Government optimizes processes from customer request and Supplier to solution delivery. Above all, with Profound Knowledge of your processes, you will know which ones to improve that give you the best return. Your government base consists of Value Streams which include processes that include activities. The Value Stream includes all the processes from initial request to final delivery. The Toyota Production System is based on Value Streams.
Subsequently, the Secret of The Toyota Production System is that it creates a system of winning. Everybody at Toyota is involved. Toyota seeks perfection through Continuous Improvement. A 6+ Sigma Government Continuous Improvement program contains three strategic advantages:
- It generates 11 ideas per person per year,
- All ideas generated are either towards a vision or challenge, and
- This brings everyone together to create a culture of winning.
To clarify the government is a system, The Toyota Production System is a 6+ sigma system. The government can benefit from the system improvement efforts the Toyota Production System delivers.
There are many more advantages to the Toyota Production System that I can mention in this short space but, as an aside, I want to make two other points:
- Black Belts average about $1 million of savings each year, and
- 6 Sigma means 3.4 Defects per Million Opportunities or less.
Above all change marches you into the future. Let me help you Build a 6+ Sigma Government System and excel at Operational Excellence, thus creating a government environment that is the pride of all government.
Lean Six Sigma Master Black Belt