Optimizing Processes That Lose Money
So far, we’ve discussed Stupid Six Sigma Tricks #10: Conflating systems, methods and tools and #9: Confusing breakthrough with continuous improvement. This month, I’ll spend some time on a more subtle, and no less costly mistake that, in its extreme form, we’ll call Stupid Six Sigma Trick #8: Optimizing processes that lose money. “Well,” you might say, “Isn’t that what Six Sigma is all about? Taking unprofitable processes and fixing them or making profitable ones more profitable?” And you would be right. For the explanation, we need to dip briefly into the world of accounting. As your dentist says, “Don’t worry, it won’t hurt much and will be over soon."