Implementation of the Lean Six Sigma framework in non-profit organisations: A case study

Abstract

The majority of Lean Six Sigma applications have focused on private industry, manufacturing and healthcare. It has not yet been applied to non-profit organisations (NPOs). The objective of most NPOs is to support public interest projects. To achieve this mission, most NPOs rely on charitable donations, which can be a scarce commodity. Ways to efficiently utilise scarce resources are usually overlooked. In the case study presented here, Lean Six Sigma tools and principles were used to increase the efficiency of resource management in physical disabilities services. A small machining shop that repairs, produces and customises devices for the physically disabled was the target; the goal was to make its production process more efficient. Use of DMAIC methodology decreased the non-value-added process by 70%. Finally, benefits of, experiences with, and extensions of Lean Six Sigma as applied to NPOs are discussed.

Keywords:

• DMAIC
• Lean Six Sigma
• non-profit organisation