Best Buy Merging Lean Sigma with Innovation Jay Rao
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At Best Buy, the Lean Sigma philosophy is used as a standard operating model. It is an integrated approach to business improvement. The main goal is to drive innovation and efficiency, simultaneously, from top to bottom. The company’s lean process is a series of five-step actions, called the five Ss. 1. Start with Significance: Identify problems and opportunities, then ask “why not?” 2. Solve by Ship: Implement the solution quickly, test it with users, and learn from their feedback.
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I used my 17-year experience as a Lean Six Sigma Excellence Coach and Innovation Executive as a case study writer to support a client in this process. The client had launched their best-in-class brand new product that was supposed to change their product line overnight. Best Buy was looking for an innovation partner and Lean Six Sigma Excellence Coach to come up with a path for their new product to take their product line to the next level. I started working with the client to identify some root cause
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Lean manufacturing refers to the design principles and methodologies used by Toyota, Mazda, and many other Japanese manufacturers to reduce waste, streamline operations, and improve quality in a highly competitive industry. These principles include the elimination of waste and defects, the implementation of Kaizen, and continuous improvement. navigate here These principles have proved very useful to Best Buy, which was once an iconic company but suffered a decline in reputation due to poor practices such as excessive product mix, non-adaptation to changes, and outsourcing.
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At Best Buy, innovation is our foundation. We’re pushing for continual learning and improvement across all levels of the organization — not just in research and development, but also in procurement, customer service, and even the manufacturing floor. With this spirit, we decided to merge lean sigma with innovation. In short, lean sigma is a discipline designed to improve processes to produce high-quality, high-value products and services. Innovation is a process that allows us to create new products and services that provide our customers with what they really want.
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As the Lean Sigma method is very popular nowadays, Best Buy was no exception. Their success story began when they realized that their operations were not working as they should and were suffering from a lot of waste. The idea was to streamline processes and make them more efficient so that they would make more money in the long run. As soon as they realized the effectiveness of Lean Sigma method in solving their problems, they decided to bring it to the front and start implementing it. They began the journey by creating a Lean Sigma Center of Excellence in
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“I’ve worked with some incredible innovative companies, but what is unique about Best Buy is its approach to innovation. When we started this process, we found out that the company had an amazing history of innovating within its current supply chain network. The company already had a strong culture of continuous improvement, and its Supply Chain Excellence organization is a perfect model for innovation. The company recognized that its suppliers were the main innovators in its business and that this trend could potentially be leveraged. So, they built a team around this and started
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Best Buy has been investing heavily in the areas of Lean Sigma and Innovation since the turn of the century, and it’s no surprise that the company has been consistently ranked as one of the best in these fields in recent years. In 2014, the company published its fifth annual report on Lean in the Business, which documented its successes in each of these areas over the past year. Despite growing competition, Best Buy has remained a leader in both Lean Sigma and Innovation. It was recently featured