Lean or six sigma ,are they very important for a hospital administration or are they some new terminology by which some are making money ?

six Sigma = Culture + Quality {Improve performance on customer critical to quality requirements}

Lean = Speed + Low Cost {Reduce Waste and increase process speed, It depends on Kaizen events to identify then to reduce or elimnate non adding value steps.

From my own side Six Sigma quality enable lean speed, It's life style & you can apply it at any where, in your house, factory, School & hospital.

After apply it you will discove a huge Cost Saving & Waste reduction with smooth, easy & organized operations.

If you need references or detailed informations, just ask me and I'll send it to you be e-mail ASAP.

Lean and six sigma must be used in any organization to improve quality, qunatity and reduce cost of product or service.

It is not just a terminology to make money.

Moayad succinctly captures individual definitions, however6 Sigma and Lean are used as inter-related processes, ergo the Lean6 Sigma initiatives working around the world at any given time. Allow me to add another dimension, too:

6 Sigma is ideally suited to processes where hard numbers can be directly obtained and immediate resluts are not imperitive. So, think component defects per x thousand units or the number of widgets shipped per hour.

Lean is far better suited to situations where measurements are derivatives of actions or process AND speed of improvement is highly important. Think of employee engagement or customer loyalty.

Lean6 Sigma adds the rigour of6 Sigma measurements to the back-end of a Lean project. This way one develops both the most accurate measurement types and can show whether improvements were statistically relevant to the intiative undertaken, or at the other extreme, perhaps just an accident of timing.

As both a6 Sigma and Lean Green Belt I've experienced all of the above, from both internal and external persepctives, and their value is without question IF, and only IF, the company that is seeking improvements has complete commitment from the CEO on down the corporate ladder. Lacking that, they like any number of other management techniques, trends, or fads, and become a pit for money and time.

If6 Sigma and/or Lean actually were fads or shams then neither GE nor Toyota would have undertaken, and seen subsequent improvements, from them.

BTW, you asked a great question here Shujat.