The core concepts of lean plus six-sigma

By admin • on March 21, 2009

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Core concepts stretching into the distance Lean manufacturing is a management philosophy focusing on reduction of the seven wastes (Over-production, Waiting time, Transportation, Processing, Inventory, Motion and Scrap) in manufactured products or any type of business. By eliminating waste (muda), quality is improved, production time is reduced and cost is reduced. Lean “tools” include constant process analysis (kaizen), “pull” production (by means of kanban) and mistake-proofing (poka-yoke). Lean, as a management philosophy, is also very focused on creating a better workplace through the Toyota principle of “respect for humanity.”

The five core concepts of lean are:
1. Specify value in the eyes of the customer
2. Identify the value stream and eliminate waste
3. Make value flow at the pull of the customer
4. Involve and empower employees
5. Continuously improve in the pursuit of perfection.

And the key lean manufacturing principles are:

Perfect first-time quality – quest for zero defects, revealing & solving problems at the source
Waste minimization – eliminating all activities that do not add value & safety nets, maximize use of scarce resources (capital, people and land)
Continuous improvement – reducing costs, improving quality, increasing productivity and information sharing
Pull processing: products are pulled from the consumer end, not pushed from the production end
Flexibility – producing different mixes or greater diversity of products quickly, without sacrificing efficiency at lower volumes of production
Building and maintaining a long term relationship with suppliers through collaborative risk sharing, cost sharing and information sharing arrangements.

Six sigma kicks in when undertaking the drive for perfection by reducing variation. Note that variation is all around us, especially in nature. Variation is everywhere

Why Lean and Six Sigma

Six Sigma will eliminate defects but it will not address the question of how to optimise process flow
Lean principles exclude the advanced statistical tools often required to achieve the process capabilities needed to be truly lean
Each approach can result in dramatic improvement, while utilizing both methods simultaneously holds the promise of being able to address all types of process problems with the most appropriate toolkit.

For example, inventory reduction not only requires reducing batch sizes and linking operations by using Lean, but also minimizing process variation by utilizing Six Sigma tools.

Resources
This is an excellent presentation (pdf file) which describes:
1. The origins of Lean and Six Sigma,
2. What makes Lean Six Sigma effective,
3. How organizations are implementing it,
4. Some keys to success.

And here and here are some free chapters from leading Lean Six Sigma publications.

Finally, this article (pdf file) offers a useful comparison of not only Six Sigma and Lean but also of the Theory of Constraints.

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Comments

By Joe on June 13th, 2007 at 6:47 am

You idiot! Don’t you understand that lean six sigma does not exist, apart from in the minds of the con-men that run the whole consulting industry surrounding these useless buzz-words. In my experience, lean and six sigma sucks, doesn’t work and is generally crap. Write about another more useful subject you bozo.

By Joe on June 13th, 2007 at 1:47 am

You idiot! Don't you understand that lean six sigma does not exist, apart from in the minds of the con-men that run the whole consulting industry surrounding these useless buzz-words. In my experience, lean and six sigma sucks, doesn't work and is generally crap. Write about another more useful subject you bozo.

By Bill on January 21st, 2008 at 10:44 pm

I agree with Joe to a point, but would state my position a little less radically. I believe the essence to a QUALITY product is communication and each companies communication process will be different. The Toyota principle is hogwash as its the overworked personnel that actually hide bad quality and waste. Let companies pay for ALL labor (regular & overtime) and see where the bottom line actually lies.

By Bill on January 21st, 2008 at 4:44 pm

By ram lonkar on March 28th, 2008 at 11:33 am

Lean six sigma are the best methodologies. these are for improvements. these methodologies are nothing but common sense & an ability to reason. well, common sense is not so common & these methodologies are about change & that’s why people find it difficult and not feasible. Use it to find the usefulness.

By ram lonkar on March 28th, 2008 at 6:33 am

Lean six sigma are the best methodologies. these are for improvements. these methodologies are nothing but common sense & an ability to reason. well, common sense is not so common & these methodologies are about change & that's why people find it difficult and not feasible. Use it to find the usefulness.

By Rich on June 28th, 2008 at 8:25 am

I can not believe CEOs buy into this crap. It is short term gains at the expense of long term viability. Motorola invented it and they just sold off their phone division which is akin to Ford selling its car division. Gateway went to pasture, GE is on the rails and 3M lost its competitive advantage. Give me a break Mr. CEO stop chasing platitudes and start taking a pragmatic approach to managing our company.

Signed, your employees

By Rich on June 28th, 2008 at 3:25 am

Signed, your employees