Most organizations are focused upon catering to their customers' needs. And in most cases, the processes that are involved in meeting those needs include inefficiencies. They can manifest through defects in production lines, wasted materials and time, and ultimately, higher costs and inferior deliverables. An ongoing objective for any business is to identify and eliminate those inefficiencies.
There are several disciplines that are used to analyze production flows and business processes with the goal of achieving improved efficiency. Both Lean Manufacturing and Six Sigma are proven methods that have been deployed successfully for years. In this article, we'll explore the goals of both disciplines. I'll describe the manner in which Lean Manufacturing and Six Sigma projects are deployed. I'll also explain how both can be blended to bring about even greater levels of efficiency in an organization.
The Goal Of Lean Manufacturing
Lean Manufacturing was created by Toyota. The concept is focused upon the end product that is delivered to the customer and the factors that contribute to that product's value. In essence, any factor that does not contribute value is considered wasteful and therefore, should be eliminated from the process. The original concept focused on seven key areas of waste: defects, overproduction, conveyance, waiting, inventory, motion, and overprocessing. By identifying and eliminating any inputs within those seven areas that fail to contribute value, an organization can deliver products to the end customer more quickly with reduced costs of production.
The Goal Of Six Sigma
Six Sigma takes an alternate approach in the pursuit of a similar goal. The objective is to identify and eliminate inefficiencies in an organization's processes. But, rather than focusing on elements of the production flow that fail to contribute value to the end product, the initiative seeks to find and remove process-related defects. This is accomplished through the collection and analysis of data.
In a Six Sigma project, every element must be quantified and measured in order to establish performance benchmarks. Once a process has been analyzed and the contribution of each element has been considered, the project team formulates a list of potential solutions. After a solution has been implemented, its results are measured against the existing benchmarks to note improvements. The entire initiative is driven by data and rigorous statistical analysis.
Blending The Disciplines
Six Sigma and Lean Manufacturing can be deployed simultaneously within an organization to bring about faster results with greater efficiency. While the former focuses on removing defects, the latter focuses on removing waste. By blending the two concepts, a project team can accomplish both. They can establish performance benchmarks against which to measure process-related changes; they can also use Value Stream Mapping to identify capacity shortfalls, excessive cycle times, and productivity issues.
In essence, Lean Manufacturing is a "top down" approach that provides a broader perspective of an organization's production and design flow. By contrast, Six Sigma is a data-driven method of analysis that provides a closer look at individual processes. Both perspectives are important to achieving company-wide improvements in efficiency. When deployed together, a business can add greater value to the product that is ultimately delivered to the end customer. Defects can be minimized, production costs can be reduced, and customer loyalty can be improved.
As every sector becomes increasingly competitive, it's more important than ever for organizations to streamline their processes while reducing their costs and eliminating defects. A two-pronged deployment strategy that seamlessly blends the principles of Six Sigma and Lean Manufacturing can transform a business and yield startling results.
Lean Manufacturing And Six Sigma
Many companies are struggling to determine which initiative will bring the most impact for their organization.
It is critical for those individuals tasked with making the decision to understand the differences between lean manufacturing and six sigma.
First of all, they are both improvement initiatives. However, they are very different. Both are a collection of various “tools”. For example, lean utilizes the tools of 5S, SMED, value stream mapping, takt time, standardized operations, error proofing, kaizen, line balancing, cellular manufacturing, and many others. Six sigma utilizes the tools of process mapping, FMEA, Cause and Effects Analysis, statistical analysis and process controls, regression analysis, design of experiments, and many others.
Lean manufacturing is a much less structured and is often viewed as the low hanging fruit of opportunities. Lean manufacturing initiatives often employ the Plan-Do-Check-Act (PDCA) model, while Six Sigma utilizes the Define-Measure-Analyze-Improve-Control (DMAIC) model.
When companies combine the methodologies into a “Lean Six Sigma” initiative, most will utilize the DMAIC model and utilize lean tools where applicable. For example, when the six sigma project is at the Improve phase, a line balancing exercise could be used.
The PDCA model utilized with lean is often a quick process compared to the DMAIC model. Lean projects are often completed in hours or days, whereas most six sigma projects will take weeks or months to complete.
The lean manufacturing method is more of a “just do it” approach. The project might be planned, conducted, checked, and acted upon in the same day. For example, a manufacturing line might be changed to a U shaped cell in the morning, and fine tuned in the afternoon.
Maximum improvements are obtained when the tools are not forced into use. The business problem, challenge, or opportunities should point to which tools should be used.
For example, if a business wants to cut cycle time, it could be a six sigma, lean manufacturing, or combined project, depending on the complexity of the issues. If the setup time is the majority of the cycle time, a SMED project or simple kaizen event may obtain the improvement. If the entire supply chain is complex and the problems (opportunities) are not obvious, a six sigma project might be necessary.
The key is to determine the business problem first, and then decide which tools are necessary to solve it.
Most companies employing six sigma conduct the DMAIC phase model. Most of these projects range from a few weeks to several months. However, there is an emerging trend of utilizing the DMAIC model even if the project will only entail the use of lean tools. Proponents of this method believe the DMAIC model adds structure to lean projects, even when used in a quick manner.
Regardless of which methodology a company chooses to use, lean tools should be part of it. Utilizing six sigma tools without lean tools would limit the improvement potential of many projects. Also, lean tools alone will not solve all business problems, and six sigma increases the probability of success.
The bottom line is a company will benefit most to have both lean manufacturing and six sigma expertise. Although it may be difficult to have people with expertise in both disciplines, any expert in lean or six sigma should have a good understanding of the other
If possible, individuals should continue training until expertise is gained in both methods. When there is no bias toward one discipline, it is easier to keep an open mind as well as an understanding of which tools are best to solve a problem.
In summary, let the business problem determine the tools to use, rather than try to fit a tool to a problem.
Both Frank Lucer & Carl Wright are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.
Frank Lucer has sinced written about articles on various topics from Customer Service, Computers and The Internet and Finances. BMGI, one of the leading education and consulting companies in the green belt, six sigma education field, provides volumes of information at http://www.BMGI.com. Frank Lucer's top article generates over 60500 views. Bookmark Frank Lucer to your Favourites.
Carl Wright has sinced written about articles on various topics from Six Sigma. . Carl Wright's top article generates over 480 views. Bookmark Carl Wright to your Favourites.
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