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Six Sigma is a management-driven companywide business initiative to generate breakthrough (innovative) results in business performance Six Sigma is a focus on quality that strives for near perfection It is a disciplined, data-driven approach and methodology for eliminating defects by driving toward six standard deviations between the mean and the nearest specification limit of a product or process Six Sigma can be applied across businesses and industries from manufacturing to services Here are a couple of examples: Ford Motor Company began its Six Sigma push in 1999 when the director of quality for Ford s global truck business began looking for new ways to improve quality Other companies were quick to jump on the bandwagon According to an IBM Business Value Study, At Caterpillar, stagnant revenue growth prompted the company to undertake a massive transformation in January 2001 Through its Six Sigma initiative, the company developed a strategic vision that outlined a roadmap for change based on fact-based analysis Caterpillar s initiative also led to product innovations
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like its phenomenally successful low-emissions diesel engine and to redesigned processes including a streamlined supply chain By 2005, revenues had grown by 80 percent [11] The work processes tied to Six Sigma are Define, Measure, Analyze, Improve, and Control (DMAIC) It is important to note that Six Sigma is a business initiative, not a quality initiative The theory is that if you improve business processes and work flow, then quality will follow
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What Is Lean
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Lean (the term) was first coined in the late 1980 (or 1990, depending on which article/ book you read) Lean is a system (or set of tools) that thrives on change and flexibility and focuses on reducing waste in the workplace Lean can be used for organizing and managing projects, product development, ongoing operations, and supplier services Many companies and organizations use Lean principles to reduce defects, streamline processes, reduce manufacturing space, and improve employee performance Specifically, Lean seeks to eliminate wait time between production stations, over processing (for example, too many steps in the process), and reduce excess inventory Lean also seeks out employee creativity to help solve problems and increase productivity According to the Lean Enterprise Institute website, Many of the key principles were pioneered by Henry Ford, who was the first person to integrate an entire production system, under what he termed flow production Following World War II, the Toyota Motor Company adapted Ford s principles as a means of compensating for its challenge of limited human, financial, and material resources The Toyota Production System (or TPS), which evolved from this need, was one of the first managerial systems using lean principles throughout the enterprise to produce a wide variety of products at lower volumes and many fewer defects than competitors [12]
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Your manager comes to you and says he wants his department to Go Lean, and you have been selected to be the project manager to implement the quality initiative The very next question from your manager is, What is the expected completion date for this project What is your answer
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A Six months from today B You need more information For example, is this project part of an overall
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C One year from today D On the Monday after Easter
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Answer: B You need more information because Lean must have top management sponsorship with companywide operational-level commitment, not just commitment from a single department Lean implementation looks at quality problems throughout the operation It requires systemwide focus and should be implemented across the entire organization
Lean should be viewed as a culture change (developed over time) Lean is the set of tools that assist in the identification and steady elimination of wasted time, lost productivity, scrap, or rework When waste is eliminated quality improves while production time and cost are reduced Examples of other tools are Value Stream Mapping, Five S, and Kanban (pull systems) Note that Lean can only happen with planning, organization, and high-level management commitment to provide the resources needed to succeed
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