Lean Six Sigma
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Lean Six Sigma is a method that uses a collaborative team effort to improve performance by systematically removing waste and reducing variation. It combines
lean manufacturing Lean manufacturing is a production method aimed primarily at reducing times within the production system as well as response times from suppliers and to customers. It is closely related to another concept called just-in-time manufacturing (J ...
/
lean enterprise Lean enterprise is a practice focused on value creation for the end customer with minimal waste and processes. The term has historically been associated with lean manufacturing and Six Sigma (or Lean Six Sigma) due to lean principles being popu ...
and Six Sigma to eliminate the eight kinds of waste ( ''muda'').


History


1980s–2000s

Lean Six Sigma's predecessor, Six Sigma, originated from the
Motorola Motorola, Inc. () was an American multinational telecommunications company based in Schaumburg, Illinois, United States. After having lost $4.3 billion from 2007 to 2009, the company split into two independent public companies, Motorola ...
company in the United States in 1986. Six Sigma was developed within Motorola to compete with the ''
kaizen is concept referring to business activities that continuously improve all functions and involve all employees from the CEO to the assembly line workers. ''Kaizen'' also applies to processes, such as purchasing and logistics, that cross orga ...
'' (or lean manufacturing) business model in
Japan Japan ( ja, 日本, or , and formally , ''Nihonkoku'') is an island country in East Asia. It is situated in the northwest Pacific Ocean, and is bordered on the west by the Sea of Japan, while extending from the Sea of Okhotsk in the n ...
. In the 1990s, Allied Signal hired Larry Bossidy and introduced Six Sigma in heavy manufacturing. A few years later,
General Electric General Electric Company (GE) is an American multinational conglomerate founded in 1892, and incorporated in New York state and headquartered in Boston. The company operated in sectors including healthcare, aviation, power, renewable ene ...
's Jack Welch consulted Bossidy and implemented Six Sigma at the conglomerate. During the 2000s, Lean Six Sigma forked from Six Sigma and became its own unique process. While Lean Six Sigma developed as a specific process of Six Sigma, it also incorporates ideas from lean manufacturing, which was developed as a part of the
Toyota Production System The Toyota Production System (TPS) is an integrated socio-technical system, developed by Toyota, that comprises its management philosophy and practices. The TPS is a management system that organizes manufacturing and logistics for the automobile ...
in the 1950s.


2000s–2010s

The first concept of Lean Six Sigma was created in 2001 by a book titled ''Leaning into Six Sigma: The Path to Integration of Lean Enterprise and Six Sigma''. It was developed as a guide for managers of manufacturing plants on how to combine lean manufacturing and Six Sigma to improve quality and cycle time in the plant. In the early 2000s Six Sigma principles expanded into other sectors of the economy, such as
healthcare Health care or healthcare is the improvement of health via the prevention, diagnosis, treatment, amelioration or cure of disease, illness, injury, and other physical and mental impairments in people. Health care is delivered by health pro ...
,
finance Finance is the study and discipline of money, currency and capital assets. It is related to, but not synonymous with economics, the study of production, distribution, and consumption of money, assets, goods and services (the discipline of f ...
, and
supply chains In commerce, a supply chain is a network of facilities that procure raw materials, transform them into intermediate goods and then final products to customers through a distribution system. It refers to the network of organizations, people, activ ...
.


Description

Lean Six Sigma is a synergized managerial concept of Lean and Six Sigma. Lean traditionally focuses on eliminating the eight kinds of waste ("'' muda")'', and Six Sigma focuses on improving process output quality by identifying and removing the causes of defects (errors) and minimizing variability in (manufacturing and business) processes. Lean Six Sigma uses the
DMAIC DMAIC (an acronym for Define, Measure, Analyze, Improve and Control) (pronounced də-MAY-ick) refers to a data-driven improvement cycle used for improving, optimizing and stabilizing business processes and designs. The DMAIC improvement cycle is t ...
phases similar to that of Six Sigma. The five phases used in Lean Six Sigma aim to identify the root cause of inefficiencies and work with any process, product, or service that has a large amount of data or measurable characteristics available. The different levels of certifications are divided into belt colors. The highest level of certification is a black belt, signifying a deep knowledge of Lean Six Sigma principles. Below the black belt are the green and yellow belts. For each of these belts, level skill sets that describe which of the overall Lean Six Sigma tools are expected to be part at a certain belt level are available. The skill sets reflect elements from Six Sigma, Lean and other process improvement methods like the theory of constraints and
total productive maintenance Total Productive Maintenance (TPM) started as a method of physical asset management focused on maintaining and improving manufacturing machinery, in order to reduce the operating cost Operating costs or operational costs, are the expenses which a ...
. In order to achieve any of the certification levels, a proctored exam must be passed that asks questions about Lean Six Sigma and its applications.


Waste

Waste (''muda'') is defined by
Fujio Cho is honorary chairman of Toyota Motor Corporation. In the Japanese system, that puts him in charge of the country's and world's largest automaker. Chō is only the second "outsider" to head Toyota Motor Co. since the members of the founding To ...
as "anything other than the minimum amount of equipment, materials, parts, space, and workers time, which are absolutely essential to add value to the product". Different types of waste have been defined in the form of a
mnemonic A mnemonic ( ) device, or memory device, is any learning technique that aids information retention or retrieval (remembering) in the human memory for better understanding. Mnemonics make use of elaborative encoding, retrieval cues, and image ...
of "downtime": *Defects: A defect is a product that is declared unfit for use, which requires the product to be either scrapped or reworked, costing the company time and money. Examples include a product that is scratched during the production process and incorrect assembly of a product due to unclear instructions. *Over-production: Over-production refers products made in excess or before it is needed. Examples include creating unnecessary reports and overproduction of a product before a customer has requested it. *Waiting: Waiting involves delays in process steps and is split into two different categories: waiting for material and equipment and idle equipment. Examples include waiting for authorization from a superior, waiting for an email response, waiting for material delivery, and slow or faulty equipment. *Non-Used Talent: Non-Used Talent refers to the waste of human potential and skill. The main cause is when management is segregated from employees; when this occurs, employees are not given the opportunity to provide feedback and recommendations to managers in order to improve the process flow and production suffers. Examples include poorly trained employees, lack of incentives for employees, and placing employees in jobs or positions that do not use all of their knowledge or skill. *Transportation: Transportation is the unnecessary or excessive movement of materials, products, people, equipment, and tools. Transportation adds no value to the product and can lead to product damage and defects. Examples include moving products between different functional areas and sending overstocked inventory back to an outlet warehouse. *Inventory: Inventory refers to an excess in products and materials that are unprocessed. It is a problem because the product may become obsolete before the customer requires it, storing the inventory costs the company time and money, and the possibility of damage and defects increases over time. Examples include excess finished goods, finished goods that cannot be sold, and broken machines on the manufacturing floor. *Motion: Motion is unnecessary movement by people. Excessive motion wastes time and increases the chance of injury. Examples include walking to get tools, reaching for materials, and walking to different parts of the manufacturing floor to complete different tasks. *Extra-processing: Extra-processing is doing more work than is required or necessary to complete a task. Examples include double-entering data, unnecessary steps in production, unnecessary product customization, and using higher precision equipment than necessary.


See also

*
Business process A business process, business method or business function is a collection of related, structured activities or tasks by people or equipment in which a specific sequence produces a service or product (serves a particular business goal) for a parti ...
*
Design for Six Sigma Design for Six Sigma (DFSS) is an Engineering design process, business process management method related to traditional Six Sigma.Chowdhury, Subir (2002) Design for Six Sigma: The revolutionary process for achieving extraordinary profits, Prent ...
*
DMAIC DMAIC (an acronym for Define, Measure, Analyze, Improve and Control) (pronounced də-MAY-ick) refers to a data-driven improvement cycle used for improving, optimizing and stabilizing business processes and designs. The DMAIC improvement cycle is t ...
*
Industrial Engineering Industrial engineering is an engineering profession that is concerned with the optimization of complex processes, systems, or organizations by developing, improving and implementing integrated systems of people, money, knowledge, information an ...
* Lean IT *
Lean manufacturing Lean manufacturing is a production method aimed primarily at reducing times within the production system as well as response times from suppliers and to customers. It is closely related to another concept called just-in-time manufacturing (J ...
* Six Sigma *
Total productive maintenance Total Productive Maintenance (TPM) started as a method of physical asset management focused on maintaining and improving manufacturing machinery, in order to reduce the operating cost Operating costs or operational costs, are the expenses which a ...
* Total quality management


References


Citations


Bibliography

* * * * * * * * {{refend


External links


Lean Six Sigma for Real Business Results
IBM Redguide Six Sigma Six Sigma