Lean is a manufacturing process that was developed by Toyota in 1988. It is based upon 2 key principles – the removal of irregularity and the removal of irrelevance. That is, attempting to get uniformity within production and removing wasteful processes. It uses a whole set of tools:
- Kanban – enabling just-in-time delivery within production, so that stock is not held waiting to be used
- TIMWOOD – an acronym for Transport, Inventory, Motion, Waiting, Overproduction, Over processing, and Defects; all areas for examination of savings that are probably the most commonly referenced.
The main thrust of the Lean process is to get the most streamlined process within a production environment. It wants to create the most consistently “good product” in the most efficient way. As you can see with this very short summary of Lean, there are many overlaps with Six Sigma. This has led many businesses to combine them together and develop Lean Six Sigma teams which use both sets of tools; which, given that there are some tools within Six Sigma borrowed from Lean, is not such a huge change. However, it can create conflicts of delivery, and Project Charters need to clearly state what is being sought by the team in terms of Lean and Six Sigma improvements and need to understand that benefits must be measured.
The measurement systems used in the Lean Enterprise require modification to establish benchmarking for performance comparison and uncover best practices for gaining a competitive advantage. Standardization of metrics helps to collaboratively measure, control, and manage processes. Sample metrics for an enterprise such as supply chain include:
When implementing Six Sigma and the Organization Enterprise wide deployment, it is important to understand these factors:
The Lean enterprise includes all types of enterprises including manufacturing, service, transactional, product and process design, as well as innovation. Six Sigma and Lean have over a 20-year history in developing the Lean enterprise and creating culture, process improvement tools, methodology, and methodology for quality improvement.
Lean enterprise eliminates waste and non value-added activities. Lean focuses on delivering more value to the customer and addressing the voice of the customer. It creates efficiency based on optimizing flow in a process and empowers employees to improve their work. Lean always asks, “how can we get better?”
Lean does not eliminate people or employees, is not a shortcut, and does not micromanage. Lean focuses on removing the non value-added delay, waste, and rework from your processes. Lean can be used in any industry or business to improve speed, quality, and cost. When implemented properly, Lean Six Sigma focuses on results, not training.
The measurement systems used in the Lean Enterprise require modification to establish benchmarking for performance comparison and uncover best practices for gaining a competitive advantage. Standardization of metrics helps to collaboratively measure, control, and manage processes. Sample metrics for an enterprise such as supply chain include:
- Return on working capital
- Perfect order fulfillment
- Order fulfillment cycle time
- Supply chain management costs
When implementing Six Sigma and the Organization Enterprise wide deployment, it is important to understand these factors:
- Understand who your customers are and what is important to them
- Understand customer feedback through the Voice of the Customer and determine the requirements for your product
- Prioritize issues related to your product
- Determine internal processes and what causes variation
- Determine the causes of defects
- Develop ways to address defects
- Develop metrics to standardize and measure the changes made in the process
The Lean enterprise includes all types of enterprises including manufacturing, service, transactional, product and process design, as well as innovation. Six Sigma and Lean have over a 20-year history in developing the Lean enterprise and creating culture, process improvement tools, methodology, and methodology for quality improvement.
Lean enterprise eliminates waste and non value-added activities. Lean focuses on delivering more value to the customer and addressing the voice of the customer. It creates efficiency based on optimizing flow in a process and empowers employees to improve their work. Lean always asks, “how can we get better?”
Lean does not eliminate people or employees, is not a shortcut, and does not micromanage. Lean focuses on removing the non value-added delay, waste, and rework from your processes. Lean can be used in any industry or business to improve speed, quality, and cost. When implemented properly, Lean Six Sigma focuses on results, not training.
