l Pioneered by Ford in the early 1900’s (33 hrs from iron ore to finished Model T, almost zero inventory but also zero flexibility!)
l Perfected by Toyota post WWII (multiple models/colors/options, rapid setups, Kanban, mistake-proofing, almost zero inventory with maximum flexibility!)
u Known by many names:
l Toyota Production System
l Just-In-Time (JIT)
l Continuous Flow
While Lean was born in Manufacturing,It later matured into Transactions & Services
u Lean is a methodology for increasing process speed (reduced cycle time), improving efficiency (minimize time, capital invested, and cost) in any process, and increased agility and process flow.
u Lean is a methodology for increasing process speed and improving efficiency through waste reduction.
u What Lean Is Not:
n A business strategy
n Only for manufacturing companies
n About headcount reductions
n Only about the tools
Six Sigma Improves Quality By Reducing Defects & Variation
u Motorola was the first advocate in the 80’s
u Six Sigma Black Belt methodology began in late 80’s/early 90’s
u More recently, other companies have embraced Six Sigma:
n Allied Signal
u Project implementers names includes “Black Belts”, “Top Guns”, “Change Agents”, “Trailblazers”, etc.
u Implementers are expected to deliver annual benefits between $500,000 and $1,000,000 through 3-5 projects per year
u Top-down program with Executive and Champion support
u Outwardly focused on Voice of the Customer, inwardly focused on using statistical tools on projects that yield high return on investment
u Six Sigma is a quality improvement methodology designed to reduce product or service failure rates to near perfection.
u Incorporated into the methodology is the use of a data-driven approach to work toward the elimination of defects in every process area of a business, emphasizing the production of products and services better, faster and at a lower cost than the competition.
u Simply: Six Sigma is a methodology for determining and reducing/eliminating variation in a process, thereby improving quality.
u Lean Six Sigma is a methodology for achieving the goals of the enterprise; lean six sigma is utilized to improve Customer Satisfaction and gain greater Return on Investment.
u Simply Stated: Lean Six Sigma is the combined methodology of lean and six sigma utilized to increase process velocity, improve efficiency, and reduce or eliminate process variation.
u Six Sigma is the “Unifying Framework”
l Six Sigma provides the improvement infrastructure
u CEO Engagement
u Deployment Champions
u Green Belts, Black Belts, Master Black Belts
n Over-riding methodology: DMAIC, DFSS
u Lean provides additional tools and approaches to “turbo-charge” improvement efforts
n Tools: Set-up reduction, 5S, Kanban, Waste Reduction, Value Stream Map