This is Lean Six Sigma, a combination of management methods that builds on the principles of Six Sigma with a focus on efficiency. Both approaches aim to achieve the same thing: more effective processes that yield a bigger bottom line. The difference is seen in the way they go about reaching that goal. Six Sigma was developed with a very specific goal: reduce variation and defect rates in production processes through statistical analysis. Both methods have their distinct uses.
This is perfectly suited for supply chain performance issues or when only adjustments to the process are needed, not an entirely new function. The first phases of the project are the same, but the Design phase allows for the creation of an entirely new tool to solve the problem.
Both have the same goal, but a different approach in identifying the root cause of waste. With Six Sigma, waste comes from variation within the process, but in Lean, waste comes from unnecessary steps. To reiterate, the goal of Lean is to reduce the seven causes of waste, whereas Six Sigma is used to reduce errors in production as well as nonproduction environments to reduce waste. The two, however, can work in tandem and increase efficiency and productivity on the factory floor.
Sounds simple, right? The problem that arises is the confusion between how the two theories work together thus creating an issue of how to best utilize the systems.
With the right amount of research and education, an organization can seamlessly implement the two systems , reducing waste by whatever works best for that organization, and create a more efficient environment. The answer is unequivocally, yes, but we say this, because in the end, any organization method, including Six Sigma and Lean, is beneficial when used to streamline a process, a factory floor, or a manufacturer.
Adding on to our answer from above, the best thing a manufacturer can do is implement any organizational method that will streamline production. The goal of both Lean and Six Sigma is to increase efficiency , and a manufacturer can only benefit from that. Take SensrTrx for example. With our platform, we employ both Lean and Six Sigma methodologies. The goal is to gather data and analyze that data to make decisions. We help customers reduce cycle time and reduce waste, subsequently reducing costs and increasing satisfaction with the manufacturing process.
Through the power of manufacturing analytics , SensrTrx can identify those causes which give the manufacturer the ability to take action to correct issues.
The methodologies allow a manufacturer to find waste in processes. By understanding how long, for example, it takes to turnover from one job or part to another, you are better able to make a decision on how to improve that turnover. You can measure the turnover, how long it takes, and prove it from the data.
On-line retailers must design logistics processes to minimize order processing delays and, in many cases, to deliver in one day, and manufacturing operations must be designed to minimize the waste associated with unnecessary process steps.
By consistency we mean delivering products and services that day-after-day meet quality standards; the product we deliver today is just like the one that is delivered tomorrow. When we eat a restaurant, purchase a new hard drive, or travel on an airplane, we expect a certain level of quality.
The role of Six Sigma is to ensure that this level of quality is delivered to the customer. Takata a Japanese manufacturer of auto airbags is one such example. These airbags relied on a compound of ammonium nitrate that expands upon impact, inflates the bag, and thereby protects the driver and passenger from head or body injuries. However, the compound broke down when exposed to moisture and temperature swings.
Some accidentally exploded sending metal fragments though the passenger compartment. In total 19 auto manufacturers recalled approximately 37 million vehicles in which over 50 million airbags were replaced.
It was the largest recall in automotive history. Moreover, the human toll was substantial. Twelve people died and almost were injured.
While it was first designed for use in manufacturing , practitioners quickly discovered that Six Sigma could be useful and applicable throughout all aspects of a business — from customer support to management to service delivery. Today, Six Sigma plays a key role in the leadership of an organization, and its wide-scale implementation can help a company to achieve real and measurable results.
Like Six Sigma, Lean is used by businesses to streamline manufacturing and production processes. The main emphasis of Lean is on cutting out unnecessary and wasteful steps in the creation of a product so that only steps that directly add value to the product are taken.
As far as Lean methodology is concerned, the only way to determine if something has value or not is to consider whether a customer would be willing to pay for it. Any part of the production that does not add value is simply removed from the equation, leaving a highly streamlined and profitable process in place that will flow smoothly and efficiently. Essentially, 6 Sigma and Lean systems have the same goal. They both seek to eliminate waste and create the most efficient system possible, but they take different approaches toward how achieving this goal.
In simplest terms, the main difference between Lean and Six Sigma is that they identify the root cause of waste differently.
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