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Lean Six Sigma is a process improvement approach that uses a collaborative team effort to improve performance by systematically removing operational waste [1] and reducing process variation. It combines Lean Management and Six Sigma to increase the velocity of value creation in business processes.
Lean Six Sigma's predecessor, Six Sigma, originated from the Motorola company in the United States in 1986. [2] Six Sigma was developed within Motorola to compete with the kaizen (or lean manufacturing) business model in Japan.[ citation needed ]
In the 1990s, Allied Signal hired Larry Bossidy and introduced Six Sigma in heavy manufacturing. A few years later, General Electric'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 in the 1950s.
The first concept of Lean Six Sigma was created in Chuck Mills, Barbara Wheat, and Mike Carnell's 2001 book, Leaning into Six Sigma: The Path to Integration of Lean Enterprise and Six Sigma. [3] 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. [4]
In the early 2000s Six Sigma principles expanded into other sectors of the economy, such as healthcare, finance, and supply chains.[ citation needed ]
Lean Six Sigma is a synergized managerial concept of Lean and Six Sigma. [5] 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 Define, Measure, Analyze, Improve and Control (DMAIC) 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.[ citation needed ]
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 are available that describe which of the overall Lean Six Sigma tools are expected to be part of a certain belt level. [6] The skill sets reflect elements from Six Sigma, Lean and other process improvement methods like the theory of constraints and total productive maintenance. 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 (muda) is defined by Fujio Cho 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". [7]
Different types of waste have been defined in the form of a mnemonic of "downtime":
Quality control (QC) is a process by which entities review the quality of all factors involved in production. ISO 9000 defines quality control as "a part of quality management focused on fulfilling quality requirements".
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. Just-in-time manufacturing tries to match production to demand by only supplying goods which have been ordered and focuses on efficiency, productivity and reduction of "wastes" for the producer and supplier of goods. Lean manufacturing adopts the just-in-time approach and additionally focuses on reducing cycle, flow and throughput times by further eliminating activities which do not add any value for the customer. Lean manufacturing also involves people who work outside of the manufacturing process, such as in marketing and customer service.
Six Sigma (6σ) is a set of techniques and tools for process improvement. It was introduced by American engineer Bill Smith while working at Motorola in 1986.
Quality assurance (QA) is the term used in both manufacturing and service industries to describe the systematic efforts taken to assure that the product(s) delivered to customer(s) meet with the contractual and other agreed upon performance, design, reliability, and maintainability expectations of that customer. The core purpose of Quality Assurance is to prevent mistakes and defects in the development and production of both manufactured products, such as automobiles and shoes, and delivered services, such as automotive repair and athletic shoe design. Assuring quality and therefore avoiding problems and delays when delivering products or services to customers is what ISO 9000 defines as that "part of quality management focused on providing confidence that quality requirements will be fulfilled". This defect prevention aspect of quality assurance differs from the defect detection aspect of quality control and has been referred to as a shift left since it focuses on quality efforts earlier in product development and production and on avoiding defects in the first place rather than correcting them after the fact.
Design for Six Sigma (DFSS) is an engineering design process, business process management method related to traditional Six Sigma. It is used in many industries, like finance, marketing, basic engineering, process industries, waste management, and electronics. It is based on the use of statistical tools like linear regression and enables empirical research similar to that performed in other fields, such as social science. While the tools and order used in Six Sigma require a process to be in place and functioning, DFSS has the objective of determining the needs of customers and the business, and driving those needs into the product solution so created. It is used for product or process design in contrast with process improvement. Measurement is the most important part of most Six Sigma or DFSS tools, but whereas in Six Sigma measurements are made from an existing process, DFSS focuses on gaining a deep insight into customer needs and using these to inform every design decision and trade-off.
Operations management is concerned with designing and controlling the production of goods or services, ensuring that businesses are efficient in using resources to meet customer requirements.
Quality, cost, delivery (QCD), sometimes expanded to quality, cost, delivery, morale, safety (QCDMS), is a management approach originally developed by the British automotive industry. QCD assess different components of the production process and provides feedback in the form of facts and figures that help managers make logical decisions. By using the gathered data, it is easier for organizations to prioritize their future goals. QCD helps break down processes to organize and prioritize efforts before they grow overwhelming.
5S is a workplace organization method that uses a list of five Japanese words: seiri (整理), seiton (整頓), seisō (清掃), seiketsu (清潔), and shitsuke (躾). These have been translated as 'sort', 'set in order', 'shine', 'standardize', and 'sustain'. The list describes how to organize a work space for efficiency and effectiveness by identifying and storing the items used, maintaining the area and items, and sustaining the new organizational system. The decision-making process usually comes from a dialogue about standardization, which builds understanding among employees of how they should do the work.
Lean government refers to the application of Lean Manufacturing principles and methods to both identify and then implement the most efficient, value added way to provide government services. Government agencies have found that when Lean is implemented, they see an improved understanding of how their own processes work, that it facilitates the quick identification and implementation of improvements and that it builds a culture of continuous improvement.
Muda is a Japanese word meaning "futility", "uselessness", or "wastefulness", and is a key concept in lean process thinking such as in the Toyota Production System (TPS), denoting one of three types of deviation from optimal allocation of resources. The other types are known by the Japanese terms mura ("unevenness") and muri ("overload"). Waste in this context refers to the wasting of time or resources rather than wasteful by-products and should not be confused with Waste reduction.
Value-stream mapping, also known as material- and information-flow mapping, is a lean-management method for analyzing the current state and designing a future state for the series of events that take a product or service from the beginning of the specific process until it reaches the customer. A value stream map is a visual tool that displays all critical steps in a specific process and easily quantifies the time and volume taken at each stage. Value stream maps show the flow of both materials and information as they progress through the process.
The Toyota Way is a set of principles defining the organizational culture of Toyota Motor Corporation. The company formalized the Toyota Way in 2001, after decades of academic research into the Toyota Production System and its implications for lean manufacturing as a methodology that could be adopted by other organizations. The two pillars of the Toyota Way are respect for people and continuous improvement. The philosophy was popularized by Jeffrey K. Liker in his 2004 book, The Toyota Way: 14 Management Principles from the World's Greatest Manufacturer. Subsequent research has explored the extent to which the Toyota Way can be applied in other contexts.
In business, engineering, and manufacturing, quality – or high quality – has a pragmatic interpretation as the non-inferiority or superiority of something ; it is also defined as being suitable for the intended purpose while satisfying customer expectations. Quality is a perceptual, conditional, and somewhat subjective attribute and may be understood differently by different people. Consumers may focus on the specification quality of a product/service, or how it compares to competitors in the marketplace. Producers might measure the conformance quality, or degree to which the product/service was produced correctly. Support personnel may measure quality in the degree that a product is reliable, maintainable, or sustainable. In such ways, the subjectivity of quality is rendered objective via operational definitions and measured with metrics such as proxy measures.
A lean laboratory is one which is focused on processes, procedures, and infrastructure that deliver results in the most efficient way in terms of cost, speed, or both. Lean laboratory is a management and organization process derived from the concept of lean manufacturing and the Toyota Production System (TPS). The goal of a lean laboratory is to reduce resource usage and costs while improving productivity, staff morale, and laboratory-driven outcomes.
Overall labor effectiveness (OLE) is a key performance indicator (KPI) that measures the utilization, performance, and quality of the workforce and its impact on productivity.
Lean IT is the extension of lean manufacturing and lean services principles to the development and management of information technology (IT) products and services. Its central concern, applied in the context of IT, is the elimination of waste, where waste is work that adds no value to a product or service.
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 due to lean principles being popularized by Toyota in the automobile manufacturing industry and subsequently the electronics and internet software industries.
Design for lean manufacturing is a process for applying lean concepts to the design phase of a system, such as a complex product or process. The term describes methods of design in lean manufacturing companies as part of the study of Japanese industry by the Massachusetts Institute of Technology. At the time of the study, the Japanese automakers were outperforming the American counterparts in speed, resources used in design, and design quality. Conventional mass-production design focuses primarily on product functions and manufacturing costs; however, design for lean manufacturing systematically widens the design equation to include all factors that will determine a product's success across its entire value stream and life-cycle. One goal is to reduce waste and maximize value, and other goals include improving the quality of the design and the reducing the time to achieve the final solution. The method has been used in architecture, healthcare, product development, processes design, information technology systems, and even to create lean business models. It relies on the definition and optimization of values coupled with the prevention of wastes before they enter the system. Design for lean manufacturing is system design.
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 to an organization. After the PM award was created and awarded to Nippon Denso in 1971, the JIPM, expanded it to include 8 Activities of TPM that required participation from all areas of manufacturing and non-manufacturing in the concepts of lean manufacturing. TPM is designed to disseminate the responsibility for maintenance and machine performance, improving employee engagement and teamwork within management, engineering, maintenance, and operations.
Operations management for services has the functional responsibility for producing the services of an organization and providing them directly to its customers. It specifically deals with decisions required by operations managers for simultaneous production and consumption of an intangible product. These decisions concern the process, people, information and the system that produces and delivers the service. It differs from operations management in general, since the processes of service organizations differ from those of manufacturing organizations.
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