Introduction
Lean and Six Sigma are two different methodologies originally designed to meet the demands of manufacturing companies. Lean was born in the premises of Toyota and their production system. Lean is about eliminating waste to improve processes. Six Sigma, on the other hand, is a management methodology that seeks to eliminate variation in processes (Goldsby & Martichenko, 2005). Where these two methodologies meet, is in their final goal of process improvement. With two different ways of implementation, these methodologies complement each other in practice, this is why many organizations choose to make a multidisciplinary implementation, and apply both Lean and Six Sigma to achieve better and longer results.
As organizations’ demands constantly change, they are also continuously looking for ways meet this demand and improve their business. This is one of the reasons why the Lean and Six Sigma methodologies have escalated in a significant manner, dabbling into markets that are not the ones they were created for in the first place, as healthcare.
This paper attempts to present two different implementations of these methodologies. Mayo clinic, an organization named as the best hospital of the United States; and Caterpillar, an icon of the construction and mining equipment manufacturing.
What is Lean?
The Lean methodology is a process management methodology that examines and enhance processes from the customer perspective. It looks to create proceedings that creates
Lean Six Sigma concepts were introduced in the book titled Leaning into Six Sigma: The Path to Integration of Lean Enterprise and Six Sigma (Lean Six Sigma). Lean Six Sigma methodologies combine lean manufacturing and Six Sigma strategies to rely on improved performance from a collective team effort that systematically reduces variation and removes seven kinds of waste, known as Muda. Muda includes any unnecessary motion, transport, wait time, inappropriate processing, excess inventory, overproduction, and defects (Lean Six Sigma). Furthermore, Lean Six Sigma methods aim to provide customers with the best possible quality, cost, and delivery (ASQ.org, n.d.). In all, Lean Six Sigma is a business performance improvement strategy that uses a systematic approach to improving the way people advance processes. Its methodologies allow for systematically enriched processes to satisfy the customer and make money. Simply put, Lean Six Sigma as a business enhancer, ingrained with tools and techniques people can use to learn how to improve their processes (iSixSigma,
Production practices have had an important role in satisfying the dynamic market. Many approaches have being developed in order to respond effectively to specific business requirements. In fact, some areas of management have focused its study on the overseeing, designing, and controlling the process of production in an effort to find the best methodology that ensures the business success and performance. However, complexities arise in this field because many variables such as costs, inventory, scheduling, suppliers, etc have to be considered in any business. Lean approach and the traditional approach are two points of view that aim to address this complexities, and those will be examined in this essay.
Successful deployment of Lean Six Sigma is often considered a function of the inputs with those being shown below in figure 1.1. As the companies are evaluated keep in mind those critical X’s are often evaluated as the function Y = f(X) or Outputs = f(Inputs). In other words by controlling the inputs an organization can predict the output of the Lean Six Sigma implementation. This point is key when evaluating the difference between successful and not-so-successful implementations.
Six Sigma can help companies achieve performance levels that externally are invaluable to customers and internally can reduce costs. These projects can now be found in very diverse industries and can span far-reaching …these two initiatives can be complementary, especially for "Greenfield" process improvements… UPS Supply Chain Solutions 2 business processes and geographies
Lean production and Six Sigma help a company to make the production and the workers work more efficient. The processes allow different types of programs to be put in place to ensure the workers and the production process operate at the optimal levels. The processes ensure that each element of the production and looks at each step to ensure that the process is working in a more efficient way (Wisner , Tan, & Leong, 2012).
Lean Six Sigma combines Lean’s time-focused waste-elimination philosophy to dynamic analytical problem solving toolkit of Six Sigma.
Pharmaceutical professional David Hanlon is certified in both Lean Six Sigma and Design for Six Sigma. These two business methodologies were created to allow companies to cut waste and streamline their systems for higher efficiency. Both processes use science and empirical research to determine where a company can remove excess and improve output.
The Lean Six Sigma looks for ways on how to eliminate defects. In healthcare, a defect can be the difference between life and death. The Lean Six Sigma is used to improve patient safety by eliminating life-threatening errors. Lean Six Sigma uses a five-step approach to process improvement called the Define-Measure-Analyze-Improve-Control (DMAIC). The DMAIC is an approach that is a data-driven quality strategy used to improve processes (ASQ, n.d.). The first phase, the define phase, is where the leaders would define the problem and begin to understand the needs of the customers. This is an important phase of the Lean Six Sigma because this is where the team would outline of their efforts for themselves and the leaders of the organization (goLEANSIXSIGMA.com,
This approach consists of Lean Thinking and Six Sigma, which are two processes that are currently famous in the health industry. Their popularity in this industry originates from the fact that they both provide a systematic manner to promote incremental process innovations. While they are mostly used in administration and service areas, Lean Thinking and Six Sigma have undergone parallel developments in the recent years (de Koning et. al, p. 4).
The application and implementation of lean principles or thinking is a process that requires commitment from every stakeholder in the organization. This process entails commitment to the organization's workers and to the system itself in order to make changes towards improvement. Generally, the implementation of lean thinking is geared towards continuous improvement through the elimination of waste. However, lean management or implementation of the principles sometimes incorporate mistakes that are made by leaders in the execution process. This is mainly because lean leadership appears to be simple though its complex because of the costs associated with it. The mistakes usually occur because of intrinsic complexities of exploring deeply into organizational philosophies, business strategy, psychology, and macroeconomics.
The purpose of this paper is to discuss: (a) overall comparison of the Lean and Six Sigma performance improvement methods, (b) steps involved in implementing Lean and Six Sigma, (c)
Lean Six Sigma approach is recognized widely and has been implemented predominately in manufacturing rather than other industries. To illustrate the point, this paper draws attention to the adoption of Lean Six Sigma in various industries with a case study. The combination of Lean tools and Six Sigma methodology is used to improve the process and quality by eliminating the variations and creating workflow in a process. The hypothesis of this study was that the Six Sigma technique can be used along with lean tools in order to improve process and quality in any area of industries. The review of case study discovered the use of
Global trends are changing on a seemingly daily basis. Global economies are weakening and some companies are discouraged by the condition of terror threats that are occurring. These threats are changing the spending behavior of the average customer. Not only is the customer not purchasing because of the economy, but businesses face the threat of shipments not being secure or not arriving in a timely manner. To lower cost, and increase benefits, the lean Six Sigma approach will benefit companies by improving strategies and tactics.
This essay is going to analyze a case study based on lean thinking principles and techniques. It is could divide in four significant parts. First, to outline the definitions of Lean manufacturing philosophy and applied the strategies to achieving, next create future state Value Stream Map, Furthermore justification Lean Six Sigma tools and techniques, which would appropriate, and critically discussed the key successful should his idea to the Evenort Company.
Lean is a process where creating more value to customers by minimizing wastage, time with less resources. Lean organization understand the customer value and try to increase proceed which adding more value to the business. In order to accomplish the lean thinking