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3. Lean Six Sigma

Introduction to Lean Six Sigma

Lean

The core idea is to maximize customer value while minimizing waste. Simply, lean means creating more value for customers with fewer resources.

A lean organization understands customer value and focuses its key processes to continuously increase it. The ultimate goal is to provide perfect value to the customer through a perfect value creation process that has zero waste.

To accomplish this, lean thinking changes the focus of management from optimizing separate technologies, assets, and vertical departments to optimizing the flow of products and services through entire value streams that flow horizontally across technologies, assets, and departments to customers.

Eliminating waste along entire value streams, instead of at isolated points, creates processes that need less human effort, less space, less capital, and less time to make products and services at far less costs and with much fewer defects, compared with traditional business systems. Companies are able to respond to changing customer desires with high variety, high quality, low cost, and with very fast throughput times. Also, information management becomes much simpler and more accurate.

Six Sigma

Six Sigma is a long term, forward thinking initiative designed to fundamentally change the way corporations do business. It is first and foremost a Business improvement method that enables companies to increase profits by streamlining operations, improving quality and eliminating defects or mistakes in everything a company does. While traditional quality programmes have focused on detecting and correcting defects, Six Sigma encompasses something broader. It provides specific methods to recreate the process so that defects are significantly reduced or even completely prevented.

Lean and Six Sigma Together

Lean focusses on Value to the customer while elimination of waste, whereas, Six Sigma focusses on quality and reduction of variation. Together Lean and Six Sigma make perfect sense in producing “High Quality” products while focussing on elimination of waste thereby “reducing cost” and focusing on features , i.e. “value”.

Other Topics

What is Six Sigma?

Why does Lean Six Sigma Go Hand in Hand?

Step 1 - Setting the House in Order for Lean Six Sigma Transformation

Step 2 - Creating a Continuous Improvement Culture

Step 3 - Creating Predictable Processes

Step 4 - Six Sigma Implementation - Statistical Process Control

Step 5 - Design for Six Sigma (DfSS)

Short Interval Management

What is DMAIC?

What is Kaizen?

What is Muda, Muri, Mura?