Gold miners separate value (gold) from waste (dirt/rocks). The tools used within Lean perform the same task---identifying and removing waste from value being created (value as defined by the customer). Lean is the application of common sense approaches to drive out waste and process variation.But the concept of Lean is not new. In fact, its roots came from pioneers such as Henry Ford, C.E. Knoeppel, Frederick Taylor, and Emerson Harrington in the early 1900's. In those days they began using the term waste. And efficiency was used to describe their approach to eliminating waste and process variation. So again, the tools used in TPS and Lean may be recent, but they are not new concepts. Read any of the works from the above pioneers and you will be amazed at how far ahead of their times these people were thinking.
The Toyoda family in Japan developed many of the initial concepts of the Toyota Production System after having had been exposed to the efficiency work being done in the United States. Mr. Taiichi Ohno is credited with devising the Toyota Production System (TPS). Eventually TPS was repackaged/renamed Lean Manufacturing or Lean.
Six Sigma evolved from Walter Shewhart's work with control charting and identification of process variation, applying the use of statistics to analytically and graphically describe the effectiveness of a process. Others followed who expanded the statistical components to include project management to offer people a proven roadmap to help reduce or eliminate process variation. Lean Solutions Group offers a blend of Six Sigma, Lean, and technology, where applicable, to align your operational strategy with your companyís strategy.
So how do Six Sigma and Lean complement each other? Six Sigma helps us determine root causes of process variation through detailed analysis. Basically the higher and more consistent our sigma level for a process we measure becomes the more we can count on its performance over time. Lean applies common sense methods of Lean tools such as value stream mapping, process mapping, and cause and effect diagrams to also help identify and target these root causes to reduce or hopefully eliminate their from recurring.
Studies show that the cost of poor quality can be 25% of sales revenue for 3-sigma companies.For 6-sigma companies, the cost of poor quality has dropped to less than 5%. Most organizations are somewhere in between. Do you know your organizationís sigma level? How much would savings of 10% of your sales revenue mean to your organization? This illustration is meant to offer insight into the level of waste that a majority of organizations can expect within their operations. Basic Lean Principles Value: What the customer is willing to pay for Value Stream:Actions that transform resources (material and labor) and add value to a product or process Flow: Continuously adding value to a product or process, usually in a single-piece manner, and work cells versus production lines Pull: Replacing only material that is used and eliminating excessive inventory Perfection: A disciplined, relentless elimination of the sources of waste on a never-ending basis
Our experienced coaches will help you to:
Doing things right the first time
Implement improvements based on your expected gains
Enable decision-making behaviors based on data instead of emotion
Learn how to sort through complexity to discover root causes
Focus on customer expectations and value
Implement practical Lean solutions to chronic problems, applying creativity over capital wherever possible