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Basic methodology consists of the following five steps:
- Define the goals of the design activity that are consistent with customer requirements and business strategy.
- Measure and identify CTQs (critical to qualities), product capabilities, production process capability, and risk assessments.
- Analyse to develop and design alternatives, create high-level
design and evaluate design capability to select the best design.
- Design details, optimize the design, and plan for design verification.
- Verify the design, set up pilot runs, implement production process and handover to process owners.
Many people get confused by Six Sigma and
believe that it is simply a case of applying a number of tools.
This has lead to many failed implantations of the methodologies.
Other people are put off Six Sigma by the
amount of data collection and analysis which is used. Simply
put Six Sigma is all about data, if you have
not got data you are just another person with an opinion. One
of the reasons Six Sigma has been so successful
in companies such as Motorola is that it is all data driven the methodology
makes you use the data, analyse the data and then come up with solutions.
To do this you must use statistics and tools which use stats to investigate
and solve problems. As such typical tools used in Six Sigma include:-
They can seam daunting and put off many people but the simple truth
is that you don't have to know them all. You don't even need
to use them all. It is good ideas to have one or two people
in your organisation who have detailed knowledge of them all you have
to do is to know when they should be used then call in the experts.
When used properly Six Sigma can dramatically
reduce variation in your processes and lead to massive savings.
However when coupled with Lean it becomes even more powerful.
Lean as the name suggest is the production of products
or services using the least of everything - human effort, investment
in inventory, machines, space, tools, time, development, transport
/ movement. The term is called Lean, Lean Manufacturing and
Lean Enterprise all meaning the same thing and deriving from the Toyota
Production system and some other sources. It is however very
simply the reduction of waste from your processes it has enabled Toyota
to become one of the biggest and most reliable car companies in the
world.
Lean is therefore the identification and steady elimination of waste through the implementation of perfect first time quality approaches to work, standardisation of processes, smoothing of flow, flexibility of work, long term relationships with customers and supplies and reduction in time leading to cost reduction and business improvement. To achieve this a number of tools have been developed which facilitate the removal of waste from processes and a number of methodologies to implement the principles.
In organisations where the principles of Lean are fully understood
the people use the tools and techniques with out thought as eliminating
waste and improving flow become the norm. Lean in its many guises
has been around since the 1940's and has developed and adapted over
the years to become one of the key business improvement methodologies
used in many of the worlds leading companies. At its heart Lean
is effectively simple and easy to understand. Lean implementation
is therefore focused on getting the right things, to the right place,
at the right time, in the right quantity to achieve perfect work flow
while minimising waste and inventor while being flexible and able
to change if the customer requirements change.
However, no matter how simple, at the heart of any Lean implementation is the cultural and managerial aspects of Lean which are just as, and possibly more, important than the actual tools or methodologies of Lean itself. There are many examples of Lean tool implementation without sustained benefit and these are often blamed on weak understanding of Lean in the organisation.
The first concept which must be understood is that waste is bad. This has been the ethos for successful companies from Henry Ford onwards. So what is waste?
Waste or non value added work is anything which doesn't add value
to your product or service. When you examine your processes
in real detail you discover that the vast majority of what we do is
non value added. To illustrate this Shigeo Shingo (a deep
Lean thinker) observed that it's only the last turn of a bolt that
tightens it - the rest is just movement. If we review everything
we do to this extent we see that most of our activities are waste.
To eliminate waste we must examine three aspects - the design and
planning of our activities, the fluctuation at our operations such
as quality and volume and thirdly the waste in our processes themselves
in the movement of people and materials and the machines they use.
When you examine your processes in this way you can be said to be,
learning to see and can start to eliminate the waste and improve the
processes. To make things easier there are 7 ways to think about
waste.
The original seven wastes are:
- Overproduction (production ahead of demand) - making things ahead
of when the customer actually wants them. We do this because
our processes are not reliable, or we like to manufacture or do
task in big batches (traditionally accountants tell us this is the
most efficient way)
- Transportation - moving parts, materials or work in progress around
a factory or paper around an office
- Waiting - for parts or information so you can perform at task
- Inventory (all materials, work-in-progress and finished product)
- Items produced which can’t be used or sold straight away
go into inventory tying up money, space and causing multiple management
issues
- Motion -people or equipment moving or walking more than is required to perform the processing
- Over Processing - making more than is needed or doing more work
than is needed because you can't guarantee what the outcome will
be i.e. I need 20 but I will make 25 just in case something goes
wrong
- Defects / Rework - the effort involved in inspecting for and fixing defects, reworking items or having to scrap them
There has now been identified an 8th Waste
- Human talent - the waste of peoples talent - training, enthusiasms
and brain power.
By identifying waste and non value added activities in our processes
we can then start to use the Lean tools to eliminate them. Typical
Lean tools include - 5S, visual management, TPM, SMED, Pokie Yokie,
Standardised work, pull systems, takt time, single piece flow, Kanban,
cellular manufacturing, design for manufacture, kaizen etc
Lean thinking and the tools associated with it have been used for decades all over the world by every type of business. There is a standard approach to implementation of Lean thinking.
- Step 1: Specify Value
Define value from the perspective of the final customer. What does your customer actually want, what will they pay for and when do they want it.
- Step 2: Map
Identify the value stream, all the actions required to bring a specific
product through the physical flow of the company. This includes
all the information flow and management flow steps to make things
happen. Create a map of how it is today and how you want it
to look like. Identify and categorise waste in the Current State,
and eliminate it!
- Step 3: Flow
Make the remaining steps in the value stream flow. Eliminate functional
barriers and develop a product-focussed organisation that dramatically
improves lead-time.
- Step 4: Pull
Let the customer pull products as needed, eliminating the need for a sales forecast.
- Step 5: Perfection
There is no end to the process of reducing effort, time, space, cost, and mistakes. Return to the first step and begin the next Lean transformation, offering a product which is ever more nearly what the customer wants.
If you have a top management team who understand the concepts and a workforce who embrace the culture then Lean will transform your business.
So what is Lean Six Sigma?
As stated above Lean and Six Sigma when
used together will provide a business improvement methodology which
combines tools from both Lean Enterprise (Manufacturing) and Six Sigma. Lean eliminates the waste in your processes, while Six Sigma ensures quality through the elimination
of variation in your processes and also provides a structured data
driven structure to solve problems and implement sustainable change
into your business.
Why is there even a debate about which one you should use?
For some reason two camps have emerged one supporting Lean and the
other Six Sigma. Lots of it is childish
my way is better than yours and some of is lack of knowledge.
Either way what you find is that both approaches use each others tools
anyway. So the whole thing is stupid. As with any business
improvement you should use the best tool for the job no matter what
it is or where it has come from. You should be constantly seeking
out new tools, methods, applications and methodologies to satisfy
your customer and business needs by eliminating waste and improving
quality. That is why we always train, consult and coach in Lean Six Sigma but bring in anything else we know. That is why
we don't mind your calling your improvement initiative whatever you
like and that is why we get results.
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