The difference between Six Sigma and Lean Thinking
The Lean Paradox
Logical but not always intuitive…
- Organizations have a tendency to optimize “sub-parts” of their processes at the expense of the process “Value Stream” as a whole
-Assumptions, theories and conclusions gained through past experience about the “best” way to produce and deliver your products and services are sometimes wrong
For Example:
-Many companies set up accountabilities to encourage managers to optimize their departmental cost
-Some departments may reduce their own costs by:
-Passing cost or work on to another department; or
-Reducing Service or value to customers
The result ? WASTE!!!
Looking at the process from end to end can also help the organization become “boundary-less” by removing silos, or functional areas that sub-optimize their own processes at the expense of others. So ALWAYS look at the ENTIRE pro
The basic idea of LEAN is ELIMINATE THE 7 WASTES
1- OVERPRODUCTION
Difference between what, when the customer requires the product and what is actually produced
Difference between what, when the customer requires the product and what is actually produced
Making more than is required by the next process
Making it earlier than is required by the next process
Making it faster than is required by the next process
Making it earlier than is required by the next process
Making it faster than is required by the next process
Physical Examples:
• Producing product to stock based on sales forecasts
• Producing more to avoid set-ups
• Batch process resulting in extra output
• Misuse of automation
• “Just-in-Case” logic
Information Examples:
• More information than the customer needs
• More information than the next operation needs
• Creating reports no one reads
• Making extra copies
2-TIME
Delays or waiting resulting in idle people or assets.
Idle time created when waiting for……?
Physical Examples:
• PARTS
• PRINTS
• INSPECTION
• PLANS OR INFORMATION
• MACHINE REPAIR
Information Examples:
• FAXES
• SYSTEM TO COME BACK UP
• COPY MACHINE
• CUSTOMER RESPONSE
• A HANDED-OFF FILE TO COME BACK
• Producing product to stock based on sales forecasts
• Producing more to avoid set-ups
• Batch process resulting in extra output
• Misuse of automation
• “Just-in-Case” logic
Information Examples:
• More information than the customer needs
• More information than the next operation needs
• Creating reports no one reads
• Making extra copies
2-TIME
Delays or waiting resulting in idle people or assets.
Idle time created when waiting for……?
Physical Examples:
• PARTS
• PRINTS
• INSPECTION
• PLANS OR INFORMATION
• MACHINE REPAIR
Information Examples:
• FAXES
• SYSTEM TO COME BACK UP
• COPY MACHINE
• CUSTOMER RESPONSE
• A HANDED-OFF FILE TO COME BACK
3-DEFECTS
Difference between what is produced and the specification, resulting in scrap or rework.
INSPECTION AND REPAIR OF MATERIAL INVENTORY
Physical Examples:
• REWORK
• PRINTS WEAK PROCESS CONTROL
• DEFICIENT PLANNED MAINTENANCE
• INADEQUATE EDUCATION/TRAINING/WORK INSTRUCTIONS
• PRODUCT DESIGN
Information Examples:
• DATA ENTRY ERROR
• PRICING ERROR
• MISSING INFORMATION
• MISSED SPECIFICATION
• LOST RECORDS
4-PROCESS INEFFICIENCY
Inappropriate levels of processing, complexity or non standardization that results in doing more or less than what the customer values in a consistent way.
EFFORT THAT ADDS NO VALUE TO PRODUCT OR SERVICE FROM THE CUSTOMERS’ VIEWPOINT
Physical Examples:
• MULTIPLE CLEANING OF ITEMS
• PAPERWORK
• PRODUCT CHANGES WITHOUT PROCESS CHANGES
• REDUNDANT APPROVALS
• AWKWARD TOOL OR MATERIAL DESIGN
Information Examples:
• CREATING REPORTS
• REPEATED MANUAL ENTRY OF DATA
• UNNECESSARY DATA
• DOUBLE-CHECKS
• TRIPLE-CHECKS!!
5-TRANSPORTATION
Non necessary, non-value adding movement of material, information or people
MOVEMENT OF MATERIALS OR INFORMATION THAT DOES NOT ADD VALUE
Physical Examples:
• MOVING ITEMS IN AND OUT OF STORAGE
• MOVING MATERIAL FROM ONE WORKSTATION TO ANOTHER
• MOVING PRODUCT – ANYWHERE!
Information Examples:
• RETRIEVING OR STORING FILES
• CARRYING DOCUMENTS TO AND FROM SHARED EQUIPMENT
• TAKING FILES TO ANOTHER PERSON
• GOING TO GET SIGNATURES
6-INVENTORY
Inappropriate levels (high o low) of material, goods or WIP (Work In Process) including paperwork or information.
MORE MATERIAL OR INFORMATION ON HAND THAN THE CUSTOMER NEEDS RIGHT NOW
Physical Examples:
• RAW MATERIAL
• WIP
• MISCONCEPTION THAT THIS PROTECTS THE COMPANY FROM INEFFICIENCIES AND UNEXPECTED PROBLEMS
• UNRELIABLE SHIPMENTS FROM SUPPLIERS
Information Examples:
• FILES OR WORK WAITING TO BE WORKED ON
• OPEN PROJECTS
• OFFICE SUPPLIES
• UNUSED RECORDS IN THE DATABASE
•EXCESS CAPACITY TO DO WORK
7-MOTION
Excessive people movements, actions, effort driven by poor ergonomic, process layouts, or organizational configurations.
ANY MOVEMENT OF PEOPLE OR MACHINES THAT DOES NOT ADD VALUE TO THE PRODUCT OR SERVICE
Physical Examples:
• SEARCHING FOR ITEMS, TOOLS, SUPPLIES, ETC.
• SORTING THROUGH MATERIALS
• REACHING FOR TOOLS
• LIFTING BOXES OF ITEMS
Information Examples:
• SEARCHING FOR FILES OR INFORMATION
• EXTRA CLICKS OR KEYSTROKES
• CLEARING AWAY FILES ON THE DESK
• GATHERING INFORMATION
• “PREPARATION” FOR WORK
• HANDLING PAPERWORK
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