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Lean Manufacturing seeks process improvement by streamlining its flow, eliminating waste and emphasizing gains in speed and efficiency. The value is defined only by the end customer. However, it is the organization that must identify what generates this value for the customer.

  • The Integration of Six Sigma and Lean Manufacturing.
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Determining the value and defining the product, the next step is to specify the target cost based on the resources needed to manufacture the product with the specific characteristics;. Value flow : The value stream or value chain is the path traveled from the beginning of production to delivery to the end customer. Each step involved in the process is mapped on the premise that activities that cannot be measured cannot be managed and those that are not precisely identified cannot be analyzed and improved.

With the mapping of the value stream it is possible to identify and eliminate activities that contain waste through waste elimination techniques;. Continuous flow: From the analysis and mapping of the value flow, it is necessary to make the activities that generate value can flow through the process without interruptions. The best way to make products flow is to stream them wherever possible by rearranging the sequence and equipment so that it does not act on waiting and inventory between activities;.

Pulled production: Pulled production aims to decrease the lead time for the consumer. Implementing the pulled system means producing a good or service only when the request is made by the customer and not pushing the product to the consumer;. Perfection: When the four principles are followed clearly, that is, the organization declares the value accurately, maps the flow of value so that products flow continuously or when customers pull these products, it is possible to achieve perfection of processes by eliminating losses and waste.

Continuous improvement must always be sought to achieve this perfection. To the Lean Thinking, the most important thrust to perfection is to maintain transparency among everyone involved in the system so that it is easier to identify ways to create value. Before beginning the integration between Lean and Six Sigma, it is prudent to understand their similarities and divergences, according to Antony [ 13 ], to enhance the work of the team in the reality of the organization: Similarities:.

Lean Manufacturing aims to streamline the flow of processes while Six Sigma seeks to increase capacity,. It should be noted that Six Sigma supports Lean Manufacturing while it does not have a structured critical path intrinsic method for troubleshooting. But Six Sigma, in turn, does not focus on improving process speed, reducing lead time and eliminating waste, which are aspects of Lean Manufacturing.

The strong point for company culture is that statistical tools assist in the work of methodologies, reducing variability and making processes more stable and reliable. According to Werkema [ 14 ] there are steps for organizations to follow, aiming at the union of Lean and Six Sigma. It is a roadmap for an integrated implementation: Assess performance : Establish the need for change and assess how well the organization is prepared to make that change.

Results: Initial list of opportunities, including financial benefits, for subsequent prioritization and implementation. Enable execution : Develop, disseminate and implement procedures and policies to establish the infrastructure for change.

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  5. Results: Training of sponsors and specialists, Establishment of internal communication channels for the dissemination of LSS, Integration of other improvement programs in force with LSS. Therefore, it is necessary to keep in mind the importance of choosing the Lean Six Sigma implementation strategy that best suits the characteristics of the company and its business.

    Lean and Six Sigma to be integrated into a broader system of organizational improvement, the potential of which would be far greater than the sum of these two initiatives. In this line, some companies have already created their own integrated systems, called business improvement systems. Thus, according Table 3 , some authors cited Busso and Miyake [ 16 , 17 ], emphasize the importance of adopting strategies to implement the Lean Six Sigma methodology, so that it is aligned with strategy and strategic manufacturing decisions, in order to more effectively harness the potential of both methodologies for improvement of the company business.

    It is possible to say then that for the competitiveness of the company, it is important that the choices made in the production of goods or services in relation to the use of resources, skills and improvement methodologies, for example, should be guided by business strategies and selected reference models. Licensee IntechOpen. This chapter is distributed under the terms of the Creative Commons Attribution 3. Help us write another book on this subject and reach those readers.

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    Downloaded: Abstract The Lean Manufacturing and Six Sigma methodologies are increasingly being executed together and what we have today is the united work of both, and companies have come to understand that their integration makes it possible to take advantage of the strengths of both strategies, becoming a comprehensive and effective, suitable for solving various types of problems related to the improvement of processes and products. Six Sigma mostly finds application in large organizations. The fact that an organization is not big enough to be able to afford black belts does not diminish its abilities to make improvements using this set of tools and techniques.

    Introduction to Six Sigma

    The infrastructure described as necessary to support Six Sigma is a result of the size of the organization rather than a requirement of Six Sigma itself. Although the scope of Six Sigma differs depending on where it is implemented, it can successfully deliver its benefits to different applications. After its first application at Motorola in the late s, other internationally recognized firms currently recorded high number of savings after applying Six Sigma.

    On top of this, other organizations like Sony and Boeing achieved large percentages in waste reduction. There is still a need for an essential analysis that can control the factors affecting concrete cracks and slippage between concrete and steel. Six Sigma has played an important role by improving accuracy of allocation of cash to reduce bank charges, automatic payments, improving accuracy of reporting, reducing documentary credits defects, reducing check collection defects, and reducing variation in collector performance. Two of the financial institutions that have reported considerable improvements in their operations are Bank of America and American Express.

    By Bank of America increased customer satisfaction by Similarly, American Express successfully eliminated non-received renewal credit cards and improved their overall processes by applying Six Sigma principles. This strategy is also currently being applied by other financial institutions like GE Capital Corp.

    Statistical Methods for Six Sigma: In R&D and Manufacturing | Anand M. Joglekar | download

    In this field, it is important to ensure that products are delivered to clients at the right time while preserving high-quality standards from the beginning to the end of the supply chain. By changing the schematic diagram for the supply chain, Six Sigma can ensure quality control on products defect free and guarantee delivery deadlines, which are the two major issues involved in the supply chain.

    This is a sector that has been highly matched with this doctrine for many years because of the nature of zero tolerance for mistakes and potential for reducing medical errors involved in healthcare. Quality expert Joseph M. Juran described Six Sigma as "a basic version of quality improvement", stating that "there is nothing new there. It includes what we used to call facilitators. They've adopted more flamboyant terms, like belts with different colors. I think that concept has merit to set apart, to create specialists who can be very helpful.

    Again, that's not a new idea. The American Society for Quality long ago established certificates, such as for reliability engineers. Quality expert Philip B. Crosby pointed out that the Six Sigma standard does not go far enough [28] —customers deserve defect-free products every time. For example, under the Six Sigma standard, semiconductors which require the flawless etching of millions of tiny circuits onto a single chip are all defective. The use of "Black Belts" as itinerant change agents has fostered an industry of training and certification.

    Critics have argued there is overselling of Six Sigma by too great a number of consulting firms, many of which claim expertise in Six Sigma when they have only a rudimentary understanding of the tools and techniques involved or the markets or industries in which they are acting.

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    The statement was attributed to "an analysis by Charles Holland of consulting firm Qualpro which espouses a competing quality-improvement process ". A more direct criticism is the "rigid" nature of Six Sigma with its over-reliance on methods and tools. In most cases, more attention is paid to reducing variation and searching for any significant factors and less attention is paid to developing robustness in the first place which can altogether eliminate the need for reducing variation. A possible consequence of Six Sigma's array of P-value misconceptions is the false belief that the probability of a conclusion being in error can be calculated from the data in a single experiment without reference to external evidence or the plausibility of the underlying mechanism.

    Another comment refers to the often mentioned Transfer Function, which seems to be a flawed theory if looked at in detail. The volume of criticism and rebuttal has filled books with language seldom used in the scholarly debate of a dry subject. Articles featuring critics have appeared in the November—December issue of USA Army Logistician regarding Six-Sigma: "The dangers of a single paradigmatic orientation in this case, that of technical rationality can blind us to values associated with double-loop learning and the learning organization , organization adaptability , workforce creativity and development, humanizing the workplace, cultural awareness , and strategy making.

    Nassim Nicholas Taleb considers risk managers little more than "blind users" of statistical tools and methods.

    What is Lean Six Sigma?

    Furthermore, errors in prediction are likely to occur as a result of ignorance for or distinction between epistemic and other uncertainties. These errors are the biggest in time variant reliability related failures. According to an article by John Dodge, editor in chief of Design News , use of Six Sigma is inappropriate in a research environment.

    Dodge states [45] "excessive metrics, steps, measurements and Six Sigma's intense focus on reducing variability water down the discovery process.