Business Encyclopedia of Management Encyclopedia of Business

Business Encyclopedia of Management Encyclopedia of Business

"Lean Sigma"

In few words, a tricky scenario.
Lean in definition is to maximize customer value while minimizing waste, while creating more value for customers with fewer resources. Lean (TPS) can also be seen as an application/tool as well, while it is also dependent on a number of tools/sub-systems in order to be effectively applied. A Strategy is a plan of action which needs to be applied (application) and dependent sub-systems = tools.
Lean (TPS) main objectives are to design out overburden (muri) -- can be prevented by standardizing work. A standard condition/ output must be defined to assure effective judgment of quality. Inconsistency (mura) = variability reduction can be avoided by just-in-time, pull system, production leveling. To eliminate (7) waste (muda) –These sub-systems need to be analysed; overproduction, waiting, transporting, inappropriate processing, unnecessary inventory, excess motion and defects as well as underutilization of employees.
Six Sigma is as well, a strategy is a plan of action which needs to be applied (application) and dependent sub-systems = (DMAIC) as core process and a whole line of quality management tools
Customers focus on a specification quality of a product/service, or how it compares to competitors in the marketplace. Manufacturers/Producers measure the conformance quality, or degree to which the product/service was produced correctly. The main aspect is quality assurance which is the prevention of defects or variability reduction. Here we have a correlation to Lean (TPS) mura.

In my opinion Six Sigma is a statistical documentation of a process which its target is quality assurance. Once again a correlation to muri a standard output time-after-time.
In conclusion, if we want to be honest applying both simultaneously “LeanSigma” the customer and the producer are best served. The problem remains however, is the cost of implementing both simultaneously may not be cost effective. I will propose a question on thoughts for “simultaneous implementation” to explore a new approach.

Continuous Improvement, 5S, Six-Sigma, Kaizen, Lean Management, Toyota Production System

I think it would be interesting to consolidate all information that could be found on these subjects, in order for all users to easily find information. You can search the net for hours and hours to gather information together.

5S Lean

5S is the name of a workplace organization methodology that uses a list of five Japansee words which, translated into English, start with the letter S. This list is a mnemonic for a methodology that is often incorrectly characterized as "standardized cleanup", however it is much more than cleanup. 5S is a philosophy and a way of organizing and managing the workspace and work flow with the intent to improve efficiency by eliminating waste, improving flow and reducing process unevenness.

What is 5S?

5S is a method for organizing a workplace, especially a shared workplace (like a shop floor or an office space), and keeping it organized. It's sometimes referred to as a housekeeping methodology, however this characterization can be misleading, as workplace organization goes beyond housekeeping (see discussion of "Seiton" below).
The key targets of 5S are workplace morale, safety and efficiency. The assertion of 5S is, by assigning everything a location, time is not wasted by looking for things. Additionally, it is quickly obvious when something is missing from its designated location. Advocates of 5S believe the benefits of this methodology come from deciding what should be kept, where it should be kept, and how it should be stored. This decision making process usually comes from a dialog about standardization which builds a clear understanding, between employees, of how work should be done. It also instills ownership of the process in each employee.
In addition to the above, another key distinction between 5S and "standardized cleanup" is Seiton. Seiton is often misunderstood, perhaps due to efforts to translate into an English word beginning with "S" (such as "sort" or "straighten"). The key concept here is to order items or activities in a manner to promote work flow. For example, tools should be kept at the point of use, workers should not have to repetitively bend to access materials, flow paths can be altered to improve efficiency, etc.

The 5S's are:

Phase 1 - Seiri (整理) Sorting: Going through all the tools, materials, etc., in the plant and work area and keeping only essential items. Everything else is stored or discarded.

Phase 2 - Seiton (整頓) Straighten or Set in Order: Focuses on efficiency. When we translate this to "Straighten or Set in Order", it sounds like more sorting or sweeping, but the intent is to arrange the tools, equipment and parts in a manner that promotes work flow. For example, tools and equipment should be kept where they will be used (i.e. straighten the flow path), and the process should be set in an order that maximizes efficiency. For every thing there should be place and every thing should be in its place. (Demarcation and labeling of place.)

Phase 3 - Seisō (清掃) Sweeping or Shining or Cleanliness: Systematic Cleaning or the need to keep the workplace clean as well as neat. At the end of each shift, the work area is cleaned up and everything is restored to its place. This makes it easy to know what goes where and have confidence that everything is where it should be. The key point is that maintaining cleanliness should be part of the daily work - not an occasional activity initiated when things get too messy.

Phase 4 - Seiketsu (清潔) Standardizing: Standardized work practices or operating in a consistent and standardized fashion. Everyone knows exactly what his or her responsibilities are to keep above 3S's.

Phase 5 - Shitsuke (躾) Sustaining the discipline: Refers to maintaining and reviewing standards. Once the previous 4S's have been established, they become the new way to operate. Maintain the focus on this new way of operating, and do not allow a gradual decline back to the old ways of operating. However, when an issue arises such as a suggested improvement, a new way of working, a new tool or a new output requirement, then a review of the first 4S's is appropriate.

A sixth phase "Safety" is sometimes added. Purists, however, argue that adding it is unnecessary since following 5S correctly will result in a safe work environment.

There will have to be continuous education about maintaining standards. When there are changes that will affect the 5S programme—such as new equipment, new products or new work rules—it is essential to make changes in the standards and provide training. Companies embracing 5S often use posters and signs as a way of educating employees and maintaining standards.

Continuous Improvement, 5S, Six-Sigma, Kaizen, Lean Management, Toyota Production System, all pocess techniques and methods to satisfy customer needs.

The approach using any of these tools has the intention of maximizing output by reducing expediture (work, material, quality). It is easily overseen, that the cost for implementing these tools have a price tag for someone engineering them. You could argue that this is an investment which would be calculated into a ROI. Once again the main focus is profit.
The result is best quality, lowest costs, shortest lead-time, best safety and high employee morale.

Human Motivation

Management by Objective (MBO) approach verses Manaement by Results (MBR)

works as so called mechanistical approach. Here it is dependent on the Leader/Manager in place which interface can suceed as well as fail.
Nevertheless, a leader must be a good manager in order to turn his visions into reality. The
importance lies within the understanding of how a visionary leadership and a typical management style work hand in hand because for companies both types are necessary to some extent. When changes are failing, the management of a company consists of too many managers and too few leaders.