The Definition of Lean Sigma
Lean Sigma is a business tool that combines two philosophies of business known as Lean and Six Sigma. Lean thinking was introduced to business in the early 1900s but it was the Japanese who made the concept their own during the 1980s when introducing Toyota. According to Lean Manufacturing History, Henry Ford is believed to be the first person to use the "Just In Time" and "Lean Manufacturing" business philosophy. In The History of Six Sigma, Geoff Tennant, author of Six Sigma: SPC and TQM in Manufacturing and Services, calls Six Sigma a "vision; a philosophy; a symbol; a metric; a goal; a methodology." Six Sigma is a way of doing business employed by Jack Welch of General Electric Company as well as Larry Bossidy of Allied Signal (Honeywell).
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Lean Sigma and What It Does
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Lean Sigma is widely acclaimed to be the most dramatic tool for reducing lead time and variation. According to TBM Consulting Group, Lean Sigma reduces lead time and variation faster than ever before possible, and is the first seamless integration of Lean and Six Sigma. TBM claims that using the marriage of Lean Thinking and Six Sigma, project work time is reduced from six months to six or eight weeks. This is done by using Lean tools to reduce the unnecessary time and activities utilized in traditional Six Sigma.
Understanding Variation in Business
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The Six Sigma process is a quality improvement tool for reducing process variation in business. Originating in manufacturing, these terms are now widely used in all businesses. Process variation can be explained by understanding one type of business process and goal. In the pizza delivery business, research revealed that it was desirable to make deliveries as close to the time promised as possible. However, some clients also did not want deliveries to arrive early. Company planners will have pizza deliveries arrive between eight minutes early or late so they can track progress to see if the target is being met. Customer feedback shows that a percentage of customers do not fall into the target delivery time range. At this point it must be determined if it is better to plan delivery ahead of the stated delivery time or leave delivery times alone and track progress. Variation is the actual time delivered versus the promised time for delivery.
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Lean Thinking
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Lean Thinking is a business tool with the stated goal of eliminating waste in a business environment. In Lean Thinking, anything that does not create a product or service to the client is waste. There are some areas of business that do not directly create a product or service, but most actions should create a product or service in lean thinking or be eliminated. This is the basic premise behind Lean Thinking. This principle is carried out from top to bottom in a business using the Lean Thinking philosophy.
Lean Sigma In Practice
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Lean Six Sigma is a business tool that takes businesses who have already implemented Lean Manufacturing or Six Sigma to the next level. Businesses that have been optimized by studied research in eliminating variation will benefit from Lean Six Sigma because it was created by leaning the Six Sigma program to offer basic statistics that can immediately be applied to cut waste in any business environment. Lean Six Sigma helps companies discover and eliminate hidden costs that are a part of every business. This business tool also helps companies address resistance to change that is part of every employee environment.
Benefits of Using Lean and Six Sigma
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The first stage of implementing Lean Six Sigma is done by using a Lean mapping tool to assess the current state of the business. This tool is called Value Stream Mapping and can be used in the front office as well on the shop floor. There is no area of the business that will not benefit from analysis with Value Stream Mapping. Each business must find the right combination of Lean and Six Sigma tools to gain the most benefit for their business. Mapping the business will reveal the trouble spots and then the real business of attacking the problem can begin. According to the Wisconsin Manufacturing Extension Partnership (WMEP), businesses that used Lean Six Sigma experienced increased yields, reduced costs, better quality and less waste.
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