Lean and Six-sigma Approach

By

Executive Summary

This thesis is a theoretical evaluation of two popular corporate initiatives, Six-sigma and Lean. While corporations try to implement these two methods simultaneously, they face some fundamental barriers. The problem statement in this thesis recognizes these fundamental barriers and addresses some of the major issues that exist in their simultaneous implementation. A very thorough literature review was conducted on all the available written literature on Lean and Six-sigma. The similarities and synergies between Lean and Six-sigma were evaluated and rigorous comparison and contrast were conducted. Lean and Six-sigma's relationship to other initiative tools was provided to develop a context. Based on this study, a recommendation was made for integration of the two methods so that it becomes a much more powerful integrated tool. The statistical power for six-sigma was coupled with the "Big Picture" overall system optimization capability.

Contents

Executive Summaryii

CHAPTER 1: INTRODUCTION1

Research Question1

Aim1

Objectives1

Credibility1

CHAPTER 2: LITERATURE REVIEW3

Introduction3

A Study into Lean Production Systems4

A Study into Six-sigma Quality Management System12

Lean vs Six-sigma16

CHAPTER 3: ANALYSIS AND DISCUSSION20

CHAPTER 4: CONCLUSION AND RECOMMENDATIONS27

Future of Lean and Six-sigma28

References29

Bibliography32

CHAPTER 1: INTRODUCTION

Research Question

Recent high profile failures such as Toyota's Brake fiasco have highlighted the need for more robust quality management systems and improved production tools in large organizations. From the perspective of an operations manager in a large manufacturing firm, present a case to the board of directors for adoption of Lean Production Systems and 6 Sigma Quality Management System.

Aim

The report aims to form a case that will be presented to the board of directors to decide, if Lean Production Systems and Six-sigma systems are to be implemented.

Objectives

To carry out a study on Lean production systems and Six-sigma quality systems

To compare and contrast the two methodologies (Lean, Six-sigma)

To present the benefits of adopting both methodologies simultaneously

To recommend the implementation of both, Lean and Six-sigma, to the board of directors, supported by the findings

Credibility

The concept of credibility in a research mainly focuses on the fact that all the results of the questions in the entire study are credible. The credibility of the derived results should be with reference to the participants involved in those particular results. It is said that the participants play the most important role when a study is being conducted because it is only them who know that the actual authenticity of the credibility of the results for the questions conducted in the research.

CHAPTER 2: LITERATURE REVIEW

Introduction

Lean manufacturing is the American name for the Toyota Production System (TPS). It is one of the most advanced manufacturing concepts available in the market today. Many progressive companies like General Electric, Honeywell and Motorola have implemented Lean Manufacturing in various areas of their businesses and enjoyed the benefits.

Japanese Sensei, who are Ex-Toyota employees, have been responsible for spreading Lean concepts around the world. Various U.S companies were exposed to Lean manufacturing after the book Machine that changed the world, (Womack, 1991) was published and since then have increased their understanding and utilization of the subject.

During the period that Lean Manufacturing ...