APPLICATION OF LEAN ENTERPRISE AND AS AN AMALGAMATED IMPROVEMENT STRATEGY

Nicholas Loyd, University of Alabama in Huntsville

Abstract rooted in the Production System (TPS), a Lean Enterprise and Six Sigma are two of the most philosophy pioneered by Taichii Ohno and Shigeo prominent improvement philosophies available to Shingo in post-World War II Japan at the now- organizations today. This article investigated how successful automotive company. After Toyota’s surge these two philosophies can be used cohesively as an in productivity and quality came to the global forefront improvement strategy. A comparison was performed in the mid-1970s, many American companies began to relative to the underlying principles, the respective study TPS and implement portions of it, such as tools used, and the implementation methodologies of kanban and 5S, into their own organizations. While each philosophy. A real world example was used to Lean has often become synonymous with these tools, illustrate how Lean Enterprise and Six Sigma can be Toyota described the objective of TPS as simply applied in unison. Finally, it was concluded that reducing the time line from the moment a customer although Lean and Six Sigma have differences, places an order to the point when the company collects primarily in the tools used, they do not have conflicting cash by removing non-value-added activities, or wastes objectives or implementation methodologies and can (Ohno, 1988). The term Lean originated after the 1990 be amalgamated, free of buzz words, to provide an book The Machine That Changed the World, in a study effective overall improvement strategy. of automotive manufacturing, referred to Toyota’s methods as “lean production” (Womack et al., 1990, Key Words: Lean Enterprise, Six Sigma, Continuous 49). Improvement, Enterprise Improvement Strategy Six Sigma is a rigorous, focused, and highly effective implementation of proven quality principles Introduction and techniques (Pyzdek, 2003). Literally, the term six Process improvement is not a concept that is especially sigma is representative of a quality standard of new. If the truth were actually known, the first process producing no more than 3.4 defects per million improvement idea likely occurred within minutes after opportunities. Six Sigma as a process improvement the developer of the first process revealed it to his or philosophy began at Motorola in the mid-1980s under her peers. Improvement philosophies in the United CEO Bob Galvin, with the actual term Six Sigma being States are constantly materializing, disintegrating, coined by Motorola engineer Bill Smith. As a being revamped, and resurfacing with glossier company facing fierce competition in the fast-paced packaging. and ever-changing electronics industry, Motorola Taking a walk through the hypothetical process began implementing Six Sigma concepts to reduce improvement hall of fame, one might happen upon defects and improve customer service. After the wings dedicated to such improvement legends as Eli company won the Malcom Baldrige National Quality Whitney’s interchangeable parts, Henry Ford’s Award in 1988, the public took notice and the word assembly line, quality circles, Total Quality spread about Six Sigma. Six Sigma gained even more Management (TQM), just-in-time (JIT), and World momentum as an improvement philosophy when Jack Class Manufacturing (WCM). While each of these Welch began driving the implementation of the improvement ideologies offered companies varying concepts at General Electric and today hundreds of degrees of isolated results, each became extinct largely companies worldwide have adopted the Six Sigma way because they were not integrated into a complete of doing business (iSixSigma, 2006). system. Today, the two most prominent philosophies In recent years, a significant amount of interest has that have emerged as forces in process improvement revolved around how to make these two popular are Lean Enterprise and Six Sigma, each of which have improvement philosophies work together. Many large made efforts to approach improvement from a more consulting firms have branded their own buzz words holistic vantage point. such as Lean Sigma (TBM) or (the Lean Enterprise is a systematic approach to George Group) in efforts to market the combination of identifying and eliminating waste (or non-value-added these two schools of improvement thought. However, activities) through continuous improvement by flowing despite the growing general familiarity with Lean the product or service at the pull of the customer in Enterprise and Six Sigma, and recent efforts to package pursuit of perfection (UAH, 2002). Lean concepts are the two, many companies and their executives are still

1 of 9 unsure of exactly how Lean and Six Sigma can be • Perfection: improvement should be made applied to help them achieve organizational excellence. continuously to eliminate wastes

Analysis While Lean is based on waste elimination, Six This article will analyze the applicability of Lean Sigma’s primary objective is to eliminate defects. Six Enterprise and Six Sigma as a cohesive process Sigma is often thought of as a quality program, but improvement philosophy by first examining the such a proclamation is short-sighted. Six Sigma is underlying principles of each and the tools traditionally about helping organizations become more profitable by applied to support those principles. Next, a improving customer value and efficiency (Pyzdek, comparison will be drawn between the primary 2003). This is accomplished through the following implementation methodologies of Lean and Six Sigma. four principles: Finally, a real world example will be analyzed to • Eliminate defects: Six Sigma strives to eliminate demonstrate the application of Lean and Six Sigma all defects, which as defined by George et al. tools in unison to support an overall organizational (2004b) are anything that is unacceptable to a improvement effort. customer • Reduce variation: it is necessary to reduce process Principles and tools. Until very recently, it has been variation in order to reduce product variation, commonly accepted among organizations that two which is key to eliminating defects improvement philosophies exist and to accomplish • Data: Six Sigma is data-driven, which serves to improvement goals, they should choose one. reduce political influence so that more effort can Companies often embark on a Lean initiative after a be focused on true improvements top manager reads about Toyota while other companies • Voice of the customer: projects are defined with a choose the Six Sigma path after studying a case study goal of identifying and eliminating costs which on GE or Motorola. In other instances, a company may provide no value to customers (as opposed to find itself on a Lean or Six Sigma journey as a result of cutting costs in activities that might affect quality a mandate from corporate headquarters. Many or delivery time) so that customers may be executives find their organizations in a crisis and, after serviced faster, better, and cheaper desperate research on process improvement, find themselves staring at a difficult decision—do I Although the principles of Lean and Six Sigma may implement Lean or Six Sigma? While it has been a differ in language, there is certainly no conflict in their popular practice to weigh the pros and cons of Lean objectives. Many process improvement experts and Six Sigma, there are also many subtle similarities consider Lean to be about speed while Six Sigma is in their principles. focused on quality, but in actuality both philosophies The basic objective of Lean is to eliminate non- place an equal emphasis on speed and quality, along value-added activities, or wastes, in order to shorten with cost, in order to respond faster, better, and the response time to customers. Waste is any activity cheaper to customers. or effort that does not add value, with value being Lean is focused on eliminating waste while Six defined as activities that change the form or function of Sigma is focused on reducing defects and variation, a product or service based on customer specifications. but these two focuses are not conflicting; waste To achieve this objective of waste elimination, there elimination inevitably leads to a reduction in process are five common guiding principles, as set forth by the variation, which potentially leads to a reduction in epic book Lean Thinking by Womack and Jones product variation, which potentially leads to fewer (1996): defects. In addition, defects are actually one of the • Specify value: in other words, in order to eliminate seven deadly wastes identified by Ohno (1988) at non-value-added activities one must first specify Toyota. which activities do, indeed, add value Six Sigma’s emphasis on data to reduce variation is • Map the value stream: mapping the value stream complementary to Lean’s emphasis on flow and pull; includes creating a visual representation of all variation only impedes flow and must be reduced in activities involved in the material and information order to achieve flow. Lean’s goal is to flow at the flow from raw material to finished goods; mapping pull rate of customer demand, thus extensive data the value stream helps to make wastes visible analysis must be performed to assess demand and • Flow: the product or service should move as analyze respective processes versus that demand to immediately as possible from one value-adding evaluate a value stream’s capability of flowing at the activity to the next desired rate. • Pull: the rate of flow should be dictated by Finally, both Lean and Six Sigma place a strong customer demand, not the capability of the process emphasis on the customer. Both philosophies are in

2 of 9 agreement that systematic continuous improvement is master black belts. Typical Six Sigma projects last necessary to consistently meet customer requirements. from 3-12 months and are led by green belts, who are In order to promote continuous improvement, both coached and mentored throughout the project by a Lean and Six Sigma advocate varying degrees of black belt. Six Sigma implementation is based on a structured training for employees at all levels of the standardized methodology known as DMAIC (define- organization. Once proper training is administered, measure-analyze-improve-control). employees are able to understand their respective roles The Lean implementation methodology is called in the improvement initiative and are able to speak the . Kaizen, in a literal sense, is Japanese for Lean or Six Sigma language. With adequate training, “change for the good” and is a word that has become employees are then viable candidates to be a part of synonymous with improvement, not only at work but in the many variations of process improvement teams every day life (Imai, 1986). Kaizen, as used in Lean utilized by both Lean and Six Sigma to accelerate implementation, is a continuous improvement process continuous improvement. that involves gathering a small team and performing an While there is a significant amount of similarity in intensive waste elimination effort on a specific process. the primary principles and objectives of Lean and Six Although Lean does not have the formal personnel Sigma, the greatest point of differentiation between the ranking system inherent in Six Sigma, a typical facility two resides in the tools traditionally used by each to that is firmly established in a Lean initiative often support those principles and achieve those objectives. features one or more kaizen facilitators who oversee Lean utilizes value stream mapping to look at the big several kaizen leaders. In its purest sense, kaizen is picture and prioritize implementation efforts. Value essentially everyone’s job. There are varying stream mapping is a tool used to document all actions incarnations of kaizen, the most typical form being a currently required (material and information flow) to kaizen blitz event, which is a project led by a kaizen bring a product or service into the arms of the leader and lasts from 3-5 days. Other forms of kaizen customer (Rother and Shook, 1999). Six Sigma include kaizen super blitzes, which last for 1 day and utilizes other various methods in project selection, are often performed on an individual level, and kaizen including scoring methods that assess cost benefits and projects, which last from 2 weeks to several months quality function deployment (QFD). In the beginning and involve upper management. phases of the initiative, Lean improvement projects Lean and Six Sigma have differing approaches to favor the selection of tools such as 5S, quick implementation in regards to project length and the changeover, and point-of-use-storage; these tools are formality of personnel positions, but the logic of the generally applied immediately to eliminate low- DMAIC implementation process and kaizen are hanging waste and the benefits of these tools are strikingly similar. Exhibit 1 illustrates the similarities visually evident. As Lean initiatives grow more in the DMAIC process and the 12-step standardized mature in an organization, advanced tools such as kaizen process developed by the Alabama Technology cellular flow, kanban, and total productive Network at the University of Alabama in Huntsville maintenance require more analytical attention. Six (UAH, 2002). Sigma tends to use more statistically-based quality tools such as Pareto analysis, statistical process control Exhibit 1. DMAIC and Kaizen Processes (SPC), process capability studies, and design of experiments to analytically address problems Six Sigma throughout implementation. The results of these DMAIC Process UAH-ATN Kaizen Process efforts are generally less visible to the uninvolved and Pre-event Prep/Scope •VSM show up on paper in the form of productivity reports, •Target area D •Team, facilities, support, quality reports, and financial statements. logistics, supplies, etc. 1. Train on specific tools Methodologies. The previous section discussed the M 2. Observe/flowchart/measure current process similarities and differences in the principles and tools 3. List wastes/problems/opportunities associated with Lean Enterprise and Six Sigma A 4. Set target(s) improvement programs. This section will analyze the 5. Brainstorm countermeasures I 6. 5S & “try-storm” improvements methodologies used by each in the implementation of 7. Run new process & measure results their respective tools--including personnel used to 8. Standardize changes implement, length of implementation projects, and the 9. Develop report implementation processes themselves. C 10. Present & discuss results Six Sigma has a structured hierarchy of 11. Celebrate! 12. Follow-through rest of action items implementation personnel with varying degrees of Six

Sigma mastery, including green belts, black belts, and

3 of 9 implement the countermeasures, try-storming and Regardless of the complexity and length of the running the new process, and measuring the results in project scope, the same 12-step kaizen process can be order to show improvement. Once actual improvement applied. There are numerous methods by which areas is verified by running and measuring the new process, may be targeted for kaizen. Areas may be chosen control mechanisms must be integrated to ensure the strategically because they are in a highly visible area or improvements are sustained. because it is an obvious bottleneck and a quick-win The remaining steps (steps 8-12) in the kaizen kaizen effort could result in excitement being generated process each serve as important control mechanisms. across the organization. However, the scope of a Standardizing the new process provides documentation kaizen effort is most effectively defined through using of the changes so that employees can be trained and the the value stream map. A properly implemented value related activities do not regress to the ways of the old stream map consists of a current state map, a future process. Preparing and presenting the report of the state map, and a detailed implementation plan of all kaizen activity gives the participants ownership of the necessary improvements needed to achieve the future new process. Because participants are typically those state. Thus, targeting areas for kaizen using this who perform the related tasks, their involvement in the method ensures that the resulting efforts will directly presentation contributes to their subsequent buy-in. affect the overall value stream. Regardless of the Celebration is also an important element relative to method of targeting an area for kaizen, the effort is control. Management has power over celebration, and scoped prior to the event, corresponding with the it often does not take much to give the kaizen define phase. participants a feeling of accomplishment and Part of scoping, or defining, a kaizen effort recognition. Accomplishment and recognition, involves the determination of the specific training to be according to Herzberg (1968), are motivators, thus performed at the kick-off of the kaizen effort. While management-driven celebration of improvements goes some or all participants on the kaizen team may have a long way toward promoting behavior conducive to been trained on Lean and waste identification, each sustaining those improvements. Finally, prompt kaizen effort should offer training just-in-time on follow-through on any unfinished tasks from the kaizen particular tools to be used during that specific event. event is important because a failure to do so has the For example, if a five day kaizen blitz is to be held to potential to be interpreted as viewing the effort as organize and 5S an office area, participants on that unimportant, thus vanquishing any momentum from kaizen event would receive training on the exact 5S the kaizen effort. process to be used during that event. Relative to the comparison of implementation Once the specific training is complete, the next step methodologies, Lean and Six Sigma vary in the in the kaizen process is to measure the current process formality of personnel rankings and length of project by collecting appropriate data. This data may include duration. However, once terminology is set aside, the cycle times, 5S scores, process maps, inventory levels, structured thought process that both Lean and Six changeover times, or general waste observations. Sigma advocate for implementation are virtually Before any improvement can be made, a baseline of the identical. current process must be set in this step (step 2), which corresponds to the measure phase of DMAIC. Example of application. This section will After measuring the current process, the kaizen demonstrate one application of Lean and Six Sigma participants then analyze the collected data and identify tools utilized in unison throughout a systematic process existing wastes, problems, and opportunities for improvement effort. The Alabama Technology improvement within the current process. Based on this Network at the University of Alabama in Huntsville analysis, the kaizen participants next set goals, relative (UAH-ATN) is a not-for-profit provider of process to the scope, to be achieved throughout the remainder improvement assistance, including expertise in the of the kaizen effort. For example, a kaizen goal may areas of Lean and Six Sigma, for a wide variety of be to reduce setup time by 50% or reduce work-in- organizations. One such organization, Syndeo process to less than one day. This analysis phase (steps Corporation, was an ideal candidate for the 3, 4, and 5 of the kaizen process) is concluded by employment of both Lean and Six Sigma offerings to brainstorming countermeasures that can be help achieve their organizational goals. implemented to address the previously-discussed Syndeo Corporation is a small insulated wire problems and achieve the goals. fabricator in north Alabama that supplies primarily tier The brainstorming of countermeasures also sets the 1 automotive companies. As a relatively young roadmap for the improvement phase. The next steps company (established in 2000), Syndeo had found its (steps 5, 6, and 7) in the kaizen process involve making niche in the automotive market as a minority-owned the physical and procedural changes necessary to supplier with a strong focus on customer service and

4 of 9 quality. In late 2004, Syndeo was enjoying success and projects necessary to achieve the desired future state. looking at a potential increase in sales of over 60%, a The future state is shown in Exhibit 3. figure that would double the company’s profit. Syndeo management wanted to avoid addressing this drastic Exhibit 3. Syndeo Future State Value Stream Map increase in sales volume through capital additions for two reasons: capital investments were not feasible Production Planning because of the company’s small size and Syndeo Suppliers Customers believed, according to equipment specifications, that it had the needed capacity on its two existing wire insulation machines to meet projected sales. However, Daily if the company did not make improvements to their Wire Insulation Daily process they would not be able to realize their full Process (Extrusion) existing capacity, which could result in overwhelming •CT= 1.5 hours •C/O= 5-10 min (color the production department and taking a hit on quality Raw Material change); 20 min (full FG and customer satisfaction. UAH-ATN was brought in Supermarket setup) Supermarket •Uptime= 100% to work with the company to analyze current capacity utilization and suggest improvements necessary to increase utilization to meet the projected sales. The process improvement effort at Syndeo began Value stream mapping is an effective tool for with a value stream map in order to gain a holistic view defining problem areas on which to focus improvement of the company, including the integration of material efforts. Future state maps highlight necessary flow, inventory locations, information flow, and key improvement projects, each of which with the potential process parameters which could serve as capacity to utilize Lean and/or Six Sigma tools during constraints. The current state value stream map is implementation. Thus, value stream mapping is an shown in Exhibit 2. ideal tool to use in the define phase to visually demonstrate how Lean and Six Sigma can be used Exhibit 2. Syndeo Current State Value Stream Map together throughout the organization to achieve overall business objectives.

While the value stream mapping process serves to Production Schedule integrate Lean and Six Sigma efforts at the overall Suppliers Customers organizational level, each individual improvement burst also has the potential to utilize both Lean and Six Daily 3x Schedule Sigma offerings simultaneously and seamlessly. For week Daily example, the design of a finished goods supermarket Wire Insulation during the implementation of a pull/kanban system Process (Extrusion) would greatly benefit from a statistical analysis of the I •CT= 1.5 hours I •C/O= 5-10 min (color variation in customer demand. In Syndeo’s situation Raw Material FG change); 1 hr (full the improvement burst that took priority, because of Inventory Inventory setup) their business objective of increasing capacity to meet •Uptime= 60% increased sales, was improving equipment uptime. The remainder of this section will demonstrate the use of Lean and Six Sigma in parallel to address this area of The current state value stream map offers an avenue opportunity as an example of how the two ideologies to look at the big picture and see opportunities for can be used in concert on isolated improvement improvement relative to key problem areas. In the case projects in addition to holistic planning. With the of Syndeo, these key problem areas included similarities having already been drawn between the Six equipment downtime (uptime in the current state was Sigma DMAIC methodologies and the Lean kaizen only 60%), lengthy set-up times, excess inventory process methodology, the DMAIC terminology will be (both in raw materials and finished goods), and used for the remainder of this example. supplier relations issues. The purpose of value stream With the problem--lack of equipment uptime-- mapping is to use the current state to identify and having been defined through the use of value stream define problems in order to design and implement a mapping, the next phase was to determine how to future state to address those problems (Rother and measure downtime in the existing state. The Lean tool Shook, 1999). Thus, based on Syndeo’s current state, a of total productive maintenance (TPM) was chosen as future state value stream map was created featuring the vehicle of measurement. TPM is a strategy to improvement bursts that defined implementation achieve zero unplanned downtime and zero defects

5 of 9 through integrating equipment maintenance into the another 3-day kaizen event facilitated by UAH-ATN. manufacturing process by achieving overall equipment Initial analysis included reviewing and discussing the effectiveness. TPM works to measure and eliminate raw data comparing downtime between shifts and the six big losses that are obstacles to equipment between lines, both by number of occurrences and by effectiveness (Nakajima, 1988). Exhibit 4 lists and total lost time. In general, this situation would be an defines these six big areas of loss. ideal candidate for Six Sigma statistical analysis to determine if there were, indeed, any significant Exhibit 4. The Six Big Losses of TPM differences between shifts or machines. At Syndeo, this data was analyzed graphically with bar charts and Loss Definition no obvious trends suggesting any difference in either Breakdowns Equipment failure shift or machine were apparent, thus it was decided to Setup and Process changeover from one focus analysis efforts on the overall downtime data (for Adjustment production run to another all shifts and both machines). Idling and Minor Due to abnormal operation of The overall downtime data at Syndeo was then Stoppages sensors, blockages of chutes, etc. further analyzed using the Six Sigma tool of Pareto Reduced Speed Discrepancies between analysis. Pareto analysis operates on the principle that equipment’s designed run speed a small percentage of issues cause a large percentage of and actual run speed the problems (Pyzdek, 2003). Exhibit 5 shows a Pareto Defects Lost run time for good product due chart of Syndeo’s overall downtime, in minutes and to running out-of-specification percentages, for the six big losses. product or repairing defects Startup Losses From machine startup to stable Exhibit 5. Pareto Chart of Six Big Losses production of good product 14000 120.00%

12000 To execute the measure phase at Syndeo, UAH- 100.00% 10000 ATN facilitated a 3-day kaizen event with a team 80.00% featuring representation from management, production, 8000 60.00% and maintenance. The scope of the kaizen event was to 6000 develop a measurement tool to capture equipment 40.00% downtime, train operators in using the measurement 4000 tool, and implement and validate the tool for data 2000 20.00% collection for use in the analyze phase. In order to 0 0.00% ensure accurate data collection, the kaizen team Idling Setup Startup Breakdowns Defects Reduced Speed decided on a simple form that could be filled out by hand by the equipment operator as downtime occurrences happened. The downtime data collection form was developed and implemented on the first day Of the six big losses, the majority could be of the kaizen event and operators on all three shifts accounted for in the categories of idling/minor were trained by the kaizen team on why the data was stoppages (36%) and setup/adjustment (32%). This being collected and how to fill out the form. The analysis helps to pinpoint exactly where to focus kaizen team monitored and adjusted the data collection efforts during the improve phase and also demonstrates process for the remaining two days of the kaizen event how both Lean and Six Sigma tools can be applied to validate that correct downtime data was being during both the analyze and improve phases. For captured. example, the Lean tool of quick changeover and the A computer spreadsheet was also developed during principles of SMED (single minute exchange of dies) this kaizen event to prepare for analysis of the could be implemented to reduce lost time due to setups downtime data. The computer spreadsheet was and adjustments. SMED is a theory and set of designed to allow for analysis of downtime by shift, by techniques used for performing setup operations and machine, and overall. Data was captured by operators; adjustments between production runs in a matter of the data forms were collected and entered into the minutes as opposed to hours. This reduced setup time spreadsheet daily by management. A follow-up kaizen results in gained run time and also allows a drastic event was scheduled a month later to begin analysis of reduction in inventory (Shingo, 1985). the downtime data. In the case of Syndeo, the Pareto analysis also led After a month of data collection, the analyze phase to further analysis of the categories accounting for the of the uptime improvement effort was kicked off with

6 of 9 most lost time. The fact that idling/minor stoppages potential causes of the fuzz-up problem and developed was the most frequent cause of downtime prompted the a list of countermeasures to implement in the improve kaizen team to pull the downtime data forms filled out phase. Exhibit 7 shows a sample of the by the operators and investigate further into this problem/cause/countermeasure brainstorming analysis category. Again, a Pareto analysis was performed, this and demonstrates the involvement of both Lean and time within the category of idling/minor stoppages. Six Sigma tools. The idling/minor stoppages Pareto chart is shown in Exhibit 6. Exhibit 7. Brainstorming Analysis of Fuzz-up Problem

Exhibit 6. Pareto Chart of Idling and Minor Stoppages Problem Cause Countermeasure Fuzz-ups Some extruding tips 5S tip storage are dented and area to purge out 4500 120.00% damaged bad tips 4000 100.00% 3500 Wire feed misaligned Perform DOE on 3000 80.00% due to eyeballing alignment 2500 adjustments settings, 60.00% document proper 2000 ranges with 1500 40.00% visuals controls 1000 20.00% 500 Damaged raw Contact vendor, 0 0.00% material wire from work on supplier

k d r e d n vendor relations a n ea reak he ng z Up ot a ou ctio Break Br he p n uz e F ir oss k ch m c o W cr c Weld n r weld b r malfu r i o pa of o o p n s nd u s e ee lo sion Once countermeasures are implemented during the n V Operat Scr Cure te improve phase, additional potential to utilize Lean and Six Sigma tools exists in the control phase to ensure improvements are sustained. At Syndeo, substantial effort was focused on documenting setup procedures This analysis of idling/minor stoppages also leads using the Lean tools of standardized work and visual to vast opportunity for the application of Lean, Six controls. The result was a pictorial standardized setup Sigma, and other strategic improvement tools. procedure useful for training operators on best Syndeo’s vendor weld break issues, which were a practices to eliminate both waste and variation in setup contributor to lost time due to idling/minor stoppages, times. Statistical process control (SPC) could also be could be addressed through an organizational strategy utilized to monitor setup times to ensure that the of sharing Lean Six Sigma training and coaching with procedures have indeed reduced setup time, and if not suppliers in order to reduce inventory and increase SPC would alert management to take action. Syndeo supplier quality (George, 2002). The wire break issue, also developed an extruder tip evaluation program which is more of a result of a tension setting on the during the kaizen event as a control mechanism to equipment, is an ideal candidate for a design of prevent that particular cause of fuzz-ups. Once a experiments on key relative process parameters. Each design of experiments is performed on machine individual problem area is a candidate for the use of a alignment settings, the determined appropriate settings variety of Lean and Six Sigma tools geared toward root could be marked with visual controls that would both cause analysis, such as 5-why analysis, brainstorming, reduce setup time and reduce fuzz-up problems. and cause-and-effect diagrams. The Syndeo case does not begin to touch on all Problems often have multiple root causes and of the possibilities that exist throughout organizational proper root cause analysis in the analyze phase can lead process improvement to use Lean and Six Sigma tools to even more opportunities to utilize Lean and Six with their company. This example only encompasses Sigma tools in the improve phase. In the Syndeo one part of one improvement burst (increase uptime) example, the leading cause of idling/minor stoppages from the future state value stream map. Each was a quality issue called a fuzz-up, which was an additional burst has the potential to offer even more instance where a loose strand of the multi-stranded raw instances for cooperation of these two continuous material wire would snag and stall the machine. improvement superpowers. For industries and Through a problem/cause/countermeasure businesses in general, the possibilities are seemingly brainstorming session, the kaizen team determined endless.

7 of 9 Interestingly, at Syndeo, although a small group of The example of Syndeo Corporation demonstrated managers had received introductory Lean training in how Lean and Six Sigma tools can be employed with the past, the improvement efforts were never sold as synergy throughout a systematic improvement effort. Lean, Six Sigma, Lean Six Sigma, or anything else. In the define phase, value stream mapping was used to There were no banners adorning the walls or trumpets generate a list of improvements, each with the potential sounding to announce the arrival of a new process of using Lean, Six Sigma, or both to address issues. In improvement savior to exonerate them from their sins the measure phase, the Lean tools of TPM and kaizen of inefficiency. Syndeo is a small, privately owned were used to capture downtime data. In the analyze company in an industry where competition and change phase, Pareto analysis and kaizen brainstorming were are high-paced. The company felt their energy should used to highlight root causes. Those root causes were be focused less on buzz words and more on the then addressed in the improve phase by using a variety improvements needed to meet their organizational of Lean and Six Sigma tools such as 5S, design of objectives—regardless of the brand name. experiments, SMED, and visual control. Improvement efforts have the potential to be controlled with Conclusions standardized work, visual controls, and SPC. More Lean Enterprise and Six Sigma are the two most importantly, Lean and Six Sigma tools were used prominent improvement philosophies available to seamlessly throughout the Syndeo improvement effort organizations today. Lean and Six Sigma each have with less of an emphasis on the brand name of the their own distinct set of principles, tools and improvement style and more of an emphasis on methodologies; however, their objectives are similar. applying the right tools at the right time to benefit the Both Lean and Six Sigma have the objective of organization. satisfying their customer by offering a shorter response time, perfect quality, and lower cost for all products Recommendations and services. Lean Enterprise and Six Sigma have each allowed The points of differentiation between Lean and Six hundreds of organizations to realize significant results Sigma seem to be more of a source of complement, from their respective implementations. However, the rather than one of conflict, for achieving the objectives. benefits of employing either Lean or Six Sigma alone The Lean principles of waste elimination and flow are limited compared to the benefits of employing an harmonize with the Six Sigma principles of reducing amalgamation of both. To fully realize the next level variation and defects. In order to achieve the faster- of improvement available by using Lean and Six Sigma better-cheaper objective, both waste and variation must simultaneously and seamlessly, executives, engineers, be eliminated from all processes. Together, Lean and and professionals practicing in the field of continuous Six Sigma’s respective tools offer a complete set of improvement consulting should place consideration on proven techniques to eliminate waste and variation. the following recommendations: The areas of similarity between Lean and Six • Consolidate the toolbox- Lean and Six Sigma each Sigma only serve to strengthen the argument that the offer tools useful in addressing problems that face two philosophies are complementary. With the detail all organizations. The key is having all the correct of formality aside, Lean and Six Sigma advocate tools available and trained personnel to use them training at all levels of the organization to support when the problem arises. A trained mechanic does empowered employees leading the continuous not only keep metric tools on hand and attempt to improvement efforts. Lean’s traditional quick, bias- use a 25-milimeter socket on a one-inch bolt head. for-action kaizen implementation couples well with Six Doing so would possibly achieve the immediate Sigma’s longer, analytically based implementation goal (loosening or tightening the bolt), but would mentality to offer a balanced set of options for project likely cause greater problems in the future (a worn implementation. Regardless of the project timeframe or stripped bolt head). Likewise, having only Lean or terminology used, the structured thought process or only Six Sigma tools available within an used by Lean and Six Sigma for implementation is organization reduces the chances of effective long- virtually identical. For any given problem, Lean and term solutions to problems. Six Sigma implementation is as simple as clearly It is important for organizations to have defining the problem, measuring and analyzing the expertise in Lean and Six Sigma philosophies. It is current process to fully understand the causes of the not necessarily a requirement that all individuals problem, implementing appropriate tools as involved in continuous improvement in an countermeasures to improve the problem, and organization to be experts on Lean and Six Sigma, standardizing and controlling the improvement to but it is necessary for those individuals to have an ensure that results sustain. understanding of when and where to use the

8 of 9 appropriate tools, and to have access to those met by Lean initiatives, Six Sigma initiatives, or resources of expertise for all problems. any other buzz word. Thus, in relation to • Acknowledge the similarities of Lean and Six improvement efforts, energy spent focusing on Sigma and embrace the complementary buzzwords is non-value-added. differences- The sooner those involved in continuous improvement get past the notion of References choosing whether Lean or Six Sigma fits for their Collins, Jim, Good to Great, Harper Business (2001). company, the sooner they will be able to realize George, Michael L., Lean Six Sigma: Combining Six the real results of using both. All processes have Sigma Quality with Lean Speed, McGraw-Hill waste and variation which impede response time, (2002). quality, and cost efficiency. The key is to adopt a George, Mike, Dave Rowlands, and Bill Kastle, What philosophy of using the structured problem solving is Lean Six Sigma, McGraw-Hill (2004). approach shared by Lean and Six Sigma to Herzberg, Frederick, “One More Time: How Do You implement the appropriate tools (from the now- Motivate Employees?”, Harvard Business Review, consolidated toolbox) at the appropriate time to (January/February 1968). achieve overall organizational improvement by Imai, Masaaki, Kaizen: The Key to Japan’s eliminating the existing waste and variation. Competitive Success, Random House (1986). • Tear down the departmental walls of continuous iSixSigma, The History of Six Sigma, Available from improvement- While having only a Lean Internet: department or only a Six Sigma department for http://www.isixsigma.com/library/content/c020815a continuous improvement certainly results in .asp (cited 2006-02-06). limitations, the existence of both departments Nakajima, Seiichi, TPM: Introduction to Total within an organization also is a short-sighted Productive Maintenance, Productivity Press (1988). approach. Organizations that vaunt a Lean group Ohno, Taiichi, , Productivity and a Six Sigma group separately can expect to Press (1988). encounter the same issues as a facility with a Pyzdek, Thomas, The Six Sigma Handbook, Revised functional layout—islands of optimization, lack of and Expanded, McGraw-Hill (2003). understanding of the big picture, turf-battles, and a Rother, Mike, and John Shook, Learning to See, Lean lack of flexibility to respond to needs. Ultimately, Enterprise Institute (1999). a departmentalized continuous improvement Shingo, Shigeo, A Revolution in Manufacturing: The structure will have the same detrimental effects on SMED System, Productivity Press (1985). the response time, quality, and cost efficiency of The University of Alabama in Huntsville, Kaizen improvement efforts that a departmentalized Facilitation Training, training materials developed facility layout has on deliverable products or by UAH (2002). services. Womack, James P., Daniel T. Jones, and Daniel Roos, For decades, organizations have focused efforts The Machine That Changed the World, on integrating departments and functions to HarperPerennial (1990). eliminate the over-the-wall-mentality in order to Womack, James P., and Daniel T. Jones, Lean place an unmistakable focus on the customer. The Thinking, Free Press (1996). time has come to break down the walls of continuous improvement to accomplish that same About the Author customer focus. Nicholas Loyd received his M.S.E in Engineering • Eliminate the buzz words- While the buzz words of Management and his B.S.E in Industrial and Systems Lean, Six Sigma, and any combination thereof Engineering from the University of Alabama in may be important from a marketing standpoint in Huntsville. He currently works in the Office of the embryonic stages, the time must come, sooner Economic Development at UAH with the responsibility rather than later, to focus on the results and not the of providing client companies with training and packaging. The organizations that achieve implementation in the arena of Lean Enterprise. He is greatness focus little energy on rolling out brand a certified Lean instructor by both the National name initiatives or launching programs and focus Institute of Standards and Technology (NIST) and more energy on achieving results (Collins, 2001). MIT’s Lean Aerospace Initiative and a certified Six In terms of improvement, customer requirements Sigma green belt by the Institute of Industrial are the following: faster, better, and cheaper. Engineers. Customers do not care if those requirements are

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Appendix A