Lean Manufacturing and Six Sigma: Methods for Quality Improvement

Improvement methods:

1. Lean manufacturing is a system for maximizing product value. Six Sigma is a problem-solving methodology that uses its collection of tools to fix a specific project over a specific time period. All Six Sigma’s resources are targeted on this one project until the problem is fixed. While Lean Manufacturing encourages daily, general improvements, Six Sigma demands data-based, specific improvements for specific projects.

Six sigma:

Set of techniques and tools for process improvement. Their strategies seek to improve the quality of the output of a process by identifying and removing the causes of defects and minimizing variability in manufacturing and business processes.

The 6 Sigma method thus poses as a fundamental principle: how effective you are at meeting or exceeding your customer’s needs and requirements and also how efficiently you operate.

Improved quality prompts more joyful customers, better products, committed employees and consequently, greater benefits.

Lean Manufacturing:

Series of methods designed to minimize the waste of material and labor while maintaining or increasing levels of production. This results in a net improvement in total productivity.

Lean principles pioneered by Toyota include “just-in-time” manufacturing, where inventory is kept at low “as-needed” levels; automation supervised by human workers to maintain quality control (known as jidoka); minimization of downtime and transportation, and others. Ultimately, it’s about eliminating that which does not add value and delivering the best possible product to the customer as quickly and with as few barriers as possible.

Qlty rationale cycle:

• Customer value: value = benefit/costs
• Customer service: taking care of C needs before, during and after providing a product/service (promptness, politeness, professionalism, personalization).
• Customer satisfaction: satisfaction = P. value – expectations
• Customer loyalty: The result of consistently positive emotional experience, physical attribute-based satisfaction and perceived value of an experience, which includes the product or service
• Customer Retention: retention rate: percentage of individuals staying in a collective group over a specific period.
• Customer Profitability: The difference between the customer relationship associated revenues and costs, in a specified period.

Satisfied employees -> loyal employees -> customer orientation -> Satisfied customers -> Loyal customers -> Monetary profitability + added value