Question

What are the similarities and differences between Lean Manufacturing and Six Sigma. Do research on work situations in which one methodology is more appropriate than the other. You can also debate the pros and cons of each method.

Answer 1

• Businesses grow through two main processes: acquiring more clients, and increasing the profit margin by eliminating unnecessary expenses and waste. Six Sigma and Lean are two approaches that aim to achieve these goals, but use different methodologies.
• Lean manufacturing or lean production, usually referred to simply as “lean” is an enterprise methodology developed by Toyota Motor Corp in the 1990s. It is an organized process of eliminating waste from various activities in the organization, providing maximum value to customers with the lowest possible amount of investment.
• Lean’s main strength is its fast implementation, and almost immediately visible results. Short term benefits include a rise in productivity, error reduction, and shorter customer lead times. In the long run, when properly planned and executed, Lean can improve financial performance, customer satisfaction, and staff morale.
• Six Sigma, introduced in the 1980s by Motorola, is a production practice that aims to increase efficiency by identifying and removing variability in processes. With its goal being uniformity in process output to meet client requirements, Six Sigma puts customers first, using statistics and data to consistently optimize results.
• Six Sigma is a quality improvement methodology that provides a multifaceted framework for companies to improve operational efficiency. It includes employee training in key performance areas, alignment of company services with customer needs, and careful measurement of progress aimed at identifying KPIs, and improving the performance of business processes by reducing process quality variation.
• Both Lean and Six Sigma have the same goal of identifying and eliminating inefficiency in businesses processes. The main difference between the two is in the approach toward this goal, and each system’s definition of the root cause of waste.
• The main reasons for the debate is, as always, the rate of success different organizations have had with each approach. Some swear by Sigma Six, while others rave about Lean, due to either positive or negative past experience. Of course, there are advantages and disadvantages to each. While Lean is traditionally manufacturing-oriented, and is quicker to implement, Six Sigma is armed with the power of data for decision making, and is consumer-centric at its core.
• Many experts today find that the best results are reached when the two approaches are combined to create a goal-oriented synergy of the two. This consensus birthed the combined approach of Lean Six Sigma, allowing for more strategic flexibility. When you want to reduce waste and improve the efficiency of a process, you use the lean tools. When your goal is to reduce variance and improve performance, you should be using Six Sigma tools.
• While both seek to eliminate waste, please customers and maximize profits, in most cases it’s the optimization of the synergy between the two that can help your business reach its maximum potential.