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LEAN SIX SIGMA A tool to Improve Productivity, Quality and Efficiency in Manufacturing and Industrial Sector
Prof Dr M Shahid Khalil University of Engineering and Technology Taxila, Pakistan` Email:drshahidkhalil@gmail.com Prof M Anwer Khan University of Engineering and Technology Taxila, Pakistan and Tariq Mahmood-Student University of Engineering and Technology Taxila, Pakistan` Email:tmmqm@yahoo.com

1.

Abstract:

Lean manufacturing and Six Sigma are two very powerful concepts in manufacturing and industrial sectors. They have been applied in various forms and have proven their worth in making businesses more productive over time. The very latest trend in these fields is to combine the techniques and tools from these two methodologies into a new format called Lean Six Sigma to improve productivity, quality, and speed. This paper will try to capture some of the key concepts in Lean Six Sigma initiatives and how industries are utilizing it to lower production costs while maintaining high quality and speed. Various Lean Six Sigma terminologies including Kaizen continuous process improvement, TAKT Time, Value Stream Mapping (VSM), Jidoka, and Visual Management will be introduced to give audience an overall idea of this new emerging methodology. Along with these terminologies, existing Six Sigma tools like Pareto Charts, QFDs and Regression tools are applied to achieve customer value with minimum waste and maximum profitability. 2. Introduction:

Lean Six Sigma is a relatively new approach in which Six Sigma methodology is practiced to identify the key Red Xs of the variation and also Lean tools are applied to address the process of improvement and waste reduction issues all at the same time. Inherently, Six Sigma methodology focuses on gathering data; analyzing the collected data, and improving the process yield by using problem solving approach and statistical tools. Six Sigma mainly focuses on reduction of variation in processes and was unable to address the waste and speed issues in the processes, which is compensated by the Lean philosophy. Lean is primarily focused on eliminating or reducing waste and improving the process flow. Therefore combining these two philosophies certainly leads to better results since they complement each other. Combining the two, together, Lean Manufacturing and Six Sigma

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become a powerful philosophy to solve problems and reduce the waste and speedup the process and improve efficiency and process yield. 3. What Is Lean Six Sigma?

Lean Six sigma is a combination of certain tools and techniques to provide Six Sigma practitioners another philosophy to reduce process and production times while minimizing the variation and reducing waste at the same time. Lean events and/or projects are relatively easy to implement in shorter amount of time as compared to Six Sigma projects and thus can provide quicker results in process improvements. 4. History of Lean:

Lean manufacturing philosophy started in late 1800s from Japan with the concept of Kaizen. The concept was based on the notion that no product or process can reach a point where it cannot be improved further. Toyota Company introduced the concepts and tools related with Lean Manufacturing in 1930s onwards with great success. The philosophy really triggered its benefits after World War 2 when Toyota introduced Toyota Production System (TPS). TPS encapsulates the concepts of Just-In-Time (JIT) and other Lean concepts including Kaizen and Jidoka. In early 1980s the proper definitions were introduced and by 1990s, Lean Manufacturing and tools showed their impact in various regions including US manufacturers. In recent years, Lean Manufacturing is getting integrated with Six Sigma to achieve dramatic improvements and savings in cost, quality and production times. 5. Integrating Six Sigma and Lean:

Integrating Lean tools into Six Sigma process map leads to many benefits. The table shows the different strengths that each of these philosophies brings to this merger and also gives a comparison of the two methodologies. Table 1: Comparison of Lean and Six Sigma. Lean Focus and Objective Waste reduction and flow improvement Mostly manufacturing and supply chain management Speedy and focused Mainly team focus (Internal) Quantitative and qualitative Relatively low Vary based Six Sigma Process improvement and variation reduction All types of business processes

Applicability

Process Approach Execution Focus

Discipline of steps Customer focus (External) Mostly Quantitative

Data Driven Style

Cost of

Relatively higher

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As shown by this comparison of the two philosophies that they both have a lot of benefits, which can be integrated, to gain broader benefits. In this paper, some of the Lean principles and techniques will be discussed which have been successfully utilized in Six Sigma process map to achieve better results. 6. Kaizen Process Improvement:

The word Kaizen in Japanese language means, Change for the better or continuous improvement. It is a hands-on process of short duration to develop iterative solutions with each iteration an improvement on the last. This is the core philosophy of the Lean Manufacturing so that process and products can be improved on a continuous basis using various tools. Kaizen is a continuous improvement of a value stream of multiple processes or an individual process to create more value with less waste. There are two levels of Kaizen: (1) System or Flow Kaizen -- focuses on the overall value stream and (2) Process Kaizen -- focuses on individual processes. It is a methodology of continuous cost reduction, quality improvement and delivery time reduction through shop floor involvement and rapid action. Kaizen is generally practiced as a continuous series of activities where instances of waste (MUDA) are identified through real time and place observation, and eliminated one by one at minimal cost. This is accomplished through teamwork between workers and managers to pool their wisdom and experience to increase efficiency in a timely manner. Kaizen normally emphasizes manual work operations rather than equipment capabilities. Kaizen must become part of the business culture and understood by everyone in the business to reap the benefits of lean philosophy. 7. How Lean Tools Integrate In Six Sigma Process Map?

In next few sections we will discuss some of the tools, which can be mapped directly into Six Sigmas Define/Measure, Analyze, Improve/Optimize and Control process map so that Lean tools can become part of the practitioners toolkit for better process improvement and multilateral gains across the board. Table 2: Tools of Lean & Six Sigma Process Map Phase Define/Measure Six Sigma Tools Problem Definition, Capability Analysis, QFD Lean Tools Value Stream Mapping (VSM), TAKT Time, Demand Flow TAKT Time Jidoka, VSM, MUDA,

Pareto, ANOVA, Regression Improve/Optimize DOE, Simulations Analyze

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Control

Poke-Yoke, Control Charts

8.

Value Stream Mapping (VSM):

To bring a product from concept to launch and from order to delivery, there are many steps and processes. Some of the steps or activities transforms or shapes material or information to meet customer requirements, they are called value added activities or steps and some activities or steps that take time, resources or space, but do not add to the value of the product itself are called non-value added activities or steps. Defining and creating a simple diagram of these steps and activities to see the bigger picture and not the individual components and processes is called Value Stream Mapping. In the definition of experts, A Value Stream is all the actions (both value added and non value added) currently required to bring a product through the main flows essential to every product: 1) the production flow from raw material into the arms of the customer, and 2) the design flow from concept to launch. Taking a value stream perspective means working on the big picture, not just the individual processes, and improving the whole, not just optimizing the parts. (Rother and Shook, 1999)

Figure 1 An example Value Stream Mapping: Idea State of a Manufacturing Plant Mapping of each value added and non-value added step involved in the material and information flows is called Value Stream Mapping. The process of mapping starts with identification of the value stream for the product or process, followed by a current-state map provides the current conditions and state of the activities. Then follows a future state map showing the opportunities for improvement identified in the current-state map to achieve a higher level of

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performance in future. These maps are then followed by an implementation plan, which drives the actions and tasks to move from current state to future state. There are certain pre-defined icons and representations that are used for value stream mapping to keep consistency in the maps. Value Stream mapping not only provides a bigger and whole picture of the process instead of focusing on individual steps, it also exposes the sources of waste, not just the waste itself. It helps to identify the linkages between information and material flows and thus gives the blueprint for the lean implementation plan. 9. TAKT Time:

TAKT is actually a German word for beat or rhythm. It was first used as a production management tool in the German aircraft industry in the 1930s. It was the interval at which aircraft were moved ahead to the next production station. The concept is being widely utilized within Toyota since 1950s. The purpose of TAKT time is to precisely match production with demand. It provides the heartbeat of a lean manufacturing system. TAKT time is the pace at which the customer is buying a particular product or service. Taking the available time to work and dividing it by the demand for that same period of time gives TAKT time. TAKT Time = Available Production Time per period / Required Production per period For example, if a widget factory operates 480 minutes per day and customers demand 240 widgets per day, TAKT time is two minutes per widget

Figure 2 TAKT time is not how long it takes to perform a task rather it is dependent on the output requirements. All cycle times must be within TAKT time for customer demand to be met on time and operations must be constructed around it. TAKT time is the most important

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measurement in the manufacturing process and one of the three elements of Just-in-Time. TAKT Time provides the opportunities in the process to improve the process completion time. 10. Jidoka:

Jidoka is also a Japanese word meaning automation. Jidoka is sometimes called autonomation, meaning automation with human intelligence or the concept of adding an element of human judgment to automated equipment. Jidoka means providing machines and operators the ability to detect an abnormal condition and immediately take appropriate action based on the detected condition. In doing this, the equipment becomes capable of discriminating against unacceptable quality, and the automated process becomes more reliable. This enables operations to build-in quality at each process and to separate men and machines for more efficient work. Jidoka is one of the two pillars of the Toyota Production System (TPS) along with Just-In-Time (JIT). An example of Jidoka can be seen in laser identification of the defective parts on machines and manufactured parts. In power looms, when the thread breaks during the working of the machine, the machine is made intelligent using a laser pointer to detect this failure mode and tie the knot on the thread with high efficiency. This preventive and smart detection prevents the loss of closing down the whole production line and also helps in keeping the good quality thread count in the weaving and spinning industry. 11. Visual

Visual Management is another tool provided by Lean to control the after-Kaizen process improvements. When the normal and abnormal state of production 12. TAKT Time Chart Improvement and Management:

Operations can be clearly and visually defined, Visual Management is possible. In visual management, simple tools are used to identify the target state, and any deviance is met swiftly with corrective action. Several techniques including 5S and Kanban are used for visual management. 5Ss are the foundation blocks of the Just-In-Time and Lean production. 5S is based on five Japanese words as defined below: i. Seiri (Organization) means to sort through and sort out. Distinguish between needed and unneeded items. Examples of this include to remove what is not needed in the production environment, including equipment, documents, fixtures, machines, work benches, computers, file cabinets and storage shelves ii. Seiton (Tidiness) means to organize the necessary items close to where they are needed and in such a way that they any waste or abnormality is apparent. Examples include to order and organize items locations self explanatory, use of shadow box, simple labeling and setting limits for quantities in production lines iii. Seiso (Purity) means to clean. Cleaning is a form of inspection. Ensure that all equipment, tools and the entire workplace are clean and safe. Examples include elimination of dust, dirt, oil, scrap paper, broken skids and empty boxes.

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iv. Seiketsu (Cleanliness) when the first few Ss are practiced for a while, a new state of efficiency is achieved. This becomes permanent by sharing information and following standards so abnormalities are quickly recognized and eliminated. Examples of this technique include communication and sharing information between shifts and then sharing information with suppliers and customers to close the action items and have more linearity of the process. This is a proactive approach to keep dirt and dust away from the process v. Shitsuke (Discipline) means to stick to the rules. Shitsuke means making and maintaining correct procedures a steady habit. This includes sticking to the rules and promoting positive discipline for keeping the workspace pleasant. This discipline should be promoted at all levels of management. Checklists and monitoring procedures need to be in place to practice this technique effectively. Some other visual control tools and techniques provided by Lean include, Kanban, Andon, Standard Operations Charts, Production Boards and Defective Items display. For example, we could have a kanban system for coffee supplies. Once the coffee supply is down to two bags, the person making coffee drops a card onto the secretary's desk as a signal to reorder. 13. Conclusion:

Based on the discussions of some basic concepts about Lean Six Sigma, it can be concluded that Lean and Six Sigma together complement each other very nicely and if utilized in organizations and companies especially in the manufacturing sector, Lean Six Sigma can surely improve productivity, quality and speed of the processes. Further industrial work will be done by the authors to use value stream mapping and other visual tools, such as PERT (Program Evaluation Review Techniques), to identify the bottle necks for schedules/lead time, capacity, and cost. Bibliography Michael L. George (2004) The Lean Six Sigma Pocket Toolbook: A Quick Reference Guide to 100 Tools for Improving Quality and Speed Pete Pande (2001), Larry Holpp What Is Six Sigma? Thomas Pyzdek (2003), Revised and Expanded Edition, The Six Sigma Handbook: The Complete Guide for Greenbelts, Blackbelts, and Managers at All Levels, Craig Gygi Six Sigma for Dummies