Difference between Six Sigma and Lean
Six Sigma can be explained as the philosophy of management that is highly focused on the achievement of organization's objective, data collection, and examination of the outcome of the entire process to ensure the quality service and decrease in product imperfection. Sigma is a Greek word that is rarely used to indicate the difference from a standard but in the philosophy of management, Six Sigma is used as a methodology to eradicate faults from the manufacturing process to ensure the best quality of products. Six Sigma is classified into two parts namely, Six Sigma DMAIC and Six Sigma DMADV. The term Six Sigma DMAIC follows is a five-step process that defines measures, analysis, improves, and controls the procuresses that fail to meet the essential specifications of Six Sigma. On the other hand, Six Sigma DMADV is another approach that defines measures, analysis, designs, and verifies the innovations in products and new processes that are designed to meet the quality requirement of the Six Sigma. The professionals who are expert in the methodology of Six Sigma are known as Six Sigma green belts and Six Sigma black belts. These professionals are responsible for performing the complete process of Six Sigma and later the Six Sigma Master Belts are in charge to supervise the entire process. It is claimed by the proponents of Six Sigma methodology that it has facilitated numerous organizations in means of cost decrease, reduction in material waste, time efficiency, enhancement in consumer satisfaction, and increase the reliability and services of the product. However, the implementation of Six Sigma is expensive, and the company experiences the outcome after several years .
In contrast to Six Sigma, lean management can be explained by the fundamental idea that is based on the enhancement of customer’s value and satisfaction while stressing on the reduction of waste. Lean manufacturing or lean management is a methodology established by the executives of Toyota Company during World War II in Japan. The standards that are introduced by the lean production are also referred to as lean thinking. The concept of lean production was mainly developed to focus on the removal of production waste, diminished inventory, and better productivity. Considering the lean production methodology, the company can focus on the orders according to the customer’s specification. The concept of lean was established with the purpose to build more value for the consumer in the presence of fewer resources. To meet the core objectives of the organization, the methodology of lean assists the company’s management to change their viewpoints from optimizing the assets and technologies to optimize the process of production and services. The techniques of lean assist in reduce human efforts, time, capacity, and capital to build products that are inexpensive and close to the perfection. Most significantly, the methodology of lean production is essential for the companies to gain customer satisfaction through quality, cost, and delivery. Also, the techniques of lean production are supportive of cutting production costs and subsequently making the business profitable. In general, the methodology of lean management emphasizes on several rules including reducing inventory, removal of waste, increasing flow, attaining customer’s satisfaction and requirement, empowerment of employees, the partnership with suppliers and building the dynamic culture to meet the core objectives of the company. In a current highly competitive market, the role of lean production is significant as it stressed on the perfection of products through maintaining quality and establishing customer driven philosophy.
Toyota Production System
The structured approach of lean production system has facilitated Toyota production process in saving both money and time. The Toyota Company successfully grasped the international market and achieved its core objectives by focusing on the customer satisfaction and product perfection. It is observed that Toyota production system has stressed on the removal of waste and has aimed at continuous improvement of product’s safety, quality, cost, and productivity. In result, the company gained the trust and satisfaction of its major stakeholders including workers, consumers, and investors. The philosophy of waste removal that was constantly focused by the company referred to the removal of all those factors that do not contribute to the value of product or service. To improve the production process and service of the company, the management of Toyota stressed on the removal of seven major wastes including scrap, inventory, processing, conveyance, waiting, motion, and over-production. The experts of the production department observed that production of defective products is increasing loss for the company regarding additional material, cost, labor, and conveyance. The manufacturing department to reduce the major loss of money, time, labor, and inventory controlled the production of defective products immediately. The company also realized that overproduction created a burden on the storehouse space and increased the labors hours for managing the stock. The lean methodology also assisted the company to realize the value of time and supported to take careful measures that could help to prevent any delay in the service. The company examined that delay in the service usually occurs due to breakdowns or changeovers that ultimately reduces the probability of customer retention. The lean production facilitated the company to recognize that immediate changeovers and preventative maintenance are necessary to be a part of the worldwide competition.
Moreover, the company also became conscious with the disadvantages of needless inventory in the stock. The additional inventory not only ties the organization’s cash or occupies extra space in the storage but also involves extra labor, equipment and time in managing the inventory of the company. The lean production methodology also provided great knowledge to employees about the over processing waste that ultimately helped the employees to be time efficient and creative. The productivity of the company gets increased when the employees realized the drawbacks of unnecessary motions such as waste of time and energy. The employees engaged in the work process eliminated wasted motions from their work process including needless lifting, turning and reaching. It is analyzed that methodologies of lean management proved beneficial for the growth of the company and also enhanced the satisfaction and trust level of the customers on the company’s product. The Toyota production system stressed on the principles of lean production and obtained numerous benefits regarding product quality improvement, cost reduction, enhancement in efficiency, the increase in morale and safety of the workers, productivity, and equipment reliability. According to a report, the management of Toyota achieved its targets by engaging multi-skilled labor in the production process.
Concerning the product’s quality, the Toyota production system produced high-quality products that were according to the specification and interest of the customers. Also, the company eradicated the production of faulty products that consequently reduced the cost and time of the organization to a great extent.
Cost reduction strategies allow the company to increase its market share in today’s highly dynamic and competitive market. Also, the strategies that were based on the effective productivity helped the company to reduce waste of overproduction and consequently improved their value in the global market by diminishing the cost. The Toyota production system also attained its objective of delivering valuable services through stressing on the safety and morale of the employees. The management of the Toyota addressed significant issues that were concerned with the safety and morale of the workers such as workplace safety, adherence to the labor rights and advancement in the self-confidence of the employees. The company places great efforts to improve the workplace safety particularly in those areas where employees experienced more hazards and difficulties. Also, the company focuses on the standardized work to enhance the trust level and morale of the workers. It is analyzed that improvement in the areas of employee’s safety has increased the productivity and efficacy of the employees and has subsequently enhanced mutual trust and respect between the organization and employees.
Conclusion
It is concluded that the implementation of lean management philosophy by the Toyota Production system requires continuous effort and knowledge to compete in the international automotive market. Also, the workforce of the Toyota production system needs great skills, practice and expertise in the principles of lean methodologies to satisfy the needs of stakeholders of the company. Moreover, the further growth and expansion of the Toyota are based on the transformation in the culture and environment of the company with the current change in the organizational culture.
Works Cited
Ahrens, Thorsten. "Lean production: Successful Implementation of Organisational Change In Operations Instead of Short Term Cost Reduction Efforts." 2006. lean-alliance. Web. 1 May 2016 <http://www.lean-alliance.com/en/images/pdf/la_lean_survey.pdf>.
George, Michael. Lean Six Sigma: Combining Six Sigma Quality with Lean Production Speed. New York: McGraw Hill Professional, 2002. Print.
"Toyota Production System Basic Handbook." 2010. artoflean. Web. 1 May 2016 <http://www.artoflean.com/files/Basic_TPS_Handbook_v1.pdf>.
