Lean and Six Sigma - 1 - Introduction

Since returning to Singapore for jobs hunting, I have been asked a few times during the interviews about Lean and Six Sigma. I admitted that I do not have direct working experience with Lean and Six Sigma. But I can learn! Well, it is hard to convince the potential employers. Out of frustration, I decided to write about them.

Lean was emerged from post World-War II Japanese automobile industry to eliminate waste. Six-sigma was developed by Motorola to eliminate variation and improve quality systematically by reducing defects. The focus was shifted from reducing cost and improvement efficiency to eliminate waste and add values to customers continuously.

Now, I think I can apply '5S' even in my small flat to de-clutter the house. For example, let's imaging a work of managing housing documents, such as CPF statements, utilities bills, etc, which all of us are facing as it's part and partial of our lives. How do you organize those documents?

1. Sort - Categorize the documentations, such as group banking statements in one box, CFP statements in another.
2. Set in order / Straighten - Sort the documents in order, e.g. chronologically.
3. Shine / Scrub - Regularly clean the areas where you keep documents to avoid dirtiness. Eliminate spring cleaning. This is everyday work.
4. Standardize - Apply the defined methods in all areas in consistent ways, such as applying stickers to label each group of documents.
5. Sustain - To maintain it religiously, of course.

Lockheed Martin applies Lean Thinking. From 1997 to 2001, LM reduced the building time for space launch vehicle from 48 months to 18 months. Other company applying Lean include Rockwell Collins. They have close to 48% of reduction in inventory, and 25% of improvement in productivity after implementing Lean.

Let's look at Kanban. Kanban means card-signal. In simple form, it advocates supplying parts based on needs 'pull' from demands. When the parts and materials from downstream activities are finished, it signals upstreams to start replenishing the stocks. It sounds simple but yet it takes Toyota 30 years to apply it company wide. Therefore, there is huge gaps between knowing it theoretically and applying it practically. I think, I'm just a newbie still wondering around the main door of Lean Six-Sigma.

To be continued.

Reference: MIT Course: Introduction to Lean Six-Sigma Methods.