Lecture Notes: Introduction to Lean and Six Sigma

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Introduction

• Course Design: Beginners in Lean journey
• Module Objectives:
  1. Origins of Lean and Six Sigma
  2. Lean Six S Tool
  3. Defining Lean and Lean Enterprise
  4. Stakeholders in Lean Enterprise
  5. Implementation in various sectors (aerospace, healthcare)
  6. Lean as a journey, not a state

Origins of Lean and Six Sigma

• Origins: Japanese automotive industry
• Key Literature:
  • 1990: MIT’s “The Machine That Changed The World”
  • Comparison of Japanese, North American, and European automotive
  • Japan: Steady growth, low variability
  • US: Inconsistent production
• Misconceptions: Lean is not just a manufacturing paradigm

Lean vs Mass Production vs Craft Production

• Lean Thinking Paradigms: Operations, Aim, Quality, Business Strategy, Improvement Drivers
  1. Craft Production: Mastery of craft, integrated quality, expertise-driven
  2. Mass Production: Reduced unit cost, secondary quality step, expert-driven intermittent improvement
  3. Lean Production: Eliminate waste, built-in quality, worker-driven continuous improvement
• Lean Definition: Dynamic, knowledge-driven, customer-focused process of continuous value creation

Lean and Six Sigma Integration

• Six Sigma: Originated at Motorola in 1980s, focus on reducing variance and improving predictability
• Lean: Focus on eliminating waste for continuous improvement
• Integration: Combined as Lean Six Sigma, tailored to organizational needs
  • Examples: Textron Six Sigma, Virginia Mason Production System, Boeing’s Lean Plus

Lean Tools: 6S (5S with an added Safety component)

• 5S: Sort, Set in order, Shine, Standardize, Sustain
• 6S: Adds Safety
• Implementation Exercise: Workplace improvement simulation with 6S methodology
• Example: Laundry reorganization at a rural hospital, leading to increased productivity and employee satisfaction

Applying Lean: Cases and Sectors

• Aerospace: Importance due to strategic and national interests, industry consolidation post-Cold War, inefficiency leading to adoption
  • Examples: GPS satellites, Joint Strike Fighter, Boeing 787
• Healthcare: Identified quality gaps (e.g., preventable medical mistakes), cost issues, accessibility challenges
  • Examples: Wisconsin’s ThedaCare, Dartmouth-Hitchcock Medical Center
• Enterprise View: Comprehensive integration across departments (engineering, finance, manufacturing, etc.)

Lean Principles Across Lifecycle

• Engineering Enterprise: Product lifecycle from concept through support
• Healthcare Life Cycle: Applies to patient life cycle from entry to long-term care
• Comprehensive Approach: Extends Lean thinking across departments (IT, HR, etc.)
  • Case: F-18 fighter aircraft upgrade within budget and schedule, Rockwell Collins across office and factory
  • Healthcare Example: Various improved hospital metrics

Kanban

• Visual queuing system for parts/materials/information
• Examples: Grocery shopping lists, factory supply management

Lean Implementation Timeframe

• Successful implementation generally takes around five years
• Challenges: Requires leadership, alignment with strategy, and continuous improvement

Sustaining Lean

• Common Pitfall: Drift back to old habits
• Sustaining Methodology: Continuous engagement and improvement celebration
• Example: Toyota’s journey implementing Kanban

Conclusion

• Key Takeaway: Lean is about eliminating waste and continuous improvement across all levels and departments. Comprehensive commitment and change in culture are essential for successful implementation.
• Examples Reviewed: Multiple sectors including aerospace, healthcare, and manufacturing

Exercises to Follow: Simulation and specific case analysis