Introduction to Lean and Six Sigma

Overview

• Lean and Six Sigma were originally distinct business philosophies and management tools.
• Currently, most companies, including LSV Group, combine both methodologies.

Lean Methodology

• Objective: Create the most value for customers with minimal effort.
• Focus: Reducing waste and increasing production or service output.
  • Example: Maximizing the number of blocks produced at the lowest cost without disappointing customers.
• Misconception: Often misinterpreted as making employees work faster or risk job loss.
  • Reality: Lean creates more time for employees to focus on activities that add value to customers.
• Principle: Work more effectively to deliver exactly what customers want.

Six Sigma Methodology

• Objective: Focus on the quality of deliveries.
• Focus: Quality and variation in a company’s deliveries.
  • Customers assess companies based on specific experiences with each purchase, not average performance.
• Goal: Strive for zero errors.
  • Acceptable process should not produce more than 3.4 defects per million opportunities.

Combining Lean and Six Sigma

• Lean reduces waste, while Six Sigma focuses on quality and reducing variation.
• Practical Application:
  • Lean is optimal for analyzing processes between activities.
  • Six Sigma is suitable for analyzing the quality of work done.
  • Example: Delivering blocks in the correct size, color, amount, time, place, and price.

Benefits of Combining Both Methodologies

• Achieve the best results with high net earnings.
• Ensure more satisfied employees.
• Result in happier customers.

Further Information

• Visit LSV Group's website for more information.
• Participate in free introduction courses offered by LSV Group.