SIX SIGMA AND LEAN

IIM, AMRITSAR
PGP MANAGEMENT

Umesh Vyas
Batch 2019-21; Term V
Oct 2020 to Dec 2021
2. History and
Evolution of 6
Sigma and Lean
Steve Jobs
Historical Evolution
• Eli Whitney – Interchange-able parts
• Henry Ford – Assembly Line
• Frederick Taylor – Scientific Management – T & M
• Shewhart/Gilbert – Statistical Process Control
• Edward Deming – PDCA

• Motorola and GE – Six Sigma

• Toyota - Lean
Eli Whitney
• Before – if a component failed, the whole
equipment had to go to an expert

• After – Just replace the component

• The first step towards Mass Manufacturing; Imagine

cars or even computers without this
Henry Ford – Assembly Line
• Semi-assembled product moves from work-station
to work-station

• Highly specialized workers do one part to the

assembly

• Reduces time and cost

Assembly Line
• Interchange-able parts ->
Standardization
• Assembly line ->Flow

• Standardization and Flow ->

foundations of Six Sigma and Lean
Taylor – Time and Motion Studies
• Frederick Taylor instituted Scientific Management
– From “rule of thumb” to science
– Allot workers to jobs based on capability and motivation
– Monitor performance. Use supervision and training
– Managers plan and train; workers work
• Optimize, simplify and re-design work
• “Applying knowledge to work” is Taylorism which
Drucker said was chiefly responsible for wealth in
20th Century
Shewhart - SPC
• From “Inspection at the end” to Statistical Process
Control throughout
• Reduce “defect amplification”
• Use Process Control Charts to find “Special Cause”
variation
• Prevention oriented, data based, graphic, operator
run, timely corrective actions
• Make processes reliable
Deming
• Revolutionized Japanese Manufacturing post WW2
• PDCA Cycle
– PLAN
– DO
– CHECK
– ACT
• 4 elements of Profound Knowledge
– Appreciation of System
– Variation
– Theory of Knowledge
– Psychology
Six SIgma
• Adopted by Motorola and GE
• 6 Sigma (Standard Deviations) means 3.4 defects
per million or 99.999% of data within specification
• Y = f(X1, X2, x3, x4……) + Error
• DMAIC Cycle
– Define
– Measure
– Analyze
– Improve
– Control
Six Sigma Vs Traditional Process
Improvement Methods
Traditional Six Sigma

Quality programme Business strategy

Mainly involve quality Involves everyone, including

department management

Focuses on processes which

Focus on defects create or eliminate defects

Driven by Cost of Quality Driven by Voice of Customer

Focus on application - project

Focus on training oriented
Lean
• Part of Toyota Production System
• Eliminate waste and non value-added steps
• LEAN Cycle
– Value
– Value Stream
– Flow
– Pull so “just in time”, minimal inventory
– Perfection