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7/28/2019 Principles of Lean and Management
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In a competitive marketplace where businesses compete for customers, customer satisfaction is seen as a keydifferentiator and increasingly has become a key element of business strategy.
We allknow that
culture eats
strategy
every day.
You can
have the
best
strategy in
the world,
but if you
dont have a
good
culture,youre going
to have a
hard time implementing that strategy. Lean Six Sigma is a real investment in the culture of Modalisa-Technology. It
communicates to our employees that we really value them and what they do.
Lean manufacturing, lean enterprise, or lean production, often simply, "Lean," is a production practice thatconsiders the expenditure of resources for any goal other than the creation ofvaluefor the end customer to be wasteful,and thus a target for elimination. Working from the perspective of the customer who consumes a product or service,
"value" is defined as any action or process that a customer would be willing to pay for.
Essentially, lean is centered onpreserving value with less work. Lean manufacturing is a management philosophy derivedmostly from theToyota Production System(TPS) (hence the term Toyotism is also prevalent) and identified as "Lean"
only in the 1990s. TPS is renowned for its focus on reduction of the original Toyotaseven wastesto improve overall
customer value, but there are varying perspectives on how this is best achieved. The steady growth ofToyota, from asmall company to the world's largest automaker,has focused attention on how it has achieved this.
Lean manufacturing is a variation on the theme ofefficiencybased on optimizing flow; it is a present-day instance of therecurring theme in human history toward increasing efficiency, decreasing waste, and using empirical methods to decide
what matters, rather than uncritically accepting pre-existing ideas. As such, it is a chapter in the larger narrative that also
includes such ideas as thefolk wisdom of thrift,time and motion study,Taylorism, theEfficiency
Movement, andFordism. Lean manufacturing is often seen as a more refined version of earlier efficiency efforts,
building upon the work of earlier leaders such as TaylororFord, and learning from their mistakes.
http://en.wikipedia.org/wiki/Value_(economics)http://en.wikipedia.org/wiki/Value_(economics)http://en.wikipedia.org/wiki/Value_(economics)http://en.wikipedia.org/wiki/Toyota_Production_Systemhttp://en.wikipedia.org/wiki/Toyota_Production_Systemhttp://en.wikipedia.org/wiki/Toyota_Production_Systemhttp://en.wikipedia.org/wiki/Muda_(Japanese_term)http://en.wikipedia.org/wiki/Muda_(Japanese_term)http://en.wikipedia.org/wiki/Muda_(Japanese_term)http://en.wikipedia.org/wiki/Toyotahttp://en.wikipedia.org/wiki/Toyotahttp://en.wikipedia.org/wiki/Toyotahttp://en.wikipedia.org/wiki/Economic_efficiencyhttp://en.wikipedia.org/wiki/Economic_efficiencyhttp://en.wikipedia.org/wiki/Economic_efficiencyhttp://en.wiktionary.org/wiki/thrift#Nounhttp://en.wiktionary.org/wiki/thrift#Nounhttp://en.wiktionary.org/wiki/thrift#Nounhttp://en.wikipedia.org/wiki/Time_and_motion_studyhttp://en.wikipedia.org/wiki/Time_and_motion_studyhttp://en.wikipedia.org/wiki/Time_and_motion_studyhttp://en.wikipedia.org/wiki/Taylorismhttp://en.wikipedia.org/wiki/Taylorismhttp://en.wikipedia.org/wiki/Taylorismhttp://en.wikipedia.org/wiki/Efficiency_Movementhttp://en.wikipedia.org/wiki/Efficiency_Movementhttp://en.wikipedia.org/wiki/Efficiency_Movementhttp://en.wikipedia.org/wiki/Efficiency_Movementhttp://en.wikipedia.org/wiki/Fordismhttp://en.wikipedia.org/wiki/Fordismhttp://en.wikipedia.org/wiki/Fordismhttp://en.wikipedia.org/wiki/Frederick_Winslow_Taylorhttp://en.wikipedia.org/wiki/Frederick_Winslow_Taylorhttp://en.wikipedia.org/wiki/Henry_Fordhttp://en.wikipedia.org/wiki/Henry_Fordhttp://en.wikipedia.org/wiki/Henry_Fordhttp://en.wikipedia.org/wiki/Henry_Fordhttp://en.wikipedia.org/wiki/Frederick_Winslow_Taylorhttp://en.wikipedia.org/wiki/Fordismhttp://en.wikipedia.org/wiki/Efficiency_Movementhttp://en.wikipedia.org/wiki/Efficiency_Movementhttp://en.wikipedia.org/wiki/Taylorismhttp://en.wikipedia.org/wiki/Time_and_motion_studyhttp://en.wiktionary.org/wiki/thrift#Nounhttp://en.wikipedia.org/wiki/Economic_efficiencyhttp://en.wikipedia.org/wiki/Toyotahttp://en.wikipedia.org/wiki/Muda_(Japanese_term)http://en.wikipedia.org/wiki/Toyota_Production_Systemhttp://en.wikipedia.org/wiki/Value_(economics)7/28/2019 Principles of Lean and Management
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Six
Sigma isa business
management strategy,
originally
developed
by Motorola,
USA in 1986.
Six Sigma
became well
known after
Jack Welch
made it a
central focus
of his
business
strategy at General Electric in 1995, and today it is widely used in many sectors of industry.
Six Sigma projects follow two project methodologies inspired by Deming's Plan-Do-Check-Act Cycle. These methodologies,
composed of five phases each, bear the acronyms DMAIC and DMADV.
DMAIC is used for projects aimed at improving an existing business process. DMAIC is pronounced as "duh-may-ick".
DMADV is used for projects aimed at creating new product or process designs. DMADV is pronounced as "duh-mad-
vee".
Lean Six Sigma is a business improvement methodology which combines tools from both Lean Manufacturing,which is aimed at reducing waste, and Six Sigma, which helps companies reduce errors. Together they can help companies
7/28/2019 Principles of Lean and Management
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reap the benefits of faster processes with lower cost and higher quality.
The Power of Lean Six Sigma :
Provides world class business strategy. Encourages common vision and common language shared by all.
Promotes team work and rewards measurable. Combines stretch goals with a method and set of goals. Creates better knowledge leading to :
Improved cycle time
Reduced defects
Lower costs