In order to grow and exceed bottom lines expectations consistently, companies are required to learn the basics of Lean Six Sigma thoroughly. In a global competitive manufacturing environment, companies are spending thousands of dollars in pursuing the Materials Required Planning and Enterprise Resource Planning, however they still face decline in growth and profits.
Companies need to have complete understanding of Six Sigma fundamentals and commitment for consistent execution of Lean principles. This focuses on analyzing and eliminating the root causes of ineffective systems and processes within the manufacturing sector.
Basics of Lean Six Sigma as applicable to the manufacturing sector are as follows :
(1) Information Integrity: Acceptable systems results are difficult to achieve when there is non compliance of information integrity where in systems are driven by inaccurate data and untimely, uncontrolled documentation.
(2) Performance Management : The system for measuring the performance should be motivational. Individual goal setting provided little contribution to overall company growth and profit. Therefore efficient and balanced system of performance management is the key of business winners.
(3) Sequential production : It assists in achieving the on-time shipments with healthy profit margins. It focuses on continuous production lines that are supported by real-time and visual material supply chains.
(4)Point-of-Use Logistics: The strategic objective of all manufacturers is the elimination of the stock room. Companies can achieve significant reduction in costs by moving production parts and components from the stockroom to their production point of use.
(5)Cycle Time Management: Focus on the continuous reduction of all cycle times, root cause, proactive problem solving is required for achieving success.
(6) Production Linearity: The strategies for achieving the speed, quality and costs is to form teams of employees to pursue and achieve linear production. This is required as companies struggle to remain competitive in today’s manufacturing sector.
(7) Resource Planning : The timely right sizing of operations and upsizing the direct labor force in a timely manner demand tough decisions that require accurate, well-timed and reliable resource information.
(8) Customer satisfaction : Proactive projects aiming at achieving the customer satisfaction needs to be planned and implemented.