principles of lean and management

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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)
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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

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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