The Effect of Lean Six Sigma on the Employee and the Organization Abstract Lean Six Sigma is a methodology that creates processes within an organization to cut waste and improve the company’s performance. However, studies have shown that over the past decade applying Lean Manufacturing and Six Sigma can create problems for companies financially and potential problems for employees. Companies should take great care before implementing a Lean Six Sigma solution because in some instances, going lean can do more harm than good both financially for the organization as well as destroying employee loyalty and moral. The Effect of Lean Six Sigma on the Employee and the Organization The methodology of Lean Six Sigma is the merger of two business tools that includes Lean Manufacturing and Six Sigma. Six Sigma focuses on improving current business processes and performance while Lean Manufacturing focuses on the improvement of the processes of an organization by using highly skilled employees to increase speed and quality. Combining the two methodologies creates an organization that focuses on quality, efficiency and speed to lower operational costs and increase profits. By following the Lean Six Sigma methodology, many companies have attempted to create a lean, waste-free environment ultimately at the expense of the employee and occasionally at the expense of the organization. Variability and Failing the Lean Test Creating a process is not always the answer to every organization. Organizations attempting to reduce waste may find themselves stuck trying to understand precisely where vital financial cuts need to take place. Variability can actually prevent Lean Six Sigma from working in a business environment and can sometimes impact flow in a negative way (Locher, 2007, p. 54). As demand in many organizations can be unpredictable, many employees will find the need to multitask in order to get the job done. Multitasking itself creates highly skilled employees that are required in a lean environment. Companies that employ individuals who are capable of multitasking benefit from these employees as the organization see’s a high degree of flexibility and responsiveness with a reduction in operational costs. Companies looking to cut waste in an environment where employees are already stretched thin by performing multiple duties and tasks beyond their job description could find its employees becoming even more overworked and see a larger degradation of performance due to understaffing in an effort to cut costs. These cost-cutting measures could actually do more harm than good to an organization.
The method of Lean Six Sigma is the combination of two business techniques that includes Lean Manufacturing and Six Sigma. Lean manufacturing focuses on improving the flow of the organization by training highly skilled employees to increase the overall speed while Six Sigma focuses on improving current performance and overall accuracy. In most cases, blending both Lean and Six Sigma can be costly; however the end result can have create an organization that focuses on quality, accuracy, and speed to meet the goal which is profitability.
Lean is best defined as “a systematic approach to identifying and eliminating waste (non-value added activities) through continuous improvement by flowing the product only when the customer needs it (called pull) in pursuit of perfection” (Sarkar, 2008, p. 1). Lean thinking along with Six Sigma have generated interest all industries. This can be seen by the countless studies and quality improvement efforts undertaken by many corporations, with training and building staff as certified Lean Six Sigma experts.
As you can see from the figure the lean six sigma is customer driven, targets variation, focuses
There is a lot of literature on the concept of continuous improvement (CI). Studies show that CI is very important to creating competitive advantages in highly competitive industries such as the automobile industry (Bhuiyan & Baghel 2005; Li et al. 2009; Schaeffer, Cadavid, & Backström 2010). These studies suggest that manufacturing firms use CI to eliminate waste in all organisational systems and processes (Bhuiyan & Baghel 2005; Li et al. 2009). Currently, manufacturing firms use lean manufacturing, six sigma, lean six sigma, and the Kaizen methods of CI methodologies to reduce wastages, simplify the production line, and improve quality (Swink & Jacobs 2012).
Sitnikov, C. (2012). Six sigma as a strategic tool for companies. Young Economists Journal / Revista Tinerilor Economisti, 94-102.
Six sigma is basically a technique that provides tools to improve the capability functioning and quality of their organization. This enhances the performance of an organization that leads to less reduction and improvements in profits of an organization.
Quality is an important part of any business rather from a customer’s perspective or a producer’s perspective. Quality from a customer’s perspective is they “want value and quality has become a major factor in the value of products and service” (Russell & Taylor, 2013, pg. 53). “The customer is the most important part of the production line” (Russell & Taylor, 2013, pg. 53). This can be referred to as quality of design meaning “involves designing quality characteristics into a product or service” (Russell & Taylor, 2013, pg. 54). Now let’s look at the quality from a producer’s perspective. This can be referred to a quality of conformance meaning “making sure the product or service is produced according to design” (Russell & Taylor, 2013,
The Six Sigma approach was designed by Motorola in 1986. The primary objective of the concept was to develop a tool for tallying the process defects and, as the result, improving business operations. The foundations of the approach are the customer needs, statistical analysis of data and facts, and timely execution. The method promises numerous benefits such as increasing performance and profitability of an organization, improving product or service quality and employee morale, decreasing costs, the growth of market share, the higher level of satisfying customer needs, etc. (Meredith & Shafer, 2013). The primary advantage
For organizations who have committed to invest and deploy quality systems improvement programs, it is a huge task for every member who is a part of the transformation. The benefits are felt once completed and outweigh the cost from a long-term standpoint. Col. Larsen offers a compelling argument that Lean principles, when properly applied, also result in significant improvement and transcends industry boundaries. Leadership from all levels must challenge traditional approaches, communicate, and execute as a team to design and obtain excellence in governance of safety.
These methods provide a logical solution to the various problems and help in enhancing the quality and efficiency of products and processes [7]. The critical power of Lean Six Sigma is its focus on finding the variables impacting the majority of variations in process {3]. Thus Lean Six Sigma methodology together helps in achieving project goals and the targets
The Lean Startup method is a scientific approach to makes startups fast respondent to customers wants and needs. Throgh Lean startup method entrepereneurs know managing startups effectively in many aspects and also the time to pivot
A LEAN Company is our best description and our business philosophy (creating more value for customers with less resources), which pursues to deliver what the customer wants, when they want it, at maximum value with minimum misuse.Through the application of LEAN, we achieve more fulfillment as it helps to reduce the possibility to constantly be fighting a battle against difficulties. Besides, we promote a Continuous Improvement Culture in our performance.
So it is my plan to utilize this story and create my own motto of “Lean and Clean” queue. It is not my queue. It belongs to those who report to me. By dealing with the tasks individually I am no longer able to see the bigger picture and help with processes. As I relayed this story to my manager and how I wanted to make it work for us I could tell he was intrigued and liked the idea and I am excited to begin putting together the plan and how it will work.
Lean production is an approach to production developed in Japan. Toyota, the Japanese car manufacturer was the company that invented lean production. The whole aim of lean production is to reduce the quantity of resources used up in production. By doing this, lean production uses less of - factory space, materials, stocks, suppliers, labour, capital and time. Lean production reduces costs, increases efficiency and output and improves motivation. Lean production involves using a range of practices designed to reduce waste and improve productivity and quality.
The main idea is to fulfill the internal or external customer’s wants. Through lean thinking, it is hoping that nonmanufacturing company’s can provides value to the customers with minimum cost, effort and can save time. Thus, it will lead to improve performance and optimum utilization of the company’s additional capacity and resources.