Inform the Enterprise: Executives, Managers Must Be Up on the Lexicon of Lean

by Oracle Corporation

Abstract: Six Sigma complements lean because its very mission is to eliminate variability and improve process reliability.

Lean focuses on eliminating waste-anything that doesn't add value is history. That guiding principle is a great starting point, but to truly be lean, it is necessary to:

• Eliminate variability so as to institute consistent processes, because without them, wasted effort can't be identified.
• Increase the flexibility of business processes, so that as business conditions change, ongoing lean efforts become easier. That calls for a lean, agile IT infrastructure.

Leading manufacturers are combining lean and Six Sigma with an IT infrastructure that supports these disciplines. If a company focuses its corporate culture on enhanced productivity and continuous improvement -- and the philosophy is adopted by employees ranging from top executives to line operators -- it positions itself to gain and maintain competitive advantage.

Lean principles offer a structured means of reducing cycle times, increasing quality, and cutting costs, reducing inventory investments, and improving asset performance. Cardiff Business School advises companies to pay attention to these five principles:

• Specify the value of your product to your customer in its totality, including branding and packaging.
• Map the value stream by which you get products into customers' hands.
• Introduce flow, eliminating waste and moving to the smallest-possible batches.
• Base your manufacturing on demand-pull.
• Pursue perfection-not only in terms of total quality, but also in getting as close as possible to your target cost.

Source: Bitpipe