In the past decade managers have been bombarded with case studies, testimonials, and journal papers extolling the virtues of Theory of Constraints (Constraints Management), Lean Enterprise practices and Six Sigma techniques. To confuse matters further, some have combined Lean and Six Sigma into a hybrid improvement philosophy. Each of these philosophies has avid proponents who will swear to its effectiveness and cite case studies as examples. How should a conscientious manager decide what to do?
There are situations where knowledgeable managers will apply Lean practices or Six Sigma techniques in a proper manner, following the discipline rigidly, and getting measurable results. Sometimes, however, the bottom line doesn’t improve! This typically happens when these techniques have been applied to the wrong problem, or to a problem whose improvement will not significantly affect the profitability of the company. That’s a waste of time!
Effective management is not about forcing every problem through the same solution technique. It should be about understanding the real cause of problems and selecting the improvement techniques that best fit the problems and can be expected to yield the best results with the minimum amount of resources (time, personnel and money).
Constraints Management, Lean, and Six Sigma do not have to compete with each other. They are more properly employed in a harmonizing manner.
Consider employing these improvement philosophies in the following sequential and complementary manner. First, evaluate operations or departments in question to determine how they are functioning and to identify key system constraints. The best approach for this strategic assessment is to utilize the methodology of Constraints Management.
A Lean Enterprise Value Stream Map (VSM) is a useful tool to quickly understand visually, and with critical data – the flow of material, inventory, set-up times, cycle times, manpower, scheduling triggers and bottlenecks in the value stream.
With VSM, identification of the bottleneck becomes simpler and easier. Then to reduce or eliminate the bottleneck, apply Lean principles. Kaizen events can be planned and executed with teams employed to speed up the flow through the bottleneck operation. This should reduce lead time and improve quality.
There will be issues and problems that may be caused by excessive variability of machines, manpower or materials in the system. Six Sigma is the proper method to employ to reduce this variability and identify the root causes of the problems.
When faced with operational problems consider this sequence of actions:
- To identify true constraints to profitability and squeeze more productivity from them (Constraints Management)
- To apply the best techniques for improvements in flow and capacity (Lean Principles)
- To reduce variability that is causing quality issues or other business problems by addressing the root causes (Six Sigma)
The truth is that a progressive manager needs to be familiar with the strengths, shortcomings and applicability of all three techniques to achieve the optimum results with the minimum investment of resources, including dollars and time. That is the best path to maximizing productivity.
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