Integrating Lean and Six Sigma for Breakthrough Process Improvement
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Case Study
This case study is an amalgamation of the many companies we have worked with; and,
does not represent any specific company. Let's call the company Detroit Sheet Metal,
Inc. They manufacture steel cabinets for installation into service vehicles. They
sell approximately $20 million of cabinets per year. The value stream map in Figure
1., describes the current state of the company at the beginning of their journey
to become a Lean Six Sigma organization.
Figure 1.
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The process scorecard data based on this current state map is provided in Figure
2.
Figure 2.
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The company future state value stream map is shown in Figure 3.
Figure 3.
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The future state improvement opportunities, including estimated costs savings for
each improvement, are identified in the process scorecard shown in Figure 4.
Figure 4.
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Remembering that this product line has $20 million sales per year, note the magnitude
of the operational improvements, and cost savings realized through the transformation
to a Lean process with Six Sigma capability.
Conclusions
Value stream mapping is the state-of-the-art methodology for identifying and planning
Lean / Six Sigma improvement projects. Linked and balanced scorecards provide a
sound method for measuring and monitoring process performance and for aligning improvement
projects with company strategy and objectives. Integrating Lean productivity with
Six Sigma quality represents the best-in-class approach for achieving continual
improvement in both process quality and productivity.
The new direction in quality systems standards, moving towards a process improvement
model, means that more and more organizations will be required to design, develop
and deploy a management system for achieving continual process improvement. Value
stream mapping and Linked Scorecards are the answer Managers are seeking to their
questions about how best to achieve breakthrough levels of process improvement and
to satisfy the requirements of ISO 9001:2002 and ISO/TS 16949:2009.
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