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The term 'Lean' is now used commonly to describe a management system pioneered by the Japanese company, Toyota. It's called 'Lean' because its aim is to produce more while reducing inputs in terms of cost, time, space, energy and effort. The goal of Lean is to eliminate parts of the business process that are wasteful and do not add value for the customer.

Lean does not involve a one-off change - it is a continuous improvement methodology. The idea is that it is always possible to increase efficiency still further.

Lean tools

The main tools used in Lean are:

• 6S (sort, set, shine, safety, standardise and sustain) - workplace improvements based on tidiness, cleanliness and orderliness
• Error Proofing/Poka-Yoke - implementing processes to prevent defects/errors
• Just In Time (JIT) - strategy that strives to cut inventory by delivering components or materials where needed, when needed and in the amount needed
• Kaizen - the method of making continuous incremental improvements
• KanBan - related to JIT, the continuous supply of components, parts and supplies to work stations
• Overall Equipment Effectiveness - measuring performance of equipment by availability, performance and quality
• Single Minute Exchange of Die - process to create very fast changeovers and set-ups in machines, to reduce downtime and increase throughput
• Takt time - the time in which one unit of work must be completed in order to meet customer demand
• Total Productive Maintenance - planning equipment maintenance to reduce downtime and maintain efficiencies
• Value Stream Mapping - a tool to visually represent the flow of material and information which depicts the relationship between work processes, differentiating between value-adding and non-value-adding activities
• Work Cells/Cellular Manufacturing - work set-up where workers can move easily from one process to another, often producing a single model or assembly
• Zero-defect - quality control procedures that aim to eliminate every defect as soon as it is identified

Balancing efficiency and environment with Lean

Reducing waste and using Lean methods involve the same language and tools. However, Lean methods may have negative impacts on the environment. For example, using JIT means cash is not tied up in stock but you get more frequent deliveries in smaller quantities and more containers - this may lead to more packaging and transport, although this can be offset by a reduction in obselete, unused or damaged stock.

You may need to weigh up the benefits of using Lean methods against the environmental impacts and costs they can have.

Six Sigma is a business management system that can lead to significant increases in both quality and profitability. It uses a set of procedures to identify and eliminate defects, and is usually implemented on a project-by-project basis.

The most commonly used approach to implementing Six Sigma is known as 'DMAIC' - define, measure, analyse, improve and control:

• define the customers, their requirements, the process or the project boundaries
• measure the performance of the current process
• analyse information and identify where improvements can be made
• improve the process to achieve required performance
• control the implementation, monitoring results and introducing training and incentives to maintain process improvements

To successfully implement Six Sigma in your business you will need:

• a small, committed, talented and well-trained team of current employees who are given the authority to implement Six Sigma on a particular process
• 91香蕉黄色视频, talent and financial resources from senior management
• championing at board level - in larger organisations by a full-time director, and in smaller businesses by a part-time director, who must be adequately resourced
• employees trained to Six Sigma black belt or green belt
• financial resources committed to training employees
• regular planning and review meetings to ensure successful and on-target implementation
• monthly board reports from the Six Sigma team, which are then critically reviewed with recommendations for improvements/changes as necessary

Once your trial projects have been successfully completed, results should start to show within a few weeks, and deliver a return on investment within months. You can then implement it across the business.

Lean Thinking - usually just called 'Lean' - is a way of achieving more with fewer resources. It is based on the concept that anything which does not add value is wasteful, and seeks to prevent the use of resources for anything other than the creation of added value.

At the core of Six Sigma is the methodology to define, measure, analyse, improve and control (DMAIC).

Lean involves numerous methods of working, rather than different tools.

What is Lean Six Sigma?

Many businesses use either Lean or Six Sigma but an increasing number choose Lean Six Sigma, which uses tools from both methodologies.

This calls for a particularly disciplined approach, and it is essential to fit the tools to the project, rather than the other way round. Some projects are better suited to Lean, while others are best served by Six Sigma.

Lean Six Sigma uses the two methodologies to interact with and reinforce one another. This is because, in certain businesses, better results can be achieved by a combination of Lean's productivity improvements and the quality benefits of Six Sigma. For example, if you are deploying Six Sigma using the DMAIC methodology, you may find that a Lean system - such as 'Just In Time' - could be used at the 'Improve' stage.

Waste is anything that does not add value to a product or service. Being able to identify waste is the first step to cutting it out of your business processes.

What is TIM WOODS?

The acronym TIM WOODS has been used as a helpful way of identifying waste:

• 91香蕉黄色视频 - minimise movement of materials so processes are near each other
• Inventory (stock) - aim for 'just-in-time' production
• Motion - improve workplace ergonomics and reduce unnecessary motion of business operations
• Waiting - aim for smooth flow to eliminate waiting periods
• Overproduction - aim to make what the customer orders, just in time
• Overprocessing - use resources of appropriate capacity to achieve required quality
• Defects - aim for zero defects
• Skills (unused) - not using the full potential of staff by wasting their knowledge, experience and ideas

The following are also considered as waste for Lean methods:

• inappropriate systems
• energy and water
• materials
• service and office wastes
• customer time
• losing customers

It is almost impossible to eliminate all waste, but by setting a target of zero waste you can cut it to a minimum.

The first step is to look at the entire business process. You should involve your staff and draw on their expertise. You might find it helpful to start with departmental meetings, but it is essential to avoid a process of allocating blame. The objective is to identify the causes of problems and solve them.

• Look at your existing processes and identify areas where waste is a problem. You could compare materials and component purchases with output, look at waste disposal reports, talk to relevant managers or operators, or simply walk around your business.
• Get additional information from customers or suppliers if necessary. Specialist waste disposal contractors may be able to provide further input.

Calculate the cost of waste, which you can base on straightforward replacement costs or on opportunity cost (through lost potential sales). The costing should be based on detailed, informed and accurate criteria, and should include:

• replacement of raw materials
• scrap products
• delays while faults are identified and remedied
• labour costs for making replacement components and products
• staff costs in dealing with customer complaints, including possible discounts on further sales
• lost business from customers who go elsewhere, or from potential customers who hear of your quality problems

You might find that it doesn't make financial sense to resolve minor waste problems - eg if one product in 1,000 is faulty, it might not be worth the cost of improving it to one in 10,000. Bear in mind, however, that faulty products affect your image with customers, and this can have cost implications.

Once you have identified the sources of waste, and how much it is costing your business, you should look at the most cost-effective way to reduce it.

It's a good idea to focus initially on quick wins - things you can do immediately that will reduce waste almost instantly. You might also want to consider quick fixes - putting in place a temporary solution to a problem to give you time to design a more permanent answer.

It is essential to prioritise cost improvements, as making a change to eliminate a problem might not always be cost-effective. The main focus should be on dealing with those problems which are most costly to your business because they will have the biggest impact on your profits.

Analysing process waste problems

It is likely that 80 per cent of your waste can be attributed to 20 per cent of the sources you've identified. One way of easily seeing the key problems is to produce a Pareto chart to show the sources of waste graphically. This technique helps you to focus on the most important areas for improvement.

To create a Pareto chart you need data on the main sources of waste as percentages. You can make a Pareto chart by taking the largest percentage first and then adding subsequent percentages in descending order to create a bar chart. You should be able to produce a Pareto chart using most spreadsheet programs.

There are various other techniques and tools that you can use to analyse waste and quality problems from your business processes.

Once you have identified the causes of waste and introduced quick changes to achieve immediate reductions, you should review each stage of your business process to prevent problems arising in the future. You should aim to have as few defects as possible for the least cost. Making products right first time is much easier, and much more efficient, than solving problems once they have arisen.

You can achieve long-term effectiveness by constant monitoring. You can also benefit from benchmarking your processes against similar businesses and adopting best practice throughout.

If you have a quality or environmental management system, or are considering setting one up, you should use this to help you continually improve your processes and products and reduce waste.

Using problem-solving processes such as 8 Disciplines (8-D) will help you identify, correct and eliminate the cause of quality problems. The 8-D process involves:

• forming a team
• describing the problem
• containing the problem
• identifying the root cause
• formulating and verifying corrective actions
• correcting the problem and confirming the effects
• preventing the problem from reoccurring
• congratulating the team

It is worth considering Six Sigma as a way of introducing and maintaining a continual improvement approach.

Lean methodology can also be used to make business-wide efficiency improvements which will reduce waste.

You could also use statistical analysis techniques. For example, measuring the capability of a process can help you to see how well it is meeting quality targets and tolerances. Control charts enable you to maintain control once a process is operating satisfactorily.