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Chapter

Lean Six Sigma in Manufacturing:


A Comprehensive Review
Hari Lal Bhaskar

Abstract

Lean Six Sigma is a systematic approach to reduce or eliminate activities that do


not add value to the process. It highlights removing wasteful steps in a process and
taking the only value added steps. The lean six sigma method ensures high quality
and customer satisfaction in the manufacturing. The main purpose of this chapter is
to explore the Lean Six Sigma (LSS) in the manufacturing sector. This chapter
focuses on the different critical aspects of LSS. The core sections of this chapter are
Introduction; Key lean six sigma principles; Tools and techniques; Lean six sigma
methodologies; Critical success factors; Lean six sigma framework; Lean six
sigma strategy; Implementation of Lean Six Sigma in SMEs; significant benefits;
Significant barriers to implement lean; Assessment of Lean Six Sigma Readiness;
Emerging trends in Lean Six Sigma; and Successful examples/stories in the manu-
facturing industry. The final section of the chapter contains the conclusions and
suggestions. It is important for practitioners to be aware of Lean six sigma benefits,
impeding factors, Tools and techniques, methodologies etc. before starting the
Lean six sigma implementation process. Hence, this chapter could provide valuable
insights to practitioners. It also gives an opportunity to Lean six sigma researchers
to understand some common themes within this chapter in depth.

Keywords: lean, six sigma, lean six sigma (LSS), manufacturing,


comprehensive review, methodologies, success factors, principles,
lean six sigma examples

1. Introduction

In recent years, Lean Six Sigma have become the most popular business strate-
gies for deploying continuous improvement [1] in manufacturing sectors, as well
as in the public sector. Continuous improvement is the main aim for any organiza-
tion in the world to help them to achieve quality and operational excellence and to
enhance performance [2, 3].
It has changed manufacturing forever and from every aspect of the industry:
from the people and the machinery to the logistics and administration. According
to SAIL engineer Srivastva, “Machines mean nothing; if they are not efficient and
calibrated—this is where the Six Sigma Methodology and the Machine Industry
marry their goals for the betterment of the business industry”.
There is a misconception that Lean and Lean Six Sigma methodologies are only
applicable to manufacturing or supply chain processes [4, 5]. However, these tools
can be used within all aspects of a business [6]. The essential foundation needed
for Lean and Lean Six Sigma methods succeed within all areas of a company is the

1
Lean Manufacturing and Six Sigma - Behind the Mask

capability to recognize waste, decrease the waste, and forcefully attempt to elimi-
nate all activities that do not add value or increase customer satisfaction both within
the company and outside.
These methods are not a new phenomenon. In fact, the Lean methodology
has been an effective tool since the dawn of the industrial age [7, 8]. The idea of
improving performance and meeting the expectations of customers while still
improving the bottom line has always been the goal of businesses [9]. The evolution
of Lean and Lean Six Sigma is based on understanding what methods or mixture of
methods should be used to ensure the biggest impact to the business. The Six Sigma
DMAIC (Define, Measure, Analyze, Improve, and Control) foundation is the base
for our Lean training and service programs [10, 11].
Six Sigma basics are designed to improve manufacturing [12, 13]. This is a type
of quality control that was originally developed for large scale manufacturers. It was
intended to enhance processes and eliminate the amount of defects found within
them. The Lean method is a philosophy centered around eliminating waste and
providing the best customer experience [14]. According to the Lean manufacturing
subject matter expert, there are eight kinds of waste: defects, overproduction, wait-
ing, non-utilized talent, transportation, inventory, motion, and extra processing.
Researchers believe that it is very important to conduct a comprehensive review
in manufacturing field to understand the each aspect of Lean Six Sigma. Research
on “Lean Six Sigma in manufacturing” is limited and state that no standard work
done for such a combination exists.
Hence, the aim of this chapter is to address such gaps within Lean Six Sigma
(LSS) and manufacturing that allow them to achieve the most benefits from this
strategy, as well as to identify the gaps and give recommendations for future
research. To achieve the overall aims of this chapter, the author has comprehen-
sively reviewed the literatures in second section.

2. Comprehensive review

2.1 Lean and six sigma

The concept of lean thinking can be traced to the Toyota production system
(TPS), a manufacturing philosophy pioneered by the Japanese engineers Taiichi
Ohno and Shigeo Shingo [15, 16]. The development of this approach to manufactur-
ing began shortly after the Second World War while employed by the Toyota motor
company [17]. Lean manufacturing extends the scope of the Toyota production
philosophy [18] by providing an enterprise-wide term that draws together the five
elements of “the product development process, the supplier management process,
the customer management process, and the policy focusing process for the whole
enterprise” [17]. Lean Six Sigma has been defined as “a business improvement
methodology that aims to maximize shareholders’ value by improving quality,
speed, customer satisfaction, and costs: it achieves this by merging tools and prin-
ciples from both Lean and Six Sigma” [19]. Gershon and Rajashekharaiah [20] point
out that “leading texts fail to define Lean Six Sigma as a unique methodology”.
Laureani and Antony [21] stated that “Lean Six Sigma uses tools from both
toolboxes in order to get the best from the two methodologies, increasing speed while
also increasing accuracy”. Both Lean and Six Sigma require a company to focus on its
products and customers [19]. According to Stoiljković et al. [22], the concepts of lean
and six sigma are intertwined in that Lean speed enables Six Sigma quality and Six
Sigma quality enables Lean speed. Pepper and Spedding [17] and Ferng and Price [23]
similarly identify that Lean thinking may be used to identify areas of improvement

2
Lean Six Sigma in Manufacturing: A Comprehensive Review
DOI: http://dx.doi.org/10.5772/intechopen.89859

Figure 1.
Lean, six sigma and lean six sigma. Source: [27].

and set standards, while the Six Sigma methodology may be used for targeting them
and for investigating deviations from said standards. The foundation of the lean
vision is still a focus on the individual product and its value stream (identifying
value-added and non-value added activities), and the main target of lean thinking is
to eliminate all waste, or muda, in all areas and functions within the system [16, 17].
Lean Six Sigma is a combination of two powerful process improvement methods:
Lean and Six Sigma [24–26]. It decreases organization’s costs by:

• Removing “Waste” from a process: Waste is any activity within a process that is
not required to manufacture a product or provide a service that is up to specifi-
cation [36, 37].

• Solving problems caused by a process: Problems are defects in a product or


service that cost your organization money [36, 37] (Figure 1).

2.2 Integrating lean and six sigma

Lean and Six Sigma are the two most important continuous improvement (CI)
methodologies for achieving operational and service excellence in any organization
[29–33]. LSS is the fusion of two most powerful process excellence methodologies,
namely, Lean and Six Sigma [24].
According to Sokovic and Pavletic [34] Lean means speed and quick action
(reducing unnecessary wait time) and Six Sigma means identifying defects and
eliminating them. As well as Lean Six Sigma Engineering means best-in-class. It cre-
ates value in the manufacturing or service organization to benefit its customers and
saves money without capital investment [34].
Six Sigma is a well-established approach that seeks to identify and eliminate
defects, mistakes or failures in business processes or systems by focusing on those
process performance characteristics that are of critical importance to customers’
[35]. It is a statistical methodology that aims to reduce variation in any process,
reduce costs in manufacturing and services, make savings to the bottom line,
increase customer satisfaction, measure defects, improve product quality, and
reduce defects to 3.4 parts per million opportunities in an organization [35, 36].
The high cost of Six Sigma training is a barrier for many organizations to deploy
this methodology [37, 38]. In fact, deploying Six Sigma in isolation cannot remove
all types of waste from the process, and deploying Lean management in isolation
cannot control the process statistically and remove variation from the process [35].
Therefore, some companies have decided to merge both methodologies to overcome
the weaknesses of these two methodologies when they have been implemented in
isolation and to come up with more powerful strategy for continuous improvement

3
Lean Manufacturing and Six Sigma - Behind the Mask

Figure 2.
Concept of lean six sigma. Source: [28].

Figure 3.
Lean and six sigma popularity and integration. Source: [35].

and optimizing processes [35, 39, 40]. In fact, LSS are completing each other and
there is an obvious relation between both methodologies, which makes it possible
for the synergy of the two methodologies (see Figures 2 and 3). Therefore, the
integration of these two approaches gives the organization more efficiency and
affectivity and helps to achieve superior performance faster than the implementa-
tion of each approach in isolation [30, 35, 41].

4
Lean Six Sigma in Manufacturing: A Comprehensive Review
DOI: http://dx.doi.org/10.5772/intechopen.89859

Salah et al. [30] has indicated that the integration of lean and Six Sigma is the
solution to overcome the shortcomings of both, as they complete each other. This
integration helps companies to achieve zero defects and fast delivery at low cost.
According to Bhuiyan and Baghel [42] the combination of this two is the way for
organizations to increase their potential improvement.
The integrated approach to process improvement (using Lean and Six Sigma)
will include:

• Using value stream mapping to develop a pipeline of projects that lend them-
selves either to applying Six Sigma or Lean tools [34, 43].

• Teaching Lean principles first to increase momentum, introducing the Six


Sigma process later on to tackle the more advanced problems [34, 43].

• Adjusting the content of the training to the needs of the specific organiza-
tion—while some manufacturing locations could benefit from implementing
the Lean principles with respect to housekeeping, others will have these basics
already in place and will be ready for advanced tools [34, 43].

The following roadmap provides an example for how one could approach the
integration of Lean and Six Sigma into a comprehensive roadmap (Figure 4).
Therefore, many manufacturing firms are looking for an approach that allows
to combines both methodologies into an integrated system or improvement
roadmap [44, 45]. However, the differences between the Six Sigma and Lean are
profound (Table 1).

Figure 4.
Integrating lean and six sigma roadmap. Source: [44].

5
Lean Manufacturing and Six Sigma - Behind the Mask

Lean Six sigma

Goal Create flow and eliminate waste Improve process capability and eliminate
variation

Application Primarily manufacturing processes All business processes

Approach Teaching principles and “cookbook style” Teaching a generic problem-solving


implementation based on best practice approach relying on statistics
Project selection Driven by value stream map Various approaches

Length of projects 1 week to 3 months 2–6 months

Infrastructure Mostly ad-hoc, no or little formal training Dedicated resources, broad-based training
Training Learning by doing Learning by doing
Source: Prepared by the author.

Table 1.
Comparing lean and six sigma.

Figure 5.
Integrating lean tools and six sigma DMAIC cycle. Source: [46].

Duarte [46] identify that Lean Six Sigma has become a widely recognized
process improvement methodology and has been adopted by many companies like
Ford, DuPont, 3 M, Dow Chemicals, and Honeywell etc. At present, the methodol-
ogy of Lean Six Sigma has been carried out in 35% of companies listed in the Forbes
top 500 [46]. He illustrates how Lean tools can be incorporated into the Six Sigma
DMAIC (Define, Measure, Analyze, Improve, and Control) cycle (Figure 5).

6
Lean Six Sigma in Manufacturing: A Comprehensive Review
DOI: http://dx.doi.org/10.5772/intechopen.89859

2.3 Basics of lean six sigma

In the efforts to draw nearer to customers, several manufacturers have lost


focus on what ought to be a company’s primary success factor—profitable
growth. In today’s competitive manufacturing environment, it takes more than
quick fixes, outsourcing and downsizing for firms to systematically achieve their
growth and profit objectives [47]. Whereas these choices could yield temporary
financial relief, they will not lead the way to long-term growth and profitability.
Therefore, they have to bring lean to grow and continually exceed bottom line
expectations; and to bring lean they must master eight basics of Lean Six Sigma
for manufacturing.

2.3.1 Software as the solution

In digital and cloud based environment, the physical database is replaced by


a virtual database. Data are transferred throughout the cloud computing [48].
Organizations were led to believe that computerized systems would provide the
solution to all growth and profit challenges. Material requirements planning (MRP)
and enterprise resource planning (ERP) system gurus assured companies that if
they implement their software programs at bottom line, would take care of itself.
In a typical company, converting the quarterly financial forecast into reality still
requires overtime, internal/external expediting, last minute “on-the-run” product
changes and even some “smoke and mirrors” from time to time [49]. Results are
scrap, rework and warranty costs that negatively impact profitability and quality,
and shipment problems that deliver less than acceptable customer satisfaction [47].
Companies have spent thousands of dollars in pursuing MRP and ERP only to see
growth and profits decline due to uncontrolled operating costs that produced non-
competitive pricing [39, 40]. Thus, softwares can be a solution for these problems,
and eliminate the root causes of ineffective systems and processes.

2.3.2 How to get to root causes

Manufacturers can get the root causes by in-depth understanding of the


fundamentals of Six Sigma and then a total reliable commitment and determined
execution of eight basics of Lean Six Sigma. Like renowned football coach Vince
Lombardi, who achieved success by having his team focus on the mastery of
football basics, manufacturing teams need to focus on the mastery of the Lean
manufacturing basics. These basics require proactive planning and inflexible
implementation that demands leadership above and beyond just satisfying day-
to-day accountabilities. Some managers cannot imagine the benefits of master-
ing manufacturing basics. Others simply cannot find the time. Like practicing
blocking and tackling in football, it is not exciting. And like most football heroes,
managers prefer to run with the ball. But without the solid execution of Lean Six
Sigma basics, companies will seldom achieve their full growth and profit potentials
[44, 47]. Here are the eight basics of Lean Six Sigma which every manager should
know and implement:

• Information integrity: It is common for front office management to become


disappointed with computerized systems results when time schedules and
promised paybacks are not achieved. It is a given that acceptable systems
results cannot be achieved when systems are driven by incorrect data and inap-
propriate, uncontrolled documentation [44, 47, 50].

7
Lean Manufacturing and Six Sigma - Behind the Mask

• Performance management: Measurement systems can be motivational or


de-motivational. The individual goal-setting of the 1980s is a good example of
de-motivational measurement—it tested one individual or group against the
other and while satisfying some individual egos, it provided little contribution
to overall company growth and profit. Today, the balanced scorecard is the
choice of business winners [44, 47, 50].

• Sequential production: It takes more than systems sophistication for manu-


facturing companies to gain control of factory operations. To achieve on-time
shipments at healthy profit margins, companies need to replace obsolete shop
scheduling methodology with the simplicity of sequential production [51].
Manufacturing leaders have replaced their shop order “launch and expedite”
methodology with continuous production lines that are supported by real-
time, visual material supply chains…sequential production. The assertion that
sequential production only works in high production, widget-manufacturing
environments is a myth [44, 47, 50].

• Point-of-use logistics: Material handling and storage are two of manufac-


turing’s high cost, non-value-added activities. The elimination of the stock
room, as it is known today, should be a strategic objective of all manufactur-
ers. Moving production parts and components from the stockroom to their
production point of use is truly a return to basics and a significant cost
reducer [44, 47].

• Cycle time management: Long cycle times are symptoms of poor manufac-
turing performance and high non-value-added costs [44, 52]. Manufacturers
need to focus on the continuous reduction of all cycle times. Achieving success
requires a specific management style that focuses on root cause, proactive
problem solving, rather than “fire-fighting” [44, 47].

• Production linearity: Companies will never achieve their full profit potential
if they produce more than 25% of their monthly shipment plan in the last week
of the month or more than 33% of their quarterly shipment plan in the last
month of the quarter. How linear does a production department produce to the
company’s master schedule? As companies struggle to remain competitive, one
of the strategies by which gains in speed, quality and costs can be achieved is to
form teams of employees to pursue and achieve linear production [44, 47].

• Resource planning: One of the major challenges in industry today is the timely
right sizing of operations. Profit margins can be eroded by not taking timely
downsizing actions, and market windows can be missed and customers lost by
not upsizing the direct labor force in a timely manner. These actions demand
timely, tough decisions that require accurate, well-timed and reliable resource
information [44, 47].

• Customer satisfaction: Customer satisfaction is the main driver of loyalty.


It affects company’s financial performance and perception of the custom-
ers [53]. Perceptions are what a company needs to address when it comes to
improving customer satisfaction. It does not good to have the best products
and services if the customer’s perception of “as received” quality and service
is unsatisfactory. Companies need to plan and implement proactive projects
that breakdown the communication barriers that create invalid customer
perceptions [44, 47, 54, 55].

8
Lean Six Sigma in Manufacturing: A Comprehensive Review
DOI: http://dx.doi.org/10.5772/intechopen.89859

2.4 Key lean six sigma principles

Lean six sigma principles mainly refer to process improvements, although their
practical implementation has different impacts according to different organiza-
tional models [56]. Leaders at all levels are working to integrate lean and Six Sigma
principles into all business processes, including product design and development,
integrated supply chain, marketing and sales, customer service, infrastructure,
governance and strategy deployment [57].
According to Lucid chart Content Team, for a process stream that produces the
best results; consider the following Lean Six Sigma principles for your organization.

1. Focus on the customer: Before you start making any drastic or even minor
changes, establish the level of quality or requirements that you have promised
your customers.

2. Figure out your value stream: You need to see the current state of your pro-
cess before you can move forward and make improvements. Identifying value
stream is unquestionably what makes Lean Six Sigma principles so effective.
A value stream map showcases every single step, including purchasing parts,
assembling them (and checking for quality assurance), and distributing the
finished product. You must determine which steps add value and which do not.

3. Take out the trash: Remove any non-value-added activities or opportunities


for defects. On value stream map, avoid highlighting areas that are working
fluidly. If your value stream map does not clarify exactly where the problem
lies, you can use several other diagrams to work through potential root causes
of the issue. For example: Cause-and-effect diagrams.

4. Keep the ball rolling: Workers will keep performing (or not performing) the
same tasks until management decides otherwise. The responsibility of business
is to communicate the new standards and practices effectively and clearly. Be
sure each employee receives training and feedback. Otherwise, why expect the
problem to change? Thus, nothing will change until change is enacted.

5. Create a culture of change and flexibility: Lean Six Sigma requires a lot of
change [58]. You need to welcome change and encourage your employees to ac-
cept change as well. As part of this cultural shift, your company should always
look for new ways to streamline the process and remove waste. Keep your eye on
the data, examine your bottom line, and adjust your processes where necessary.

Womack and Jones [59] has summarized five Lean Six Sigma Principles in “Lean
thinking—banish waste and create wealth in your corporation” as follows:

1. Specifying value: “Value is only meaningful when expressed in terms of a


specific product or service which meets the customer needs at a specific price
at a specific time.”

2. Identify and create value streams: “A Value stream is all the actions currently
required to bring a product from raw materials into the arms of the customer.”

3. Making value flow: “Products should flow through a lean organization at the
rate that the customer needs them, without being caught up in inventory or
delayed.”

9
Lean Manufacturing and Six Sigma - Behind the Mask

4. Pull production not push: “Only make as required. Pull the value according to
the customer’s demand.”

5. Striving for perfection: “Perfection does not just mean quality. It means pro-
ducing exactly what the customer wants, exactly when the customer requires
it, at a fair price and with minimum waste.”

Womack et al. [60] defined the five principles of Lean manufacturing in their
book “The Machine That Changed the World”. The five principles are considered
a recipe for improving workplace efficiency and include: (1) defining value, (2)
mapping the value stream, (3) creating flow, (4) using a pull system, and (5) pursu-
ing perfection. The principles encourage creating better flow in work processes
and developing a continuous improvement culture. By practicing all these five
principles, an organization can remain competitive, increase the value delivered to
the customers, decrease the cost of doing business, and increase their profitability.
These Lean principles can be applied to any process to reduce the wastes (Figure 6).

2.5 Lean six sigma frameworks and methodologies

Lean six sigma is a systematic data driven methodological philosophy centered


around eliminating waste, reducing process variation [61] and providing the best
customer experience [45]. According to the Lean method, there are eight kinds
of waste: defects, overproduction, waiting, non-utilized talent, transportation,
inventory, motion, and extra processing [62]. Lean six sigma is a structured prob-
lem solving methodology [63]. The lean six sigma framework aim at providing an
effective approach to integrating lean and six sigma [65]. It uses the DMAIC phases
similar to that of Six Sigma [32]. Problem solving in lean Six Sigma is done using
the DMAIC framework. It has been implemented and verified at one engineering
company in UAE [32]. The results show that the process “Make-to-Order (MTO)
projects” has a long lead-time [32]. The main causes of the long lead-time are the
subcontractors, the customers, and the company-implemented procedures [32].

Figure 6.
The five lean principles [64].

10
Lean Six Sigma in Manufacturing: A Comprehensive Review
DOI: http://dx.doi.org/10.5772/intechopen.89859

Using the framework, it was possible to identify the most significant reason for
the long lead-time, analyze the root-cause(s), suggest three relevant solutions
and select the most preferred one [32]. In this methodology framework applica-
tion, lean-production, six-sigma, balanced scorecard, simulation and cost benefit
analysis tools were used.
A study was conducted in India by Ben Ruben et al. [61] using DMAIC frame-
work methodology and validated practically to provide both operational and
environmental benefits. The framework is validated with an industrial case study
conducted in an Indian automotive component manufacturing firm/organization
located at Tamilnadu. The firm manufactures high precision transmission. On the
successful deployment of the framework, the internal defects was brought down to
6000 ppm from 16,000 ppm and environmental impacts was reduced to 33 Pt from
42 Pt. Deployment of the developed framework helped in improving the firm’s sigma
level and also reduced the overall environmental impacts. In this research different
lean six sigma tools were used at different level/phase like-Value Stream Mapping
(VSM), 5S, Kaizen, Cause and effect diagram, Quality Function Deployment (QFD),
High level SIPOC, Eco-QFD, Pareto chart, Environmental VSM (current level),
life Cycle Impact Assessment, Brainstorming, Design of Experiments, Cost benefit
analysis, Design for Environment, Life Cycle Interpretation, Environmental VSM
(Future level), 7s practices, Standard operating Procedure (with environmental
metrics) and Performance evaluation tools.
Thus, using the framework methodology the user will have a systematic
approach for continues improvement. Because, this framework also allows the
user identify the process problem(s) and solve them effectively [32]. There are
five stages in this framework. They are Define, Measure, Analyze, Improve, and
Control [66] (Figure 7).
Hill et al. [45] has developed an initial conceptual Lean Six Sigma Framework
(LSSF) and undertook a series of iterative developments in an attempt to improve
its effectiveness and suitability to Maintenance Repair and Overhaul (MRO)
implementation. Hill et al. [45] describes the novel implementation of an integrated
LSS framework and outlines how it was used to identify the factors that affect sup-
ply chain performance in an aerospace Maintenance Repair and Overhaul (MRO)
facility. It shows how each of the Six Sigma DMAIC phases are applied systemati-
cally to each of the Lean stages. Stage (0) of the LSSF was the starting point of the
implementation stage. The phases are as follows:
LSS Phase 1—Specify value by defining the CTQ issue.
LSS Phase 2—Align the internal operations through measuring the extent of the
Problem.
LSS Phase 3—Create flow by identifying constraints in the system.
LSS Phase 4—Create flow through process improvement.
LSS Phase 5—Continuous improvement and control of future processes (Figure 8).
Hill et al. [45] outlined the application and measures the effectiveness of the
integrated LSS framework through its ability to achieve new and enhanced per-
formance through simultaneously reducing late material calls and reducing and
stabilizing Order To Receipt (OTR) times.

2.6 Tools and techniques

Lean and Six Sigma both have their own set of tools and techniques that can
enhance a company’s objectives for value and profit enhancement [24]. Lean six
sigma consists of many tools and techniques for continuous improvement such as
the Kanban system, 5S, Cause and Effect analysis (C&E), Value Stream Mapping
(VSM) and many others [35, 36]. According to Brazilian publications, there are

11
Lean Manufacturing and Six Sigma - Behind the Mask

Figure 7.
Lean six sigma framework and methodology. Source: [66].

Figure 8.
Integrated generic lean six sigma framework (LSSF). Source: [45].

six most frequently tools used in LSS applications: “Control Charts”, followed
by “Value Stream Mapping”, “DMAIC,” “Kaizen,” “Ishikawa Diagram,” and
“Histogram;” and Control chart is the top ranking tool [33]. DMAIC is a five step

12
Lean Six Sigma in Manufacturing: A Comprehensive Review
DOI: http://dx.doi.org/10.5772/intechopen.89859

Lean Six Sigma (LSS) tools Author(s)

Control Charts [10, 24, 33, 67]

Value Stream Mapping (VSM), Box plot, Process mapping, [10, 24, 31, 35, 67]
Standardized work, Scatter diagram, Cause and effect matrix (C&E
analysis), Kanban system, Hypothesis Testing, Process Flow Diagram,
Quick, 7 waste analysis, Heijunka

DMAIC or DMADV [10, 24, 67, 68]

Kaizen, Single Minute Exchange of Die (SMED) [24, 67, 68]

Ishikawa Diagram, Histogram, Stratification [10, 24]

Pareto Chart, E-Kanban system, SOP, Check sheet, VOC translation [10, 24, 31]
matrix, Three diagrams, Brainstorming, SIPOC Diagram

Current state map, Spaghetti diagram, Poka-yoke [24, 67]

5S, 5 Whys, XY matrix, FMEA, ANOVA, Design of Experiments [10, 24, 31, 35, 67]
(DOE), Rootcause Analysis, Mistake proofing, VSM, Pareto chart,
CTQ analysis, Root-cause analysis, Jidoka

Process Capacity Analysis, Cause and effect diagram [10, 24, 31]

Changeover, Total Productive Maintenance (TPM), Line balancing; [24, 67]


Cellular manufacturing,

Critical to Customer Tree—VOC/VOB [24]

OEE, DMADV, Autonomation (Jidoka), Visual management [24]

5W1H, JIT, Regression analysis, QFD, Statistical Process Control [24, 31, 35, 39, 67, 68]
(SPC), Kano Model, Gemba (Go & See)

Confidence Interval, Continuous Flow, Benchmarking [24]

Impact Effort Matrix, PDCA, DFSS, Production Leveling, Lean [24]


Office, Solution Prioritization Matrix, Matrix Diagram,

QCC (Quality Control Circle), Cellular Layout, Milkrun, [24]


Mizusumashi

Andon, QC Story, Routine Management, R&R, Gantt Chart [67]

Relationship Diagram, Stratification, Cross-functional Team, Theory [67, 69]


of Constraints (TOC) Principles, A3 Form, Affinity Diagram
Source: Prepared by the author.

Table 2.
Identified lean six sigma tools and techniques.

method for improving existing process problems with unknown causes. DMAIC
define and quantify the problems; identify cause of the problems; implement,
verify and maintain the solutions. The DMAIC or DMADV toolkit comprises
all the Six Sigma and Lean tools [10], and the success factors of lean six sigma
is their ability to use the toolbox in a systematic and disciplined manner [10].
Quality Function Deployment (QFD), Failure Mode and Effect Analysis (FMEA),
Statistical Process Control (SPC), Design of Experiments (DOE), Analysis of
Variance (ANOVA), Kano Model, etc. statistical tools and techniques reduce
variation in any process, reduce costs in manufacturing and services, make sav-
ings to the bottom line, increase customer satisfaction, measure defects, improve
product quality, and reduce defects to 3.4 parts per million opportunities in an
organization [35, 39]. Some of these tools have adopted from TQM as Six Sigma
in itself has derived from the TQM movement. All the tools and techniques are
shown in Table 2.

13
Lean Manufacturing and Six Sigma - Behind the Mask

2.7 Critical success factors

There are many studies have been conducted on critical success factors of
LSS. Author has shown critical success factors that were identified by previous
researchers. Some of the predominant CSFs are discussed in this section.
Most studies on critical success factors (CSFs) have found senior management
involvement and commitment as a CSF in the implementation of lean six sigma
projects [10]. Carleysmith et al. [70] and Mustapha et al. [10] noted that senior sup-
port as a critical factor that enables the process of LSS implementation. Mustapha
et al. [10] also identified senior management supports as the most vital institutional
factors which enable implementation of the LSS framework. Delgado et al. [71]
says that the role of management is influencing the practice and guiding organiza-
tional culture to help the organization in closing the gap and proposing ideas for
improvement.
According to Mustapha et al. [10] and Sharma [72] senior management
involvement ensures the benefit of the program to the company by facilitating
trust and communication. Senior management motivates to the team mem-
bers, enables them to use procedures and methods for better quality. They also
ensure recognition, which leads to effective and quicker change toward greater
innovation [10]. Mustapha et al. [10] and Zu et al. [73] have also considered
Management decisions and Organizational infrastructure in the lean critical
success factors.
Näslund [68] frequently mentioned CSFs include the importance of a vision
and strategy, top management support and commitment, importance of commu-
nication and information, and so forth. According to Mustapha et al. [10] linking
business strategy with continuous improvement strategy is important. A clear and
solid combination of LSS with the company’s corporate strategy is the most critical
factor for successful implementation.
Kumar et al. [74] and Mustapha et al. [10] note that stress on overall program
success and short-term successes are important in the initial stages of LSS to ensure
members’ interest in the lean project. Apart from these LSS projects also need
champion or sponsors who provide direction to the implementation team, find
resources and plan for the project [10]. The readiness of the company is also a criti-
cal in lean implementation [10, 68, 75].
For the successful implementation of change effort, different education and
training are also most required factors [68, 72, 74]. Education in a systems and
process view of organizations answers the questions why the change of the system
is needed, how it is supposed to change, and what the benefits will be to the system
[68]. This education can also prepare the organization for change and create the
readiness for change [68].
Customer satisfaction as the central goal of LSS, Cultural change and a trans-
formation of attitudes of the employees [10, 74], productive teamwork [76], LSS
working groups [74], duties and responsibilities of team players [74], Integration
of LSS with the performance management process [10] and integration of human
and process elements of improvement [10, 77] are the key element for the effec-
tive implementation of LSS programs. Because when these elements are combined
with other aspects of LSS, it would produce its successful implementation in an
organization.

2.8 Lean six sigma strategy

Lean Six Sigma combines the strategies of Lean and Six Sigma [30]. It has
rapidly established itself as the key business process improvement strategy of

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Lean Six Sigma in Manufacturing: A Comprehensive Review
DOI: http://dx.doi.org/10.5772/intechopen.89859

Table 3.
Lean six sigma deployment strategies. Source: [46].

choice for many companies [45]. In general, the approach has been to align Lean
Six Sigma deployments with the strategy of the organization [46]. The strategy
usually includes a plan that addresses the high level goals of the organization [46].
Strategic objectives are then broken down into routine metrics at the operational
level. In classic Six Sigma terminology the “Big Y” is broken into “smaller y’s”
and plans are put in place to address each “small y” at the operational level. The
majority of the companies use this approach in creating a Six Sigma portfolio that
helps meet the strategic goals of the organization [46]. Both Lean and Six Sigma
are key business process strategies which are employed by companies to enhance
their manufacturing performance [78]. Table 3 illustrates different deploy-
ment approaches that are used along with some of the pros and cons of using the
approach [46].
Some companies use a top-down LSS deployment approach which is driven
by strong governance [46]. For example: General Electric. This approach requires
strong executive commitment and company wide acceptance to change [46].
The reasons for deploying LSS often include poor financial performance,
retreating customer satisfaction, increased rivalry or the existence of a burning
problem area [46]. There is not a single method that fits all Lean Six Sigma deploy-
ments. There are various deployment models that are broadly used in the industry
today. Figure 9 illustrates a deployment strategy that includes a few concepts
presented above.
The strategy includes a pilot or proof of concept phase and ends with a com-
panywide LSS deployment. In the pilot phase, specific problems are addressed to
reveal the usefulness of the methodology and to gain buy-in. larger investments are
made in infrastructure, education and training of yellow belts, green belts, black
belts and master black belts [46]. Organizations must be aware of their toolset and
enhancements needed to move forward. Many organizations train their Black belts
on the theory of constraints and agile techniques to keep their toolset sharpened
with a goal of including various manufacturing engineering methodologies. For
truly successful LSS, the deployment must be tied into the strategy and be focused
on the right parts of the business [46].

2.9 Assessment of lean six sigma readiness

Implementation of LSS is not a game of self interest. Thus, lean six sigma readi-
ness must be assessed before its implementation in manufacturing organizations.
Sreedharan et al. [79] recently designed an evaluation model in their quality paper

15
Lean Manufacturing and Six Sigma - Behind the Mask

Figure 9.
Strategic goals and objectives in deployment wave. Source: [46].

“Assessment of Lean Six Sigma Readiness (LESIRE) for manufacturing industries


using fuzzy logic”. According to this evaluation model, the following criteria must
be for readiness of LSS in manufacturing:

• Employee engagement

• Developing organizational readiness

• Establishing Lean Six Sigma dashboard

• Roadmap for project execution

• Infrastructure

• Top management commitment and Involvement

• Knowledge about Lean Six Sigma benefits

• Good leadership

• Clear vision and future plans

• Proper communication about future benefits expected from project by top


management

• Experience in Lean Six Sigma deployment and implementation

• Lean Six Sigma facilitator Structure

• Alignment between the objective of the project and strategic objective of the
company

• Customer focus

• Selection of candidate for Belt training

• Project prioritization

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DOI: http://dx.doi.org/10.5772/intechopen.89859

2.10 Implementation of lean six sigma in SMEs

Every organization is unique, without a common blueprint that universally


applies. Lean Six Sigma implementation refers to a company’s management philoso-
phy and a long-term strategy [80]. It can be implemented in any SMEs in phases.
The aim of implementation of LSS is finding wider application in many different
environments. A successful implementation has several factors associated with it.
Alkhoraif [80] has noted that Japanese automobile companies Toyota have a high
implementation success rate due to their inflexibility in systematic planned man-
agement of employees, resources and equipment.
In a Lean Six Sigma SMEs, people deal with process improvement by conducting
improvement projects as well as continuously improving daily routine. This requires
an organization which understands the methodology.
According to Lokesh R, There are eight steps to a successful lean six sigma
implementation in SMEs. Lokesh R is a certified Black Belt and general manager of
process excellence at Firstsource Solutions Ltd. The first step in a Lean Six Sigma
implementation is deciding to use the methodology. Once the leadership of a SMEs
believes they can benefit from using Lean Six Sigma, they can follow eight steps—
Step 1: Create a Burning Platform; Step 2: Put Resources in Place; Step 3: Teach the
Methodology; Step 4: Prioritize Activities; Step 5: Establish Ownership; Step 6:

Figure 10.
Successful lean six sigma implementation steps source: Prepared by the author.

17
Lean Manufacturing and Six Sigma - Behind the Mask

Take the Right Measurements; Step 7: Govern the Program; and Step 8: Recognize
Contributions (Figure 10).
Step 1: Create a burning platform: SMEs must have a compelling reason for
implementing Lean Six Sigma. For example “We are suffering huge quality losses;
they account for more than 45 percent of our costs.” and “Our competitors are gain-
ing our market by 12 percent every quarter.” Company leadership should become
familiar with the burning platform, and understand how Lean Six Sigma can
address the problems in the platform statement.
Step 2: Put resources in place: Do not hesitate to hire the right resource at right
price. This is applicable to any resource, be it employees, material or technology.
They must be able to work together as a team, and be empowered to carry out
initiatives.
Step 3: Teach the methodology: For a lifetime survival, organizations need to
train their team members to be powerful change agents. Yellow Belt, Green Belt and
Black Belt training, along with skilled mentors, can help increase organizational
awareness. The employees identified for training should share the organization’s
vision.
Step 4: Prioritize activities: Organizations must make a priority to: Listen to
the customer, Identify critical-to-quality criteria and Ensure Lean Six Sigma efforts
are linked to business goals. It is important to learn what to overlook and where to
take risks. Activities must be assessed to ensure they are meeting the expectations
of the organization’s goals.
Step 5: Establish ownership: It must be clear who owns the Lean Six Sigma
initiative. This may involve appointing a committee to find out who is responsible
for the entire team. With ownership comes empowerment and a sense of pride, and
team members who are more committed, accountable and engaged.
Step 6: Take the right measurements: What cannot be measured cannot be
improved. By creating a measurement system, practitioners can determine baseline
performance and use the data in objective decision making and analysis of varia-
tion. The key for measurement is to get the cost of quality right. Organizations also
must find a way to measure process performance to ensure they receive data at a fast
pace. Having too many items on a scorecard may shift practitioners’ attention from
the critical few metrics. They need to identify and measure the key leading indica-
tors instead of measuring the many lagging indicators.
Step 7: Govern the program: A proper governance structure can help a program
sustain momentum. Poor governance or too much governance can lead to the vision
falling apart. Proper governance also helps practitioners create a best practice
sharing forum, which helps projects to be replicated and can highlight common
challenges. Without regularly scheduled, productive meetings or review sessions,
the program can veer off course and employees may lack guidance.
Step 8: Recognize contributions: Rewards and recognition play a valuable role
in making sure team members remain satisfied in their roles. They can help build
enthusiasm for the program from a top-down and grassroots level. Rewards and
recognition also can help drive innovation throughout the organization.

2.11 Significant barriers to implement LSS in manufacturing

Lean principles, tools and techniques have become a benchmark for manufac-
turing companies that have founded on the success of the Toyota Production System
(TPS). Despite its popularity, companies are still struggling to achieve a successful
lean implementation [81]. Many studies claim regarding the effectiveness of LSS in
manufacturing and found that LSS practices is difficult and organizations encoun-
ter several roadblocks in this long continuous improvement journey. Some studies

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Lean Six Sigma in Manufacturing: A Comprehensive Review
DOI: http://dx.doi.org/10.5772/intechopen.89859

identified determining factors which make LSS journey either a success or a failure
[82]. Existing research indicates some important organizational and technical
barriers such as lack of management support and commitment, poor involvement
of employees, and excessive confidence in lean tools and practices [81]. According
to Navarro (a certified LSS Black Belt), there are five major barriers/obstacles/chal-
lenges to implement LSS in manufacturing:

• Insufficient management time to support lean

• Not understanding the potential benefits of applying lean

• Underestimating employee attitudes/resistance to change

• Insufficient workforce skills to implement lean

• Backsliding to the old inefficient ways of working

2.12 Significant benefits of LSS implementation in manufacturing

Many organizations have reported significant benefits after the implementa-


tion of LSS in manufacturing [79]. Lean and LSS is not just for manufacturing. It
can benefit organizations of any size, in any industry. Because all organizations
have problems to solve, all organizations have waste, and all organizations want
to increase profits and reduce costs. It benefit to Healthcare, Financial services,
Retail and hospitality, Education and Office-based businesses. LSS can also
benefit organizations in Agriculture, Energy, Mining, Construction, Consulting,
Design, Hotels, Travel and transportation, Law firms, Logistics, Government and
Public services.
Albliwi et al. [35] has conducted a review research on LSS. They reviewed 37 LSS
original research papers including 19 case studies had been published in the manufac-
turing sector in 11 different countries, which are: USA, UK, India, The Netherlands,
China, Malaysia, Australia, Iran, Taiwan, Sweden and New Zealand. Albliwi et al.
[35] identified more than 50 benefits (in 19 case studies). The top 10 benefits are:

1. Increased profits and financial savings;

2. Increased customer satisfaction;

3. Reduced cost;

4. Reduced cycle time;

5. Improved key performance metrics;

6. Reduced defects;

7. Reduction in machine breakdown time;

8. Reduced inventory;

9. Improved quality; and

10. Increased production capacity.

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Lean Manufacturing and Six Sigma - Behind the Mask

Other identified benefits are identifying different types of waste, development


in employee morale toward creative thinking and reduction in workplace accidents
as a result of housekeeping procedures.
Many other LSS practitioners, manufacturers, academic researchers have real-
ized common benefits in manufacturing by applying a successful lean methodology
are—Greater productivity, Smoother operations, Greater flexibility and responsive-
ness, Eliminates defects, Improved product quality, Reduced lead time, Increased
customer satisfaction, Improved staff morale, Safer working environment and
Boosts bottom line.
Ben Ruben et al. [61] identified that on successful deployment of the LSS frame-
work in an Indian automotive component manufacturing organization, the internal
defects was brought down to 6000 ppm from 16,000 ppm and environmental
impacts was reduced to 33 Pt from 42 Pt.
Lean and Six Sigma offers a number of substantial benefits to organizations.
Most importantly, Lean and Six Sigma Creates efficient processes so you can deliver
more products to customers; Increases revenue by streamlining processes; Reduces
costs by eliminating waste activities; Develops effective teams by empowering
employees, staff morale and job satisfaction.
Singh and Rathi [28] have recently conducted a review research on LSS and
covered papers from 2000 to 2018. They have selected a total of 216 research
papers published in different countries on LSS implementation in various manu-
facturing sector such as automotive, micro small medium enterprises, health care,
education, financial sectors etc. and observed major LSS benefits are: reduction
in inventory; reduced costs of poor quality; improve customer highest satisfac-
tion; reduced cycle time and lead time; defect free processes; and improvement in
productivity.

2.13 Limitations of LSS in manufacturing

Many authors have argued that there are a significant number of limitations in
LSS methodology. They have addressed many fundamental limitations [35]. These
limitations can be a rich area for future research. The identified top seven limita-
tions of LSS in the manufacturing sector are:

1. The absence of clear guidelines for LSS in early stages of implementation.

2. Lack of LSS curricula.

3. Lack of understanding of the usage of LSS tools and techniques.

4. Lack of a roadmap to be followed—which strategy first?

5. The limited number of practical applications of LSS integrated framework.

6. No globally accepted standards for certification.

7. Lack of expertise.

Thus, LSS practitioners need a clear guide for the direction of the early stages:
which strategy should come first, Lean, Six Sigma or LSS, and what tools in the
toolbox should be used first.

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Lean Six Sigma in Manufacturing: A Comprehensive Review
DOI: http://dx.doi.org/10.5772/intechopen.89859

2.14 Lean and six sigma belts

A Lean and Six Sigma practitioner’s “belt” refers to their level of experience.
They may be a white, yellow, green, black, or master black belt. These roughly cor-
respond to their hierarchy in martial arts.
Lean and six sigma master black belt—A highly experienced black belt.
Lean and six sigma black belt—Has expert knowledge of the DMAIC methodol-
ogy, Lean methods and team leadership.
Lean and six sigma green belt—Has strong knowledge of the DMAIC method-
ology and Lean methods, but does not have experience with advanced statistical
tools.
Lean and six sigma yellow belt—Has completed training in the fundamental
concepts and tools of Lean and Six Sigma.
Lean and six sigma white belt—Has completed a small amount of Lean and Six
Sigma awareness training.

2.15 Emerging trends in lean six sigma and agenda for future work

This study is the first comprehensive review of existing reliable literatures on


different aspects of lean six sigma and the issues emerging in this field published
during the period 1990 to 2019 and extract theoretical elements to develop the
concept of LSS. The future of lean six sigma depends on the development needs of
organization involved. These needs and opportunities are creating emerging trends
in LSS which includes:

• The Big Data trend in lean six sigma

• Green lean six sigma

• Global Warming, Pollution and Lean’s impact

• Lean and Six Sigma with environmental sustainability

• Lean’s Impact on Resources

• Energy Conservation and management by LSS

• Factors affecting green lean six sigma

• Integration of LSS into educational systems.

• Assessment of LSS Readiness using fuzzy logic

• Green supply chain management

To encourage research in the field of lean six sigma and manufacturing, here we
are highlighting gaps in the existing literature as a basis for developing a research
agenda.

• Research gap 1 (performance measurement system for a particular organiza-


tions and processes);

21
Lean Manufacturing and Six Sigma - Behind the Mask

• Research gap 2 (application of LSS in developing SMEs);

• Research gap 3 (integrated universal methods of manufacturing, frameworks,


and models)

2.16 Successful LSS examples/stories in the manufacturing industry

As LSS was implemented world over for improving performances of various


processes, developing countries have also started implementing LSS and got
significant results in various sectors [83]. Lean Six Sigma (LSS) methodology
was recently applied to an Auto ancillary conglomerate in India for achiev-
ing operational excellence. The root causes for the problem were identified
and validated through data based analysis from LSS tool box. The application
of LSS methodology resulted in reduction of drilling defects while machin-
ing injector bodies and reduced the Defects Per Million Opportunities from
38,000 to 5600. The application of this methodology had a significant financial
impact (saving of about INR 1.4 million per annum) on the bottom-line of the
company [83].
All type of manufacturing industry can increase profits, reduce costs and
improve collaboration using LSS. For reference, below is Lean Six Sigma success
examples in the Manufacturing industry organized systematically (Table 4).

General Electric Dell India Pvt. Ltd. NALCO


Xerox Colgate Palmolive Steel Authority of India

Ford Al fanar HP

Toyota Alessa Seimens

Durgapur Steel Zuari Agrochemicals 3 M (American MNC)

BEML (Bharat Earth Movers) Brother Gas Acme Industries

ADCO (Abu Dhabi oil Company) Gulf Gas AEDC

AMRDEC Wabash National Corp. Gooch & Housego

Axalta Coating Systems Fortress Paper Ingersoll Rand

Barcoding Inc. General Cable Jabil Shanghai

Beverage Producers GKN Sinter Metals John Sisk & Son

Bosch Milling Products KushCo Holdings, Inc.

Celestica Molded Devices, Inc. Foster Threaded Products

Cummins Real Alloy Seegrid

Luvata Reliable Plant Spanbild

MC Assembly Santana Textiles The Jubach Company

Magline Think Lightweight The National Productivity Centre of Nigeria

Masonite Topper Industrial UTC Aerostructures

Metform Engineers Universal Machining Vermeer Corp.


Industries Inc.

Source: Prepared by author (adopted from [84]).

Table 4.
Lean six sigma success examples in the manufacturing industry.

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Lean Six Sigma in Manufacturing: A Comprehensive Review
DOI: http://dx.doi.org/10.5772/intechopen.89859

2.17 Conclusions and suggestions

Lean Six Sigma is a combination of two powerful process improvement methods:


Lean and Six Sigma. It decreases organization’s costs by removing “Waste” from
a process and solving the problems caused by a process. Lean Six Sigma (LSS)
is an emerging extremely powerful technology which is used to identifying and
eliminating waste, improving the performance, efficiency and customer satisfac-
tion to sustain in competitive manufacturing and nonmanufacturing environment.
The focus of this chapter was to explore the each aspect of LSS in manufacturing.
This systematic comprehensive review aims to synthesize, organize and structure
the stock of knowledge relating to Lean Six Sigma and manufacturing. The identi-
fied lean six sigma tools and techniques, methodologies, frameworks, success and
failure factors and strategies can be effectively used as a roadmap in manufacturing
sector. This is also identified that the LSS has been implemented worldwide and in
all type of manufacturing organizations for achieving the excellence. They have
been successfully achieved their LSS objectives. But there are various challenges
and barriers have been identified in the deployment of LSS. Assessments of lean six
sigma readiness and implementation steps are most important that every practitio-
ner must be aware. Basics of lean six sigma are discussed to get the root causes by
in-depth understanding of the fundamentals of Six Sigma.
To bring lean in the organizations, every manager must be master and imple-
ment the eight basics of Lean Six Sigma for manufacturing. They should achieve
their goal of satisfying/delighting customers by delivering higher quality service in
less time by improving related business processes, eliminating defects and focusing
on how the work flowed through the process.
This can be achieved only if the creativity of the people is used in team work
on the processes with data and with an understanding of customers and processes.
Therefore, the team members should work together to create real solutions for the
organization. They should be from the different process areas, and their decisions
should be based on data and facts.
Furthermore, for future direction, research and practitioners can be more
focused on prioritization of significant barriers as identified in chapter and to tackle
them during LSS implementation in manufacturing so that continuous improve-
ment can be easily achieved [1].

Author details

Hari Lal Bhaskar
Gaur Hari Singhania Institute of Management and Research, Kanpur,
Uttar Pradesh, India

*Address all correspondence to: bhaskar.gkp@gmail.com

© 2020 The Author(s). Licensee IntechOpen. This chapter is distributed under the terms
of the Creative Commons Attribution License (http://creativecommons.org/licenses/
by/3.0), which permits unrestricted use, distribution, and reproduction in any medium,
provided the original work is properly cited.

23
Lean Manufacturing and Six Sigma - Behind the Mask

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