ASQ - Statistics Division

Statistical Thinking with Six Sigma and Lean

Abstract: This Special Publication consists of three articles. 1. Combining Lean and Six Sigma Methodologies by Joe Ficalora, Joe Costello and Julien Renaud. This article discusses the synergies between Lean methods and Six Sigma Techniques. Specifically, the use of a combined roadmap will be used to illustrate in two examples how adding either one to the other can accelerate or amplify the results achieved. Lean manufacturing techniques generally aim to identify and eliminate waste in the production or service delivery system, while Six Sigma techniques were built around identifying and eliminating process variation and defects in delivered products or services. 2. Beyond Six Sigma/Lean: Methods to Ensure Your Organization's Health by Forrest W. Breyfogle. Many companies need to readress how they measure and make improvements within their organization. This article describes a method that helps companies improve their competiveness and bottom-line. Described is a statistical based cascading measurement methodology that tracks an organization as a system, which pulls for the creation of improvement Six Sigma/Lean projects that are in direct alignment with the needs of the business. 3. Productivity, Quality and Measures: Using Factory Physics Principles to Resolve Conflict and Improve Productivity by Edward S. Pound and Mark L. Spearman. As industry has struggled to reconcile the various approaches to quality and productivity, there has been a basic oversight: There are fundamental relationships between inventory, cycle time, capacity, WIP, utilization and variablity that govern how all businesses operate. There are only four basic measures that are needed to understand and control logistics performance: capacity, time, inventory and variability. Factory Physics principles describe the relationships between these parameters.

Keywords: Factory Physics - Capacity - Time - Inventory - Variability - WIP - Utilization

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