Basic Principles of Lean-Sigma To Win the Competition

The term lean is an attempt to pass the renewal and reduce the variety of waste in a company to improve the quality of the product or service so that it will be worth more in the eyes of the customer. The basic concept of Lean-Sigma in the end is the lower costs incurred in the activities of the company. In this case the company concentrates identifying costs that should not be excluded. In other words the savings made by emphasizing the good work efficiency is realized by the member firms or not.

As known in advance that the implementation of lean manufacturing was first introduced by Taiichi Ohno of Toyota Motor Company, a world-class giant company that is always active and doing improvement innovations in the field of efficiency and product quality. With such conditions the company Toyota to compete in world markets with a quality and competitive price.

Many companies follow the lead of Toyota for efficiency in all sectors with the methods of lean manufacturing and lean six-sigma is. One characteristic of companies that apply this concept of lean manufacturing include:
– Speed of production is set in such a way as requested by the customer, no longer based on cycle time but by the time required to complete the requested quantity the customer. This would mean the production run with high efficiency
– Doing a pull system of production that is done if requested by the customer. In other words make the production as much as the customer requested that no stocks of goods are piling up in warehouses and not absorbed by the market.
– Avoidance of WIP material / intermediate goods by production unit per unit, with the intention of the accumulation of goods that will not wait for the production process.

One hallmark of companies that apply the concept of lean manufacturing is the increased speed of production and loss of the existing waste in the company, such as: inventory, overproduction, waiting time of transport, over process, defects and rework and movements that are not needed.

Methodology that is widely used in solving the problem is based on the concept of Six Sigma DMAIC (Define-Measure-Improve-Control-Analyze). Any experiences to contain waste identified must be solved in a systematic and logical. Then the data was analyzed statistically.

The end goal of the application of Lean-Sigma is helping companies to better compete in global markets. Produce higher quality products and services primarily to respond to customer the best (better, cheaper products, faster)