Confused about Lean Six Sigma? This article gives you 5 distinct laws governing Lean Six Sigma and serves as a comprehensive guide for improving ROI.
Thinking about how Six Sigma and
Lean Manufacturing work well together despite being distinct, independent and
complete tools? The combined principles gel so well that they compliment each
other and progress parallels to each other on a well-defined path. The paths
are defined by the 5 Laws of Lean Six Sigma as we know today.
5 Laws of Lean Six Sigma
The 5 laws have been formulated
in order that efforts on improving quality and business process aimed at
improving customer satisfaction and ROI as primary concerns. The 5 laws have
evolved over time and are a collection of key ideas derived both from Lean
Manufacturing and Six Sigma.
1.
The
Zeroth Law: The first law is called so because all other principles
are built upon this fundamental one. It States that “The Law of the Market -
Customer Critical to Quality defines quality and is the highest priority for
improvement, followed by ROI (Return on Investment) and Net Present value.”
2.
The
First Law: This is called as The Law of Flexibility. It states that
“The velocity of any process is proportional to the flexibility of the
process.” Interpretation: the more the process is receptive and flexible to
adopt changes, the better the progress of the project implementation is.
3.
The
Second Law: The second law is known as The Law of Focus - it is
defined as “20% of the activities in a process cause 80% of the delay.” This
can be interpreted as main causes of delay of activities originating from just
20% of activities thus enables a faster refocus during the reorientation phase.
4.
The
Third Law: The Law of Velocity as the third law is known is stated
as “The velocity of any process is inversely proportional to the amount of WIP.
This is also called "Little's Law". This explains how the inertia of
WIP, ‘Work in Progress’, bears heavily on the velocity of project
implementation. Higher the number of works in progress (read unfinished tasks)
the lower is the speed of progress due to various ground level handicaps
5.
The
Fourth Law: The Fourth Law, which is the last of the 5 laws of lean
Six Sigma, is defined as “The complexity of the service or product offering adds
more non-value, costs and WIP than either poor quality (low Sigma) or slow
speed (un-Lean) process problems.” The bulky nature of products is against the
foundation of Lean Manufacturing principles. The bulk, complex manufacturing
process and product and service specifications contributes to render the
offerings redundant. As an illustration to this 4th Law of lean Six
Sigma, you can try and reason out why passenger cars are more and more becoming
driver friendly despite their complex engineering features and functions.
You can revisit the definitions
of Six Sigma and Lean Manufacturing principles which emphasize eliminating
process errors and variations. It also
concentrates on efforts to invest less human labor, inventory, and time for
product development.