Lean and Six Sigma: Integrating Lean and Six Sigma in a

Systematic Approach
Elizabeth A. Cudney
Ph.D. Candidate
University of Missouri - Rolla
Rolla, MO, USA
John S.W. Fargher, Jr., Ph.D.
Director, Missouri Enterprise
St. Louis, MO, USA
Abstract
Lean Manufacturing and Six Sigma are both powerful tools to improving quality, productivity, profitability and
market competitiveness. Six Sigma is focused on reducing variation using a problem solving approach and
statistical tools. Lean Manufacturing focuses on eliminating waste and improving flow using various Lean
principles and their respective approaches. As stand alone tools, companies can achieve strong improvements.
Using either tool alone has its limitations. However, by combining the Six Sigma DMAIC methodology with lean
manufacturing tools, companies have a more appropriate toolkit to address all types of process problems and can
reap even more dramatic gains. An integrated approach to process improvement is presented using Lean
manufacturing principles and Six Sigma. The approach begins with Value Stream Mapping to identify gaps
between the current and future state. Six Sigma is then used to ensure an improvement roadmap with a problem
solving approach. Lean manufacturing techniques are used in conjunction for process improvement.

Keywords: Lean, Value Stream Mapping, Muda

I. Introduction
Lean Manufacturing and Six Sigma are both powerful tools to improving quality, productivity,
profitability and market competitiveness. Six Sigma is focused on reducing variation using a
problem solving approach and statistical tools. Lean Manufacturing focuses on eliminating
waste and improving flow using various Lean principles and their respective approaches. As
stand alone tools, company can achieve strong improvements. Using either tool alone has its
limitations. However, by combining the Six Sigma DMAIC methodology with lean
manufacturing tools, companies have a more appropriate toolkit to address all types of process
problems and can reap even more dramatic gains. An integrated approach to process
improvement using Lean manufacturing principles and Six Sigma is presented. The approach
begins with Value Stream Mapping to identify gaps between the current and future state. Six
Sigma is used to ensure an improvement roadmap with a problem solving approach. Lean
manufacturing techniques are used in conjunction for process improvement.
Customers continually want more reliable, durable products and services in a timely manner. In
order to remain competitive, all organizations must become more responsive to customers,
achieve Six Sigma capability, and operate at world class cost. A comprehensive toolkit of Lean
and Six Sigma can provide the means for profitably meeting customer requirements.
II. Six Sigma versus Lean

Lean emphasizes the elimination and prevention of waste. Lean is focused on the customer by
addressing what is value added and what is non- value added. Products and services are delivered
Just- in-Time meaning in the right amounts, at the right time and in the right condition. Products
and services are produced only when a signal is received from the customer and are pulled
through the system. A lean system allows for an efficient response to fluctuating customer
demands and requirements.
Six Sigma is a customer focused continuous improvement strategy and discipline that minimizes
defects and variation towards an achievement of 3.4 defects per million opportunities in product
design, production, and administrative processes. It is focused on customer satisfaction and cost
reduction by reducing variation in processes. Six Sigma is also a methodology using a metric
based on standard deviation. Six Sigma targets aggressive goals. The goals of Six Sigma
include developing a world-class culture, developing leaders, and supporting long-range
objectives. There are numerous benefits of Six Sigma including stronger knowledge of products
and processes, a reduction in defects, an increased customer satisfaction level that generates
business growth and improves profitability, an increased communication and teamwork, and a
common set of tools.
A comparison of Lean and Six Sigma is given in Table 1. By combining Lean and Six Sigma a
system can be implemented to reap optimal benefits.

Lean

Six Sigma

Goal

Create flow
Eliminate waste

Reduce variation
Improve process capability

Business Scope

Project oriented
Operations level

Strategic

Culture

Operations level (at minimum)

Corporate culture

Application

Mainly manufacturing processes

All business processes

Approach

Lean technique specific

Basic principles and best practices

Generic problem solving approach using

statistics

Project
Selection
Length of
Projects
Infrastructure

Driven by Value Stream Mapping

Various approaches

Short-term focus

Long-term cyclical improvement

Ad-hoc kaizen based

Dedicated resources

Training

Specific training
Learn by doing

Broad training
Learn by doing
Table 1 Lean versus Six Sigma

III. Integrating Lean and Six Sigma

The path for the integration of Lean and Six Sigma is mapped in Figure 1. As with the
continuous improvement loop in the Six Sigma DMAIC methodology, Lean and Six Sigma must
also be integrated as a continuous improvement cycle.

Standard Work

CONTROL
DEFINE

Quadratic Loss Function

Eliminate Variation
Quality Characteristic

Create flow
MEASURE

IMPROVE
Design of
Experiments
ANALYZE

Figure 1 Systematic Approach to Integrating Lean and Six Sigma

Step 1: Define using Value Stream Mapping

Value Stream Mapping is the first building block to integrating Lean and Six Sigma. The
purpose of Value Stream Mapping is to understand the big picture. The current value stream
consists of all actions necessary to deliver a product including value added and non-value added.
Value stream mapping must be conducted first to provide an effective blueprint for
implementing an improvement strategy. A key step in creating the current state map is to
calculate TAKT time. The TAKT time calculation is given in equation (1).
TAKT time =

available working time per shift

(1)

customer demand rate per shift

The future state map identifies the sources of waste focus for improvement projects. Gaps in
system performance are identified and an action plan is created to reach the future state value
stream map objectives.
Step 2: Measure
The foundation of value stream mapping and the future state map outline sources to develop the
next level which is the measure step. The metrics should be tied to strategic business objectives.
In this step it is critical to determine the key performance indicators which impact customer
requirements and strategic business objectives.
In addition to process related VSM metrics and standard business metrics such as return on
investment (ROI), a very important metric to reduce costs and improve profitability is the
Quadratic Loss Function (QLF). The value of manufacturing specifications to the customer is
only important when they receive a product that is defective. Specifications create goalposts
for product acceptance. To the customer, the specifications should be created based on their
expectations and requirements. A benefit of using the quadratic loss function is that it is in
monetary units. The quadratic loss function equation is given in equation (2). The quadratic loss
function is illustrated in Figure 2.
Loss ( L ) = k (m - T )

(2)

where,
k is a monetary constant,
A
k = 20 ,
D0

is
the
mean, and

T is the target.

Loss (L)

(L) = k ( - T)

y (response value)
Target

Figure 2 Quality Loss Function

The quadratic loss function is used to determine the average loss per product. Two step
optimization can be applied using the expected loss. The first step involves first reducing the

variability, 2 , and then reducing the deviation from target, m - T . Expected loss can also be
calculated to depict average loss using equation (3).

E ( L ) = k s 2 + (m - T )

(3)

where,
2 is the variance.

Loss (L)

(L) = k [ + ( - T) ]

y (response value)
Lower
Specification
Limit

Target

Upper
Specification
Limit

Figure 3 Expected Loss

Step 3: Analyze
Design of experiments (DOE) is used to determine the key input factors. The four indicators of a
key input factor include 1) shift the response variation, 2) shift the response average, 3) shift both
the response variation and response average, and 4) have no effect on the response variation or
average. The first three indicators highlight factors that play a role in controlling the system
performance. The fourth indicator shows inputs factors that have little to no impact on the
system and therefore require minimal control. This allows for the selection of the proper input
settings to achieve desired targets with minimum variation.
Step 4: Improve
Using the key inputs factors determined in the Analyze Phase, lean manufacturing principles are
applied to eliminate variation and create flow. The key factors and their relationships should
logically direct the focus to appropriate lean tools to eliminate muda.
Single Minute Exchange of Dies (SMED) is a system of set-up reduction and quick changeover.
The method is used to efficiently respond to fluctuations in product demand. SMED reduces
downtime by improving the setup and changeover process. SMED also enables the
implementation of one-piece flow and shorter lead times.
One-piece flow is a lean manufacturing tool based on producing one unit at a time and passed on
to the next process. One-piece flow focuses on eliminating wait time, transportation, and
inventory. Implementing one-piece flow also improves and creates flow. Other advantages of

one-piece flow include reducing lead times of production, identification of defects earlier in
production processes, flexibility and reduced material and inventory costs.
5S is a lean principle which focuses on effective work place organization and standardized work
procedures through eliminating waste. The 5S terms are derived from the Japanese terms seiri,
seiton, seiso, seiketsu, and shitsuke. The English terms are sort, straighten, sweep, standardize,
and sustain. The benefits of implementing 5S include elimination of unnecessary steps, reduced
waste, improved efficiency, improved safety, and a cleaner work environment.
Another key lean manufacturing technique is cellular manufacturing which organizes
departments around a product or similar products. Typical cell configuration in cellular
manufacturing is u-shape. Cellular manufacturing aligns processes and equipment in sequence.
Benefits include faster production cycles, reduced inventory, and improved product quality.
Poke-yoke is the Japanese term for mistake-proofing. These are devices that physically or
procedurally do not allow mistakes to happen. It is a structured approach to ensuring quality
throughout a process. The focus is eliminating the root cause(s) of defects to product high
quality products and service.
Step 5: Control
The final step in integrating Lean and Six Sigma is to sustain the improvements and maintain
control of processes. Control ensures the optimized factors and improvements are sustained to
meet process performance requirements based on customer expectations. This is typically
accomplished through procedures and documentation including standard work.
Procedures and documentation are necessary to clearly define the tasks of a process. Standard
work is a lean tool that defines and documents the interaction between people and their
environment. It provides a routine for consistency of an operation and a basis for improvement
by detailing the motion of the operator and the sequence of action. The current process is
documented to provide a basis or standard and continuously improvement. After improvements,
standard work should be revised to incorporate the improvements.
Standard work consists of three elements: TAKT time, Standard work sequence, and standard
work in process. Used as a tool, standard work establishes a routine for repetitive tasks, makes
managing resource allocation and scheduling easier, establishes a relationship between the
person and the environment, provides a basis for improvement by defining the normal process
and highlighting areas for improvement, and prohibits backsliding. Standard work creates a
clear standard operation for completing a process. Any deviation from standard work indicates
an abnormality. In turn, abnormalities indicate an opportunity for improvement.
IV. Conclusions
The integration of Lean and Six Sigma provides a more appropriate toolkit to address process
improvements and reap more dramatic gains. An integrated approach to process improvement
uses Lean manufacturing principles and Six Sigma. Value Stream Mapping is the foundation to
identify gaps between the current and future state. Six Sigma and lean manufacturing techniques
are used to ensure a continuous improvement roadmap with a problem solving approach.

References
Baudin, Michel, Lean Logistics: The Nuts and Bolts of Delivering Materials and Goods,
Productivity Press, New York, NY, 2004.
Identifying Waste on the Shopfloor, Productivity Press, New York, NY, 2003.
Imai, Masaaki, Kaizen: The Key to Japans Competitive Success, McGraw-Hill, New York, NY,
1986.
Keyte, Beau and Locher, Drew, The Complete Lean Enterprise, Productivity Press, New York,
NY, 2004.
Mascitelli, Ronald, The Lean Design Guidebook: Everything Your Product Development Team
Needs to Slash Manufacturing Cost, Technology Perspectives, Northridge, CA, 2004.
Rother, Mike and Shook, John, Learning to See: Value Stream Mapping to Add Value and
Eliminate Muda, The Lean Enterprise Institute, Brookline, MA, 1998.
Shinkle, George, Gooding, Reb, and Smith, Mike, Transforming Strategy into Success: How to
Implement a Lean Management System, Productivity Press, New York, NY, 2004.
Wincel, Jeffrey, Lean Supply Chain Management: A Handbook for Strategic Procurement,
Productivity Press, New York, NY, 2004.
Womack, James and Jones, Daniel, Lean Thinking: Banish Waste and Create Wealth in Your
Corporation, Simon & Schuster, New York, NY, 1996.
Elizabeth A. Cudney is a Ph.D. candidate at the University of Missouri Rolla. She received her B.S. in Industrial
Engineering from North Carolina State University, M.E. in Mechanical Engineering, and M.B.A. degrees from the
University of Hartford. Prior to returning to pursue her Ph.D., she worked in the automotive industry as a Six Sigma
Black Belt, Senior Manufacturing Engineer, and Manufacturing Manager. She was also an Adjunct Professor at the
University of Hartford where she taught courses on Six Sigma. Beth is an ASQ Certified Six Sigma Black Belt and
ASQ Certified Quality Engineer. Her research interests include quality, operations and supply chain management,
and lean manufacturing. She is a member of the Institute of Industrial Engineers (IIE), American Society of Quality
(ASQ), Society of Manufacturing Engineers (SME), American Planning and Inventory Control Society (APICS),
American Society of Mechanical Engineers (ASME), and Society of American Value Engineers (SAVE).

Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.