Lean Six SIGMA: Combining Six SIGMA Quality with Lean Production Speed

Six Sigma devotees may dispute the need to add anything to Six Sigma, but a shot of lean thinking provides a production boost. Author Michael L. George contends that Six Sigma reduces product quality variation but does nothing to improve delivery time. That may not be strictly true, and certainly is not beyond cavil. Nonetheless, the author's analysis and presentation of the Lean Six Sigma approach is lucid and straightforward. He explains Six Sigma itself much more clearly than some other writers on the subject. Even Six Sigma devotees will find nothing to object to in his treatment, and he provides some compelling examples of the success of the Lean Six Sigma approach. We recommend this book primarily to leaders and managers of firms that rely on factories and other production units. However, the author supplies practical information that may also be relevant to service providers and to every company that cares about customer service, efficient production and the bottom line.

I will cover Herr. Breuer's objections in order(1)In the book I refer to EVA% not EVA $. The EVA%=ROIC%-WACC% =Economic Profit % as is shown on the graph on page 12. I did note that thatthe % signs are absent from the right hand side of the equation and this will be corrected in the next printing, and may have misled Mr. Breuer.(2)I know George Stalk well and admire his work as well as the systems dynamics of Jay Forrester. Our conclusions are notjust based on models, but real world data (see page 10). I provided a reference for those who wish to study "truly scientific solutions" on page on page 60 which provide the mathematical derivation which provides model that goes far beyond Forrester.(3)The book is written to appeal to the thousands who must comprehend and apply and thus was edited by others to achieve this goal. I would suggest that the comments of Caterpillar, ITT and Johns Manville's CEO would indicate that it has achieved this goal. Herr Breuer represents a minority for whom the book is not written.(4)Herr Breuer may read my technical papers and patents which doubtless will more to his taste but are of no value to the process of gaining adherents and making a significant improvment in ROIC%.(5) I do not recall placing a label "scientific" on the book. Readers have universally said it is effective, and that is its goal.

This book provides the linkage between the two most powerful continuous improvement tools currently available: Lean and Six Sigma. It also provides a clear approach to prioritizing projects to maximize shareholder value. In creating Value Based Six Sigma at ITT, we knew that we needed the Six Sigma infrastructure and quality tools, that was clear. But what really makes a change in factories and other processes are the Lean tools. This book synthesizes the concepts of Value Based project prioritization, Six Sigma quality, and Lean process speed into an integrated and logical structure that applies to any company or process. I recommend the book to the executive who is contemplating launching a continuous improvement process to support their corporate strategy.

When we launched our Six Sigma journey, many of our top managers had heard of mixed results with other initiatives. In fact, the methodology described in this book has allowed us to make such major strides that the results have made all our people become advocates. As a Berkshire Hathaway company, prioritizing projects around ROIC, as espoused in Lean Six Sigma, supports our corporate objectives. The integration of Lean on a foundation of Six Sigma tools described in this book has equipped our Black Belts to successfully attack virtually any business problem. Lean Six Sigma is a book every executive and manager ought to read.