![]() For example, does the task add a desired function or feature to the product or service? Or does the task enable a competitive advantage (faster delivery, fewer defects, lower price)? Non-value work, or waste, includes activities the customer is not willing to pay for. ![]() Value-add work is something your customer is willing to pay for. Value is defined in terms of what is important to the customer. Its origins can be traced to Henry Ford of Ford Motor Company and Taiichi Ohno of Toyota. Lean focuses on value through the relentless elimination of waste and acceleration in the velocity of processes. Six Sigma also focuses on Statistical Process Control ( SPC ) methods for monitoring and controlling processes to ensure that they continue to be stable and predictable.įirst Published :Quality Magazine : July 7th 2014 This is sometimes a better approach than the more traditional PDCA ( used in Lean ) due to the emphasis on measurement of data from the process and statistical analysis of the data as a means to determining the root cause of the problem and variation. What has made Six Sigma so popular is the money it has saved companies in the reduction of their ‘Cost of Poor Quality’ (COPQ), from previous industry estimates of over 25% ( of total production costs ) down to less than 1% for true ‘Six Sigma’ companies. Six Sigma follows the DMAIC ( Define, Measure, Analyse, Improve and Control) methodology for problem solving in processes and the reduction of variation. It embraces data and more advanced statistical methods to make sound decisions as to the true root cause of problems and variation within processes. Like Lean, Six Sigma places the customer first. Originated by Motorola in the 1980s, and successfully used and promoted by both General Electric (GE) and Honeywell ( Allied Signal ) in the 1990’s, Six Sigma is now used in many diverse industries from Auto Manufacturing to Healthcare to Pharmaceutical companies. Six Sigma’s goals are to reduce defects and variation so that processes are more consistent and predictable. Six Sigma is a well defined, customer focused management system that strives for the delivery of near-perfect products or services.
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