The Resilience Framework by Stefan Tengblad & Margareta Oudhuis

Author:Stefan Tengblad & Margareta Oudhuis
Language: eng
Format: epub
Publisher: Springer Singapore, Singapore

8.4 Lean and Six Sigma

Some researchers argue that Lean and Six Sigma promote prosperity (possibly unrealistically) in a consumer-driven environment in which products should have no defects, and delivery should be almost instant and at minimal cost (George 2002).

Six Sigma adds value to Lean, for example, by reducing variation in all processes. Lead times are more reliable, and inventories can be reduced to a safe level. After combining Six Sigma with Lean, companies learn how agile their process should be. By combining these quality management philosophies, companies can create more rapid, efficient, robust, and flexible processes with less risk and greater cost effectiveness (e.g. George 2002; George and Wilson 2004; George et al. 2004; Goldsby and Martichenko 2005).

Much can be gained if companies in the supply chain create and use a common “language”. Such a language is based in shared values and rules that promote a commitment to a quality management philosophy. One way to promote such a language is to encourage staff at the main company and selected supply chain members take basic training in Six Sigma and Lean together.

All effective logistics processes must be robustly reliable. Reliability, therefore, must be a prime consideration in the creation or improvement of such processes. Undesirable variations are the main cause of unreliability. When Six Sigma, which mainly focuses on variations, is used, processes become more reliable. Because Six Sigma uses facts and advanced statistical tools, it can be used to specify the flexibility of processes. Various researchers promote the use of Six Sigma combined with Lean, which also aims to standardise and speed up processes, as a way to strengthen the reliability, robustness, and flexibility of processes (Andersson et al. 2006; Bicheno 2004; George 2002).

As noted above, establishing reliable supply chains that are robust and flexible is only the first step in creating a resilient company. The second step involves making rapid and productive changes in the company’s processes. Both steps require that companies take a holistic view of the entire supply chain.

Six Sigma, which many see as an effective method for improvements (particularly strategy improvements), develops this idea. Six Sigma uses two improvement methods: one for existing processes and one for new processes. The first method consists of five phases: identify, measure, analyse, improve, and control. The second method consists of five similar phases, and is often used in the creation of a new process or product. It aims at customer satisfaction and often leads to significant innovation (“out of the box thinking”). The two methods, which have obvious similarities, can share a common platform for the development of products/services and processes or for improvements in an existing supply chain (i.e. by increasing its resilience).

Six Sigma is not just about the importance of making improvements. It also provides the methods that can make things better. When used in an efficient and effective manner, Six Sigma can stimulate innovation in products, services, the supply chain, markets, and processes, as well as in a company’s fundamental business model. Thus, Six Sigma can be used in any process in the supply chain (Magnusson et al.

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