Relevance of Lean and Six-Sigma in Service and Manufacturing Sectors

This report discusses the relevance of Lean and Six-Sigma in the service and manufacturing sectors. It explains how Lean focuses on waste reduction and Six-Sigma aims to reduce process variations. The report also highlights the benefits of implementing these approaches, such as improved profitability and customer focus. Additionally, it explores the application of Lean and Six-Sigma in the service sector and supply chain, as well as their significance in the manufacturing sector. Overall, Lean and Six-Sigma play a crucial role in enhancing efficiency and quality in various industries.

Running head: REPORT 0
OPERATIONS MANAGEMENT
DECEMBER 28, 2018
student details:

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Contents
Introduction................................................................................................................................2
Lean and Six-Sigma in the quality movement...........................................................................2
Relevance of lean and six-sigma in service sector and supply chain.........................................5
Relevance of lean and six-sigma in manufacturing sector.........................................................7
Conclusion..................................................................................................................................8
References................................................................................................................................10

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Introduction
The lean is considered as the methodical approach to decrease or stop the activities, which do
not include value to the procedure. This highlights eliminating extravagant stages in the
procedure and compelling the merely value-added stages. The method of lean makes sure
great excellence and the satisfaction of the client. It assists in decreasing practise cycle
period, refining products and services delivery period, decreasing or removing the
opportunity of a faulty peer group, decreasing a level of inventory and improving means for
major developments among other people. This is the never-ending method to waste
elimination, in this way encourages the nonstop chain of developments.
Source: lean.org
Six Sigma is an organised issue-resolving practice. The issue resolving in Six Sigma is done
using DMAIC structure. There are 5 levels in DMAIC structure. The levels are described,
measure, analyse, improve, and control. The main purpose of the Six Sigma is to create the
procedure operative with 99.99 per cent fault free. It means the six-sigma procedure produces
in 3.4 faults per million chances or less as the outcome.
Lean and Six-Sigma in the quality movement

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The company uses various quality tools including control chart. The control charts are the
graphs used to assess how the procedures change over a period. Linking the current data to
historical control limits leads to conclusion in relation to whether the process variations are
reliable or are changeable. Additionally, the pull system lets the individual consume only
while people have the requirement, at a correct period. The pull system is the Lean technique
to decrease the waste of the manufacturing procedure. Implementing the pull system permits
to start new task only while there are requirements by consumers for this. It provides the
chance to decrease overhead and enhance storage cost.
Besides, the Lean Six Sigma pools the Lean approach and Six Sigma approach. The lean
principles assist to decrease or abolish the procedure waste. The Six Sigma makes focus on
the variation decrease in the procedure. Thus, the Lean Six Sigma principles help to expand
the effectiveness and excellence of the procedure (Albliwi, Antony and Lim, 2015).
Source: greycampus.com
In early of 18th century, the principle’s set, which contain Six Sigma has the roots in search
for mass productions quality. However, the statistic’s area itself, on which various tools of
Sigma are depended, has been around for extended time. The quality management’s
development, from the examination to the new explanations like Lean and Six Sigma, had led
to the expansion of tools and necessary procedures, which are significant to improvement in
the performance related to business through each division. However, the quality management

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may be tracked back to beginning of 1920s production’s quality control, the developer’s work
was reviewed, and the decisions were created whether to admit this or discard this. By way of
business grew greater, thus did the decision-taking procedure, making lead to the formation
of complete examination role.
With the entrance of this role took the changes in the highlight, from easy product approval to
the avoidance of defect related to production, which may apt the dismissal in initial location.
It was the Quality management’s birth. After the Second World War, in year 1950, the
quality management practice of the Japan established quickly. In year 1960, the quality
management had develop as main concern of the industry of Japan. In the end of 1960 and in
the beginning of 1970, Japan was manufacturing the greater products at the importantly cheap
prices. It had lead the increment in exports in European countries and America very
remarkably. It was the great result of Quality Management.
After the success of Quality Management, in year 1980, the Quality Management achieved
powers in West. The Lean and Six Sigma tools are used in almost all the cases. In the present
time, the use of Lean and Six Sigma in Quality Management enhances the performance
related to business. These tools in Quality management play a significant role of operational
procedure (Yadav and Desai, 2016).
Accordingly, in the administration strategy, usually, the lean method is used mainly to
eliminate the waste in the procedure. Far along, the Six Sigma devices are used to advance
procedure differences. The arrangement of the two approaches helps to establish an efficient
procedure with high quality and outcomes. This advances bottom-line benefits and assists the
fulfilling the targets of the business. The six sigma is very helpful for the management to
manage the whole procedure of organisation. With the help of Six Sigma technology, the
managers will be able to support the management team to learn the organisational procedures
to get desired results. The Six Sigma technology is helpful for the manager in improving the
present services or products. This technology assist the manager to develop new products
having best quality.
The combined Lean Six Sigma administration strategy is being used through sector and
businesses. It encourages incomparable modifications in the performance of a company. The
Lean Six Sigma leads to adoring the competitive benefits in numerous organisations in the
world. They may be the products or service-oriented organisations. Briefly, the lean
methodology targets at the waste reduction in a procedure, whereas the six sigma targets at

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the lessening of procedure variations. However, both the methods go hand in hand to
understand the complete potential of procedure developments.

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Relevance of lean and six-sigma in service sector and supply chain
The six-sigma methods use data to evaluate the performance. The aim is to evaluate the
variations in productivity. There are various advantages to the companies, which hold the Six
Sigma. Some areas below –
Improved profitability – it is the outcome of the reduction of cost. Lesser the number of
mistakes, lesser is the price of re-conducting the similar. The Six sigma makes focus on the
avoidance or elimination of faults (Lande, Shrivastava and Seth, 2016).
Source: Researchgate.net
Decreasing the waste - this is the main advantage of the application of six-sigma. Waste
reduction such as conveyance, indication, overproduction, others results in efficient
processes.
Drives focus of clients- The popular fictitious writer once cited the expression “the person
thought the person knew” is the classic justification created by persons who seem to know the
needs of the clients (Svensson, et. al, 2015).

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The case study of the Genpact is very relevant. The Genpact was the first service provider,
who implement the Lean and Six Sigma at international level. Genpact uses the Lean and Six
Sigma for process transmission (Antony, 2014). Lean and Six Sigma pervade what the
company does and is extremely noticeable in the functions, individuals, procedures, and
management directions. In the previous time, the appearance of digital tools capable to
reimagine the operation procedure has proven the productive ground to develop the Lean
methods, resulting in the exclusive Lean Digital method that integrates the designs
considering to enhance the value of clients. High cycle period of one hundred twelve days for
entitlements processing was the reason for apprehension. Using Lean Six Sigma
technologies, Genpact recognised the reasons for the high cycle period. The measures are
suggested for enhancing this (Vashishth, Chakraborty and Antony, 2017). The Combined
business impact of the modifications can decrease the cycle period by twelve days. The
ability generation may enhance by the twenty per cent and business influence of 15 Million
$around. The Lean Six Sigma technologies help to get continuous developments and business
influence. The most important thing is the happiness of the customers.
This is the challenge in the service sector. Within manufacturing, product specifications
defined are to the small metric. Within the service atmosphere, things are generally not well
described. In this situation, evaluating the similar is very complex. This is significant to
describe, “What goods refer.” Eliminate uncertainty from the service meanings. Describe
perfect measures for the presentation factors (Antony, Rodgers, and Gijo, 2016).
In the present time, that is a certain standard when it comes to transferring of services. From
economic service to learning, health, foodstuffs and hospitality, the list is boundless (Sayeed,
et. al, 2018). Every service sectors apply Lean Six Sigma to the changing level. Briefly, the
service sector innovators have busted the myth in the past period. The six-sigma has
important application in the sectors related to service (Bhat, Gijo and Jnanesh, 2014).
Further, supply chain management is important for the entity to survive the increasing
burdens of worldwide race. There have been continuous changes in worldwide manufacturing
and service marketplaces, causing supply chain members to assess again their efficiency
personally and as completely. The original progress in QM is the Lean Six Sigma approach
that is the continuous improvement method, which aims at the satisfaction of clients and
system waste reduction. Supply chain management may use the QM ideas as well as the LSS

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devices and CI principles to get the high level of the satisfaction of customer in respect of the
cost, excellence, and supply (Mancosu, et. al, 2018).
Additionally, the Six Sigma makes focus on removing the differences in the process and
accepts that once the variation is reduced the process is advanced. To stop the variations, Six
Sigma utilises the advanced arithmetic analysis tools to evaluate and distinguish the resources
of Variations. The Lean is concerned with improved process flow when the Six Sigma is
worried about reduced variations.
To assess the relevance of Lean and Six Sigma, Motorola is a good example. The Six Sigma
was the concept deliberated by Bill Smith, the engineer of Motorola. From the year 1980, in
Motorola, the success of Six Sigma has been accepted various corporation in the world
everywhere. In all matters, this has considered as effective manner of conducting the
businesses. The leaders of America admired this tool very much. When Lean is mentioned,
this is most usually related with Taiichi Ohno and Toyota. It is the great example. This has its
cause as Toyota Production System. It has developed over the periods in the complete system
for manufacturing sector as well as service sector. It is stated by Toyota that Lean is useful in
enhancing the flow, decreasing the wastage, and improving the profits. The methods and
policies behind the Lean is about stating the procedure flow and wastage problems. It is very
much significant to improve the manufacturing prospective.
Relevance of lean and six-sigma in manufacturing sector
Servitization refers to the procedure of business model and structural alteration, and
implicitly is aimed at producers who currently put focus the business on goods and
manufacturing. Rolls-Royce renders the best example of servitization. Rolls-Royce produces
engines, and offers service package wherever the clients pay by the hour as per the amount of
time the engine is in flights. It can also see that the quality concept has been changed because
of the servitization. The quality machines care more about issues of customers such as
protection from satisfied customers in critical conditions and assurance of best quality
product.
Additionally, Lean and Six Sigma are business management approaches generally used in the
manufacturing sectors to increase procedure effectiveness and excellence. The basic of Six
Sigma were usually created to enhance the performance in the production sector, originally
established as the type of quality control particularly for big manufacturing entities. The
major object of this quality control system was to advance the procedures related to
manufacturing along with removing the various faults searched in them. Later, the Six Sigma
method was comprehensive to other sectors all over the world (Furterer, 2016).

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Six-Sigma recognises and eliminates the defect-causing features along with decreasing the
unpredictability of the trade and production procedures to increase the quality of results from
the production procedure. In this method, the entity adopts the described set of actions to
quantify the aimed value of the assignment. The application of Six-Sigma in production may
help the entity decrease the contamination, decrease period cycle of more and more
procedures, and reduce the cost of production for increasing benefits and level of gratification
level of the clients (Gijo and Antony, 2014).There are the various fields, where Lean Six
Sigma may be applied to functions related to the production. Certain instances are, decrease
the quality faults in the process of production, decrease production cycle period, and enhance
the effectiveness of the workers, decreased finished good inventories level, and advance
client service performance scores.
Source: Lambert Academic Publishing
By modifying the graphics diagrams about the supply chain, Six Sigma may make sure
quality control on the goods and assurance supply deadline that are the 2 main problems
included in a supply chain. The main objective is to create the structure for evaluating the
growth and the result of a transformation of the producers to become the advanced services
provider, the difficult bundling of service and goods, where producers propose the abilities
and results in place of the goods alone. The advanced service shows the most difficult

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proposing in the present servitization trends among the producers (Mason, Nicolay and Darzi,
2015).
Conclusion
As per the above analyses, it can be concluded that numerous approaches related to business
management have established to enhance the performance of the companies by enhancing the
procedures by which they carry out the effort (Tagge, et. al, 2017). The main objective of
lean is to improve the customer value with reducing wasted effort is useful sets of principle to
enhance the efficiency. The Lean can be used with Six Sigma to remove wastage from
procedures of business. The approaches that involve Lean and Six Sigma, target to apply
procedure developments by the corresponding set of principles and practices that promote
great productivity and efficiency, with few inefficient faults and approaches. Developing
from the real application in the production sector, these procedure development approaches
have protracted to the settings involving construction, software development, economic
services, and health care. In the big companies, where perfect interaction channels and
general administration structure is existing, Six Sigma states proper outcomes.

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References
Albliwi, S.A., Antony, J., and Lim, S.A.H. (2015) A systematic review of Lean Six Sigma for
the manufacturing industry. Business Process Management Journal, 21(3), pp. 665-691.
Antony, J. (2014) Readiness factors for the Lean Six Sigma journey in the higher education
sector. International Journal of Productivity and Performance Management, 63(2), pp. 257-
264.
Antony, J., Rodgers, B., and Gijo, E.V. (2016) Can Lean Six Sigma make UK public sector
organisations more efficient and effective?. International Journal of Productivity and
Performance Management, 65(7), pp. 995-1002.
Bhat, S., Gijo, E.V., and Jnanesh, N. A. (2014) Application of Lean Six Sigma methodology
in the registration process of a hospital. International Journal of Productivity and
Performance Management, 63(5), pp. 613-643.
Furterer, S. L. (2016) Lean Six Sigma in service: applications and case studies. USA: CRC
press.
Gijo, E.V., and Antony, J. (2014) Reducing patient waiting time in the outpatient department
using lean six sigma methodology. Quality and Reliability Engineering International, 30(8),
pp.1481-1491.
Lande, M., Shrivastava, R.L. and Seth, D. (2016) Critical success factors for Lean Six Sigma
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Mancosu, P., Nicolini, G., Goretti, G., De Rose, F., Franceschini, D., Ferrari, C., Tomatis, S.,
and Scorsetti, M. (2018) EP-2154: Lean-six-sigma methodology for improving quality in RT:
the breast daily repositioning case. Radiotherapy and Oncology, 127(4), p.S1189.
Mason, S. E., Nicolay, C. R., and Darzi, A. (2015) The use of Lean and Six Sigma
methodologies in surgery: a systematic review. The Surgeon, 13(2), pp. 91-100.
Sayeed, Z., Anoushiravani, A., El-Othmani, M., Barinaga, G., Sayeed, Y., Cagle Jr, P., and
Saleh, K.J. (2018) Implementation of a Hip Fracture Care Pathway Using Lean Six Sigma
Methodology in a Level I Trauma Center. JAAOS-Journal of the American Academy of
Orthopaedic Surgeons, 26(24), pp.881-893.

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Svensson, C., Antony, J., Ba-Essa, M., Bakhsh, M., and Albliwi, S. (2015) A Lean Six Sigma
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