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Six Sigma in Service Organizations 21
2. The ideal production process should be a continuous one-piece flow.
3. A “pull” system should be used to avoid overproduction.
4. “Quick setup time” techniques should be used to ensure a smooth
process flow and to handle multiple product line 5.
5. Cellular manufacturing should be used to reduce travel distance and
ensure quick flow.
These five principles will be thoroughly discussed in Chap. 10.
The Lean Six Sigma approach is purely a process-based approach; it does
not involve product design activities. In Lean Six Sigma implementation
practice, usually lean manufacturing principles are used first to eliminate
unnecessary process steps and even unnecessary processes. Clearly, this
includes reducing process costs (by eliminating non-value-added steps) and
improving process efficiency (by reducing process lead time and increasing
throughput). Then DMAIC activities will follow to reduce the variations in
the process and improve process capability.
1.3.4 The Roles of DMAIC, DFSS, and Lean in Business Excellence
Based on the discussion in Sec. 1.2, the two key factors for business success are
1. Maximize customer value
2. Minimize cost
Customer value is defined as the total benefits minus the total liabilities
from the products to customers. There are functional, psychological, and
convenience benefits. Most, if not all, of these benefits have to be designed
into the products. Therefore, DFSS is the most important activity in increasing
the total benefits portion of the customer value. DMAIC relates to the
variation reduction and defect reduction and to the functional benefit the
product provides for customers. It also relates to reducing the cost of poor
quality. Lean manufacturing practice is mostly concerned with cost
reduction and efficiency improvement practices; it does not relate to product
design. In summary, Table 1.3 lists the relative importance of various Six
Sigma activities in improving customer value and reducing cost.
1.4 Six Sigma for Service
As discussed in Sec. 1.3, Six Sigma is not just statistical jargon. It is a
comprehensive business strategy that has fundamental beliefs, organi-
zational infrastructure, training, projects, methods, and tools. To a larger