Pumps and Systems, May 2009

From the front office to the factory floor, Lean initiatives (and more advanced Six Sigma training) can help companies increase production, improve quality and contribute to a more viable bottom line.

Some companies have employed Lean manufacturing programs for more than a decade. Others see it as one way to ride out a turbulent economic wave.  Regardless of the motivation, experienced Lean practitioners say believe these initiatives can directly affect a company's production, efficiency and balance sheet.

Peerless Pump Company believes so much in the concept it has made a significant investment to send one-fourth of its workforce (approximately 100 people) to the University of Tennessee (UT) for intense week-long Lean Enterprise training. "Lean and Six Sigma mean different things to different people," says Scott Patterson, Peerless' global director of quality and continuous improvement. "We try to use a common-sense approach to apply either a Lean tool or Six Sigma method to solve a problem. It could be a quality problem, a safety issue or a manufacturing problem. We have learned that there are many things we can do to address our specific needs."

What is Lean and Six Sigma?

Lean manufacturing is a process management philosophy derived mostly from the Toyota Production System (TPS), in which tools are used to increase efficiency, decrease waste and implement empirical methods to decide what matters most in an organization. As waste is eliminated, quality improves while production time and costs are reduced.

Six Sigma is a business management strategy, initially implemented by Motorola, which today enjoys widespread application in many industry sectors. This methodology uses a set of quality management and statistical methods to create a special infrastructure of people within the organization (Black Belts) who are experts in these methods. Each Six Sigma project executed within an organization follows a defined sequence of steps and has quantified financial targets (cost reduction or profit increase).

Simply put . . . "Lean is a tool set that allows you to reduce waste in your process. Six Sigma is the tool set that eliminates variation in your process," explains Doug Calvin, director of Operational Excellence for Tyco Flow Control Americas.

Tyco Flow Control began its Lean journey in the mid-1990s. "I can really appreciate the dedication a company makes as they embark on Lean operationally," Calvin says. "We participated and worked through many training sessions and from that we grew into what we now call Operational Excellence."

Tyco Flow Control has three major tool sets it uses for Operational Excellence training. One is Six Sigma, which Calvin defines as reducing variation, or the good vs. the bad. "We struggled getting our quotes out on time, or if we didn't ship a product on time-that is a Six Sigma opportunity," he explains. The second pillar is Lean, which eliminates waste and often results in reduced cycle times, reduced working capital or improved productivity. The third tool set is Design for Six Sigma (DSS), which is used in the development of new products or processes. "These tool sets intermix. None of them stand alone."

Sometimes the opportunities for Lean improvements are more evident. Cheryl Hild, a faculty member at the UT Center for Executive Education, says that an observant, inquisitive walk through a manufacturing plant can create a list of opportunities for improvement that can have a short-term impact. "I like to start at the end of a plant and follow the flow of materials, product and information backward to the beginning of the process," she says. "I look for things like, 'What are the date codes on shelved inventory? How much complexity exists in the information flows?' Large amounts of complexity and hand-offs in information flows often indicate causes of increased cycle times, delays and inefficiencies. Physical flows are important, but if can get a handle on both formal and informal information flows, then I get a good look at significant opportunities for improvement."

Lean Starts from the Top

Rhonda Barton, director for the UT Center for Executive Education, has trained people in Lean and Six Sigma methods for 28 years. She says each company should define its particular needs before solutions can be determined. "Everyone wants the magic recipe book, but there is not one," she says. "It is all dependent on your processes. You may have all the tools and techniques, but be unable to define what will work for you. It takes leadership-someone who understands the tools and the techniques-to drive the program."

Rick Lundgren, president of Tyco Flow Control Americas, champions his company's Lean programs. "With our ongoing, rigorous reviews, we must be committed to the goal," he says. "If management is not driven to success, it will not happen."

With positive results, management support becomes easier to acquire and a culture change within the company takes place, Calvin explains. "As we have success, our management team sees the impact, validating our tools. My personal rule of thumb is that we need at least three leadership 'change agents' at a business location to effectively launch a Lean project.  Since there will be challenges, issues, deadlines,investments, etc., leadership commitment to the program-people who are engaged to take it to the next level-greatly increases the level of success."

Peerless has employed a Six Sigma program for almost six years. "In the beginning, it took a while for the program to catch traction because it was a trend and seemed like the right thing to do," Patterson says. "What really made the difference was when we gained management support, and it became an operating initiative."

Realizing Results

With proper training and implementation, results can be measured immediately, Patterson says. "It is like with any training . . . if you do not reinforce what you learn,or if you are not in an environment to do anything with it, then you are not going to get results.."

Patterson explains that a core principal of Lean involves pulling inventory through a system rather than pushing it. "We try to reduce inventory and only produce what the customer demands as opposed to what we think the customer wants," he says. "Through the process of trying to reduce inventory, improve quality and take care of any safety and ergonomic concerns, we see cost benefits."