Six Sigma

Lean and Six Sigma are the two of today’s most popular business improvement approaches.  Six Sigma drives improvements in quality and reliability by reducing variation using a problem-solving methodology known as “DMAIC” (Define, Measure, Analyze, Improve, and Control).  Lean is a proven approach to eliminating waste in new product development, manufacturing, and distribution in order to cut lead times and investment, increase flexibility and reduce costs.  Lean involves using as little as possible of the available resources – including time – to deliver value to customers.

When a company-wide Lean and/or Six Sigma program is begun, the first challenge that managers and improvement teams face is knowing exactly where to begin improvement efforts.   Waste elimination is contingent about first being able to identify waste.  You cannot eliminate what you can’t see.  Likewise, it is difficult to pinpoint root causes of variability in an unstable work environment.  In many workplaces, firefighting is common and problem solving is reactive in nature versus proactive.  Trying to implement an improvement program in such an environment is a formidable challenge – where do you start?

This is where an approach called “5S” comes in.  5S is an approach to waste and variability identification and elimination by stabilizing the work environment. Waste is easiest to detect and eliminate in a stable environment, as is pinpointing root causes of variability.  5S is a simple and immensely practical approach to improvement which can achieve great results in a very short period of time.

Many organizations typically begin their Lean journey with the deployment of 5S.  After the 5S has been firmly entrenched, they can move on to more advanced methodologies such as SMED, kanban pull scheduling systems, etc.

The following is a description of each of the 5S steps:

The 5S Steps

1^st S       Sort

In the Sort step, necessary items for the workplace are separated from unnecessary items and subsequently removed.  A “red tag” campaign is conducted to evaluate items based on their usefulness and frequency of use.  Unnecessary items crowd the workplace and make it difficult to find and keep important items near the work area.  These items include obsolete equipment, broken tools, obsolete inventory, scrap, old files, etc.  Safety and productivity are improved as a result of the extra floor space created.

2^nd S      Set-in-Order

The 2^nd S involves installing systems whereby necessary items are always located in logically predetermined locations.  Based on the inventory classification of the red tag campaign, items are placed in locations based on frequency of use.  Frequently used items are placed at or near the workplace while infrequently used items are stored in specified locations.  When items are stored in logical places time is not wasted looking for the appropriate tools or fixtures.  The “gold standard” for the 2^nd S is a workplace organized such that needed items can be retrieved within 30 seconds with a minimal number of steps.

3rd S – Shine

The 3rd S consists of the carrying out of regular cleaning activities that ensure that machine downtime is minimized by keeping the factory dirt and dust free and the machines properly maintained. Observers are always amazed when they see how incredibly clean the shop floors are of world-class Japanese manufacturing plants.  Daily cleaning of machines and production areas results in a dust and dirt free factory which reduces breakdowns and maintenance costs while improving safety and quality.

4th S – Standardize 

The goal of the 4th S is to maintain and entrench and the first 3S’s via standardization. This is achieved by the providing of easily understood visual warnings as well as standardized work methods and procedures.  Equipment is marked and labeled so that observation and inspection of equipment can be conducted easily and uniformly.  Anyone on the shop floor, not just the actual operator, should be able to determine when a machine or other piece of equipment is malfunctioning.  As a result, determining the condition and status of equipment becomes accurate and easy and responsiveness increases.  Reaction time to malfunctions is reduced resulting in reduced downtime.  Standardized procedures result in the most efficient use of resources as only the most efficient practices are followed.

5th S – Sustain

The 5th S  involves developing habits to entrench the 5Ss on an individual basis.  5S must become a way of life, and not just another “quick fix” program. The key tool for this entrenchment is a detailed regular appraisal of the workplace called the “5S Audit”.  The audit ensures that the 5S program continues indefinitely and a return to old habits does not occur.

It’s clear that 5S is much more than just a “housekeeping” program.  It is a structured program that results in dramatic changes and equally dramatic results.  Improvements between manufacturing plants where none of the 5S practices are in place, and plants with a full 5S environment, have been noted as:

Quality                                                              90 percent;

Productivity                                                     15-20 percent;

WIP Reduction                                                50-80 percent;

Increase in Space                                           30-40 percent;

Accident Reduction                                       90 percent;

Non-Value Added Time Reduction             25 percent

A Wisconsin manufacturer of park benches, ash cans, and bicycle racks achieved significant benefits through their 5S implementation.   Setup times were cut by up to half an hour, and lead times by three to six weeks, without much time and money.  Employees noticed the difference. “Things flow a lot easier now,” according to the plant manager, “I can always find my tools.  I love it.”

For any of the tools in the toolkit for becoming lean – quick changeover, total productive maintenance, mistake-proofing, and so on – 5S significantly helps in both the implementation and sustaining of improvements. By implementing 5S, one steel mill for example, improved floorspace and organization on the shop floor.  This cut its setup time from 12 to 16 hours down to two hours.

But 5S isn’t just for the shop floor.  Traditionally 5S methodology has been used in manufacturing companies, but service organizations such as banks, hotels, courier services, and IT-enabled services are now utilizing this approach. Think about it: in a typical day in the office how much time do you waste searching for information, looking for computer files, and walking back and forth to the printer to retrieve a printout or fax?  Are there mistakes being made because you have inaccurate or outdated information?  The 5S themes of organization, standardization are universally applicable to all work environments. Successful companies such as Parker Hannifin began their Office Lean initiatives by first undertaking 5S programs.

Where should 5S be applied?  The answer is in all industries and all departments – it can and should be applied everywhere.   Successful North American implementations include stamping operations, injection molding plants, steel mills and beverage manufacturers.  And as mentioned above, it’s applicable in all functions of the enterprise, not just on the shop floor.

For companies that have limited operating expenses, 5S gives them a high return on investment and immediate payback.  Before implementing any improvement approach such as Lean/Six Sigma, organizations should implement and institutionalize 5S.  By doing this, the likelihood of your continuous improvement efforts succeeding is greatly increased, as you have obtained buy-in at all levels of the organization.     5S creates the basis for Lean thinking.  By getting the workplace under control, by waste can be more easily identified and eliminated.  Root causes of process variability will also become more visible. Finally, implementing 5S will help you get some significant “quick wins” that will help build momentum for your continuous improvement program.