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BlogEntry
Friday, July 02, 2004
 

Lessons Learned from Eli #4

 

Lean and Six Sigma

How do Lean and Six Sigma interact with TOC? It is a question asked often. According to Eli Goldratt, TOC is the focusing mechanism for Lean and Six Sigma. In turn, they provide the mechanism for exploiting the constraint (TOC Step 2) and subordinating to the exploitation decision in step 2 (TOC Step 3).

For example, when the constraint is in the market, i.e. you can't sell enough of what you make, then the exploitation requirement is that you achieve

  1. Excellent Due Date Performance
  2. Short Lead Time
  3. Satisfactory Quality (not excessive quality)

and do all three within the consumer tolerance. What better mechanisms for this than Lean and Six Sigma with their roots in understanding variation, Six Sigma's focus on reduction of variation, and Lean's focus on elimination of waste and shortening of lead time?

     
 
           
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