Quality Programs ProgramSix Sigma Jack Welch, GE Lean Thinking Womack & Jones Theory of Constraints Ely Goldratt TheoryReduce VariationRemove WasteManage Bottlenecks Application Guidelines Define Measure Analyze Improve Control Identify Value Identify Value Stream Create Flow Customer Pull Strive for Perfection Identify Constraint Exploit constraint Subordinate other processes Elevate Constraint Do it again FocusProblems in system Voice of the Customer Improved Flow Customer Perspective System Constraints AssumptionsA problem exists Management by fact System output improves if variation in all processes is reduced Change is good Customers satisfied with product/service Visual Feedback improves efficiency Waste removal will improve business performance Many small rapid improvements are better than systems analysis Involves all workers Change is good Customers satisfied with product/service Emphasis on speed and volume Uses existing systems & processes Process interdependence Product design is adequate Change is good Customers satisfied with product/service

Quality Programs ProgramSix Sigma Jack Welch, GE Lean Thinking Womack & Jones Theory of Constraints Ely Goldratt PrimaryUniform process outputReduced flow timeFast throughput Secondary Effect Less Waste Fast throughput Less inventory Established Performance measures Improved Quality Less variation Uniform output Less inventory New accounting system Flow performance measures Improved quality Less Inventory & waste Throughput Cost Accounting Throughput performance measures Improved Quality CriticismsSystem interaction not considered Processes improved independently Large Projects More costly Management issues & policies secondary Don’t address managers measures or rewards Don’t address organizational values Statistical and system analysis not valued Management issues & policies secondary Don’t address managers measures or rewards Don’t address organizational values Minimal worker input Data analysis not valued Management issues & policies secondary Don’t address managers measures or rewards Don’t address organizational values

Define Measure Analyze Improve Control Six Sigma 3.4 defects per million opportunities

Lean Identify Value Identify Value Stream Improve Flow Customer Pull Strive for Perfection Muda Overproduction Waiting Transport Excess processing Excess inventory Excess motion Defects Underutilized resources

Theory of Constraints Identify the Constraint Exploit the Constraint Subordinate other processes Elevate the Constraint (for improvement) Repeat Drum-buffer-rope scheduling Throughput Accounting