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Continuous Improvement

Continuous improvement is a mindset of eliminating waste and constantly improving processes — once you adopt it, you won't see work the same way.

Two Pillars of Continuous Improvement

Elimination of waste + respect for people.

Definition of Waste

Anything that does not add value according to the customer.

8 Wastes (DOWNTIME)

Defects, Overproduction, Waiting, Not utilizing people, Transportation, Inventory, Motion, Extra-processing.

Overburden

Asking too much of people, processes, or machines.

Unevenness / Variation

Unbalanced workloads or inconsistent outcomes.

Value-Added Activities

Activities that transform input to output in a way the customer is willing to pay for.

Non-Value-Added Activities

Activities that consume resources but don't directly create customer value.

PDCA Framework

Plan-Do-Check-Act — used for continuous improvement.

Gemba

Going where the work happens to observe, ask why, and show respect.

Six Sigma (Philosophy)

A performance improvement approach that reduces defects, improves productivity, increases customer satisfaction, and strengthens financial results.

Six sigma (Metric)

A maximum of 3.4 defects per million opportunities (99.9997% accuracy).

DMAIC

Define, Measure, Analyze, Improve, Control — Six Sigma problem-solving framework.

Difference between Lean and Six Sigma

Lean reduces waste and cycle time; Six Sigma reduces variation and defects.

SPC Definition

A statistical method that separates natural variation from special-cause variation to improve and control processes.

Common-Cause Variation

Natural variation built into the process.

Special-Cause Variation

Unusual variation caused by a specific, identifiable factor.

Why Use SPC?

To stabilize processes, improve predictability, reduce waste, and support competitiveness.

Four Parts of a Control Chart

Centerline (mean), Upper Control Limit, Lower Control Limit, data plotted over time.

UCL/LCL Formula

Mean ± 3 × Standard Deviation.

In-Control vs Capable

A process can be stable (in control) but still not meet customer needs (capable).

Histogram Definition

A bar chart showing frequency distribution and variation in a dataset.

When to Use a Histogram

When analyzing variation, checking changes, or visualizing process performance.

Histogram Data Requirement

Rule of thumb: at least 30 data points.

5S Purpose

A workplace organization method that helps see problems and improve efficiency.

Step 1: Sort

Remove unnecessary items from the workspace.

Step 2: Set in Order

Place items in correct, easy-to-access locations — "a place for everything."

Step 3: Shine

Keep the workplace clean to reveal abnormalities.

Step 4: Standardize

Establish procedures and visual consistency.

Step 5: Sustain

Maintain improvements and prevent backslide.

Examples of Waste

Walking, searching, rework, waiting, excessive handoffs, data errors, unnecessary reporting.

Causes of Waste

Poor layout, incapable process, weak training, bad scheduling, variation, unclear standards.

Lean vs Six Sigma Focus

Lean: waste + flow; Six Sigma: variation + defects.