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Monday, June 18, 2007

Lean manufacturing, Six Sigma and Total Quality Management

A research by Bain And Company have revealed very interesting facts about usage of management tools and the satisfaction rates executives are achieving. Total number of management tools used by industries has increased from 13 to 15 in past two years according to this report. Leading tools in terms of usage and satisfaction levels are not lean related. Tools like strategic planning and CRM (Customer Relationship Management) leads the way.

But interestingly lean manufacturing has achieved significant recognition both in terms of usage and satisfaction. Lean operations show a comparatively lower value in terms of usage globally but higher satisfaction rates. North America seems to be leading in lean manufacturing in terms of usage, Latin Americans seems to be not using lean manufacturing much but interestingly they have achieved highest satisfaction rates. Asia and Europe are using lean in their organizations somewhat equally. In Asia Chinese are not using lean as much as other Asia Pacific countries does. Larger companies are using lean manufacturing most and they have achieved higher satisfaction rates than the rest of the bunch.

On the other hand Six Sigma has lost it ground. Six Sigma has is down both in usage and satisfaction levels when compared with lean operations.

Total quality management has a wider usage and higher satisfaction levels in the global scenario. TQM has outscored both lean manufacturing and six sigma in terms of usage and satisfaction levels. North America shows very low usage of TQM compared to the rest of the world. Asia Pacific region have used TQM heavily and interestingly have reported lower satisfaction than the rest in the bunch.

In total for me the trends seems to be varied according to the region. While North America seems to be moving towards lean manufacturing, Asia Pacific seems to be using TQM and six sigma in their organizations. Latin America has very lower usage of lean manufacturing and yet has reported very high satisfaction levels. Based on this information Latin American countries can be expected to move towards lean manufacturing in the future.

This report is a great way to understand the trends in the glob. To find this report do a simple Google search with “Management Tools and Trends 2007”

Reference: Management Tools and Trends 2007 By Bain and Company

2 comments:

Pete Abilla said...

I wrote about this study a few weeks ago. What I concluded then, and still believe today, is that regardless of the business-speak we use, whether it be "Lean", "Six Sigma", etc., we must show results. Granted that TPS is a system, and to approach it from just a tools-perspective would be cutting the system short, but some organization need to start somewhere and to get buy-in requires showing "wins" early and often.

We must show results.

Prof Priyavrat Thareja said...

There are two foci
The customer focus
the saving stimuli
and an more anamoly

The goal is efficiency
maximising proficiency
for holistic competency,
an increasing sufficiency.

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