Speaking at the Queensland Mining Exhibition last week, Rockhampton-based Logistics and Supply Chain Strategies associates Geoff Higgins and Pat Connor explained the basics of the two systems.

VSM looks at identifying and then reducing wastes that exist in organisations through lean management.

Six Sigma is a process improvement methodology that reduces defects and process deviation to maximise efficiency. The methodology uses statistical thinking and analysis to identify the critical inputs that influence process outputs.

Connor said some companies had just started to see the benefits of using both methodologies – starting with VSM to rid the waste and following with Six Sigma to value-add to processes.

Higgins said it is ideal to use VSM when a company has operational issues that impact throughput, such as bottlenecks. It is also useful to identify “hidden” waste which inflates costs and extends production time frames.

To identify these wastes companies need to ask questions such as “why are we waiting” and “what is wrong”, to look broadly at what is going on.

VSM can have the benefits of identifying sources and impacts of wastes, gives the ability to justify changes, brings operational systems to higher levels, and can facilitate organisational change through operational re-design.

Once those wastes have been eliminated, that is where Six Sigma can step in.

Six Sigma can be used where a company uses a repetitive process, where there is accurate data and where process output must meet critical customer requirements.

Six Sigma can have the ability to increase productivity, reduce re-work and produce a bottom line saving.