So, let's talk about the subtle but important differences when using Lean Six Sigma (LSS) in manufacturing versus logistics.
You may be thinking that the basics i.e. strong leadership, committed people, and solid training—don’t change, that’s true!
But, the way it plays out in the real world?
That’s where it gets interesting.
Your People
In both manufacturing and logistics, you need a leadership team that actually cares.
If they’re just sticking Lean Six Sigma on a PowerPoint slide, it won’t work! In fact it is estimated that 95% of businesses that try to implement Lean Six Sigma fail, giving up within a couple of years!
People on the ground need to be trained, not just in the tools, but in the “why” behind it. Otherwise, it’s like trying to build a house with a hammer but no nails. Essentially you have to a Lean Six Sigma Culture in order for it to bread and grow and sustain inside a business.
Culture is the "personality" of a group that shapes how people behave. It’s learned, shared, and passed on, acting as a guide for how we navigate life and interact with others. Whether you’re part of a family, company, or country, culture influences how you think, feel, and act—often without you even realizing it!
Lets Talk About Focus!
Logistics Focus
In logistics, the “product” isn’t a thing you can hold; it’s movement—getting stuff from A to B. Waste here hides in delays, unnecessary steps, or poor communication. It’s the kind of waste that makes you want to yell, “Why is the truck still in traffic?!?”
You rely more on data to see where the issues are because they’re not always as obvious as in manufacturing.
LSS in logistics focuses on:
- Cutting down processing and delivery times (nobody likes waiting).
- Streamlining routes for product journeys , to, within and from stock holding facilities.
- Making sure your facilities OEE is high!
- Making sure warehouses don’t look like Jenga towers about to collapse.
This like in all industry is an ALL INCLUSIVE! endeavour - from CEO to the new guy/gal hired yesterday!
Manufacturing Focus
In manufacturing, you’re usually working with machines, production lines, and physical products. Waste is easier to spot—scrap on the floor, machines sitting idle, or piles of inventory.
Here, Lean Six Sigma’s DMAIC (Define, Measure, Analyse, Improve, Control) is often focused on:
- Reducing defects in the product.
- Keeping machines running smoothly (say bye-bye to downtime) - think OEE!.
- Optimising layouts so things flow better, like butter on a hot crumpet.
Again its All INCLUSIVE and It’s all very hands-on. You’re in the thick of it with stopwatches, spaghetti diagrams, and a good bit of head-scratching.
Technology is making a difference!
Manufacturing is embracing Industry 4.0—smart machines, sensors, and all that futuristic jazz. Logistics has GPS, real-time tracking, Warehouse management systems, and software that plans your routes better than a sat-nav on steroids. LSS implementation in logistics leans harder on these tech tools if the businesses have the funds, but like some SME manufacturing businesses might still be stuck fixing bottlenecks with a whiteboard, a marker and a clever so and so on Excel. My point is innovation and evolution of business practices mean that we have to be aware of new techniques and new possibilities, this is the same for ALL process orientated businesses!
Final Thoughts!
The principles of Lean Six Sigma are like a universal toolkit—good for both factories and supply chains. But you’ve got to use them differently depending on whether you’re making widgets or moving boxes. Get the people, the training, and the leadership sorted, and the rest will follow—just make sure you know what “waste” looks like in your world.
© David Hunt - Dawny Products Ltd 2024