5S vs. Six Sigma: Which One is Right For Your Organization?

Both 5S and Six Sigma stand out as clearly defined improvement processes with several similarities. Because these two strategies share some basic principles, many believe that 5S and Six Sigma are simply different iterations of the same methodology.

 

Six Sigma and 5S are separate methods of improving efficiency—and Cornerstone Consulting has experts in both disciplines. Here is a look at what the two strategies entail, how they differ, and which one might better suit your goals.

 

In business, there are always opportunities to improve efficiency and eliminate waste. Two popular methods for doing this are 5S and Six Sigma. 5S focuses on eliminating waste and inefficiencies in the workplace. This methodology can be applied to every department and action that takes place. On the other hand, Six Sigma is a process improvement strategy that eliminates defects by implementing standard processes, identifying problem areas, and more.

 

So, which is the better method? It depends on the situation. If you want to improve overall efficiency, 5S may be the way to go. If you are trying to eliminate defects specifically, Six Sigma may be a better fit.

 

Both 5S and Six Sigma are excellent methods for improving efficiency. Implementing either of these strategies can help you achieve greater success in your business endeavors. As a result, it’s critical to evaluate your needs and goals before deciding which one is right for you.

 

 

What is 5S? 

 

In its simplest form, 5S is a system for organizing a workspace to be more efficient, effective, and safe. ‌The five elements of 5S are:

• Sort
• Set in Order
• Shine
• Standardize
• Sustain

When implemented correctly, 5S can help organizations improve safety, quality, and productivity while reducing costs. 5S is also essential to Lean manufacturing and the Toyota Production System.

 

The five steps include:

Sort
5S sorting involves removing all unnecessary items from the workspace. This step helps reduce clutter and makes it easier to find what you need.

 

Set
Set in order means organizing the workspace so that everything has its own place. This step helps ensure that people can work efficiently without searching for tools or materials.

 

Shine
Shine refers to keeping the workspace clean. A clean workspace is not only more organized and efficient, but it also helps prevent accidents.

 

Standardize
Standardize means creating standard procedures for how to do work. This step helps ensure that everyone works the same way and that tasks are completed consistently.

 

Sustain
Sustain refers to maintaining the gains made through 5S implementation. This step includes establishing continuous improvement processes to sustain 5S benefits over time.

Those who complete 5S Lean Training are well equipped to implement efficiency-increasing measures in their own workplace.

 

What Is Six Sigma? 

Six Sigma is a production method that aims to standardize the production process so that everything produced falls within the manufacturer’s specifications. The idea behind Six Sigma is that by standardizing the production process, companies can produce a higher quality product with fewer defects.

 

In turn, this standardization leads to lower costs and happier customers. To achieve Six Sigma compliance, companies must undergo a rigorous certification process.

 

A Six Sigma compliant company has a production process that is both standardized and highly efficient. The guidelines are that, out of every million attempts, only 3.4 units are defective. This method was first developed in the world of statistics, where the sigma symbol represents a standard deviation. Once a company is certified, it must maintain compliance through regular audits.

 

Reaching Six Sigma compliance is no easy feat. It requires a thorough understanding of the production process and what causes defects. Companies must also implement systems and controls to reduce or eliminate these defects.

 

However, the benefits of becoming Six Sigma compliant are clear. Fewer defects and less waste lead to increased customer satisfaction. When done correctly, Six Sigma can be a powerful tool for improving quality control and saving money by reducing waste and defects.

 

Reaching Six Sigma compliance is a long and challenging journey, but the end result is an extremely efficient production process with few defects.

 

‌Most practitioners of Six Sigma recognize eight distinct types of waste:

 

Defects
Whenever you manufacture a product or service that fails to meet customer specifications, you create a defective item. Some experts even believe that the average firm loses around 5% to 30% of gross sales due to the costs linked with poor quality.

 

Overproduction
If you misjudge your supply and demand, you can overproduce. This leads to wasted resources in managing the overflow, either by discounting it or by storing it. 

 

Waiting
Bottlenecks in your manufacturing process can generate waiting waste. This type of waste can be in the form of equipment or labor that is not being maximally employed.

 

Non-Utilized Talent

Team members who are not engaged or trained in your processes can generate waste as well as those who are under or over-employed.

 

Transportation
Excess transportation of tools, equipment, or information can generate wasted time and effort as well as inefficient route planning if technicians must travel between locations.

 

Inventory
We live in an age of just-in-time everything. That means anytime you have inventory, you have an opportunity to reduce the waste costs associated with managing it.

 

Motion
The movement of team members, information, parts, and equipment can generate a great deal of small waste that can quickly add up over time.

 

Extra Processing
Any action that does not contribute to producing your end-product or service may generate waste. Identifying those unneeded processing steps can save time and resources.

 

A trick for remembering the Six Sigma steps: Combined, the first letter of each waste type spells “downtime.”

 

5S vs. Six Sigma? 

 

Both approaches have benefits and drawbacks, and the answer to whether one is better than the other depends on your organization’s specific needs and goals. Here’s a quick rundown of each methodology to help you decide which is suitable for you:

 

 

1. Focus Area

• 5S is focused on improving the physical workspace. It is primarily concerned with organization, cleanliness, and making sure that all tools and resources are in the right place to support smooth operations. 5S has a visual and hands-on approach to process improvement.

• Six Sigma, on the other hand, is focused on reducing process variability and eliminating defects across all areas of the organization. It is a data-driven approach that aims to achieve a high level of quality in products and services. The focus is on eliminating variation in processes and improving consistency.

2. Methodology

• 5S is more of a visual and organizational tool that can be implemented with limited data analysis. It’s practical and easy to understand and can be implemented by employees at all levels. 5S is also often seen as a precursor to more advanced methodologies like Lean or Six Sigma.

• Six Sigma is more analytical and requires in-depth data collection, statistical analysis, and problem-solving techniques. It involves a structured framework (DMAIC) that takes time and expertise to implement. Six Sigma typically requires a higher level of training for employees, such as Six Sigma Green Belt or Black Belt certifications.

3. Implementation Time and Complexity

• 5S can often be implemented relatively quickly and with minimal complexity. It’s a straightforward process that doesn’t require significant training or resources. It can yield immediate improvements in organization and efficiency, but its impact may be limited to the physical workspace.

• Six Sigma requires a longer implementation timeline and involves complex data analysis, which means it can be more resource-intensive. Six Sigma projects often take several months to complete and require a more dedicated approach.

4. Scope of Application

• 5S is typically applied in manufacturing, warehouses, and other operational settings where the organization of tools, materials, and equipment directly impacts productivity. Its impact is more focused on the efficiency of the workspace and overall process flow.

• Six Sigma has a broader scope and can be applied across all aspects of an organization. It is used in manufacturing, service industries, healthcare, finance, and more, to improve both the quality of products and services and the efficiency of internal processes.

5. Data Dependency

• 5S requires minimal data analysis. The methodology is more about improving the physical workspace and process flow through organization and cleanliness.

• Six Sigma relies heavily on data. The goal is to make decisions based on data, which helps organizations identify problems, analyze root causes, and implement solutions.

 

When to Use 5S

5S is best suited for organizations that want to improve their physical workspace and achieve a quick, visible improvement in efficiency. It is a great choice for:

• Manufacturing environments where the organization of tools and materials can significantly impact productivity.

• Warehouses or distribution centers where efficient layout and easy access to materials are essential for smooth operations.

• Workplaces that need a quick boost in organization and cleanliness to increase efficiency and reduce waste.

If your organization is facing inefficiencies due to clutter, disorganization, or safety hazards, 5S can provide a solid foundation for improvement. It is also a great way to introduce employees to the principles of Lean thinking, which can pave the way for more advanced methodologies like Six Sigma.

When to Use Six Sigma

Six Sigma is ideal for organizations that are dealing with complex processes or looking to make significant improvements in product or service quality. It is best suited for:

• Large-scale organizations that need a data-driven approach to process improvement.

• Manufacturers that require high-quality control and precision in their products.

• Healthcare providers where defects or inefficiencies can directly impact patient safety and care quality.

• Service industries aiming to improve consistency and customer satisfaction.

Six Sigma is also useful for organizations that have already implemented basic process improvement strategies (like 5S) and are looking for a more advanced, data-driven approach to tackling deeper process inefficiencies and defects.

How we work with you 

In today’s economy of big changes and uncertain times, it is more important than ever to keep your operations organized without operational bloat. Whether we are talking about a 5s or Six Sigma program for you, it will help you implement more control and focus on your organization.

 

Which Methodology is Right for Your Organization?

The choice between 5S and Six Sigma depends on your organization’s specific needs. If your primary concern is creating a clean, organized workspace that promotes efficiency and reduces waste, 5S may be the right choice. It is a relatively simple and quick way to improve your workplace environment, and it can lay the foundation for more advanced process improvement efforts.

If your organization faces more complex issues related to quality control, process variation, and defect reduction, Six Sigma might be the better choice. Six Sigma requires a more in-depth, data-driven approach and is typically used for large-scale process improvement projects across various departments and industries.

In some cases, organizations may find that using both methodologies in tandem can be the most effective approach. Starting with 5S to improve the physical environment can create a strong foundation for Six Sigma, which can then be used to tackle more complex issues and drive continuous improvement across the organization.

Let’s Connect and Learn about your Project 

In today’s business world, the status quo just does not cut it. You must constantly innovate and evolve to stay ahead of the competition. But how do you do that? One way is to invest in business intelligence (BI) solutions (Six Sigma – 5S). Cornerstone Consulting can help you make better decisions faster by helping you get a 360-degree view of your business, customers, and operations.

 

We can also help you see patterns and trends you might otherwise miss. Whether 5S or Six Sigma, schedule a Free Consultation so we can learn more about your business and current challenges.

 

Together we can pave the way for accelerated business growth, greater efficiency, and a better bottom line. We will show you how to make data-driven decisions that will take your business to the next level.

 

CCO cannot and does not provide legal advice. It’s important to consult with qualified counsel before adopting any new policies. It’s also your responsibility to determine whether legal review of work product is necessary prior to implementation.