Fundamentals of Lean Management, Six Sigma, and Theory of Constraints

This chapter presents the fundamentals of the three process improvement methodologies: Lean Management, Six Sigma, and Theory of Constraints. Several framework characteristics are elaborated upon, along with references to ongoing business circumstances. The origins of each methodology are analyzed, as these allow a comprehensive understanding of what is important and how they operate in organizations. Behind each methodology stand some horizontal assumptions and philosophies. This chapter discusses the management principles of the methodologies, which serve as organizational guidelines for their use and, in a sense, their main themes. Finally, attention is drawn to a key condition for the use of these process improvement methodologies: employee engagement. This final issue is presented based on a survey of 380 medium and large companies, which clearly proves the absolutely fundamental importance of employee engagement for successful process improvement, as applied to each of the three improvement approaches.