Guide: Fundamentals of Lean Six Sigma

Lean Six Sigma is a powerful methodology combining Lean's efficiency focus with Six Sigma's quality improvement tools. It aims to minimize waste and reduce process variability through a structured approach, enhancing operational performance and customer satisfaction.

Author: Daniel Croft

Daniel Croft is an experienced continuous improvement manager with a Lean Six Sigma Black Belt and a Bachelor's degree in Business Management. With more than ten years of experience applying his skills across various industries, Daniel specializes in optimizing processes and improving efficiency. His approach combines practical experience with a deep understanding of business fundamentals to drive meaningful change.

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Guide: Fundamentals of Lean Six Sigma

Lean Six Sigma is a powerful operational improvement methodology that synergizes the efficiency-focused Lean principles with the quality-centric Six Sigma approach. Originating from the best practices of Japanese manufacturing, particularly Toyota’s Production System, Lean emphasizes creating more value for customers using fewer resources. It involves identifying and streamlining value-creating steps, ensuring smooth process flow, and adopting a customer-centric production approach.

On the other hand, Six Sigma, developed by Motorola, employs a data-driven methodology to minimize defects and reduce process variability. It leverages statistical tools and a structured DMAIC (Define, Measure, Analyze, Improve, Control) process for continuous quality improvement. The fusion of these methodologies into Lean Six Sigma offers a comprehensive toolkit for enhancing operational efficiency and product quality, fostering a culture of continuous improvement and excellence in organizations.

What is Lean Six Sigma?

Lean Six Sigma is an operational improvement methodology that combines two separate improvement methods, Lean and Six Sigma. To understand the combination of Lean and Six Sigma in-depth, it is important to understand each of these components separately before understanding how they integrate.

Lean: The Pursuit of Efficiency

Lean is about maximizing value for the customer while minimizing waste. It is as much of a philosophy as it is a methodology. Lean has roots in Japanese manufacturing, particularly with Toyota and the Toyota Production System (TPS). The focus of Lean is on creating more value for customers using fewer resources.

The key principles of Lean are:

Identifying Value: The first step in Lean is to specify value from the standpoint of the end customer. This ensures that every process step adds something the customer is willing to pay for.

Mapping the Value Stream: In Lean, the value stream is the entire lifecycle of a product or service, from raw materials to the end customer. Mapping this out helps identify and eliminate non-value-added steps.

Creating Flow: Once the waste is removed, the steps that create value should occur in a tight sequence to ensure a smooth flow of materials and information.

Establishing Pull: Instead of pushing products to market, Lean suggests producing only what customers need and when they need it. This reduces inventory and waiting time.

Pursuing Perfection: Lean is an ongoing process of continuous improvement. Companies strive to perfect their processes by continuously identifying and eliminating waste.

The Principles of Lean

Six Sigma: The Quest for Quality

Six Sigma offers a more data-driven approach. It was developed by Motorola in the 1980s as a way to systematically improve the quality of their products. The core of Six Sigma lies in understanding and reducing variability in processes, which can lead to defects. Key elements include:

Focus on Customer Requirements: Six Sigma emphasizes understanding and meeting customer needs and specifications.

Use of Statistical Tools: Six Sigma relies heavily on statistical methods to analyze and improve processes. It aims to make processes more predictable and reduce variability.

Process Improvement Expertise: Six Sigma uses a belt system (Yellow, Green, Black, Master Black Belt) to signify levels of training and expertise in these techniques.

DMAIC Methodology: This stands for Define, Measure, Analyze, Improve, and Control. It’s a data-driven quality strategy used to improve processes.

Reduction of Defects: The ultimate goal of Six Sigma is to reduce the number of defects in a process to a statistically insignificant level, typically aiming for no more than 3.4 defects per million opportunities.

Combining Lean and Six Sigma

Combining Lean and Six Sigma creates a powerful approach to continuous improvement known as Lean Six Sigma, combining the best elements of both methodologies to achieve superior process improvement.

Lean, with its focus on the speed and efficiency of processes, excels at removing waste and improving flow. Whereas, Six Sigma, is focused on ensuring precision and accuracy, aiming to reduce process variation and defect.

Efficiency Meets Quality: Lean’s speed and waste reduction complement Six Sigma’s focus on quality and precision. This leads to processes that are not only faster and leaner but also consistent and of high quality.

Broader Toolkit: Improvement practitioners have access to a wider range of tools and techniques from both Lean and Six Sigma, allowing for more versatile and effective solutions to a variety of problems.

The DMAIC Process in Lean Six Sigma

You can get an in-depth understanding of DMAIC with our DMAIC guide. However, we will give you a brief overview in this introduction guide.

the five phases of DMAIC, Define, Measure, Analyse, Improve and Control

Define

The Define phase of DMAIC sets the foundations for the project. It involves clearly defining the problem and the goal of the project; it will also clarify the scope and set clear objectives for the success of the project.

This phase will include identifying the customers, both internal and external, and their requirements, forming a project team, and creating a project charter.

Measure

Once the define phase is complete, the next step is the measure phase, which focuses on collecting data to understand the current state of the process and is referred to as a baseline for comparison.

This stage will include identifying Key Performance Indicators (KPIs), mapping the current process to understand its flow, and collecting the necessary data to understand the process. In this stage, the accuracy and reliability of the data are important.

Analyze

Following the data collection (measure) phase, the next step is to analyze the data to identify the root causes of the problem.

This step involves selecting the most suitable statistical and analysis tools, such as fishbone diagrams, Pareto analysis, and hypothesis testing. This is done to analyze the data and identify where and why defects or inefficiencies are happening.

Improve

Once the data has been analyzed and the root cause of the problem has been identified, the next step is to make improvements to solve the problem. This will involve developing and implementing solutions that address the root causes.

Actions in this step may involve redesigning and mapping out the process, implementing new procedures, and/or conducting pilot tests to evaluate the effectiveness of the proposed solutions. This phase of DMAIC will require creativity, innovation, and often change management skills.

Control

The final phase of DMAIC is control; this stage of the process is all about controlling and sustaining the improvements that have been made. This step involves putting in place control mechanisms such as process monitoring, ongoing data collection and control, and response plans for potential future deviations. The aim is to maintain the gain achieved and ensure the process continuously improves.