According to ASQ (The American Society for Quality), Lean Six Sigma is a philosophy that focuses on continuous process improvement to eliminate product defects and focuses on facts and data. LSS focuses on the end result, which is the product - by reducing process variation, waste and cycle time, it leads to increased customer satisfaction. It promotes standardisation and workflow optimisation, which contributes to competitive advantage. A key element of this philosophy is the involvement of all employees in the improvement process, which fosters a culture of continuous development. LSS is applicable anywhere there are problems with repetitive processes and waste.
Lean Six Sigma - definition
Lean Six Sigma (LSS) has emerged from the synergy of the broader Lean methodology and the analytical approach of Six Sigma, offering greater benefits to organisations than using these methods separately. Lean Six Sigma is fundamentally a quality management method and draws from both the Lean philosophy, which focuses on eliminating waste and optimising processes, and the Six Sigma methodology, which seeks to minimise errors and variation in business processes based on statistical analysis. The combination of these two concepts allows organisations to further increase operational efficiency, improve the quality of products, products and services, and reduce operating costs more effectively. LSS uses a set of proven analytical and optimisation tools, which allows the implementation of effective improvements and the creation of a culture of continuous improvement within the organisation.
Lean Six Sigma - history
Lean Six Sigma originated in the 1990s when the benefits of eliminating waste and reducing process variability began to be recognised.
Lean as a set of practices and ways of managing a company is based on the experience of Japan's Toyota and the Toyota Production System (TPS) it defined, which developed from the 1950s onwards. Its aim was to maximise customer value by eliminating waste (Japanese: muda).
Six Sigma is a methodology developed in the 1980s by Motorola engineers. Its aim is to improve process quality by reducing errors and defects based on statistical methods of process analysis and aiming to reduce defects reaching the level of a few units per million produced.
What is Lean Six Sigma and how can it improve your business?
In the 1990s, companies began to see the benefits of combining the two methodologies, which led to the emergence of Lean Six Sigma as a hybrid of a comprehensive approach to quality management.
One manufacturing company, after identifying problems related to low operational efficiency and high defect rates in its products, used Lean Six Sigma methodologies to analyse and implement, achieved measurable results in the form of:
- Increased productivity - lead times have been reduced by 25%.
- Cost reduction - by eliminating waste and errors, the company has achieved savings of 15% in annual operating costs.
- Quality improvements - The defect rate fell by 30%, which contributed to a 20% increase in customer satisfaction.
- Improved resource management - raw material efficiency increased by 18%.
- Building a culture of continuous improvement - employees have been involved in improvement processes, which has increased their motivation.
- Improving internal communication - regular team meetings and open dialogue have contributed to better cooperation between departments.
The implementation of Lean Six Sigma brings tangible benefits, both financial and qualitative. By applying this methodology, the company not only improves its operational performance, but also creates an environment that fosters innovation and continuous improvement. However, the implementation of LSS, like many other methodologies, requires the commitment of the entire organisation, but the benefits are long-lasting.
Lean and Six Sigma - differences
Although Lean and Six Sigma are often used together, they differ in approach and objectives:
- Lean focuses on eliminating waste, optimising workflow and increasing the value delivered to the customer, based on Toyota's experience focusing on customer value.
- Six Sigma focuses on reducing process variability and minimising errors by applying statistical methods aimed at reducing quality defects.
| Differences in Lean and Six Sigma approaches |
| Feature |
Lean |
Six Sigma |
| Objective |
Elimination of waste |
Reducing volatility |
| Approach |
Process |
Statistical |
| Tools |
Process mapping |
Data analysis |
| Focus |
Customer value |
Product quality |
Despite the apparent differences, the combination of the two methods allows for better operational and quality results and more effective elimination of problems.
Benefits of implementing Lean Six Sigma in your company
Organisations that choose to implement Lean Six Sigma gain a number of benefits from the hybrid use of tools:
- Reduction in operating costs - by eliminating waste and reducing errors.
- Improving process efficiency - by standardising activities and eliminating unnecessary steps.
- Quality Improvement - Six Sigma achieves a very low defect rate (3.4 defects per million opportunities).
- Increasing customer satisfaction - through higher quality products and services.
- Staff development - The implementation of LSS involves building a culture of continuous improvement and staff training.
- Reducing process times - improving work organisation results in faster delivery of value to customers.
Steps in implementing Lean Six Sigma
Six Sigma project processes follow the DMAIC methodology:
- Define the problem - identifying the project objective and area for improvement.
- Measure - analysis of the current status and identification of key performance indicators.
- Analyze - identifying the causes of problems and opportunities for improvement.
- Improve - implementing process improvements.
- Control - monitoring the effects and maintaining the changes.
It is worth noting that the plugs of this methodology are the same as the basic cycle used in the Lean philosophy - PDCA developed by Walter A. Shewart and later popularised by William Edwards Deming (hence the often used name Deming Cycle).
Key techniques and tools in Lean Six Sigma
Lean Six Sigma uses a number of analytical and optimisation tools derived from the Lean philosophy and Six Sigma-based statistical methods:
- Value Stream Map (VSM) - value flow analysis of the process.
- 5S - workplace organisation method (Sorting, Systematics, Tidying up, Standardisation, Self-discipline).
- Kaizen - a philosophy of continuous improvement.
- Ishikawa diagram - a tool for identifying the causes of problems.
- Poka-Yoke - error prevention techniques.
- Statistical process control (SPC) - process variability analysis and quality improvement.
- Failure Mode and Effects Analysis (FMEA) - analysis of potential errors and their consequences.
- DMAIC - methodology used in Six Sigma to define, analyse and solve problems (Define, Measure, Analyze, Improve, Control).
- Process mapping - Workflow visualisation to identify waste.
- Root cause analysis (RCA) - identifying the root causes of problems.
Six Sigma training levels
Six Sigma, as a structured system, offers different levels of certification that help professionals gain the necessary competences and are a kind of 'degrees of initiation':
- White Belt - implies a basic knowledge of Lean Six Sigma and is aimed at people who support the implementation of projects.
- Yellow Belt - is the next level, which means understanding LSS methods and tools and participating in optimisation projects.
- Green Belt - enables Lean Six Sigma projects, data analysis and implementation of changes in the organisation.
- Black Belt - has advanced analytical skills, manages projects and trains teams in Six Sigma methodology.
- Master Black Belt - is the highest level responsible for developing the strategy for implementing LSS in the organisation and mentoring Black Belts.
Lean Six Sigma - executive summary
Lean Six Sigma is one of the most effective approaches to quality and process performance management. By combining Lean and Six Sigma methodologies, organisations can reduce costs, increase service and product quality and improve their operational performance. The LSS implementation process is based on the DMAIC methodology and uses a wide range of optimisation tools. In addition, different levels of Six Sigma certification enable employees to develop their competencies and actively participate in organisational transformation. Implementing Lean Six Sigma is an investment that can certainly bring companies significant benefits and increase their competitive advantage in the market.
