What is Lean Six Sigma: A Complete Guide

Assume that you are trying to fix a leaking pipe, but instead of focusing on the cause, you are addressing the symptoms. That’s often what businesses do when they face inefficiencies: treating the symptoms but not the root problems. This is where What is Lean Six Sigma becomes a game-changer. This powerful methodology combines the best of both worlds: Lean’s waste-cutting strategies and Six Sigma’s precision in reducing defects. 

But What is Lean Six Sigma exactly? In this blog, we’ll uncover how you can apply Lean Six Sigma in your organisation to drive lasting, and meaningful change. Want to take control of your business’s future and make every process count? Let’s dive into the world of Lean Six Sigma.

Table of Contents

1) What is Lean Six Sigma?

2) History of Lean Six Sigma

3) Lean Six Sigma Techniques

4) Core Principles of Lean Six Sigma

5) How to Apply Lean Six Sigma in Your Organisation?

6) Lean Six Sigma Belts Levels

7) Benefits of Lean Six Sigma Methodology

8) Lean Six Sigma vs Six Sigma

9) Conclusion

What is Lean Six Sigma?

Lean Six Sigma refers to the methodologies that combine the principles of Lean and Six Sigma to increase the efficiency of business processes, reduce waste, and improve quality. It leverages the benefits of eliminating waste and maximising activity flow with structured frameworks to deliver quality and high customer satisfaction.

It uses structured frameworks such as DMAIC (Define, Measure, Analyse, Improve, Control) and DMADV (Define, Measure, Analyse, Design, Verify) to improve processes and design. These frameworks help guide teams in identifying the real cause of problems and implementing efficient solutions to ensure sustainable improvement over time.

Furthermore, by focusing on data-driven decision-making, continuous process improvement, and customer-oriented thinking, Lean Six Sigma methods can help firms streamline operations, boost productivity, and ensure sustainable business growth. When considering methodologies like Lean Six Sigma vs Agile, organizations can determine which approach best aligns with their specific needs for operational efficiency and growth.

History of Lean Six Sigma

Lean Six Sigma is a fusion of two powerful methodologies, Lean and Six Sigma. Each with its own unique history and purpose.

Origin of Six Sigma

Six Sigma was developed by Motorola in the 1980s, led by engineer Bill Smith. The goal was to improve product quality by identifying and removing causes of defects using statistical methods. 

Later, General Electric (GE) under Jack Welch famously adopted Six Sigma in the 1990s, boosting its popularity across industries. It aims for near-perfect quality, targeting 3.4 defects per million opportunities.

Origin of Lean

Lean principles trace back to Toyota’s Production System in the 1950s, pioneered by Taiichi Ohno and Shigeo Shingo. Inspired by Henry Ford’s assembly line and post-war efficiency needs.

Lean focuses on eliminating waste and improving process flow without sacrificing quality.

The Merger: Lean Six Sigma

By the early 2000s, organisations began combining both approaches. Lean handled speed and waste reduction, while Six Sigma focused on quality and consistency. 

Together, Lean Six Sigma became a unified framework that delivers faster, defect-free processes, widely used in manufacturing, healthcare, IT, and services.

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Lean Six Sigma Techniques

Lean Six Sigma techniques are tools used to improve process efficiency, reduce waste, and enhance quality. These techniques promote continuous improvement, streamline workflows, and help organisations deliver better value to customers. Let's discuss the techniques one by one for better understanding: 

Kanban

Kanban is a visual workflow management tool used to track and manage tasks. It helps teams visualise work, limit work-in-progress, and optimise flow. Kanban boards use columns and cards to represent stages of a process, making it easy to spot bottlenecks and improve efficiency. Key areas are: 

1) Visualises tasks clearly

2) Enhances workflow transparency

3) Reduces overload with WIP limits

4) Encourages continuous delivery

Kaizen

Kaizen involves small, incremental changes made regularly to improve processes, efficiency, and quality. Employees at all levels are encouraged to contribute ideas for improvement, fostering a culture of teamwork and proactive problem-solving. 

1) Promotes small daily improvements

2) Involves everyone in the process

3) Encourages a problem-solving mindset

4) Boosts morale and engagement

Value Stream Mapping

Value Stream Mapping (VSM) is a technique that visually maps the flow of materials and information through a process. It helps identify waste, inefficiencies, and opportunities for improvement by analysing each step's value contribution. 

1) Maps the entire process visually

2) Highlights value vs non-value steps

3) Identifies delays and redundancies

4) Supports strategic process redesign

5S Tool

The 5S tool is a workplace organisation method that promotes cleanliness, order, and efficiency. The five steps are: Sort, Set in Order, Shine, Standardise, and Sustain. It's commonly used in manufacturing and office environments to create a more productive space. 

1) Improves workplace organisation

2) Reduces time spent searching for tools

3) Enhances safety and cleanliness

4) Builds discipline and consistency

Core Principles of Lean Six Sigma

By adhering to the foundational principles of Lean Six Sigma, organisations can achieve streamlined processes, reduced waste, and enhanced customer satisfaction. Let’s delve into the crucial Lean Six Sigma Principles:

1) Focus on the Customer

A strong commitment to meeting and understanding customer needs and expectations serves as the base of Lean Six Sigma. By prioritising customer satisfaction, organisations can position their processes and initiatives to deliver great value and improve the overall customer experience.

2) Measure the Value Stream and Find Your Problem

Lean Six Sigma relies on an approach to process exhaustive improvement, which entails measuring every aspect of the value stream. An organisation can, therefore, identify inefficiency, waste, and areas that may require improvement from every activity measure with great authority within the process.

3) Remove Waste to Create a Flow

The core idea of Lean Six Sigma is to eliminate waste to make the process smoother, valuable, and uninterrupted. By eliminating bottlenecks, delays, and steps, businesses can improve their efficiency, productivity, and clients’ satisfaction.

4) Eliminate Variations

Process variation can cause inconsistency, defects, and waste accumulation. Reducing variation is among the key approaches of Lean Six Sigma, which focuses on creating stable and well-controlled processes that bring predictable and reliable results.

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5) Undertake Improvements in a Systematic Process

Lean Six Sigma systematically drives process improvement by streamlining methodologies like the DMAIC model. It ensures that methodical changes are thoroughly data-driven and align with the business goals. Thus, organisations can produce sustainable outcomes and continuous improvement.

6) Equip People in Processes

Lean Six Sigma addresses the importance of training, empowerment, and organisational engagement at hierarchy levels. Organisations can harness the expertise and creativity of their workforce towards innovation and improvement if they inculcate a culture of continuous learning and participation.

7) Understand the Real Workflow

Lean Six Sigma enables organisations to perceive their operational workflow and processes at a profound level by transcending beyond redundant surface appearances. Scrutinising these processes helps to discover hidden opportunities, address the root causes of issues, and leverage informed decisions as catalysts to drive substantial change and enhancement. This approach is often demonstrated in a Six Sigma Case Study, highlighting its effectiveness in achieving operational excellence.

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How to Apply Lean Six Sigma in Your Organisation?

The Lean Six Sigma methodology primarily comprises five critical phases. Each phase is designed to guide organisations toward streamlined operations through targeted business improvements. Understanding how to apply Lean Six Sigma in each phase allows companies to tailor their approach for maximum efficiency and success.

1) Define

In the beginning, you should clearly define the project’s goals and what the improvement work will cover. This includes understanding why the project is being done, who is involved, what needs to be delivered, and what the customer expects. 

Having a clear problem and outcome helps link the project to the organisation’s bigger goals. If you're preparing for a process improvement role, looking at Lean Six Sigma Interview Questions can help you understand common project goals and tasks.

2) Measure

The ‘Measure’ phase involves data collection and assessment regarding the current process state. It includes identifying relevant metrics, developing measurement systems, and collecting data that describes performance in a quantified manner. This measurement helps set a clear baseline, provide an objective with a clear understanding of process capability, and identify improvement areas.

3) Analyse

In the ‘Analysis’ stage, the team closely examines the collected data to find the main reasons for problems and inefficiencies in the process. They use different tools and methods to study the data, looking for patterns, trends, or connections. This feature can point to what’s causing poor performance.

4) Improve

The ‘Improve’ phrase primarily shifts the focus to resolving the identified issues and efficiently meeting process improvement goals. This often involves generating and evaluating potential solutions, choosing the best, and implementing modifications.

5) Control

The ‘Control’ is the final phase of the Lean Six Sigma implementation that ensures the improvements achieved are sustainable over time. This is achieved by developing control plans, implementing continuous performance measurements, and setting up monitoring systems to track process performance

These measures allow the organisation to set an easy standardisation of improvements, assess quick detection, and attain resolution of new problems, as well as lasting Benefits From Lean Six Sigma efforts.

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Lean Six Sigma Belts Levels

The Lean Six Sigma methodology consists of a skill level progression, each tailored to different degrees of proficiency and responsibility in improving the process. Here are six levels of Six Sigma:

1) Lean Six Sigma White Belt

This foundational awareness level covers the fundamental principles of Lean Six Sigma. These include process improvements, focus on waste removal, and the customer’s goals. Participants typically undergo support work with more experienced practitioners, working on projects by delivering valuable contributions and assistance. A key part of this journey is understanding the Lean Six Sigma Process Improvement Tools and Techniques Guide, which helps in applying these principles effectively in real-world scenarios.

2) Lean Six Sigma Yellow Belt

This level provides deeper coverage of tools and concepts compared to the White Belt level. The training at this level covers topics such as process mapping, data collection, and fundamental statistical analysis. Yellow Belts are often front-line employees who actively contribute to improving projects and collaborate with Green or Black Belt leaders to implement the necessary improvements. Additionally, obtaining a Yellow Belt can enhance your career benefits of Career Benefits of Lean Six Sigma on Your Resume, showcasing your commitment to continuous improvement and process optimization.

3) Lean Six Sigma Green Belt

This is the capability level where a practitioner receives more comprehensive training in Lean Six Sigma methodologies. These include statistical analysis and Project Management. Green Belts run improvement projects independently, ranging from defining the project scope to implementing viable solutions. They normally balance this role with their usual job responsibilities by dedicating part of their time to process improvement.

4) Lean Six Sigma Black Belt

The Black Belt is an advanced-level certification within the Lean Six Sigma framework. These practitioners undergo intensive training to perform advanced statistical analysis and develop leadership skills, enabling them to lead complex improvement projects and mentor Green and Yellow Belts. Adding Lean Six Sigma on your resume with a Black Belt certification demonstrates your expertise in these areas and your ability to drive impactful changes within an organization.

5) Lean Six Sigma Master Black Belt

Master Black Belts are at the peak of the Lean Six Sigma skillset. In the context of Lean Six Sigma Black Belt vs Six Sigma Black Belt, these individuals possess vast experience and are known as strategic thinkers and leaders. They mentor Black Belts and help senior leadership monitor strategic initiatives to meet business objectives.

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Benefits of Lean Six Sigma Methodology

Implementing Lean Six Sigma offers organisations a powerful framework to streamline operations, enhance quality, and drive measurable improvements across processes. Here are some essential Benefits of Lean Six Sigma:

1) Enhanced Efficiency and Productivity

Lean Six Sigma simplifies processes, removes unnecessary steps, and improves workflows while increasing efficiency and productivity. By identifying activities that do not add value, organisations can reduce cycle times and achieve better output with existing resources. This increased efficiency enables employees to work more effectively by freeing time and resources to focus on valuable tasks and strategic initiatives.

2) Elevated Quality Standards

The main objective of Lean Six Sigma is to elevate quality by diminishing defects and process variability. By implementing rigorous process controls, standardising procedures, and continuously improving, organisations can achieve higher quality standards and consistently exceed customer expectations. Additionally, preparing for Six Sigma Interview Questions helps professionals understand the critical role of quality in organisational success. Enhanced quality bolsters customer satisfaction, curtails rework, scrap, and warranty expenses, thereby augmenting profitability and market competitiveness.

3) Cost Reduction

Lean Six Sigma initiatives helps in reducing costs through waste abatement, process refinement, and efficiency enhancements. By eliminating the redundant steps, minimising inventory, and optimising resource deployment, organisations can reduce operating costs, improve profit margins, and boost profitability.

4) Better Customer Satisfaction

Lean Six Sigma emphasises the importance of understanding customer needs and expectations. By delivering high-quality, reliable, and responsive services, an organisation can achieve customer satisfaction and loyalty, leading to repeat business, referrals, and increased market share.

Satisfied customers are more likely to remain loyal, make repeat purchases, and advocate for the brand. This ultimately supports the long-term growth and success of the business.

Lean Six Sigma vs Six Sigma

Lean Six Sigma combines Lean's focus on waste reduction with Six Sigma's focus on reducing variation and defects. While Six Sigma aims to improve quality through statistical analysis, Lean enhances speed and efficiency. 

Together, they offer a more comprehensive approach to process improvement than Six Sigma alone.

Conclusion

When it comes to driving efficiency and quality, What is Lean Six Sigma offers a clear path forward. By blending Lean’s focus on cutting waste with Six Sigma’s precision in eliminating errors, you can unlock new levels of performance and productivity. Overall, Lean Six Sigma can be your blueprint for lasting business success.

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