Lean Six Sigma Methodology: Explained

Six Sigma is a collection of approaches and instruments used to enhance corporate operations by lowering errors and flaws, lowering variation, and raising quality and productivity. Only 3.4 faults per million opportunities is the level of quality that Six Sigma aims to reach. This is accomplished by utilizing the DMAIC (Define, Measure, Analyze, Improve, Control) systematic approach to find and get rid of variation sources and enhance processes.

 

Project managers frequently employ Six Sigma, a structured and data-driven methodology, to optimize processes and reduce errors. It offers a methodical framework for locating and getting rid of differences that could affect project performance.

 

The Greek letter "sigma" or "," used in statistics to measure process deviation from the process mean or aim, serves as the foundation for the derivation. The term "Six Sigma" is derived from the statistical bell curve, where one Sigma represents one standard deviation from the mean. The fault rate is deemed to be "extremely low" if there are six Sigmas in the process, with three above and three below the mean.

 

About Lean Six Sigma

 

Lean and Six Sigma are two effective methods for process improvement that are combined in the Lean Six Sigma approach. Lean emphasizes removing non-value-adding operations in order to reduce waste and increase efficiency. To deliver more value with less effort, this entails streamlining processes, lowering faults, enhancing quality, and optimizing resources. Contrarily,

 

Six Sigma is a statistical method of process improvement that focuses on lowering variation and flaws through the use of data-driven decision-making. To produce consistent and predictable results, it entails establishing, measuring, analyzing, improving, and regulating processes.

 

Lean Six Sigma offers a thorough way for process improvement that can be used in any business or field by integrating the advantages of these two methodologies. It is frequently utilized to increase productivity, cut costs, and boost customer satisfaction in the manufacturing, healthcare, financial, and service sectors.

 

The Five Core Elements of Six Sigma

 

Delivering almost perfect products and services for business transformation to achieve the highest levels of customer satisfaction (CX) is the straightforward aim of the Six Sigma approach. Six Sigma is built on the following five guiding principles:

 

Pay attention to the client

 

The idea that "the customer is king" is the foundation for this. The main objective is to benefit the consumer as much as possible. To do this, a company must comprehend its clientele's wants, needs, and factors that influence loyalty or sales. To do this, the quality standard must be established according to what the consumer or market expects.

 

Measure the Value Stream to Discover Your Issue

 

To identify waste regions in a process, map out the processes. Gather information to identify the precise issue that needs to be fixed or modified. Establish standardized data collection methods and have goals for data collection that are well specified, including the data to be collected, the reason for the data collection, the expected insights, and the assurance of measurement accuracy.

 

Determine whether the data is assisting in achieving the goals, whether it needs to be adjusted, and whether more information needs to be gathered. Determine the issue. Ask inquiries to identify the underlying issue.

 

Get Rid of the Stuff

 

Once the issue has been located, modify the procedure to remove variation and consequently flaws. Process operations that don't increase the value to the consumer should be eliminated. Tools are utilized to help find the outliers and problem areas if the value stream is unable to indicate where the issue is. Streamline processes to ensure efficiency and quality. In the end, bottlenecks in the process are eliminated by getting rid of the aforementioned garbage.

 

Continue moving the ball

 

Include all interested parties. Adopt a disciplined approach where your team contributes and works together to solve problems using their varied knowledge. The application of Six Sigma procedures can have a significant impact on an organization, hence the team must be knowledgeable about the guiding principles and methodologies. As a result, to lower the risk of project or re-design failures and guarantee that the process operates at peak efficiency, specialized training and knowledge are needed.

 

Make sure the ecosystem is adaptable and responsive

 

Change and transformation in the business world are at the heart of Six Sigma. When a flawed or ineffective process is eliminated, it necessitates a change in work procedures and employee behavior. A strong culture of adaptability and responsiveness to adjustments in protocols helps guarantee efficient project execution.

 

Processes should be structured for quick and seamless change management so that the departments and individuals involved can do it with ease. The business that keeps a close eye on the data, analyzes the bottom line on a regular basis, and modifies its procedures as needed can acquire a competitive edge.

 

Six Sigma Methodology

 

DMAIC and DMADV are the two basic Six Sigma methods. Each offers a unique set of suggested practices for business transformation that should be used. A data-driven technique called DMAIC is used to enhance current goods or services so that customers are more satisfied. It stands for D - Define, M - Measure, A - Analyze, I - Improve, and C - Control. DMAIC is used when creating a product or providing a service.

 

DMADV is a component of the Design for Six Sigma (DFSS) process, which is used to design or redesign various processes for the production of goods or the provision of services. The DMADV process consists of five steps: define, measure, analyze, design, and validate. When new techniques need to be developed or when optimized processes still fail to fulfill client requirements, DMADV is used.

 

Under the direction of Six Sigma Master Black Belts, it is carried out by Six Sigma Green Belts and Six Sigma Black Belts. The belts will be covered later.

 

The two approaches are applied in various business contexts, therefore professionals looking to understand them would be wise to enroll in an online certificate programme led by subject matter specialists. 

 

Six Sigma Techniques

 

To attain the intended result, the Six Sigma methodology also combines statistics and data analysis tools, such as process design and mapping, with tried-and-true qualitative and quantitative techniques.

 

Brainstorming

 

In the "improve" phase of the DMAIC technique, brainstorming is a crucial step in any problem-solving process. Before someone uses any tools, it is a prerequisite process. Brainstorming is the process of vigorous, unstructured group talks where ideas are tossed around and original solutions to problems are developed. An open session is facilitated by a facilitator, who is often the lead Black Belt or Green Belt.

 

The 5 Whys/Root Cause Analysis

 

In the "analysis" phase of the DMAIC cycle, this method is utilized to help identify the underlying causes of the problems being studied. In the "5 Whys" method, the "why" question is asked repeatedly until it reaches the fundamental problem. Although "five" is a general guideline, the actual number of questions can be higher or lower, depending on what is necessary to get clarity.

 

Customer feedback

 

This is the procedure used to obtain consumer feedback or the "voice of the customer" through either internal or external channels. The technique aims to provide the greatest goods and services to the client. Through direct and indirect means, it catches the customer's shifting demands. 

 

The 5S Method

 

This method is based on a Japanese idea of workplace energy. The 5S System aims to eliminate waste and bottlenecks caused by ineffective tools, resources, or equipment in the workplace. Seiri (sort), Seiton (set in order), Seiso (shine), Seiketsu (standardize), and Shitsuke (sustain) are the five steps that are employed.

 

Kaizen, or Continuous Improvement

 

A potent tactic that drives a constant engine for corporate improvement is the kaizen technique. Continuous monitoring, improvement identification, and implementation are all part of the practice. This practice is very beneficial for the industrial industry. Waste is decreased because of constant, collective improvements, and anytime even the smallest inefficiency is noticed, something is changed right away.

 

Benchmarking

 

The method of benchmarking uses a predetermined unit of measurement. To get an unbiased assessment of the current situation, it requires establishing comparisons with other companies. Internal benchmarking, comparing similar work areas or functions with industry leaders, functional benchmarking, competitive benchmarking, or comparing similar products and services with those of competitors are all examples of benchmarking.

 

Correcting errors with Poka-yoke

 

The name of this strategy is derived from a Japanese expression that means "to avoid errors," and it refers to reducing the likelihood that mistakes would be made. Employees use the poka-yoke approach to identify and correct human faults and inefficiencies during the manufacturing process.

 

Using Value Stream Mapping

 

To plan a future project, the value stream mapping technique maps the existing flow of materials and information. The goal is to streamline processes and eliminate waste and inefficiencies in the value stream. It lists three separate garbage removal operations as well as seven different waste types.

 

Also Read | Business Analytics Process: A Comprehensive Guide | Analytics Steps

 

Levels of Six Sigma

 

The Six Sigma training levels adhere to predetermined qualifications, employment standards, and educational prerequisites.

 

White Belt
 

• It is open to newcomers.

• On tasks involving problem-solving, people work in groups.

• The participant must comprehend the fundamental ideas of Six Sigma.

 

Yellow Belt
 

• Participates as a team member on a project.

• Examines procedural upgrades.

• Gains knowledge of DMAIC and other approaches.

 

Green level
 

The following requirements are necessary for this level of expertise:
 

• Three years or more of continuous employment.

• Recognise the techniques and tools available for problem-solving.

• Practical experience working on initiatives that involve some sort of business transformation.

• Guidance on data gathering and analysis for Black Belt projects.

• In charge of Green Belt teams or projects.

 

Black Level

 

The following are included at this level:

 

• Three years at least of full-time work

• Working knowledge of a fundamental subject

• Proof of finishing at least two Six Sigma projects

• Expertise in using multivariate analytics in a variety of business change scenarios

• Directing varied teams through projects to solve problems.

• Project team coaching and training.

 

Master Black Belt

 

In order to get to this level, an applicant must:
 

• Own a Black Belt certification

• Have worked full-time for at least five years, or Proof of finishing at least 10 Six Sigma projects

• A demonstrated job history and individual criteria, such as those listed here, for example.

• Black Belts and Green Belts that I have coached and trained.

• Create important measurements and plans.

• Have experience working as an organization's internal business transformation counselor and Six Sigma technician.
  
  
   

Advantages of Lean Six Sigma

 

Lean Six Sigma techniques have a number of proven advantages for staff members, clients, suppliers, and the business overall.

 

Businesses may enhance the work experience for employees and the customer experience for customers by making key procedures more efficient. Both inside and outside of a corporation, this can increase loyalty. Processes that are streamlined and made simpler can provide an organization more control and make it easier for it to seize new opportunities. They may also result in increased income and sales, decreased expenses, and better company outcomes.

 

Participating in a team project or company-wide efficiency drive can help employees develop new skills (including project management and analytical thinking), increase their possibilities for career advancement, and foster a sense of camaraderie. Companies save time, money, and labor by preventing faults rather than having to find and fix them later.

 

Six Sigma vs. Lean Six Sigma

 

Both Lean Six Sigma and Six Sigma are methods for resolving issues with processes. Both can assist businesses in examining their processes to find ways to increase quality, efficiency, and time usage. Both employ the phases/method of DMAIC. Both strategies center on developing a culture of problem-solving at work. Six Sigma, on the other hand, is concentrated on lowering errors and process variability to raise process output and quality to satisfy client expectations. Lean Six Sigma aims to enhance workflow and provide value for customers by decreasing or eliminating faults and the wasteful use of resources.

 

Conclusion

 

Lean Six Sigma is a management strategy that aims to minimize any inefficient resource consumption as well as manufacturing process flaws in order to enhance worker and business performance. It incorporates elements of Motorola's Six Sigma strategy from the 1980s and the Lean philosophy developed by Toyota in Japan in the 1940s to cut waste and faults. Lean Six Sigma brings the finest aspects of both together to improve financial results and operational efficiency for all types of organizations.