Lean and Six Sigma

Lean Six Sigma is a managerial concept combining Lean and Six Sigma that results in the elimination of the eight kinds of wastes / muda (classified as Defects, Overproduction, Waiting, Non-Utilized Talent, Transportation, Inventory, Motion, Extra-Processing) and an improved capability of performance. The term Six Sigma is statistically based on the provision of goods and service at a rate of 3.4 defects per million opportunities (DPMO). A mnemonic for the wastes is "DOWNTIME."



Lean Six Sigma utilizes the DMAIC phases similar to that of Six Sigma. The Lean Six Sigma projects comprise the Lean's waste elimination projects and the Six Sigma projects based on the critical to quality characteristics. The DMAIC toolkit of Lean Six Sigma comprises all the Lean and Six Sigma tools. The training for Lean Six Sigma is provided through the belt based training system similar to that of Six Sigma. The belt personnel are designated as white belts, yellow belts, green belts, black belts and master black belts, similar to karate.

For each of these belt levels skill sets are available that describe which of the overall Lean Six Sigma tools are expected to be part at a certain Belt level. These skill sets provide a detailed description of the learning elements that a participant will have acquired after completing a training program. The level upon which these learning elements may be applied is also described. The skill sets reflects elements from Six Sigma, Lean and other process improvement methods like TOC (Theory of Constraints) and TPM (Total Productive Maintenance).

It seems very important to take into account in Lean Six Sigma projects also about automation. A rule of thumb coming from many years of application at GE is that the benefits of a Lean Sigma project come roughly 50% from organizational and layout modifications and 50% from digitization.

Six Sigma is about quality. Lean is about speed through reduction in waste and complexity. Both Six Sigma and Lean offer sets of tools that are dedicated to meeting customer requirements. A major component of this program is the DMAIC process.

Define: Focus on the big picture, understanding customer requirements, project prioritization, charting a project, scheduling, listening to the “voices” of the customers, the processes, and the employees.
Measure: Focus on gaining a competitive advantage through business analytics; Identifying inputs and outputs, types of measures, setting targets, data collection, root cause analysis, and introduction to Minitab software.
Analysis: Focus on diagnosis first, then action. Qualitative and quantitative analysis, process analysis, hypothesis testing, descriptive statistics, forecasting models, process flowchart techniques, non-parametric testing, and benchmarking.
Improve: Focus on process improvement as an engine for
organizational growth. Developing potential solutions, creating the
future state, optimizing solutions, identifying Kaizen events, evaluating risk, and service recovery.
Control: Focus on implementing controls and developing standards. Evaluating financial benefits, monitoring process changes, understanding process capability, developing response plans, and effective project closure.