Lean Six Sigma: Definition, Principles, and Benefits

What Is Lean Six Sigma?

Lean Six Sigma is a team-focused managerial approach that seeks to improve performance by eliminating resource waste and defects.

It combines Six Sigma methods and tools with the lean manufacturing/lean enterprise philosophy. It strives to eliminate the waste of physical resources, time, effort, and talent while assuring quality in production and organizational processes.

Simply put, Lean Six Sigma teaches that any use of resources that doesn't create value for the end customer is considered a waste and should be eliminated.

Key Takeaways

  • Lean Six Sigma seeks to improve employee and company performance by eliminating the waste of resources and process/product defects.
  • It combines the process improvement methods of Six Sigma and lean enterprise.
  • Lean Six Sigma helps to establish a clear path to achieving improvement objectives.
  • The Lean strategy was established by Toyota in the 1940s and attempts to streamline operational processes, from manufacturing to transactions.
  • Six Sigma originated in the 1980s and seeks to improve output quality by reducing defects.

Understanding Lean Six Sigma

Lean Six Sigma is a combination of Lean methodology and Six Sigma strategy. Lean methodology was established by Japanese automaker Toyota in the 1940s. Its purpose was to remove non-value-adding activities from the production process.

Six Sigma, on the other hand, was established in the 1980s by an engineer at U.S. telecommunications company Motorola who was inspired by Japan's Kaizen model. It was trademarked by the company in 1993. Its method seeks to identify and reduce defects in the production process. It also strives to streamline the variability of the production process.

Lean Six Sigma emerged in the 1990s as large U.S. manufacturers attempted to compete with Japan's better-made products. The combination strategy was introduced by Michael George and Robert Lawrence Jr. in their 2002 book Lean Six Sigma: Combining Six Sigma with Lean Speed.

Companies can arrange for Lean Six Sigma training and certification from a wide selection of organizations that specialize in the approaches of Lean Six Sigma and Six Sigma.

The Lean Six Sigma Concept

The lean concept of management focuses on the reduction and elimination of eight kinds of waste known as DOWNTIME, an acronym formed by the words defects, overproduction, waiting, non-utilized talent, transportation, inventory, motion, and extra-processing. Lean refers to any method, measure, or tool that helps in the identification and elimination of waste.

The term Six Sigma refers to tools and techniques that are used to improve manufacturing processes. The strategy attempts to identify and eliminate the causes of defects and variations in business and manufacturing processes.

Six Sigma's DMAIC phases are utilized in Lean Six Sigma. The acronym stands for define, measure, analyze, improve, and control. It refers to the data-driven five-step method for improving, optimizing, and stabilizing business and manufacturing processes.

A Lean Six Sigma approach that combines Lean strategy and Six Sigma's tools and techniques highlights processes that are prone to waste, defects, and variation and then reduces them to ensure improvement in a company's operational processes.

Lean Six Sigma Techniques

The techniques and tools used to accomplish essential goals of the Lean Six Sigma strategy include:

  • Kanban: Workflow management practices, such as work visualization and limited work in progress, which maximize efficiency and promote continuous improvement.
  • Kaizen: Practices that engage employees and promote a work environment that emphasizes self-development and ongoing improvement.
  • Value stream mapping: Analyze places to eliminate waste and optimize process steps.
  • 5S tool: Method to ensure that the workplace is efficient, productive, safe, and successful.

JIT

Lean Six Sigma Just-In-Time (JIT) training allows employees to focus resources on what customers need, when they need it, rather than building up unnecessary inventory.

Lean Six Sigma Phases

The DMAIC phases of Lean Six Sigma are Define, Measure, Analyze, Improve, and Control. They are used to identify and improve existing process problems with unknown root causes.

Define

Define the problem from a company perspective, stakeholder perspective, and customer perspective. Figure out the quality expectations that customers have and the extent of the problem.

Measure

Examine the current process and how it contributes to the problem. Determine whether the process can meet the previously defined quality expectations of customers. Match each process step to your quality criteria. Support your measurements with actual performance data.

Analyze

Examine all information gathered thus far to finalize the exact nature of the problem, its scope, and its cause.

Improve

Solve the problem and verify the improvement. Collaborate to structure a solution that eliminates both the problem and its cause. Use your data to ensure that the solution fits the issue at hand. Test the solution and derive performance data to support it.

Control

Monitor improvement and continue to improve where possible. Finalize acceptable performance criteria. Establish a plan that can deal with variations that occur, sustain improvements, and prevent a reoccurrence of the original problem.

DMAIC works best when used to solve a problem relating to a process, quality, or waste issue in an organization.

Lean Six Sigma Belt Levels

Lean Six Sigma training uses Belts to denote Lean Six Sigma expertise. The exact specifications for each Belt may differ depending on what organization provides the certification.

 Belt Level Meaning Reports To...
White Understands the meaning and goals of Lean Six Sigma, knows the terms associated with the methodology. Green or Black Belts
Yellow Understands essential Lean Six Sigma concepts, tools, and techniques; can be part of project teams and receive Just-In-Time (JIT) training. Green or Black Belts
Green Has some expertise in Lean Six Sigma strategy; can launch and manage Lean Six Sigma projects and provide JIT training to others. Focuses on the use of tools and the application of DMAIC and Lean principles. Black Belts
Black Advanced Lean Six Sigma expertise; can be full-time, cross-functional project team leaders, as well as a coach or mentor to Green Belts. Responsible for putting Lean Six Sigma changes into place. Master Black Belts
Master Black Has extensive Lean Six Sigma expertise; typically responsible for the Lean Six Sigma initiative. Can act as coach or mentor and monitor projects. Works with company leaders to identify efficiency gaps and training needs. C-suite executives

Benefits of Lean Six Sigma

There are a number of established benefits to Lean Six Sigma methods for employees, customers, vendors, and the company.

By increasing the efficiency of important processes, companies can improve the work experience for employees and the customer experience for buyers. This can build loyalty inside and outside of a company.

Streamlined, simplified processes can increase control and a company's ability to capitalize on new opportunities quickly. They can also lead to more sales and revenue, lower costs, and more successful business results.

Involving employees in a group or a company-wide efficiency effort can improve their skills (e.g., analytical thinking and project management), improve their growth opportunities, and boost camaraderie. By preventing defects, companies save on the time, money, and human effort previously required to identify and eliminate them.

Lean Six Sigma vs. Six Sigma

Lean Six Sigma and Six Sigma are two related strategies that can solve process problems. Both can help companies make noteworthy improvements in quality, efficiency, and use of time by analyzing the way their processes function. Both use the DMAIC phases/method. Both are based on creating a problem-solving workplace culture.

However, Six Sigma is focused on reducing defects and process variability to improve process output and quality to meet customer expectations. Lean Six Sigma is focused on reducing or eliminating the wasteful use of resources and defects to improve workflow and create more value for customers.

Lean Six Sigma combines aspects of Six Sigma (such as data analysis) and aspects of the Lean methodology (such as waste-eliminating tools) to improve process flow, maintain continuous improvement, and achieve business goals.

What Is the Meaning of Lean Six Sigma?

Lean Six Sigma is a process improvement strategy that seeks to eliminate inefficiencies in a company's process flow by identifying the causes of waste or redundancy and developing solutions to address them.

What Are the 5 Principles of Lean Six Sigma?

Define, measure, analyze, improve, and control are the five principles and phases of Lean Six Sigma. They're the steps practitioners take to create more efficient processes and a workplace culture that's focused on continuous improvement.

Why Is Lean Six Sigma Important?

Many consider it important for the measurable and consistent improvements in operations and business results that companies achieve using it. It also might be considered important because it combines the significant process streamlining of the Lean methodology of the 1940s with the Six Sigma data-driven approach of the 1980s.

What Is Lean Six Sigma Training?

Lean Six Sigma training instructs students in the basics of Six Sigma methodology, as well as the Six Sigma DMAIC roadmap. Students also learn how to apply the concepts in practical scenarios as they go through the courses.

How Much Does It Cost to Get Lean Six Sigma Training?

The cost of Lean Six Sigma Training varies depending on whether you take courses online, taught by a virtual instructor, or in-person, as well as the level of belt you are pursuing. A one-day White Belt training can range from $99 to $499. An eight-day Master Black Belt training costs $4975 for both in-person and live virtual training. A three- to four-day course in Lean Fundamentals ranges from $1300 to $2000 or $399 to $774 for an online training.

The Bottom Line

Lean Six Sigma is a management approach and method that endeavors to eliminate any wasteful use of resources plus defects in production processes so as to improve employee and company performance.

It draws on the Lean concept of the 1940s established by Japan's Toyota to reduce waste and the Six Sigma strategy of the 1980s established by U.S. company Motorola to reduce defects.

By combining these teachings, Lean Six Sigma puts the best of both to work to streamline efficient operations and financial outcomes for all kinds of organizations.

Article Sources
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