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Best Of Both Worlds: The Lean Six Sigma Approach

Categories: Lean Six Sigma
June 9th, 2011 by

In recent years, the combination of Lean principles and Six Sigma has led to the introduction of a new methodology: Lean Six Sigma. Combining Lean’s “waste elimination” with Six Sigma’s powerful statistical analysis tools, the end result – Lean Six Sigma, utilizes the best of both quality concepts, enabling companies to achieve a high level of operational excellence.

What characterizes Lean Six Sigma?

To understand this one should first look at each methodology in isolation. The Lean approach’s primary focus is to continuously improve process by eliminating waste. In order to do that, Lean has introduced a number of tools such as Value Stream Mapping (mapping out a process flow to identify non value-additions), Takt Time, Ishikawa (cause and effect) diagram, Kaizen (continuous improvement), 5 Whys and Poka Yoke (mistake proofing). Six Sigma, on the other hand, looks at improving quality by measuring and eliminating defects, and hence meeting customer expectations. Six Sigma leverages on powerful statistical analysis tools like Gage Repeatability and Reproducibility (GRnR) and control charts to produce expected results.

Because of the impressive results demonstrated by major companies, in using either one of Lean or Six Sigma, most organizations in the world today implement either of the two methodologies. These techniques have even been successfully implemented in Internet companies solely serving virtual customers. The lengths of which these tried and true techniques will work to help make both online and offline companies more efficient is endless. With increasing revenues, many companies will post higher earnings which translate into employees making more money and being inspired to implement more Six Sigma theories. Learning how to make money online and implementing these tactics in both Internet companies and brick and mortar corporations is important to the future stability of both types of companies.

However, there are limitations in using either one alone: Lean projects aim at delivering clearly visible results with quick turnaround times, but at the expense of advanced statistical tools often required to measure and reduce defects. Six Sigma projects, on the other hand, in using these tools, often take months to complete and hence are not as quick-hitting as Lean projects. Lean Six Sigma, then, aims at using the powerful tools of Six Sigma, along with Lean’s quick turnaround time, to provide a clearly measurable output as fast as possible.

Six Sigma taken alone, usually follows either of two approaches: DMAIC or DMADV. Both are phased approaches:

DMAIC (Define opportunity, Control performance, Improve performance, Analyze opportunity, Measure performance) is used for projects aimed at improving an existing business process.

DMADV (Define Measure Analyze Design and Verify), or DFSS (Design for Six Sigma) is helpful when a new product or process is created. Within each of the phases, Six Sigma uses many established quality management tools to either measure or control performance.

Every Six Sigma undertaking identifies roles for each participant taking part in the initiative: Champions take responsibility for Six Sigma implementation across the organization, Master Black Belts act as in-house coaches for Six Sigma and identify projects where Six Sigma can be applied. Black Belts, working under Master Black Belts, apply Six Sigma methodologies to specific projects. Green Belts utilize this tool to enhance their regular job responsibilities, under the guidance of Black Belts.

Lean Six Sigma aims to integrate Lean principles and tools into Six Sigma. For example, a Value Stream Map can be incorporated into the “Analyze” phase of a DMAIC, effectively allowing an organization to map a process flow and thereby identify wastages. “Improve” phases in Six Sigma projects could utilize the Lean principle of Kaizen (small improvements, continuously implemented). In areas where there is not enough data to be able to use a statistical tool, Lean concepts like Ishikawa (cause and effect diagram) and 5 Why can be used to identify root causes of issues. Likewise, the “Improve” phase of a Six Sigma can incorporate the Lean principle of Poka Yoke (mistake proofing). Hence Lean Six Sigma combines the power of statistics with the quick-hitting waste elimination techniques of Lean, bringing down average project execution time from six to eight months, to a matter of weeks.

The concept of Lean Six Sigma has been used across various industries with substantial results. It has enabled organizations to evolve effective and not just efficient systems for working. As an IBM paper on Lean Six Sigma puts it, “a Lean Six Sigma approach drives organizations not just to do things better but to do better things”, moving the focus from improvement to innovation. Companies are using Lean Six Sigma to redefine entire businesses – product and service offerings, business models and operations. The level of success achieved by them provides encouragement for companies hoping to implement – and reap the benefits of – Lean Six Sigma.

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Benefits Of Implementing Six Sigma In Organizations

Categories: Six Sigma
June 9th, 2011 by

The definition of Six sigma is a measure of quality that strives for perfection at many organizations. It is a disciplined and data-driven methodology and approach for removing the defects from any process from manufacture to transaction and from products to service. Process excellence is just one outcome of Six Sigma when it’s implemented and managed properly. The main objective of the methodology is the implementation of a measurement-based method for focusing on variation reduction and process improvement with the application of six sigma improvement projects. This can be accomplished by using two sub methodologies DMADV and DMAIC. The DMADV process is an improvement system used for developing new products at the quality levels of six sigma. The DMAIC is a process for improving the existing processes that are below the specification and need improvement. Both these types are executed by the Black Belts and Green Belts and overseen by the Master Black Belts.

In order to implement the system in any business the following facilitators are required in the hierarchy.

Executive leaders: They belong to the top-level management and are also responsible for the specific policies and guidelines required for implementing six sigma. They can appoint subordinate leaders and assign certain functions to them.

Champions: They are chosen by the executive leaders from higher ranks of management. They are responsible for actually putting into action the vision put forward by their leaders. They are responsible for training people under them too.

Master black belts: The group is responsible for making the policies known and understood by the people under them. They act as coordinators between the champions, the direct superiors, the subordinates and the black belts.

Black belts: They lead the rest of the people in observing the six sigma principles in the various business processes. They are fully trained by the master black belts and are responsible for carrying out the orders of the higher ranks. They have to ensure that everyone adheres to the guidelines.

Green belts and yellow belts: They are from the work force of the business, trained in the six sigma philosophy. They are also responsible for ensuring that the employees of the lower ranks perform their actions for the system.

What Makes Six Sigma Work

There are several benefits of implementing six sigma in any organization. It will lead to overall growth and customer satisfaction. Some of the benefits are as follows. Increase in customer loyalty is one of the main benefits of employing the system. The company will be able to produce better products which mean that the customers will be back for the same. There is increases shareholder value, customer satisfaction, employee satisfaction and an increase in the bottom lime itself. There are a lot of benefits to the supply chain as well. Smaller organizations can also benefit by implementing six sigma. They can introduce some high-level methods like process monitoring and dashboards. The system can also be implemented in stages in various departments. When implemented properly it includes all the people who implement the processes and those who are affected by the changes. By following this systematic approach to understanding and managing processes, the organizations can experience an overall positive change in the way they function.

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IQPC Process Excellence Summit

Categories: Events
May 31st, 2011 by

If you’re a Process Excellence professional, or just interested in learning more about business management strategies, then you’ll want to make sure you attend the IQPC Process Excellence Summit in Sydney, June 28-30. It’s sure to be an informative jam packed session that your sure not to miss.

There will also be an awards ceremony at this years event so you’re sure not to want to miss it.

What will be covered at this years IQPC Process Excellence Summit? For starters, here is just a sampling of what will be covered.

  • Effectively deploying projects
  • Optimising Customer Satisfaction
  • Driving Culture Change
  • Mitigating Operational Risk

This is Australia’s premier Process Excellence event and one that no one is sure to want to miss. It will be covering real life practices of process excellence, tips, strategies and other business management practices that will help you maintain your competitive edge in the business world.

There will also be seminars from leading Process Excellence leaders and experts covering a wide range of subjects. As if that wasn’t enough, there’ll be evening workshops that you can attend for further learning potential. These workshops will cover subjects such as driving business improvement for greater customer satisfaction, strategic change management and leadership skills, advanced BPM methods and techniques unleashing the power of process in your organization today and optimising your leadership role to achieve effective deployment.

Not only that, but you can actually obtain your certification in Certified Process Practioner, CPP for short, which is a level 1 certificate.
When you take the Master course for your CPP certification, you’ll also receive the book “Outside-In. The secret of the 21st century leading companies”. A great deal by any means!

In today’s business environment, it’s more important than ever to learn process improvement techniques and strategies that can help your company or organization to differentiate on customer experience and maintain a strong competitive advantage in the business world.

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Welcome to ProcessExcellenceWeek.com

Categories: General News
May 27th, 2011 by

How safe do you think your business is from falling profits in the current economic climate? Want to learn how to protect it by using the latest, most relevant Process Excellence tools around today? This fast-paced Annual conference delivers the newest, most powerful methods and quicker-to-implement projects for delivering significant bottom line results for your entire organization.

What will I learn from this event?

  • Discover how to customize your Process Excellence toolkit to make more effective improvements for your business
  • Sell your Process Excellence internally: bring your entire organization on board your Process Excellence program by gaining effective buy-in and by using current best practice in organizational change management.
  • Achieve clear visibility in your business operations by adapting appropriate metrics quickly and exploring the latest business intelligence solutions
  • Keep your competitive edge by balancing Process Excellence with the right amount of innovation
  • Develop and keep your Process Excellence talent by choosing the right training options and career development plans
  • Lead your company with both agility and sustainability by making the right strategic decisions at each stage of deployment for your Process Excellence program.
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