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.