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INTRODUCING AGILE SIGMA

By Timothy Gaffney
 8 COMMENTS

When it comes to selecting the “right” business process improvement


methodology, many CEOs, CIOs and COOs have a wide array of options
available including Six Sigma, Lean, Lean Six Sigma and ISO9000. The
selection process then typically focuses on evaluating business drivers
and deciding on an improvement methodology that closely matches their
needs to improve business process performance and meet changing
customer needs.

That’s where the challenge typically occurs for many executives – to find
the methodology that consistently delivers significant impacts for
customers and business operations while also doing so nimbly,
innovatively and with agility. In other words, business executives today
need a business process improvement methodology that enables
significant, sustainable and customer-centric process improvement
results – quickly and cost effectively.
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Business executives feel the need for speed to remain competitive.


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Existing Process Improvement


Methodologies
To find the right methodology, the evaluation of available options typically
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includes the widely usedLean
approachesSix Sigma
listed in Table 1, including pure and
hybrid methods that have evolved over time. Specific attributes for each
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methodology are also listed, for comparison of the various approaches.

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Six Table
Sigma1:Level
Widely Used Business Process Improvement Methodologies
and Their Attributes

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While Six Sigma programs have consistently delivered significant,
We sustainable
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and financially at any time. results, the methodology is
known as being “too slow” and “too stodgy” as well as relatively
expensive to implement and grow. Further, Six Sigma improvement
projects are typically designed to be one and done – to deliver a singular
improvement in the process performance (sigma) level. Six Sigma
projects then use controls to maintain and sustain that gain for at least a
year, which by definition leaves process optimization opportunities on the
table.

In contrast to Six Sigma, Lean principles and techniques have been


employed in a variety of business process improvement programs,
predominantly in manufacturing to deliver rapid improvements with little
investment. Criticisms of lack of sustainability and financial accountability
have been leveled at the Lean approach.
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Handpicked Content: A Case of Mistaken Capability

Six Sigma
Lean Six Level
Sigma is a hybrid approach that evolved as an option to utilize
the synergies between the pure Six Sigma approach of reducing process
variation and defects with the Lean principles of improving flow and
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eliminating wastes to improve process performance.

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Developing Agile Sigma

The synergies between these two approaches – Agile and Six Sigma –
to deliver more value together are apparent. Six Sigma provides
significant and sustainable results, but takes too long (typically). On the
other hand, Agile is fast and effective, using an iterative Scrum-based
improvement approach leveraging team and tribal knowledge to meet
users’ needs.

To benefit from that synergy, the best of Six Sigma and Agile have been
combined into a single methodology – Agile Sigma. Development of the
new methodology began in 2016, and Agile Sigma is now ready to be
used by any type of business to improve their processes significantly and
quickly to deliver increased value for their customers.

Agile Sigma can enable businesses to deliver improved processes more


quickly and effectively.

The new Agile Sigma approach is a four-phase adaptation of the


standard five phase Six Sigma DMAIC (Define, Measure, Analyze,
Improve, Control) methodology – to provide a streamlined process for
more efficient execution and results.
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Figure 1: Overview of Agile Sigma


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The four phases of Agile Sigma as shown in Figure 1 are:

Phase 1.0: Assess and plan

Phase 2.0: Measure and analyze

Phase 3.0: Improve and validate

Phase 4.0: Iterate and optimize

Agile Sigma also preserves and includes the most effective attributes of
the Six Sigma DMAIC approach, including customer-centric process and
metrics analysis, statistical analysis-based decision-making, financial
accountability and sustainability of results.
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Figure 2: Standard Agile Model


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The
Six AgileLevel
Sigma Sigma method also integrates the Scrum team approach,
sprint cycles and iterative process improvement techniques of the
standard Agile development method (as shown in Figure 2) to deliver
Signmore
significantly improved processes Me Up
rapidly. Agile Sigma uniquely
applies the iterative sprint cycle concepts to the Six Sigma project
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approach, to initially achieve and validate an improved process Sigma
level as the first level of improvement (i.e., moving from a baseline of
σ0.0 [baseline] to σ1.0 [new improved process performance level])
before transitioning to the Control phase.

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Way'
After the initial improvement, when most Six Sigma projects would be
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going for closure, Lean
the Agile SigmaSix Sigma
team then continues to improve and
validate the process iteratively via additional sprints to deliver optimized
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process performance before closing the project and sustaining the
results and financial benefits for 12 months.
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The Key Differences

Streamlined
First Name Process to Deliver Projects Effectively and Quickly

Agile Sigma streamlines the standard DMAIC approach for process


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improvement by combining, replacing and refining activities, while also
identifying activities that could be accomplished concurrently. In Agile
Sigma,
Six Sigmaiterative
Level team-centric processes are used to improve and validate
processes prior to statistical testing. In contrast, on Six Sigma DMAIC
projects, large amounts of time and effort are expended by the team to
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identify, prioritize, collect, analyze and package possible process inputs
that may affect the outputs significantly.
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Iterative Processes that Leverage Team Expertise and Knowledge


for a Quicker Path to Improvements

Agile Sigma uses iterative processes for multiple sprint cycles to deliver
improved process performance. Within each sprint cycle, there are
iterative Scrum-validation team cycles to enable identifying and using
key contributing factors to improve, and then test and validate the
improvements. The Scrum and validation teams use their expertise and
knowledge via this iterative cycle to improve the process to meet the
sprint objectives prior to statistical testing and analysis.

In Agile Sigma, through use of this iterative Scrum-validation team cycle,


nested within an iterative sprint cycle, the teams hone in on and “tune”
the improvements that make a difference to the users and customers of
the process prior to statistical testing and rollout when significance is
demonstrated.

Handpicked Content: Use a Classification and Regression


Tree (CART) for Quick Data Insights
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First Name Processes – Iterate Until Optimized, No One-and-Done


Optimizes
Improvements

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Once the improvements have been rolled out in a Six Sigma project, the
results are maintained and sustained for 12 months to achieve the
Six Sigma benefits
financial Level projected based on the initial improvements. One and
done. No further improvements are typically implemented once in the
Control phase.
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In contrast, on an Agile Sigma project, once the initial improvements


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have been rolled out, then the Scrum and validation teams continue to
iterate and optimize the process (in the final project phase) to achieve
ever-higher process sigma performance levels (e.g., σ1.1, σ1.2, σ2.0,
etc.), iteratively and incrementally to achieve project goals (see Figure 3
below).

Figure 3. Iterative Achievement of Optimized Process


Performance (as Measured by Process Sigma Level)

Existing Process Improvement


Methodologies, Including Agile Sigma

With the introduction of Agile Sigma as an option available to business


executives, there is now an alternative that provides all the benefits of
Six Sigma, while retaining the rapid delivery of benefits attributes of
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Agile. Agile Sigma offersLean
businessSix Sigma
executives and managers an option
that:
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Delivers results quickly: Improves processes iteratively, satisfying the
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need for speed

Enables data-driven decision-making based on statistics: You’re


making “good” decisions
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Delights your customers: The methodology, metrics and tools are all
customer-centric
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Provides financial accountability: You’re getting the actual benefits on
the books
Six Sigma Level
Uses the existing team’s knowledge and expertise: To deliver
improvements that matter more quickly
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Table 2: Widely Used Business Process Improvement Methodologies


and Their Attributes, Including Agile Sigma
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Blending ISO9000
and Lean Six
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Comments 8
Don Hutchcraft
Improve Your
I just finished tying a Lean Six
blog for this very Sigma
concept! I have been working
Knowledge
on it for 3 monthsTODAY
now, but this for
is veryFREE
well written. Kudos to you! I
guess great minds do think alike.
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Kris shaw

How would you set up a curriculum to teach Agile Sigma?


Six Sigma Level
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Junalie Custodio

Hi, Interested in this course. How can i enroll? Hopefully you have
something online or reference materials

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