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2/3/2021 Process Improvement Explained: What is Lean Six Sigma?

MARCH 26

Process Improvement Explained: What is Lean Six


Sigma?
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A lot of people new to the subject often ask what lean six sigma is. Here’s a guide to
answer just that! For those that want it, the quick answer is as follows…

What is lean six sigma? Lean six sigma is the amalgamation of 2 process
improvement tools, namely lean manufacturing and six sigma. The
objective is to use the power of both under one seamless delivery.
Together, the lean six sigma practitioner can ensure that processes are
highly ef cient and agile (using lean), and of highly repeatable and
consistent quality (using six sigma).

If you want to know what lean six sigma is in greater depth, here’s the rest of the
article. You’ll know the ins and outs of both in next to no time…

Table of Contents

eO cial De nition of Lean Six Sigma

Lean in Detail

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Key Lean Tools



Six Sigma Explained

Key Six Sigma Tools


e Tree and the Garden

Lean Six Sigma – Selecting What to Use

Related Questions

De nition from ASQ


The American Society of Quality state that lean six sigma is…

… a fact-based, data-driven philosophy of improvement that values defect


prevention over defect detection. It drives customer satisfaction and bottom-line
results by reducing variation, waste, and cycle time, while promoting the use of
work standardization and ow, thereby creating a competitive advantage. It
applies anywhere variation and waste exist, and every employee should be
involved.
https://asq.org/quality-resources/six-sigma

Let’s break this de nition down a little, starting with lean.

Lean in a Little More Detail


Lean really is about one main thing. And that is, reducing lead time.

It focuses on making process improvement by eliminating waste. This in turn,


improves ef ciency. By improving ef ciency, you get things done faster.

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If you get things done faster, you can ultimately reduce the time it takes for a
customer to receive
 their products or service. Products, information and the service

you provide will be a lot smoother and will be delivered quicker.

And because you make things more ef ciently, it will cost less to process for you.

It’s truly a win-win.

e 5 Principles

At the heart of lean are 5 core principles. These 5 factors or steps, are used when
analysing a business and how it provides its services or products.

They are:

1. Understand Value in the eyes of the customer

2. Map the Value Stream so you can see waste

3. Make it Flow by removing wasteful activities

4. Create Pull to link processes and prevent over production

5. Continuously Improve and challenge the current way of doing things

Here’s What the 5 Principles of Lean Mean

Lean ensures that we put the customer rst. By understanding what they want, how
they want it, and what customer service they expect, we can then re-design our
processes to effectively deliver this, consistently and ef ciently.

We do this by mapping our processes rst, and identifying the wasteful activities or
the things that are slowing us down and draining time, effort and other resource.

When we spot this waste, we make our processes ow better by removing as much
of it as possible.

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Next, we link processes together so they work to the same pace and to stop them
pushing too much work through to the next stage, too soon. This prevents
overproduction and
 ensures our processes are optimised and working together.

Lastly, by constantly challenging how we work today, and striving to improve our
ef ciency and effectiveness, we continuously improve. This is the fth principle of
lean.

It enables us to:

Innovate and de ne tomorrow’s delights – things the customer will be wowed by


when we offer them this new service / product / experience.

Ways to speed up lead time to customer delivery – Every time you offer faster
and more agile services, you’re normally offering even more value to your
customers.

Improved reliability – which allows us to offer even better guarantees and after
service

Improved pro tability – consistently getting more out with what you already have
means stronger pro t margins and nancial performance

It’s why Kia were the rst to offer a 7 year warranty.

And Oxo backs everything they sell with a full refund…

Nordstrom offer free shipping and returns

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And all the global manufacturers in the world adopt lean just to compete with each
other. 


Examples of Lean in Action

It’s also why a construction project management company I worked with,


successfully reduced their lead time from 68 days to 30 days, to ensure that they
could get their projects completed fast and accurately for their clients.

How a Door Manufacturer turned their lead time from a few months to 2 weeks.

How a ful lment business went from offering 2 day deliveries to next day.

And how a furniture manufacturer went from 3 weeks to 5 day delivery and 10
times more customisation options for online orders.

Lean: Speed and Consistency

Think of lean as providing speed. Speed of output. And doing it consistently.

Using it doesn’t involve cracking the whip and getting people to work harder and
under even more duress.

It’s the opposite.

Strip the waste out of processes and you’ll shorten the time it takes.

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A process is full of Value Added Steps (what the customer is willing to pay for) and
Non Value Added (wasteful) steps

And by doing this, you’ll be able to create a higher value added ratio.

By stripping waste from processes, you


shorten the time it takes to complete the
activities. Your value added ratio improves
and lead time reduces.

Key Lean Tools


There are several common lean tools, which you’d expect deployed in any lean
facility:

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Value stream Mapping – Value Stream Mapping (VSM) is a visual tool that maps
the product, material
 and information ows from the customers’ order to the receipt
of nished goods. It allows you to see the waste and how you can improve your
processes for better

performance.

5S – 5S is the basis for Lean and the foundation for a disciplined approach to the
workplace. It involves (1) Sort, (2) Set, (3) Shine, (4) Standardize and (5) Sustain. The
net result: A visual workplace where everything is to hand and t and proper for use.

TPM – TPM involves restoring your equipment’s condition to as good or better than
new status. It also allows you to develop and implement procedures and check-lists
that ensure the equipment stays at that level of performance… so no time is lost to
downtime.

Error Proo ng – Error Proo ng is a systematic approach to preventing potential


defects from being passed on. Using error proo ng allows us to identify
opportunities for errors and eliminate or control them at source.

Standard Work – Standard Work involves de ning the optimum combination of


operators, machines and materials to ensure that a task is completed the same way
every time, with minimum waste and at the rate of customer demand. This ensures
that work is completed in the current most ef cient way.

Pull – Pull is a system of signals to previous process steps telling them to process
what’s been consumed. By linking processes to pull principles, you’re controlling
your entire value stream in terms of what to produce and when. That means little
planning, and over production – just a signal to make when the next step tells you to.

Set up Reduction – Set up Reduction is a systematic approach used to reduce the


non-productive time during set up. By deploying quick set ups, you can turn your
machines around faster. This means you’ll need less stock and smaller batches. Both
are ways to make your processes agile and faster.

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Continuous Flow – Continuous Flow is de ned as movement of material or


information from one
 value-added process to another without stopping. This means
no transport time or storage in buffers. Everything is processed in a spirit of “make
one – move one”. In
 a continuous ow environment, rate of production of the entire
product stream exactly matches the customer demand (Takt). This means that these
processes are fast and ef cient.

There are of course, others but the above are the main tools. All are geared to
reduce the waste in processes, which in turn allows for them to be faster and more
effective.

Six Sigma Explained


Six Sigma improves the quality within processes. It aims to reduce errors to a
minuscule amount. Statistically, this amount is 3.4 defects per million opportunities.

So, if we’re making 1 million widgets, and we had a six sigma process, we’d expect
roughly 3 errors.

If we made 1 million cars, the same would apply.

Or processing 1 million claims… you guessed it, we’d expect around 3 errors.

That’s the ultimate goal of Six Sigma – to improve processes so they are accurate
and precise enough to provide 3.4 defects per million.

Six Sigma and Statistics

There are 2 key components of Six Sigma:

1. The improvement roadmap, which you work through in your process


improvement project

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2. The statistics used to identify and eliminate the factors that are preventing near
perfect output 

e Six Sigma Roadmap


Six Sigma has a robust improvement roadmap that practitioners follow. It’s called
DMAIC and stands for:

De ne – De ne the problem and understand the situation, using data.

Measure – Measure the problem to identify the accuracy and precision of the
process

Analyse – Analyse the process to see what factors are statistically causing the
defects

Improve – Eliminate these factors and re-design the processes to support the
improved way of working

Control – Create process standards and measures to ensure the new process is
followed and sustained

It’s All About “Y=fX”

Six Sigma is all about the formula Y=fX


(or Y = the function of X).

Here’s what I mean:

A process has an output. Let’s call


this ‘Y’
The output is the sum of all its inputs….
There are variables that go into the
process. Each variable is an ‘X’

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Therefore, the quality of the output of this process is dependant on the variables
that go into it – Y=fX

Here’s a diagram to help:

A process output (y) is only as good as the variables (x’s) that go into it

The quality of the inputs to a process have an impact. Is the material to the right
speci cation? Is the information correct?

So too, the controls. Is the standard work suf cient? How good is the equipment?
What about the samples and jigs?

The resources also affect the quality of the process. Are people trained to a
competent level? Are they working the right way? Is there enough resource?

All these variables (or X’s) have an affect on the output of the process in their own
right.

It’s Six Sigma’s job to nd the big hitters and prove that they affect the quality of the
process… and then eliminate them.

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e Funnel

Whilst lean has a lot more practicality – focusing on observation whilst making

quick improvements… Six Sigma is enveloped in statistics. It does this to statistically

and categorically prove which variables affect the outcome you’re trying to improve.

When we engage in a Six Sigma project,


we use the DMAIC process to ensure
that we constantly learn more about our
process.

As we go through the DMAIC steps, we


inherently uncover more.

At the start of our project, we will have


many X’s. These are all the ideas we
have that may be causing the problems
that we’re trying to overcome.

As we progress through DMAIC, we


continue to weed out those factors that
Think of DMAIC as a way of helping you
do not have an impact, until we are left
get down this funnel to identify the vital
with the variables that are causing the
few X’s.
problem…or the vital few.

These variables (or X’s) can be veri ed using statistics and analysis.

The relationship between the X’s and the DMAIC process can be seen in this funnel
above.

Key Six Sigma Tools


Some of the main Six Sigma Tools can be shown across the DMAIC roadmap.

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Process Mapping – Allows us to see the lower level steps in the process, so we can
start to identify all the potential X variables. We may well have over 70 X’s identi ed
after this exercise.

Cause and Effect Matrix – This then allows us to score each X, so we can disregard
those that the team feel are not signi cantly affecting the output of the process.
After this exercise, we could have around 20 or so X’s left.

Failure Mode Affects Analysis – This allows us to drill down even more, cutting
some more X’s away, further.

Statistical Process Control – Allows us to see how stable our process is, and what
we need to do to improve it.

Components of Variation Study – Allows us to really drill down to a few variables


(X’s), and run experiments (Design of Experiments), to see how these factors
statistically relate to each other. All the time, we’re looking to eject some variables,
so we’re left with the vital few that are proven to impact our process.

Capability Study – Allows us to determine how capable our process is and should
be when those factors that are causing the problems, are removed. (Remember our

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3.4 defects per million goal? Well, we can analyse the process to see how it should
perform once the vital
 few have been eliminated)

Control Plans – Allow



us to make changes to the process, based on our ndings…
and keep it that way, so the process is stable, standardised and controlled.

Once a project has been completed, you’ll see a complete transformation.

There is a bit of heavy lifting when it comes to Six Sigma, but it’s worth it in the end.

e Tree and the Garden


The truth is that when your job is to improve processes, you may as well have both
lean and six sigma in your toolbox, so to speak. Combined, they form the common
phrase “lean six sigma.”

You’ll get consistently high quality and ef cient processes, all in one project.

Imagine a tree at the end of a garden.

This tree is creating a poor yield of fruit. The fruit produced is often too small and of
poor quality in so much as it’s just not edible.

Also in the garden are weeds that’s covering the path,


overgrown grass and shrubs, a broken fence… and a generally
poorly kept garden.

In our analogy, you’d use lean to improve the ‘ ow’ or easy


access to the tree, xing the broken fence, improving the
housekeeping, and reducing the hard labour that would go
into maintaining the garden.

Create easy access


and ow to the

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tree…

You’d then use Six Sigma to improve the yield of the tree,
so that you can get consistently high quality and
repeatable fruit.

Perfect fruit, (nearly)


every time!

You now have a clean and controlled garden, which produces wonderful fruit with
only (statistically) 3.4 inedible fruit per million picked…

Lean Six Sigma Combined

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With lean, you get speed. It’s brought to you through waste elimination, and
standardisation. Using
 pull and ow further improves agility and ef ciency.

With Six Sigma, you’ll



focus on identifying the vital few X’s that cause the defects.
Once eliminated, you get process stability and accuracy, so you can produce top
quality output practically every time.

When you combine the two tools, you get process stability and accuracy AND
speed and throughput.

Lean Six Sigma: Selecting What to Use


The tools you use can often be intertwined at times.

If you were using either lean or six sigma as a standalone project, you would see
similarities. For instance, a VSM may well be used at the start of either a lean project
or a Six Sigma one.

You can use process maps in both projects.

Failure Mode Effects Analysis is also used across projects…

And so too is standard work, work instructions and even cause and effect diagrams.

The point is to use the tool you need to get the job done and improve what needs to
be xed.

Sometimes you may only need to dip into statistical process control, whilst using the
core lean tools to x a process.

Other times, you may need to look at the whole process using DMAIC in a detailed
way.

The point is this:

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If You Know What to Fix… Then Fix It!


If you really don’t


 know how to x the problem and it seems a pretty
technical issue…
 then it may well be a Six Sigma project, whereby you’ll
need some of the more detailed tools to help expose those vital few X’s.

As a practitioner, Lean Six Sigma gives you the ability to know what tool to use to
improve a process, without adding unneeded complexity.

Related Questions
What Typical Sequence Would You Follow Using Lean Six Sigma?

Here’s a rule of thumb to follow with most processes. These steps combine lean six
sigma as a methodology:

1. Always focus on the customer and how you can add more value

2. Map the value stream and see how the work gets completed.

3. Eliminate waste to make the vale streams ow

4. Use data to reduce variation and root causes to problems

5. Use the people in the processes to drive improvements. Change can’t be done for
them.

6. Use DMAIC as a powerful memory jogger to help improve processes and


overcome problems.

Is there a Lean Six Sigma quali cation? The answer is yes! Lean Six Sigma follows
the standard Six Sigma grading structure. The grading increases as you learn more
and prove your skills through successful projects.

The grades are as follows:

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White Belt – simple understanding of lean six sigma

Yellow Belt – simple



understanding of lean six sigma and helps collect data

Green Belt – Can



lead projects and deliver the lean six sigma tools

Black Belt – Can lead multiple projects and coaches the Green Belts

Master Black-belt – Helps deploy Lean Six Sigma as a strategic initiative and
ensures that the culture of the business adopts Lean Six Sigma

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