Job Aid: Key Developments in the Evolution of Lean and Six Sigma

Method Description/Effect on Six Sigma or Lean

Plan-do-check-act (PDCA) A simple four-step process improvement loop, first used in the 1920s.

PDCA forms the basis for both Six Sigma and Lean as process improvement
methodologies; PDCA maps to Six Sigma's DMAIC methodology.

Quality Circle An eight to ten-member team that meets independently to discuss ideas for
process and workflow improvement

Quality Circles demonstrated the importance and power of involving employees

in process improvement. Invented at Toyota, creators of Lean, Quality Circles
showed how effective independent well-trained teams could be in identifying
areas needing process improvement. Quality circles began in the US in the 1960s.

Statistical Process Control (SPC) A method for using control charts and statistics to assess variation and control
processes. SPC has been in use since the early 1980s.

One of the first uses of statistics in process improvement, SPC is heavily used in
both Lean and Six Sigma.

TQM and ISO 9000 A comprehensive quality management system and a set of international quality
standards. Enjoyed widespread use in the 1980s.

Total Quality Management was one of the first comprehensive performance

management systems. It focused on the importance of the customer, used statistics
to monitor processes, and identified numerous tools useful for process
improvement. ISO 9000 established quality standards for international commerce,
as well as provided guidelines for companies desirous of establishing
performance management. Elements of TQM and ISO 9000 were incorporated
into Six Sigma.

Baldridge Criteria for Excellence Guidelines an organization can use to achieve excellence in performance
management and customer satisfaction. The criteria were first published in the
late 1980s.

Benchmarking A method in which a company compares its performance against that of a best-in-
class company, with the aim of achieving equivalent performance. Benchmarking
was popularized in 1988.

Re-engineering A methodology that advocates throwing everything out and organizing anew
based on processes. Re-engineering was introduced in 1993.

This method of reorganizing to focus on processes and quality, rather than

functional silos is also used in Six Sigma.

Six Sigma A methodology for reducing variation and defects as well as improving quality
and customer satisfaction using a rich tool set and statistical analyses. Six Sigma
was popularized in 1995 by Jack Welch at GE. It's unarguably one of the most
popular methodologies used by a variety of industries for improving processes,
products, and services, as well as overall organizational performance.

Balanced scorecard A system for using metrics to evaluate four perspectives on organizational goals.
The balanced scorecard was popularized in 1996.

Six Sigma and the balanced scorecard dovetail. Companies first use the balanced
scorecard to define key metrics to measure performance, and then identify
performance gaps. Six Sigma is used at the project level to address those
performance gaps.
Method Description/Effect on Six Sigma or Lean

Lean A methodology focused on reducing waste, cost, and cycle time, and on
improving process flow. Created in Japan, the methodology that became Lean is
in widespread use in manufacturing and service sectors alike.