How does the Lean Six Sigma method for improving company processes differ from the separate methods Lean and Six Sigma? Would this method be beneficial for you even if you are not a production company? These and other questions regarding Lean Six Sigma are addressed by the website Project Times in an article titled Demystifying Lean Six Sigma.
Lean, Six Sigma and Lean Six Sigma are actually three different methods, each aimed at managing a company better, faster and cheaper. However, each of them approaches this objective from a different perspective. Lean Six Sigma arose as a natural development of the quality improvement processes used in production companies that started to appear in the 1950s (Lean) and 1980s (Six Sigma).
The Lean method strives to eliminate waste and increase the efficiency of processes – looking for these improvements in the area of speed and costs. The objective of Six Sigma is to eliminate deviations and limit defects by improving quality. Lean applies tools such as weekly meetings known as „Kaizen events“, value stream mapping and work load balancing. Six Sigma works with analytical tools such as Pareto analysis, control tables, statistical analysis and DPMO (defects per million opportunities).
Lean Six Sigma joins the Lean and Six Sigma methods together. It combines the time directed methods of Lean with the analytical tools of Six Sigma. It is based on DMAIC methodology (Define-Measure-Analyze-Improve-Control), which is a key component of Six Sigma, and in Lean Six Sigma it is used primarily for projects aimed at perfecting already existing processes.
Even though Lean Six Sigma has its roots in production, today it can be applied to practically all parts of an organisation. Companies use it primarily for:
- Management of initiatives to improve processes across functions, such as, for example, the induction of newly recruited employees,
- Improving the effectiveness of back office operations, such as accounts payable,
- Identifying new opportunities for utilising products,
- Re-shaping functions for the purpose of improving the quality of services provided.
The objective of applying Lean Six Sigma is to identify your real customer and what is of value to him. Focus is then applied to activities that will yield this value, whilst at the same time restricting activities that don’t provide it. The level of accomplishment at applying these methods within a company is recognised in the form of „belts“ awarded to employees who successfully obtain certification. An employee can be awarded three belts in succession – Green Belt, Black Belt and Master Black Belt. In this context a company should be careful not to make one of the most common mistakes – too much attention on the certification of employees at the expense of the commercial benefit of projects that they are working on.
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