All About Difference Between Lean And Six Sigma

A method that provides organizations tools to improve the capability of their business processes. This increase in performance and decrease in process variation lead to defect reduction and improvement in profits, employee morale, and quality of products or services.

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What Is Six Sigma?

Six Sigma quality is a term generally used to indicate a process is well controlled (within process limits ±3s from the center line in a control chart, and requirements/tolerance limits ±6s from the center line).

Different definitions have been proposed for Six Sigma, but they all share some common threads:

  • Use of teams that are assigned well defined projects that have direct impact on the organization’s bottom line.
  • Training in “statistical thinking” at all levels and providing key people with extensive training in advanced statistics and project management. These key people are designated “Black Belts.”
  • Emphasis on the DMAIC approach to problem solving: define, measure, analyze, improve, and control.
  • A management environment that supports these initiatives as a business strategy.

 

Differing opinions on the definition of Six Sigma

Philosophy: The philosophical perspective views all work as processes that can be defined, measured, analyzed, improved and controlled. Processes require inputs (x) and produce outputs (y). If you control the inputs, you will control the outputs. This is generally expressed as y = f(x).

Set of tools: The Six Sigma expert uses qualitative and quantitative techniques to drive process improvement. A few such tools include statistical process control (SPC), control charts, failure mode and effects analysis, and process mapping. Six Sigma professionals do not totally agree as to exactly which tools constitute the set.

Methodology: This view of Six Sigma recognizes the underlying and rigorous approach known as DMAIC (define, measure, analyze, improve and control). DMAIC defines the steps a Six Sigma practitioner is expected to follow, starting with identifying the problem and ending with the implementation of long-lasting solutions. While DMAIC is not the only Six Sigma methodology in use, it is certainly the most widely adopted and recognized.

Metrics: In simple terms, Six Sigma quality performance means 3.4 defects per million opportunities (accounting for a 1.5-sigma shift in the mean).

The Define Measure Analyze Improve Control (DMAIC)

Process DMAIC is a data-driven quality strategy used to improve processes. It is an integral part of a Six Sigma initiative, but in general can be implemented as a standalone quality improvement procedure or as part of other process improvement initiatives such as lean.

DMAIC is an acronym for the five phases that make up the process:

  • Define the problem, improvement activity, opportunity for improvement, the project goals, and customer (internal and external) requirements.
  • Measure process performance.
  • Analyze the process to determine root causes of variation, poor performance (defects).
  • Improve process performance by addressing and eliminating the root causes.
  • Control the improved process and future process performance.
DMAIC flowchart

Six Sigma Tools

The Six Sigma expert uses qualitative and quantitative techniques to drive process improvement. Although the tools, themselves, are not unique, the way they are applied and integrated as part of a system is. Six Sigma professionals do not always agree as to exactly which tools constitute the set. Some of the statistical and graphical tools commonly used in improvement projects are listed below.

Defining a problem, improvement  opportunity, or requirements:

  • Project charter to define the focus, scope, direction, and motivation for the improvement team
  • Voice of the customer to understand feedback from current and future customers indicating offerings that satisfy, delight, and dissatisfy them
  • Value stream map to provide an overview of an entire process, starting and finishing at the customer, and analyzing what is required to meet customer needs

 

Measuring process performance:

  • Process map for recording the activities performed as part of a process
  • Capability analysis to assess the ability of a process to meet specifications
  • Pareto chart to analyze the frequency of problems or causes

 

Analyzing processes to determine root causes of variation, defects, or poor performance:

  • Root cause analysis to uncover causes
  • Failure mode and effects analysis for identifying possible product, service, and process failures
  • Multi-vari chart to detect different types of variation within a process

 

Improving process performance by addressing root causes:

  • Design of experiments (DOE) to solve problems from complex processes or systems where there are many factors influencing the outcome and where it is impossible to isolate one factor or variable from the others
  • Kaizen event to introduce rapid change by focusing on a narrow project and using the ideas and motivation of the people who do the work

 

Controlling the improved process and future performance:

  • Control plan to document what is needed to keep an improved process at its current level
  • Statistical process control (SPC) for monitoring process behavior
  • 5S to create a workplace suited for visual control
  • Mistake proofing (poka-yoke) to make errors impossible or immediately detectable

 

Additionally, Six Sigma team leaders often use project management tools such as Gantt charts and team engagement tools like brainstorming and nominal group technique.

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Six Sigma Belts, Executives and Champions – What Does It All Mean?

Six Sigma professionals exist at every level – each with a different role to play. While implementations and roles may vary, here is a basic guide to who does what. At the project level, there are black belts, master black belts, green belts, yellow belts and white belts. These people conduct projects and implement improvements.

  • Black Belts: Leads problem-solving projects. Trains and coaches project teams.
  • Green Belt: Assists with data collection and analysis for Black Belt projects. Leads Green Belt projects or teams.
  • Master Black Belt: Trains and coaches Black Belts and Green Belts. Functions more at the Six Sigma program level by developing key metrics and the strategic direction. Acts as an
    organization’s Six Sigma technologist and internal consultant.
  • Yellow Belt: Participates as a project team member. Reviews process improvements that support the project.
  • White Belt: Can work on local problem solving teams that support overall projects, but may not be part of a Six Sigma project team. Understands basic Six Sigma concepts from an awareness perspective.

 

Every project needs organizational support. Six Sigma executives and champions set the direction for selecting and deploying projects. They ensure, at a high level, that projects succeed, add value and fit within the organizational plan.

Champions: Translate the company’s vision, mission, goals and metrics to create an organizational deployment plan and identify individual projects.
Identify resources and remove roadblocks.

Executives: Provide overall alignment by establishing the strategic focus of the Six Sigma program within the context of the organization’s culture and vision.

Implementing Six Sigma

Six Sigma implementation strategies can vary significantly between organizations, depending on their distinct culture and strategic business goals.

After deciding to implement Six Sigma, an organization has two basic options:

  • Implement a Six Sigma program or initiative
  • Create a Six Sigma infrastructure

Option 1: Implement a Six Sigma Program or Initiative

With this approach, certain employees (practitioners) are taught the statistical tools from time to time and asked to apply a tool on the job when needed. The practitioners might then consult a statistician if they need help. Successes within an organization might occur; however, these successes do not build upon each other to encourage additional and better use of the tools and overall methodology.

When organizations implement Six Sigma as a program or initiative, it often appears that they only have added, in an unstructured fashion, a few new tools to their toolbox through training classes. A possible extension of this approach is to apply the tools as needed to assigned projects. However, the selection, management, and execution of projects are not typically an integral part of the organization.

These projects, which often are created at a low level within the organization, do not have the blessing of upper management; hence, resistance is often encountered when the best solution directly affects another group that does not have buy-in to the project. In addition, there typically is no one assigned to champion projects across organizational boundaries and facilitate change.

A program or initiative does not usually create an infrastructure that leads to bottom-line benefits through projects tied to the strategic goals of the organization. Six Sigma then risks becoming the “flavor of the month” and will not capture the buy-in necessary to reap a large return on the investment in training.

Even if great accomplishments occur through the individual use of statistical tools within organizations, there is often a lack of visibility of the benefits to upper management. A typical missing element for success with this approach is management buy-in.

Because of this lack of visibility, practitioners often have to fight for funds and may be eliminated whenever the times get rough financially.

Effective use of statistical tools often does not get recognized and the overall company culture is not affected. For true success, executive-level support is needed that asks the right questions and leads to the wise application of statistical tools and other Six Sigma methodologies across organizational boundaries.

Option 2: Create a Six Sigma Infrastructure

Instead of focusing on the individual tools, it is best when Six Sigma training provides a process-oriented approach that teaches practitioners a methodology to select the right tool, at the right time, for a predefined project.

Deploying Six Sigma as a business strategy through projects instead of tools is the more effective way to benefit from the time and money invested in Six Sigma training.

Consider the following benefits of Six Sigma deployment via projects that have executive management support:

  • Offers bigger impact through projects tied to bottom-line results
  • Utilizes the tools in a more focused and productive way
  • Provides a process/strategy for project management that can be studied and improved
  • Increases communications between management and practitioners via project presentations
  • Facilitates the detailed understanding of critical business processes
  • Gives employees and management views of how statistical tools can be of significant value to organizations
  • Allows Black Belts to receive feedback on their project approach during training
  • Deploys Six Sigma with a closed-loop approach, creating time for auditing and incorporating lessons learned into an overall business strategy

A project-based approach relies heavily on a sound project selection process. Projects should be selected that meet the goals of an organization’s business strategy. Six Sigma can then be utilized as a road map to effectively meet those goals. Initially, companies might have projects that are too large or perhaps are not chosen because of their strategic impact to the bottom line. Frustration with the first set of projects can be vital experience that motivates improvement in the second phase.

Conclusion

Six Sigma is a long – term commitment. Treating deployment as a process allows objective analysis of all aspects of the process, including project selection and scoping. Utilizing lessons learned and incorporating them into subsequent waves of an implementation plan creates a closed feedback loop and real dramatic bottom-line benefits if the organization invests the time and executive energy necessary to implement Six Sigma as a business strategy!

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