Six Sigma and Lean Six Sigma (LSS)

Lean and the Six Sigma business strategies have proven in the past two decades that it
is possible to achieve significant improvements in terms quality, cost efficiency and time
by focusing and upgrading performance of various in-house processes. Whereas Six
Sigma is focused on reducing process fluctuations and improving process output by
following a problem-solving approach using statistical metrics, Lean is primarily
concerned with elimination of wastes and improving the in-house workflow.

Manufacturing giants like General Electric, Motorola, and Toyota have attained
successful results as implementation of Lean Six Sigma as business strategy. However,
it must be remembered using one of them alone has several acute limitations: Six
Sigma can eliminate defects but it will not address the issue of optimizing process flow;
whereas the Lean principles exclude the use of advanced statistical metrics required to
estimate and compress the process capabilities so that they become lean in the true
sense. Therefore, Six Sigma and Lean are often two sides of the same coin. And as
each approach can result in dramatic improvement, utilizing both methodologies
simultaneously can promise identification and rectification of the problems at the root
level using most appropriate toolkits. For example, attaining a goal of zero inventory not
only requires reduction in batch sizes and inter-linking of various operations by using
Lean, it also implies minimizing process fluctuation by utilizing Six Sigma tools.

However, it would be better for us to have a little insight into very basic differences
between Lean and Six Sigma. The differences arise at the goal level themselves: Six
Sigma aims at improving process capability and eliminating process variations whereas
Lean aims at particularly reducing wastes. Lean approach is often ad-hoc with little or
no training but Six Sigma aims at creating Black Belts; in short it requires highly
dedicated infrastructure. Both approaches use Learn by doing training method; Lean is
applicable typically to the manufacturing sector whereas Six Sigma is applicable to any
business process. Six Sigma makes use of statistical metrics but Lean is based on
comparison of best practices and the current.

Lean Six Sigma works great if efficiency alone as an issue. However, its loophole lies in
the fact that it requires the management to spend a great deal of efforts and time
training their individuals and having full-time LSS experts at hand round-the-clock. It is
assumed that the efficiencies they attain will repay the efforts. Thats where the pitfall
occurs.

An organization that uses Lean Six Sigma typically prioritizes the candidate projects for
the approach based on their Return on Investment (ROI). As a result, the ones with the
best ROI are tackled in first place. As the time passes and since the experts are on
duty, the cost of implementation remains unchanged. A point comes wherein the
projects will have an ROI lesser than recurring Lean Six Sigma implementation costs.
After that point, this business strategy is a loser. Lean Six Sigma helps organization
reduce its expenses by making the processes more efficient. However, expenses do
have a minimum level. For e.g. for manufacturer of drive shafts, steel or machinery
cannot be made available for free. Lean Six Sigma will help you approach the lowest
possible cost. But if youre already near to that minimum cost, then you need to think
twice before approaching Lean Six Sigma.

Lean Six Sigma is definitely the best approach as far as efficiency is concerned. But in
the way that theres no one cure for all ailments, the same its no solution for problems
such as corporate branding, lack of strategic vision or internal company politics. Lean
Six Sigma is bound to be worn out model with lowering return-on-investment.

Six Sigma Concepts are used to improve the effectiveness and efficiency of business
performance. The statistical representation of Six Sigma describes the performance of
the process. A process is said to achieve Six Sigma only if it doesnt produce more than
3.4 defects per million (DPM) opportunities. Six Sigma focuses on process improvement
and reduces the variation of the process. Six Sigma is driven by a DMAIC approach that
identifies, measures, analyzes, improves and sustains the process. DMAIC is a cycle
used to eliminate the defect or improve the opportunities in the process for business
improvements through five main steps: Define, Measure, Analyze, Improve, and
Control.

What is DMAIC in Six Sigma?

DMAIC Methodology is a data-driven quality strategy utilized for process improvement
through integrating a Six Sigma quality initiative. Define is the initial stage of DMAIC
methodology. It defines the CTQ (critical to quality) issues and the core business process
involved. In detail, it explains the customer requirements, expectations of the customer,
project boundaries, stop and start the process, a process flow of the process.
The performance of the core business is measured in Measure stage. Data collection
plan is scheduled in the process to determine the types of defects and metrics in the
process. Based upon the collected data gaps between the current and goal
performance and process variation is identified. Further, analyze is performed to
determine the root causes of defects and opportunities for process improvement. A
potential solution is identified to eliminate or reduce the defects in the process. The
implementation plan is implemented at Improve Phase. Control Phase includes
standardization and documentation of the new process. It creates a plan to monitor the
process and ensure the process performance is in control.

How DMAIC perform as an approach to problem-solving?

DMAIC is a roadmap used as the problem-solving method for process or quality
improvement.

DMAIC method differs from conventional problem solving since it belongs below steps
during problem-solving:
Define
Define customer expectations
Define impacted business processes
Define project boundaries
Define metrics
Define Team members, Project Leader

Measure
Data collection
Measure process

Analyze
Analyze gathered Data
Identify gap between existing and goal performance
Analyze the cause for the gap
Decide on the processes to be improved

Improve
Identify potential solutions
Pilot Study
Test
Evaluate proposed solutions
Develop implementation plan

Control
Implement process
Develop Standing Procedure
Develop Control Plans
Train staff on new process

How to apply DMAIC Steps to Continuous Improvement Projects?

Six Sigma is not just going about solving day-to-day problems but identifies the cause of
the problem and provides the potential solution to solve and control the problem.
Below series of common sense questions on each process could lead to solving the
problem in a statistical method:
Define What is the outcome to be measured?
Measure What is the current performance of the process that is measured?
Analyze What are the real causes? What is really causing the problem?
Improve How can the real cause be eliminated from the process or the size of the
problem can be reduced?
Control Did the process improved?

What are the controls placed to sustain the improvements?

Tools used in DMAIC Approach:
Define:
Develop Project Charter
KPIV Key process Input variable
Voice of Customer

Measure:
Create As-Is Process map
Control Chart
Capability Analysis

Analyze:
Fishbone
Failure Mode and Effects Analysis
Scatter Plots
5-Why analysis

Improve:
Brainstorming
Design of Experiments
Pilot-Planning

Control:
Mistake Proofing
Standard Operating procedure
Control Plan
Audit Plan
Training Plan