INTEGRATION OF LEAN AND SIX SIGMA METHODOLOGIES

Prof. Tushar N. Desai

Dr.R. L. Shrivastava

Abstract
The last two decades have witnessed an increased pressure from customers and competitors for
greater value from their purchase whether based on quality, faster delivery, or lower cost (or
combination of these) in both manufacturing and service sectors. The intense competition in the
current marketplace has forced industrial firms to reexamine their methods of carrying out
manufacturing activities. This has encouraged many industries to adopt advanced quality
management philosophies such as Lean manufacturing (for improving speed to respond to
customer needs and overall cost), Six Sigma (as a process improvement and problem solving
approach), as part of management strategy to increase the market share and maximize profit.
Lean and Six Sigma practitioners are integrating these two strategies into a more powerful and
integrated approach that is ‘Lean Six Sigma’ or ‘Lean Sigma’, addressing many of the
weaknesses and retaining strengths of each strategy. Lean Six Sigma methodology integrates the
waste and non-value added elimination tools and techniques from Lean manufacturing with the
variability reduction tools and techniques from Six Sigma, to generate savings to the bottom-line
of an organization. This paper makes some critical examinations relating to comparison of Lean
Management with Six Sigma, provides comprehensive set of tools, techniques and principles of
the integrated approach; and a direction for integrating them into the planning, design and
implementation framework to enhance their effectiveness and operational performance. The
paper also purposes a Lean Six Sigma (Lean Sigma) framework which provides a synergistic
approach to integrating the concepts and tools of Lean enterprise within Six Sigma Define,
Measure, Analyze, Improve and Control (DMAIC) methodology to improve the bottom-line
results of the organization and enhance customer satisfaction. The disciplined, structured and
systematic methodology of Six Sigma combined with the speed and agility of lean will provide
greater solutions in the search for operations and business excellence.
Key words: Lean Management, Six Sigma, Lean Sigma, Business Performance

INTRODUCTION a set of proven tools and techniques to

The last two decades has witnessed an
increased pressure from customers and
competitors for greater value from their
purchase whether based on quality, faster
delivery, or lower cost (or combination of
both) in both manufacturing and service
sector (Basu 2001, George 2002). All the
large companies across globe have achieved
dramatic results by implementing either
Lean or Six Sigma methodologies.
The core thrust of Lean production is that it
works synergistically to create finished
products at the pace of customer demand
with little or no waste. Lean strategy brings
reduce lead times, inventories, set up times,
equipment downtime, scrap, rework and
other wastes of the hidden factory. The
statistically based problem solving
methodology of Six Sigma delivers data to
drive solutions, delivering dramatic bottom-
line results.
Companies across the spectrum have found
the most effective way to eliminate the flaws
that lead to rework and scrap, and create one
unified idea of continuous improvement, is
the integration of Lean Manufacturing and
Six Sigma (Smith 2003). The integration of
the two systems can achieve much better
results than either system can achieve alone.
While, Lean strategies play an important
role in eliminating waste and non-value
added activities across the organization, Six
Sigma, through the use of statistical tools
and techniques, takes an organization to an
improved level of process performance and
capability.
LEAN MANUFACTURING
Womack et al. (1990) coined the term ‘lean
production’ in their book “The Machine that
changed the World”. He define ‘lean
production’ as : is “lean” because it uses less
of everything compared with mass
production-half the human effort in the
factory, half the manufacturing space, half
investment in tools, half the engineering
hours to develop a new product in a half
time. Also it requires keeping for less than
half the needed inventory on site, results in
many fewer defects and produces a greater
and ever growing variety of products.” Lean
production (also known as ‘Lean
Manufacturing’ or ‘lean’) refers to a
manufacturing paradigm based on the
fundamental goal of continuously
minimizing waste to maximize flow.
Lean management is a systematic approach
to identifying and eliminating waste through
continuous improvement, flowing the
product at the pull of the customer in pursuit
of perfection (NIST, 2000).
Non-value adding activities generates
various kinds of waste (muda). Taichi Ohno
(1988), the father of Toyota Production
System, defined Muda as any human
activity, which absorbs resources but creates
no value. Performing a wasteful activity
adds no value but incurs cost. This insight
creates a vision of eliminating waste both
within the firm and across the value chain
(Womack and Jones, 1996). Lean
operations focuses on the elimination of
waste throughout all aspects of a business,
while maximizing quality and flexibility and
thereby reducing the environmental
degradation also. Eliminating these wastes
improves labor, material, capital and energy
productivity.
SIX SIGMA
Six Sigma is a methodology that provides
businesses with tools to improve the
capability of their processes by decreasing
variation, which leads to a reduction in
defects, improve quality of products and
services, shorten the product development
cycle, and an improvement in profitability
and growth. Six Sigma is a disciplined, data-
driven approach and a business performance
improvement strategy that aims to reduce
the number of mistakes/defects to as low as
3.4 occasions per million opportunities. It is
as good as zero. Higher the sigma level,
lower is the Defects per million
opportunities (DPMO).
Six Sigma is a strategic initiative to boost
profitability, increase market share and
improve customer satisfaction through
statistical tools that can lead to breakthrough
quantum gains in quality; Mike Harry
(2000). Six Sigma fundamentally focuses
on reduction in variability. This technique is
a simple common sense concept for those
who understand statistical principles of
targeting the mean to the required nominal
value and controlling variance around the
mean. But it is much more than just a
statistical approach to problem solving. It is
a company-wide initiative to improve both
top line and bottom line through sustained
customer satisfaction (Seth and Rastogi,
2004).
Six Sigma practitioners apply the rigorous
DMAIC and Design for Six Sigma (DFSS)
methodologies to analyze processes and to
make improvements in product and service
quality and profitability. DMAIC
methodology follows the phases as define,
measure, analyze, improve and control.
NEED OF INTEGRATION OF LEAN
AND SIX SIGMA APPROACHES
Researchers and practitioners of quality
management are trying to integrate lean and
Six Sigma as an integrated methodology,
which is more effective in enhancing
customer satisfaction, improving operational
and business performance, and generating
substantial financial savings (as compared to
lean and Six Sigma implemented alone).
Both Six Sigma and Lean concepts are
effective in enhancing customer satisfaction
as by concentrating on control and reduction
of variation and waste and hence defects,
costs are reduced and customer satisfaction
is simultaneously increased (Bendell, T.
2006).
The team Lean Sigma has recently been
used to describe a management system that
combines the two systems viz. lean
management and Six Sigma (Sheridan,
2000).Two currently “hot” process
improvement approaches are Six Sigma and
lean enterprise theory (Bendell, T.,2006).
The researchers have been trying to establish
the linkages between Six Sigma and other
manufacturing strategies like lean
manufacturing (Park, 2003).
Advantages of systematic integration of
Lean and Six Sigma approaches
Lean methodology is more appropriate for
dealing with problems of chronic waste. Six
Sigma initiative perform well if the
objective is a variation reduction. Integration
of these methodologies under the title of
“Lean Six Sigma” or “Lean Sigma” brings
following benefits to a company:-
• Lean streamlines process and eliminates
waste (idle time, machine downtime, in-
process inventory), reduces overall
complexity, and helps to eliminate non-
value added activities of the process. Six
Sigma solves complex cross functional
problems by finding root causes of the
problem and reduce / eliminate
undesirable variations in the processes.
The integration of two methodologies
eliminates the limitations of individual
methodology.
• Lean creates a foundation that allows the
tools and techniques of Six Sigma to
yield greater benefits, faster.
• Reduction of manufacturing lead times
by lean methodology enhances
competitiveness by achieving faster
deliveries, and delivering defect- free
products by implementation of Six
Sigma methodology enhances bottom-
line results of the organization.
• A company will gain from reduced
manufacturing lead times and by
replenishing their stocks more often
which increases the company’s revenues
and inventory turnover rate by lean
tools. A company will also improve its
profit simultaneously by defects
reduction and process improvement by
Six Sigma techniques.
• Streamlining product flow and changes
in the basic operating systems by
maximizing the value-added content of
all operations and by removal of
wasteful activities by application of lean
management. Optimization of
measurable quality and delivery metrics
by making use of data driven and
statistical quality control methods in all
decision making by Six Sigma quality
management drive.
• Lean production delivers products at
lower cost, shortest lead time by
continuously eliminating muda (waste).
Application of Six Sigma methodology
effectively reduces variation in processes
and achieves management’s desired
goals by delivering defect free products.
• Implementation of Lean Sigma
framework help in
(i) Reducing machine downtime which
increases overall equipment
effectiveness (OEE); (ii)Establishing a
 standard housekeeping procedure which improvement, preventive maintenance,
helps to reduce number of accidents at cross-trained workers, factual approach
work place, which in turn reduces the to decision making, Lean Sigma
amount of compensation the organization, Lean Sigma deployment,
management needs to pay to injured design quality management,
employees; (iii)Rectifying the customer benchmarking, workforce management,
complaints;(iv)Reducing work-in- Lean Sigma quality communication,
process (WIP) inventories which Lean Sigma work culture, mutually
enhances savings per year;(v)Reducing beneficial supplier relationships.
machine set-up time; (vi)Striving for Lean Six Sigma synergy work towards
Six Sigma capability level; meeting customers’ needs by delivering
(vii)Becoming faster and more product without defects. The techniques and
responsive to customers; tools of Lean manufacturing emphasize
(viii)Operating at lower costs of poor eliminating unneeded activity, to reduce lead
quality (COPQ);( )Achieving greater time and lower total costs .Six Sigma
flexibility throughout the business; techniques and tools focus on reducing
()Improvement in key performance variation in processes and products, thereby
metrics such as Defect per unit (DPU), eliminating rework, which allows faster
process capability index (Cp), mean and delivery time and lower total costs, that
standard deviation of the product, first helps organizations deliver product more
time yield (FTY), OEE. quickly, at a competitive price.
• Improvement in key performance
metrics leads to improvement in Differences between Lean and Six Sigma
monetary terms per year for the There are some differences between Lean
company after implementation of the and Six Sigma as noted below:-
Lean Sigma strategy. • Generally speaking, a Lean approach
• Monetary improvement motivates the attacks variation differently than a Six
management for horizontal deployment Sigma system does. Lean tackles the most
of the Lean Sigma approach in other common form of process noise by aligning
areas of the organization such as service- the organization in such a way that it can
related processes, transactional begin working as a coherent whole instead
processes, logistics, etc. This of as separate units. Setup time, routing of
deployment strategy improves the processes and machine maintenance are
overall organizational performance. important measures in Lean. However, Six
• New model of Lean Six Sigma (or Lean Sigma focuses on defective rates and costs
Sigma) is more effective as it possesses of poor quality due to part variation and
the characteristic features of lean process variation based on measured data.
management and Six Sigma strategies • The data-driven nature of Six Sigma
both such as customer focus, leadership, problem-solving lends itself well to lean
involvement of people, waste standardization and the physical
identification and elimination, rearrangement of the factory. Lean provides
identification of value stream (value a solid foundation for Six Sigma problem-
stream mapping), just-in-time delivery solving where the system is measured by
and scheduling, realistic work standards, deviation from and improvements to the
multiskilled workforce, process standard.
management approach, continual
• While Lean emphasizes standardization the application of
and productivity, Six Sigma can be more statistical tools and
effective at tackling process noise and cost techniques
of poor quality. Lean and Six Sigma, Employs a Y X
working together, represent a methodology structured, rigorous
that fight against process variation. Six and well planned
Sigma methodologies use problem-solving problem solving
techniques to determine how systems and methodology
processes operate and how to reduce Focuses on creating X Y
variation in processes. In a system that a visual workplace
combines the two philosophies, Lean creates Attacks work – in – X Y
the standard and Six Sigma investigates and process inventory
resolves any variation from the standard. Creates standard X Y
Table 1 exhibits comparison of Lean with work sheets
Six Sigma. Focuses on control Y X
planning and
LEAN SIX SIGMA DEFINED monitoring
“Lean Six Sigma is a methodology that
maximizes share holder value by achieving LEAN SIGMA SYNERGY
the fastest rate of improvement in customer Table 3 presents the synergies of Six Sigma
satisfaction, cost, quality, process speed and and lean production. Six Sigma does not
invested capital.” Lean helps to reduce the directly address process speed and hence
waste, but cannot reduce variation alone. Six there is lack of improvement in lead time in
Sigma can help to reduce variation, but concerns applying Six Sigma method alone
alone does not reduce waste or cycle time. above. These concerns also generally
Table 2 presents some of the fundamental achieve modest improvement in work in
differences between the two methods. process (WIP) and finished goods inventory.
In a similar manner, those concerns that are
Table 2: Differences between Six Sigma engaged in lean methodology alone show
and Lean Production Methodologies limited improvements across the
organization, due to the absence of a Six
Issues / Problems / Six Lean Sigma cultural infrastructure.
Objectives Sigma Production
Focuses on customer X Y Table 3: Synergies of Lean Production
value stream Strategy and Six Sigma Business Strategy
Focuses on good X Y Lean Production Six Sigma Business
house keeping Strategy Strategy
Attacks waste due to X Y Optimal value flow is Provides the
waiting, over achieved through structured
processing, motion, elimination of waste methodology for
over production. and non-value added eliminating process
Focuses on reducing Y X activities variation
variation and Collect product and Data collection
achieve uniform production data
process outputs Cycle time reduction, Seven basic tools of
Focuses heavily on Y X value stream mapping, quality, modern
Single Minute management tools of
Exchange of Die quality.
(SMED), TPM, Jidoka,
Pull production, U-cell
layout ,Kaizen, Source
inspection, multi-
skilled workforce.
Create standard work Process stability and
combination sheets control planning
A holistic methodology “Lean Six Sigma”
Each of the two approaches has distinct
strengths and limitations relative to each
other. If Six Sigma initiative is implemented
properly then it should perform well as an
approach if the objective is really a variation
reduction. Six Sigma initiative is not the best
solution for dealing with problems of
chronic waste, for which lean methodology
is more appropriate. In contrast, lean as a
methodology focuses on removal of waste,
and it is not primarily designed for
addressing variation problems. A holistic
model and methodology which integrates
Lean and Six Sigma approaches should thus
retain this at its heart.
The companies practicing either lean
management or Six Sigma alone might not
derive the maximum benefits. Arnheither, E.
and Maleyeff, J. (2005) contend that lean
organizations should make more use of data
in decision-making and use methodologies
that promote a more scientific approach to
quality. They further contend that Six Sigma
organizations should include training in lean
management methods and eliminate all
forms of waste.
Six Sigma quality initiative put emphasis on
optimizing measurable quality and delivery
metrics, but it ignores changes in the basic
operating systems to remove wasteful
activities. Lean management put emphasis
on streamlining product flow, but it does so
without making much use of data and
statistical quality control methods.
A lean Six Sigma organization would
incorporate the strengths of both lean
management and Six Sigma. A lean Six
Sigma organization would incorporate the
following principles of lean management:
• It would incorporate the methods
that seek to maximize the value-added
content of all operations.
• It would incorporate a management
decision-making process that makes
every decision giving due consideration
to customer impact.
A lean Six Sigma organization would
incorporate the following principles of Six
Sigma:
• It would make use of data-driven
methodologies and statistical methods in
all decision making, so that changes are
based on scientific studies.
• It would employ tools and techniques
that minimize the variation of quality
characteristics.
LEAN SIX SIGMA ORGANIZATION
Harry and Schroeder (2000) contend that
both these methodologies have been
impacted by lack of support from the middle
management in many companies, and steps
to be taken to mitigate this risk. Hence the
authors propose that Lean Six Sigma
strategy needs an organizational
infrastructure to be deployed. This will have
Lean Masters, Lean Experts, Six Sigma
Master Black Belts, Black Belts, Green
Belts and an organization structure to keep
focus on deployment of the process
improvement projects.
TOOLS AND TECHNIQUES OF LEAN
SIX SIGMA
The companies using the integrated
approach begin to first apply the basic lean
tools and techniques stated in Table 1,3 and
figure 1 . After implementing these tools and
techniques of Lean, some wastes are
eliminated from the system and there is
faster response to customer demand (by
reducing lead-times), increase in availability
of machines, greater throughput, reduction
in scrap/rework, reduction in cycle times,
improvement in worker productivity. Now,
the tools and techniques of Six Sigma are
used to offer powerful solutions to chronic
problems.
Lean is used to create a foundation that
allows the tools of Six Sigma to get more
benefits, faster. Lean strategy brings a set of
proven tools and techniques to reduce lead
times, inventories, set up times, equipment
down time, scrap, rework and other wastes
of the hidden factory. The statistically based
problem solving methodology of Six Sigma
delivers data to drive solutions, delivering
dramatic bottom-lined results.
FRAMEWORK FOR LEAN SIX SIGMA
PROGRAMS
Figure 1 exhibits a model or framework road
map to implement Lean Six Sigma programs
in the organization. In the proposed
framework, Lean tools are used within the
Six Sigma DMAIC problem-solving
methodology to reduce the defects, eliminate
wastes, reduce the variations in the
processes, enhance the bottom line results
and enhance customer satisfaction.
Figure 1: Model to Implement Lean Six
Sigma Programs
CONCLUSION
Six Sigma and Lean production are not an
alternative for each other but they are
complimentary to each other. There are
potential synergies between the two
concepts, lean and Six Sigma. The
application of Six Sigma principles
combined with the speed and agility of lean
strategy will produce solutions in the never
ending quest for better, faster, economical
business processes. This paper addressed a
concept development on integration method
for Lean and Six Sigma . A framework is
developed for understanding the differences
in depth for mitigating some of the
conflicting implementations of the two
methods. Methodologies developed for
using the synergies of the two methods
makes a company successful in its quality
and productivity implementation initiatives.
Systematic implementation of the proposed
integrated framework of Lean and Six
Sigma provides an impetus for bringing a
cultural change in the company, provides the
company with a performance benchmark on
which the company can base future
performance enhancement programmes and
improves operational and business
performance. Lean Six Sigma merges two
powerful process improvement
methodologies. Each methodology has
unique tools that can be combined to
monitor, analyze and improve processes.
Lean manufacturing and Six Sigma do not
work well enough alone to cover the sources
of problems in a process. But the integration
of Lean and Six Sigma viz. ‘Lean Six
Sigma’ or ‘Lean Sigma’ provides a complete
toolset for process improvement. ‘A Lean
Six Sigma Organization’ would capitalize
on the strengths of both lean management
and Six Sigma and overcomes weaknesses
of the individual approaches. Integration of
lean production and Six Sigma quality
recommend clear roadmaps to follow for
 companies which guide and assist them on measurement factors of lean Six Sigma
their quality journey to world-class quality. strategy and develop a ‘Lean Six Sigma’ or
‘lean Sigma Implementation (Performance)
SCOPE FOR FUTURE RESEARCH Model’ for the manufacturing and service
There is a need to articulate critical success sectors.
factors (CSFs) and performance

Table 1: A Review and Comparison of Six Sigma and Lean Methodologies

Sr. Concepts Lean Six Sigma

No.
1 Origin The quality evolution in The quality evolution in Japan and
Japan and Toyota Motorola
2 Theory /Focus Lean management places Six Sigma strategy places clear focus on
focus on removal of waste. achieving measurable and quantifiable
financial returns to the bottom line of an
organization, focus on strategic goals and
applies them to cost, schedule, profit and
other key business metrics.
3 Approach Project management Project management
4 Process view Improve flow in processes Reduce variation in processes
5 Nature Technique Technique
6 Level Individual as well as group Group
7 Methodologies Single Minute Exchange of DMAIC (Define, Measure, Analyze,
(Tools) Die , Total Productive Improve and control) and DMADV
Maintenance (TPM), (Define, Measure, Analyze, Design and
Jidoka, Pull production, Verify) with advanced statistical and
source inspection, Kaizen, analytical tools, motivational and team
Value stream mapping, building exercises.
motivational and team
building exercises.
8 Motivational Recognition among group Recognition among group
factor
9 Motivation Intrinsic as well as extrinsic Intrinsic as well as extrinsic, driven by
tangible benefit for a major stakeholder
group (customers, shareholders and
employees)
10 Supervision issues Requires continuous Requires continuous monitoring,
monitoring, supervision, supervision, guidance and evaluation
guidance and evaluation
11 Tools Analytical tools Advanced statistical and analytical tools
12 Flow of Top to bottom Top to bottom, bottom to top, horizontal
communication
13 Who can Staff Staff
participate
14 Implementation Group, with the help of Group, with the help of management
 responsibility management
15 Time frame for Long time Long time, usually 3-4 years
implementation
16 Evaluation criteria Wastes reduction, quality Customers’ satisfaction, costs reduction,
improvements are primary. quality improvement, top and bottom line
Encouragement for improvement and encouragement for
participation is secondary. participation are primary.
17 Who does it? Cross functional team Cross functional team identified by
identified by management management
18 Involvement Senior and middle Senior and middle management, workmen
management, workmen
19 Membership Appointed and decided by Appointed and decided by senior
senior management management
20 Dependence on Dependent Dependent
management
function
21 Working Held during working hours Held during working hours
22 Management Direct Direct, delegation of authority and
involvement responsibility
23 Expertise required Conceptual and practical Conceptual and practical
24 Constitution Constituted by management Constituted by management
25 Problems Given by management Given by management
26 Time-frame Decided by management Decided by management, specific duration
is assigned
27 Nature of group Heterogeneous Heterogeneous (members from different
departments and different levels but
specialists may be there from outside or
consultant)
28 Team type Cross functional problem Cross functional problem solving
solving
29 Objective / Reduce waste, Lead Time Save money-monetary benefit through
Primary effects customer satisfaction
30 Secondary effects Reduces inventory, Achieves business goals and improves
increases productivity and financial performance
customer satisfaction
31 Impact on Improves worker It brings cultural and perceptional changes
employees productivity and motivation in the organization. The employees start
seeing all problems with a quantitative
approach, rather than with qualitative and
biased opinions.
32 Cost Expenses are on training in Expenses are on exhaustive training in
techniques for waste statistical techniques, soft wares. Cost
identification and reduction, varies across industries, size and even from
SMED, TPM, Jidoka, Poka one unit to another
Yoke.
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AUTHORS
Prof.Tushar N. Desai
Six Sigma Green Belt & Associate
Professor, S.V. National Institute of
Technology, Surat- 395 007.
E-mail: tushardesaisvnit@gmail.com
Dr. R. L. Shrivastava
Six Sigma Master Black Belt & Professor,
YCCE, Nagpur.
E-mail: rlshrivastava@yahoo.com
ACKNOWLEDGEMENT
Authors would like to thank the reviewers
for their creative suggestions, which helped
to formulate this paper in a better shape.