LeanSix Sigma is a business process improvement methodology that combines the benefits of Lean and Six Sigma. It enables rapid, flexible and effective process improvement in a wide range of organisations. It is a good idea to start with Lean thinking for process improvement and expand to Six Sigma when there is a lot of data and/or results are no longer sufficiently achieved by Lean-based methods.
Lean Six Sigma in brief
Lean and Six Sigma were initially two separate methodologies, which were later combined. Lean thinking is a management philosophy that focuses on eliminating unproductive activities (waste). Six Sigma is a business process improvement methodology that uses data to improve process performance by both improving the average and reducing variation. The goal is to improve results and create a culture of continuous improvement.
Lean Six Sigma combines the advantages of both methods and enables fast, efficient and flexible improvement of different processes in different organisations. It is a good idea to start with Lean for process improvement and expand to Six Sigma when there is a lot of data and/or the results are no longer sufficiently achieved by Lean-based methods.
Background on Lean Six Sigma
Lean and Six Sigma were initially two separate methodologies that were later combined.
Lean: The term "Lean" was first used in the 1990s by Womack and Jones in their book "The Machine That Changed the World". Lean is based on the principles of the "Toyota Production System" (TPS). TPS was developed between 1948 and 1975. TPS focuses on developing people's reasoning abilities with the support of a Lean coach. Employees learn how to continuously improve their work in small steps. Today, Lean is widely used in all sectors from manufacturing to the public sector. Read more about Lean: What is Lean?
Six Sigma: Motorola (Bill Smith) developed the Six Sigma concept in the 1980s. Six Sigma is nothing new per se, but consists of a number of already existing methods. The effectiveness of Six Sigma is based on the systematic and effective use of these methods at various stages of process improvement. Six Sigma only became really popular when General Electric (GE), under the leadership of its then CEO Jack Welch, introduced Six Sigma throughout the GE organisation in 1995. GE continued to develop the methodology and remains one of the most successful Six Sigma organisations in the world.
Lean Six Sigma: In the 2000s, organisations using Six Sigma found that the method was often too "heavy" for easier improvements. On the other hand, Lean methods alone did not always make sufficient use of data. The result was the integration of methods: Lean Six Sigma. Today, many companies use either Lean or Lean Six Sigma.
How does Lean Six Sigma work?
Lean 6 Sigma has proven its effectiveness as a process improvement tool over several decades. Lean 6 Sigma projects often achieve improvements of 50-90%. It is used worldwide in a wide range of industries, from Fortune Top 100 companies to SMEs.
The effectiveness of the method is largely based on reducing waste in the company's first projects. The aim is not to increase the rush, but to reduce waste, e.g. waiting time, error correction and other non-value-adding process steps. Reducing waste frees up staff time and allows them to focus on value-adding activities. Only at a later stage, if necessary, can value-adding activities also be optimised. The combination of methodologies allows the flexible use of different Lean and Six Sigma techniques, depending on the complexity of the processes to be improved. Read our blog for advice on selecting improvement projects .
Results are usually not achieved through technical Lean Six Sigma methods alone ("Hard Skills"), but energy and time is spent on managing change ("Soft Skills"). In Lean Six Sigma change, management also plays an important role in creating and maintaining the right conditions. Success requires a new kind of leadership from the manager. Read more .
A successful Lean Six Sigma transformation results in a permanent culture of continuous improvement, where results are improved at all levels of the organisation by streamlining processes in small steps every day.
DMAIC Methodology
In Lean 6 Sigma projects, the so-called DMAIC project management methodology is used as a framework to guide the progress of the project step by step. DMAIC has five project phases:
- Define: selecting a project and defining project boundaries.
- Measure: making reliable measurements.
- Analyse: determining causes by analysing data.
- Improve: identifying solutions to eliminate causes.
- Control: implementing solutions and ensuring long-term results.
DMAIC serves as a framework for projects and allows the use of different techniques depending on the situation. In practice, however, the five DMAIC steps have often proved too abstract to be effective in project implementation. In the 1990s, General Electric developed a 12-step DMAIC model to support the progression of improvement projects in more detail. This method is now widely used by companies.
12 Lean Six Sigma DMAIC Steps:
Examples of results achieved
Results at process level
It is good to set the improvement goals of the project high enough to "force" you to look at the process in a new way, rather than just "running" the existing steps faster. It is recommended to choose improvement targets of 50-90%. These can be adjusted as necessary as more data is collected.
To see DMAIC projects and the results achieved in different sectors, see DMAIC projects, examples
Results at organisational level
Relatively few results are available at company level. Some companies do not measure the results or it is difficult to demonstrate the direct impact of Lean Six Sigma. Based on the available data, the results at company level are:
- Savings: on average 2% of revenue (varying from 0 to 7% across companies)
- 2:1 direct savings / Lean Six Sigma investment
Get trained in Lean Six Sigma
If you are interested in learning more about Lean Six Sigma, check out the different training options from 1 to 13 days:
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Lean Six Sigma,
Certified Lean Six Sigma Master Black Belt
