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What is lean six sigma

Author: Lean Sixsigma
by Lean Sixsigma
Posted: Oct 19, 2019

Lean Six Sigma is a methodology which consists of two techniques, Lean and Six sigma. It is data-driven and focuses on removing errors and waste, reducing costs and optimizing your business processes to meet customer’s needs. Frederick Taylor’s ‘Principals of scientific management’ developed the idea behind the process of continuous improvement. This idea is applied to the LSS methodology as it improves business processes over a period of time. This continuous improvement methodology deploys 5 steps to ensure success – Define, Measure, Analyze, Improve and Control. These 5 steps form the foundations of lean six sigma and thus, ensure its functionality.

There are 3 key elements to LSS

  1. Tools and Techniques: These are used to identify, analyses and solve errors
  2. Process and Methodology : These organize the tools and techniques to completely eradicate the root causes of a problem
  3. Mindset and Culture: A data oriented mindset is vital for continuous improvement and achieving operational performance goals.

All of these elements are interconnected as without an efficient process and methodology, the tools and techniques will not be effective either. Similarly, without an appropriate mindset to systematic improvement, the processes and methodology will not be implemented ideally.

Understanding the Six sigma analysis

The Taguchi Loss Function diagram displays a clear representation of the variation in a business process. Sigma represents the statistical measurement of uncertainty, with degrees ranging from 1 sigma to 6 sigma. One sigma represents the boundaries in the above diagram, with about 66% occurrences to be error free. This increases with an increase in sigma, with six sigma accounting for over 99% occurrences to be error free, guaranteeing you an efficient business process with minimal waste. Using the Lean six sigma methodology enables a company to reach the 6 sigma level, close to the optimal target level with around 3.4 defects per million occurrences.

Benefits of Lean Six Sigma

The lean six sigma methodology has various benefits, for organizations and individuals both. General Electric Company claimed to have over $2 billion of costs saved through using Lean Six Sigma.1.

A few of the organizational benefits are –

  1. More Control – By reducing cycle times and increasing data based control systems, LSS enables you to have more control of your processes by acknowledging a direct impact of your decisions on process performance.
  2. Reduction in Errors – Lean six sigma identifies errors and inefficient business processes then eliminates them using various tools and techniques, ensuring a high efficiency of your business processes.
  3. Increased Customer satisfaction – By focusing on the level of quality expected by the customers and not the one optimal by the producers, LSS prioritizes continuous improvement with a focus on quality, leading to lesser errors

A few of the individual benefits are –

  1. Skills learning – Leading a LSS project enables you to gain a variety of skill sets, honing your leadership skills as it exposes you’re to opportunities to senior management. Fixing problems and planning improves your project management skills and interacting with team members, managers and other staff helps your build on your communication skills.
  2. Increased pay – Obtaining a lean six sigma belt certification from certified providers like KPMG adds immense value to your profile and CV. The certification signals to companies that you have readily committed to building a better working environment, reducing waste and believe in improving business processes. Holding a LSS black belt sets you apart from your competition and enhances your potential earning. The average salary in the USA for LSS black belt holders is $100, 0002...

For KPMG Lean Six Sigma Training registrations mail to in-fmsixsigma@kpmg.com or call at +91 9555688555 or +91 9022033666.

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About the Author

Focuses on depth of interpretations drawn from analysis for correct project and Critical to Quality (CTQ) identification, establishment of correct data collection mechanism with validation being focus of discussions.

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Author: Lean Sixsigma

Lean Sixsigma

Member since: Oct 09, 2019
Published articles: 12

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