Related topics
- Lean Manufacturing
- Six Sigma
- Statistical Process Control
- Total Quality Management
Description
Lean Six Sigma combines elements of both Lean Manufacturing and Six Sigma approaches. Lean Six Sigma originally was designed to improve manufacturing quality to no more than 3.4 defects per million opportunities. The combination of Lean and Six Sigma helps companies achieve higher quality in a fast and efficient way by creating a culture of responsiveness and accountability. Lean Six Sigma programs constantly measure and analyze data on the variables in any process, then use statistical techniques to understand what improvements will reduce defects and improve efficiency. Such programs also
incorporate a strong system for gathering customer feedback. Companies have applied Lean Six Sigma to functions ranging from manufacturing to call centers to collections.
Methodology
Prior to using Lean Six Sigma, companies should deploy an upfront diagnostic to identify the most critical opportunities. Then, Lean Six Sigma teams follow five problem-solving steps to quickly identify root problem causes, develop solutions and put in place procedures that maintain those solutions.
- Define. Identify the customer requirements, clarify the problem and set goals;
- Measure. Select what needs to be measured, identify information sources and gather data;
- Analyze. Develop hypotheses and identify the key variables and root causes;
- Improve. Generate solutions and put them into action, either by modifying existing processes or by developing new ones. Quantify costs and benefits;
- Control. Develop monitoring processes for continued high-quality performance.
Common uses
Companies use Lean Six Sigma to set performance goals for the entire organization and to mobilize teams and individuals to achieve dramatic improvements in existing processes. More specifically, Lean Six Sigma can:
- Make processes more rigorous and efficient by using hard, timely data to make operating decisions;
- Cultivate customer loyalty by delivering superior value;
- Accustom managers to operating in a fast-moving internal business environment that mirrors marketplace conditions;
- Achieve quantum leaps in product performance;
- Reduce variation in service processes, like time from order to delivery;
- Improve financial performance through cost savings, increased revenue and expanded operating margins.
Related Bain capabilities
Selected references
Breyfogle, Forrest, III. Implementing Six Sigma: Smarter Solutions Using Statistical Methods, 2d ed. John Wiley & Sons, 2003.
Devane, Tom. Integrating Lean Six Sigma and High-Performance Organizations: Leading the Charge Toward Dramatic, Rapid, and Sustainable Improvement. Pfeiffer, 2003.
Eckes, George. The Six Sigma Revolution: How General Electric and Others Turned Process into Profits. John Wiley & Sons, 2001.
George, Michael L. Lean Six Sigma for Service: How to Use Lean Speed and Six Sigma Quality to Improve Services and Transactions. McGraw-Hill, 2003.
Hariharan, Arun. "CEO's Guide to Six Sigma Success." ASQ Six Sigma Forum Magazine, May 2006, pp. 16-25.
Preis, Kim H. Six Sigma for the Next Millennium: A CSSBB Guidebook. American Society for Quality, 2005.
Snee, Ronald D., and Roger W. Hoerl. Leading Six Sigma: A Step-by-Step Guide Based on Experience with GE and Other Six Sigma Companies. Financial Times Prentice Hall, 2002.
Sodhi, ManMohan S., and Navdeep S. Sodhi. "Six Sigma Pricing." Harvard Business Review, May 2005, pp. 135-142.
Taghizadegan, Salman. Essentials of Lean Six Sigma. Butterworth-Heinemann, 2006.
Wedgwood, Ian D. Lean Sigma: A Practitioner's Guide. Prentice-Hall PTR, 2006.
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