Why Lean Six Sigma Is Important

The process improvement field continues to evolve, and one of the most popular ideas to develop in recent years is Lean Six Sigma. For those not familiar with process improvement, it can seem confusing. Aren’t Lean and Six Sigma different things?

The answer is yes, they are. Although both methodologies focus on process improvement, they evolved from different origins and have different focuses.

• Lean focuses on eliminating waste in a process, especially non-value adding processes, meaning they add no value to the end-user or customer. A process that requires three different managers to sign off on every decision is a classic example of the sort of waste Lean targets.

• Six Sigma focuses on reducing process variation and improving control over a process. Variation can lead to mistakes in a process and defects in a product or service. A process performing at a Six Sigma level experiences only 3.4 defects per every one million opportunities.

The principles of Lean trace their roots to the Toyota Production System in the mid-20th century, as Japanese engineers built on mass production processes first created by Henry Ford in the United States. Six Sigma started on the factory floor at Motorola in the 1980s as engineers sought to attain lower levels of product defects.

The Creation of Lean Six Sigma

So, why put these two process improvement methodologies together? Because Lean Six Sigma allows an organization to take on multiple issues at once.

Project teams began to use elements of both Six Sigma and Lean over the years as the two methodologies became increasingly popular. By drawing on elements of both, project teams learned they could achieve the highest goals for reducing production costs, creating quality products, meeting delivery schedules, engaging the workforce in process improvement, and boosting the bottom line. 

In many cases, Lean projects might come first. They typically involve less technical tools and techniques, including value stream mapping, the Theory of Constraints and Kaizen events. Once a company cuts waste and gets operations running efficiently, it can more effectively address process variation using the more technical strategies of Six Sigma, such as DMAIC (Define, Measure, Analyze, Improve and Control), to improve an existing product, process or service.  

Benefits of Using Lean Six Sigma 

Smart companies never take their eye off the bottom line. One of the factors in strengthening the bottom line is customer satisfaction. One of the benefits of putting Lean Six Sigma into action is that everything involved in the methodology ultimately focuses on benefiting customers. 

That seems simple, but organizations sometimes lose focus on consumers, instead making process changes to solve internal issues. By creating a culture of continuous process improvement and putting Lean Six Sigma into place, it is easier to keep the focus where it belongs.

In addition to the reduction in operational waste - which can lead to enormous cost savings - as well as the reduction of errors and defects, Lean Six Sigma offers advantages in many other ways.

Better Risk Management

One of the fears of any business is a lawsuit that results in a substantial financial loss. The chances of this have increased in recent years as so-called ‘nuclear verdicts’ become more common. These jury awards, typically for $10 million or more, are considered disproportional to the business’s action. Companies lower their legal risks by focusing on quality and reducing errors.

More Engaged, Productive Employees

Modern employers feel more engaged when they work in a culture where a diverse group of voices can participate in implementing process improvement strategies. One of the central tenets of Lean Six Sigma is that it only works when everyone is involved, from executives to frontline workers. This kind of engagement also leads to better development of staff.

From Reactive to Proactive

While process improvement often begins in reaction to a problem, it continues long after that initial problem is solved. Companies use Lean Six Sigma to reposition themselves from a detection mode to a prevention mode when it comes to problems that can hamper operations. They also create a culture where the focus is always on finding ways to improve. 

Taken together, this all leads to the trifecta of goals for companies: streamlined, cost-saving processes; higher quality of products and services; and more satisfied customers.

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