What is Lean, Six Sigma and Lean Six Sigma?
When it comes to handling huge companies, many things can get complicated in the process of growing. What comes to use is the way a company or business work in an organized and systematic manner with minimum effort.
This not only might double the profits but also give happier employees and customers. And this is why Lean Six Sigma has gained so much popularity. It helps organizations in its overall growth.
What is Lean?
The term ‘Lean’ is taken from the Japanese manufacturing industries though it has its roots in the Toyota Production System. Lean thinking allows organizations to become more sustainable. The primary goal of this methodology is to create maximum value for customers by reducing or eliminating unnecessary steps involved in a process.
It means that any step which doesn’t add value to the process is eliminated systematically. Lean methodology helps in the removal of following types of waste:
- Unutilized talent
What is Six Sigma?
Six Sigma is a data-driven management approach which encompasses a set of techniques and tools for business process improvement. Bill Smith, an engineer in Motorola, developed Six Sigma in 1986.
It has gained tremendous momentum and acceptance throughout the industry. It seeks to improve quality by measuring and eliminating defects systematically until the defect number goes to zero.
Six Sigma methodology is used to improve the business processes, products or services. Hundreds of organizations have adopted this technique of problem-solving and have saved millions of dollars.
It works on a five-stage DMAIC framework. The stages namely
What is Lean Six Sigma?
Having its roots in the 1980s, Lean Six Sigma was introduced by Michael George and Robert Lawrence Jr. in their 2002 book: Lean six sigma: combining six sigma with lean speed.
Lean Six Sigma is the combination of the powerful concepts ‘Lean’ and ‘Six Sigma.’ US manufacturing companies first adopted this method.
This method strives to ensure quality in production and organizational processes by eliminating waste of physical resources, time, effort and talent. The purpose of this methodology is to provide customers with the best quality, cost, and delivery.
Lean mainly pays attention to waste reduction while Six Sigma emphasizes variation reductions using statistical data. To achieve six sigma goals, statistical data analysis and hypothesis tests are used whereas for Lean goals tools like kaizen and visual controls are used.
This method has given business and manufacturing companies a massive amount of profits while making sure their customers are happy.
Why is Lean Six Sigma so Important?
Organizations are continuously facing rising costs and high competition every day due to a dynamic environment. Six Sigma allows you to grow your business by tackling these problems.
Benefits of Using Lean Six Sigma:
- Reduces Cost
- Increases Revenue
- Increases Customer Satisfaction
- Improves Efficiency & Effectiveness
- Develops Employees within Your Organization
To sum it all up, a combined approach of lean six sigma helps in improving process efficiency, resource optimization, customer satisfaction, cost-cutting, and profits.
Lean aims at waste reduction, while six sigma aims at reduction of process variation. Nevertheless, both the approaches blend to realize the full potential of process improvements.