Lean six sigma is a quality improvement methodology which combines the best of the Lean concepts & Six Sigma tools. The emphasis here is on obtaining the best of both improvement methodologies and minimizing any potential weaknesses if any. Furthermore, the importance is on taking advantage of the value generation focuses offered by the lean method, while maintaining the statistical rigors of the Six Sigma methodology. This provides an overview of Lean Six Sigma. So, let us look at the defined objectives.
Six Sigma is a methodology that primarily focuses on eliminating defects in the business process and improves quality. Six Sigma principles were efficiently implemented by the General Electric company that earned $300 million because they implemented Six Sigma principles in their manufacturing process by eliminating defects. Well, that’s not the end of the story, these lean six sigma principles were also employed by healthcare, telecommunications, finance, education, military & other service sectors. These results proved that Six Sigma methodologies are most appropriate for meeting business goals & objectives in an efficient manner. Furthermore, Six Sigma is an organizational structure which concentrates on continuous quality improvement.
Lean manufacturing basically focuses on sources of waste such as transportation, inventory, movement, work in progress, & defects.
Lean makes use of below mentioned 5 stage process that enables an organization to cut down on the waste during their business process. These methods are as follows:
- Determining customer value
- Mapping the value stream
- Creating flow
- Seeking perfection
- Pulling based on demand
Overview of Lean Six Sigma mainly concentrates on the root cause analysis & Lean focuses on speed waste elimination. By combining both Lean & Six Sigma, we get best out of the two methodologies. Thus, these methodologies provide the desired results. By combining these two processes & implementing these methodologies within an organizational structure, thus results in process improvements, waste reduction & effective monitoring which would eventually lead to an increase in the profit margins.