Lean Six Sigma and the Business Professional - A Reality Check

The Lean Six Sigma methodology offers a suite of concepts and tools that the business professional can utilize to improve efficiency and quality within an organization. However, Lean Six Sigma is not a panacea or a substitute for sound strategy and well-established processes. Its successful implementation requires a strong commitment from top management and must be integrated into the employee incentive or pay system. Without this stipulation, Lean Six Sigma is doomed to failure. It represents a significant cultural shift and demands substantial investment in company resources and time. Employees often view new business initiatives with skepticism, and Lean Six Sigma is no exception. The failure rate for Lean Six Sigma initiatives is alarmingly high, estimated at around 60%, primarily due to a lack of top management commitment and the immense effort required from the organization. Lean Six Sigma is a methodical, disciplined process that necessitates a commitment to continuous improvement, which many companies are reluctant to invest in. It involves extensive employee training and allows them the time and space to scrutinize and enhance their processes. See my book Kaizen Kreativity OopS on Amazon.

From an evaluative standpoint, Lean Six Sigma doesn't introduce many new or creative tools. The methodologies it employs have been around for years. However, Lean Six Sigma systematizes these tools through a structured approach that mandates decisions be based on data rather than opinions or intuition. Lean Six Sigma requires a "leap of faith" in the DMAIC (Define-Measure-Analyze-Improve-Control) methodology, trusting that it will yield the best process outcomes. Patience with the process is crucial, as many process improvement teams tend to skip critical steps, leading to failures. The process improvement sponsor must provide strong leadership, often adopting the role of a "benevolent dictator" to keep the team on track and true to the DMAIC process. This approach may not be popular with everyone, but it is essential to maintain discipline and ensure the team's success.

Many companies make the mistake of labeling every project as a Lean Six Sigma project. In my experience, only projects with potential savings of at least $250,000 merit a full-blown Lean Six Sigma approach. For some companies, this threshold might be even higher. Committing teams of individuals to spend 4-8 hours a week for six months on a process improvement project is not cheap. The return on investment (ROI) must justify this level of commitment. At a higher level, all potential projects should be prioritized using a criteria system before teams commence their efforts. Other tools and approaches, such as kaizen or quality circles, can be used for smaller projects. Kaizen, a philosophy of continuous incremental improvement, focuses on creating more value with less waste (muda).

With all the aforementioned caveats, is Lean Six Sigma worth it? It receives a resounding endorsement from me. It is the only process improvement methodology capable of producing astounding results, often achieving a 50% reduction in process time or throughput and process steps. As a highly visible process, it fosters a universal understanding of the process within the organization, serving as a powerful tool for future improvements and ensuring that customers are not only satisfied but enthralled.

Lean Six Sigma: Core Principles and Methodologies

Lean Six Sigma combines two powerful process improvement methodologies: Lean and Six Sigma. Lean focuses on eliminating waste (muda) and optimizing processes, while Six Sigma emphasizes reducing variation and improving quality. By integrating these methodologies, Lean Six Sigma provides a comprehensive framework for achieving operational excellence.

Lean Principles

1. Value: Define value from the customer's perspective. Identify what the customer is willing to pay for and focus on delivering that value.
2. Value Stream: Map the value stream to understand all the steps involved in delivering the product or service. Identify and eliminate non-value-added activities.
3. Flow: Ensure that the value-creating steps flow smoothly without interruptions, delays, or bottlenecks.
4. Pull: Implement a pull system where production is based on customer demand rather than forecasts. This reduces inventory and lead times.
5. Perfection: Continuously strive for perfection by relentlessly eliminating waste and improving processes.

Six Sigma Methodologies

Six Sigma uses a set of statistical tools and techniques to identify and eliminate defects in processes. The DMAIC methodology is central to Six Sigma:

1. Define: Define the problem, goals, and customer requirements. Develop a project charter and identify key stakeholders.
2. Measure: Collect data to understand the current performance of the process. Establish baseline metrics and identify areas for improvement.
3. Analyze: Analyze the data to identify root causes of defects and process variations. Use statistical tools to validate hypotheses.
4. Improve: Develop and implement solutions to address the root causes. Use pilot tests to verify the effectiveness of the improvements.
5. Control: Establish control measures to sustain the improvements. Implement monitoring systems and standardize processes to prevent regression.

Challenges and Considerations in Implementing Lean Six Sigma

Implementing Lean Six Sigma is not without its challenges. Organizations must navigate several obstacles to achieve successful outcomes.

Cultural Resistance

Cultural resistance is a significant barrier to Lean Six Sigma implementation. Employees may be skeptical of new methodologies, particularly if they have experienced failed initiatives in the past. Overcoming this resistance requires effective communication, leadership commitment, and involvement of employees at all levels. Leaders must articulate the benefits of Lean Six Sigma and create a sense of urgency for change.

Resource Allocation

Lean Six Sigma demands substantial investment in terms of time, money, and human resources. Organizations must allocate resources for training, process analysis, and improvement activities. It is essential to ensure that employees have the necessary time and support to participate in Lean Six Sigma projects without compromising their regular duties.

Sustaining Improvements

One of the common pitfalls in Lean Six Sigma implementation is the failure to sustain improvements. Organizations may achieve initial success but struggle to maintain the momentum. Sustaining improvements requires ongoing monitoring, reinforcement of best practices, and continuous training. Establishing a culture of continuous improvement is crucial for long-term success.

Case Studies: Lean Six Sigma in Action

Several organizations have successfully implemented Lean Six Sigma, achieving remarkable improvements in efficiency and quality. Here are a few examples:

General Electric (GE)

General Electric is one of the most well-known proponents of Six Sigma. Under the leadership of Jack Welch, GE implemented Six Sigma across its operations, achieving significant cost savings and quality improvements. Six Sigma became ingrained in GE's culture, leading to billions of dollars in savings and enhanced customer satisfaction.

Motorola

Motorola, the originator of Six Sigma, implemented the methodology to address quality issues in its manufacturing processes. By adopting Six Sigma, Motorola significantly reduced defects and improved product reliability. The success of Six Sigma at Motorola set the stage for its widespread adoption in various industries.

Toyota

Toyota is a pioneer in Lean principles, which form the foundation of Lean Six Sigma. The Toyota Production System (TPS) emphasizes waste elimination, continuous improvement, and respect for people. Toyota's commitment to Lean principles has enabled it to achieve world-class manufacturing efficiency and quality.

Lean Six Sigma Training and Certification

To effectively implement Lean Six Sigma, organizations need trained professionals who understand the methodologies and tools. Lean Six Sigma training and certification programs are available to equip individuals with the necessary skills.

Yellow Belt

Yellow Belt training provides a basic understanding of Lean Six Sigma principles and tools. Yellow Belts typically support process improvement projects and contribute to data collection and analysis.

Green Belt

Green Belt training offers a more in-depth understanding of Lean Six Sigma methodologies. Green Belts lead smaller improvement projects and support Black Belts in larger initiatives. They play a critical role in data analysis and project execution.

Black Belt

Black Belt training is the most advanced level of Lean Six Sigma certification. Black Belts lead complex improvement projects, mentor Green Belts, and drive strategic initiatives. They possess a deep understanding of statistical analysis and project management.

Conclusion: Embracing Lean Six Sigma for Sustainable Success

Lean Six Sigma is a powerful methodology that can deliver substantial improvements in process efficiency and quality. However, its successful implementation requires a strong commitment from top management, adequate resource allocation, and a willingness to embrace cultural change. Organizations must prioritize projects with significant potential savings and ensure that employees are trained and empowered to drive improvements.

While Lean Six Sigma is not a quick fix, it offers a structured approach to problem-solving that can yield impressive results. By combining the principles of Lean and Six Sigma, organizations can achieve operational excellence, reduce waste, and enhance customer satisfaction. Lean Six Sigma is not just a set of tools; it is a mindset of continuous improvement and a commitment to delivering value to customers.

?Dr. Tom DePaoli is a consultant-educator-trainer who has lectured and taught extensively. He is the CEO of Apollo Solutions (drtombooks.com and www.apollosolutions.us) which consults in the human resources, leadership, supply chain, purchasing, and Lean Six Sigma areas. He retired from the Navy as a logistics Captain. In other civilian careers, he was an executive in the supply chain, software, and human resources areas. He has corporate turnaround experience with Lean Six Sigma deployments. He has worked for ten companies and consulted for fifty organizations throughout his career. Some of his consulting projects included: leadership training, emotional intelligence, information systems, ERP, re-engineering organizations, transformation, e-procurement, e-commerce, change management, global sourcing and negotiating. His industry experience includes chemical, paper, pharmaceutical, IT, academic, automotive, government, military, consumer, equipment, services and consulting. He has been published extensively in social media, journals, magazines and books. He has been involved in many forms of communications including website design, marketing campaigns, political campaigns, radio advertisements, crisis communications, and scripts. He is the author of thirteen books available on Amazon.com. ?A top-notch educator and trainer, Dr. Tom has taught at numerous universities, live and online, and conducted over 200 courses.

You are invited to visit his websites: drtombooks.com and www.apollosolutions.us

Other light-hearted accomplishments include legendary street ball player, champion baseball card flipper, being an extra in a horror movie and hitting a golf ball over 1000 feet with a baseball bat.