Is there a difference between Six Sigma and Lean Six Sigma?
Lean and Six Sigma are close cousins in the process improvement world and they have lot of commonalities. Now we will talk about the difference between Six Sigma and Lean Six Sigma.
Six Sigma uses a data centric analytical approach to problem solving and process improvements. That means, there would be time and effort in data collection and analysis. While this sounds very logical to any problem solving approach, there can be practical challenges.
For example, some times we may need data and analysis to be even prove the obvious. That is lame.
On the other hand, Lean Six Sigma brings in some of the principles of Lean. Lean is largely a pragmatic and prescriptive approach. Which implies that we will look at data and practically validate that problem and move on to prescriptive solutions.
Thus combining Lean with Six Sigma, helps in reducing the time and effort needed to analyze or improve a situation. Lean will bring in a set of solutions that are tried and tested for a situation. For example, if you have high inventory, that Lean would suggest you to implement Kanban.
Lean is appealing because most often it simplifies the situation and that may not be always true with Six Sigma. However the flip side to Lean is that if the system have been improved several times and reached a certain level of performance and consistency, Lean can bring out any further improvement unless we approach the problem with Six Sigma lens, using extensive data collection and analysis.
Looking at the body of knowledge of Six Sigma and Lean Six Sigma, you will find that Lean Six Sigma courses following tools:
- Cost of Poor Quality
- Lean Principles
- Definition, Origin, Principles & Goals of Lean
- Value, Value Stream, Concept of Muda(Waste) & Categories of Waste
- 7 Types of Wastes, How to Identify them, & Waste Identification Template
- Value Stream Mapping (VSM), Symbols, Benefits & Procedure
- Push System, Pull System, Single Piece Flow, 5S, Kaizen, SMED, Poka-Yoke
- Types of Poka-Yoke – Shut Down, Prevention, Warning, Instructions
- Heijunka & Visual Control
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Background
An automobile manufacturer wanted to identify key independent measures (lead measures) which have to be improved to be successful in critical success factors of strategic initiatives across supply chain and manufacturing.
Solution
- Identified an exhaustive ‘Metrics Value Tree’ consisting of lag and lead measures across supply chain and manufacturing
- Established the relationship with critical success factors of strategic initiatives
- Established data collection & measurement rigor
- Supported the deployment of digital dashboard
Results
- More than 20% increase in success rate of strategic initiatives
Background
A bank’s global delivery center was using Japanese Hoshin Kanri(Policy Deployment) approach for deploying its goals across functions and geographies.
Solution
- Integrated functional goals with organizational goals
- Evolved individual ownership and joint accountability across leadership team using catch-ball sessions
- Cascade goals across an employee base of 5000
- Facilitate, build and maintain tactical plans to enable accomplishment of org goals
Results
- Deploy goals across the entire organization of 5000 employees prior to the commencement of performance year without a single day of delay
- Cultural shift among leadership team towards Individual Ownership and Joint Ownership.
Background
An IT consulting services organization finding it difficult to meet its profitability goals due execution issues relating to its strategic plan.
Solution
- Facilitated goal setting, evolving strategies & ownership
- Identified of strategic initiatives, prioritizing and scoping
- Integrated the budgetary planning process with strategic planning
- Institutionalized the monthly & quarterly review process of strategic plans
- Ongoing coaching the strategic initiative leader
Results
- Consistently meet profitability targets within 1 year of intervention
- Consistent improvement in execution culture across the senior & mid level
Background
An engineering firm wasn’t able to meet its revenue targets and grow in its existing market.
Solution
- Mapped the existing market & validated customer segmentation
- Identified 3 tiers of non-customers and their common needs
- Formulate Go-To-Market strategy
- Support its implementation over a period of time
Results
- 30% increase in revenue covering a larger base of non-customers
- Reduction in marketing cost per lead reduction
Background
A services enterprises wanted to build a culture of proactive data/fact based decision making in its staff across cadre
Solution
- Created a series of theme based campaigns that was backed by solid program management engagement, structured training programs, roadshows, metrics & dashboard rigor and incentives.
- Launched a Mascot that stood as the face of the change
- Drive segmented communication and interactive engagement programs which had an element of fun & coolness
- Launched a mass employee driven ‘improvements’ initiative
Results
Within 6 months of launch, more than 50 small improvement projects were implemented have measurable impact on quality, customer complaints and service levels.
Background
An air conditioner manufacturer wasn’t able to increase its plant output in spite of doubling its labor and moving to three shift production. As a result, they were not able to meet the market demand for their products
Solution
- Identification of constraints for increasing output across the plant based on data collection and Gemba audit
- Establishment of single piece flow
- Line balancing
- Automation of final product testing
- Introduction of Kanban for material supply to production line
Results
7 fold improvement plant output of air conditioners
Background
A leading beverage manufacturer had issues with improvement in production line throughput across 5 of their plants. Throughput was impacted by factors such as machine broke down, quality issues and losses due to model change over.
Solution
- Identification of constraints for increasing output across the plant based on data collection and Gemba audit
- Identify improvement projects and assign to teams with department heads a leaders
- Facilitate the improvement using continuous intervention of systematic tools for root cause analysis
- Review and facilitate the solution refinement
- Support the implementation of solutions
Results
Around 7% improvement in Line Throughput
Background
A captive back office center with 5000 seater estate wanted to reduce its monthly utility expenses by identifying key factors of consumption without impacting employee comfort.
Solution
- Rigorous data collection on electrical consumption, air conditioning temperature, light intensity, power factor, transport efficiency and seat utilization
- Reduced the consumption of electricity through reduction in variation in air conditioning temperature, light intensity variation and improved power factor
- Improved transport efficiency by optimization of transport shuttle routes
- Increased seat utilization by rescheduling of shifts.
Results
20% reduction of utility expenses with 2 months.
Background
A business unit of a telecom services firm wanted to restructure its sales to fulfillment processes for improving its turn-around time to deliver on customers’ orders which was currently taking over 15 weeks
Solution
- End State
- Current Process
- SLA
Results
25% reduction in turn-around time
Background
An appliance manufacturer wanted to launch a new product in the Indian market. It wanted to create new dedicated production facility to manufacture the new product. Timely launch of the product was critical success factor.
Solution
Planning & Implementation of the following:
- Plant Layout with processes (cell manufacturing as per lean principles)
- Process design – Workstation design, Tooling, Automation, Material Handling
- Meeting Product Costing target
- Capacity Planning – Equipment capacity, Labor and Storage
- TAKT time delivery and output optimization
- Labor Training on assembly activities
- Establishment of quality standards (incoming, in-house and final product)
Results
On-time launch of product and new product facility operates at planned capacity.
Background
The TAT for processing Letter of Credit in bank operations was at XX resulting in lost opportunities and customer dissatisfaction.
Solution
- Value Stream Mapping
- Statistical sampling & Outlier Analysis
- Eliminated waste such as rework, waiting time in the end-to-end process
- Process Automation
Results
80 % TAT reduction achieved after this intervention
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