“Lean Six Sigma” is a term thrown around like candy in businesses today. But how many people actually know what it is? Just as important, who knows what it is not? In this article, we’ll define Lean Six Sigma, the characteristics of the method, and clarify some common misconceptions.
At a high level, Lean Six Sigma is a continuous process improvement methodology. The “Lean” refers to the idea that organizations should seek to eliminate waste in processes. The “Six Sigma” is the idea that 99.99966% of the area under a normal curve is within three standard variations of the center. In practice, this translates to only 3.4 issues occurring in every million cycles of a process.
1. It is data-driven. Data is used to validate or disprove assumptions people make during a process. The purpose of data in the Lean Six Sigma methodology is to substantiate a plan of action, not to devise it. Data is not the be-all and end-all in decision making.
2. It is customer-centric. The primary focus of Lean Six Sigma is to deliver greater value to the customer. It’s focused on reducing the number of defects that occur in a process. It also streamlines how products or services are delivered. The customer-first mindset engrained by this strategy brings up the next point.
3. It is iterative. Lean Six Sigma does not have a specific end point. The methodology is designed to empower stakeholders to constantly recognize ways to improve efficiency and efficacy of their workflow. Regularly revisiting processes and incorporating feedback must become embedded in the culture.
1. It is not only for manufacturing companies. The applicability of Lean Six Sigma is broader than its manufacturing roots. It can be effectively utilized in any industry where workflows have potential to be optimized. This includes energy, healthcare, and finance to name a few.
2. It is not a quick fix. Implementing Lean Six Sigma takes time. It demands a long-term shift in company culture where continuous improvement is a core value. Building a mindset of ongoing evaluation and feedback is critical.
3. It is not solely focused on cutting costs. Even though Lean Six Sigma often leads to decreased costs, that is not the primary goal. The methodology’s purpose is to improve the efficiency of the process and increase the value provided to the customer. Lower costs are achieved by minimizing waste and reducing variability, which results in superior outcomes.
Lean Six Sigma’s methodology can be used in a variety of processes across industries. It’s important note it may not always be useful, especially when issues revolve around people or organizational culture. However, Lean Six Sigma is capable of streamlining operations to improve the quality of the output while helping the bottom line. See a great example of implementing Lean Six Sigma ideas here.
At Trenegy, we strive to clarify the latest business jargon and find fit-for-purpose solutions for organizations. For more information on implementing Lean Six Sigma, reach out to us at info@trenegy.com.
