Sysdoc - Demystifying Lean Six Sigma

© Sysdoc 2015 | February 2015

© Sysdoc 2015 | March 2015

www.sysdocgroup.com © Sysdoc 2015

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Sysdoc is a specialist consultancy which delivers business transformation and change which is successful and sustainable.

Since our formation in 1986 we have supported a large, global client base, including major corporate, government and public sector organisations.

In this presentation, we will look at Lean Six Sigma.

What it is, its principles and methodologies will all be discussed as we “demystify” Lean Six Sigma.

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To start, let’s work out what Lean Six Sigma is.

Lean Six Sigma is a methodology that applies a structured process to deliver performance improvement.

Lean aims to systematically eliminate waste from within the business. Six Sigma aims to improve performance by removing waste defects and reducing variability.

Combining the two, we end up with Lean Six Sigma.

What is Lean Six Sigma?


There are variants on the Lean Six Sigma theme, all of which have their roots in the Toyota Production System (TPS).

This was started by Taiichi Ohno and Eiji Toyoda in 1948.

It was then developed and built upon by various experts, which have included, W Edwards Deming, Joseph Juran, Forrest Breyfogle, Peter Jones and James P. Womack amongst others.

Each variant was developed at different times to suit different needs of the challenges observed within different business sectors.

The roots of Lean Six Sigma


Now that we’ve seen some of the background on Lean Six Sigma, we should take a look at some of the core principles.

Principles of Lean production:

• Identify what the customer values.

• Identify the steps required to deliver this (value stream) and eliminate steps that do not add value.

• Ensure all required actions flow smoothly and are triggered by customer requirements.

• Involve and empower employees to make changes.

• Keep improving and aiming for perfection.

Lean production


Principles of Six Sigma production:

• All outcomes are the result of inputs and processes Y=f(X).

• To improve overall quality, identify and improve the Vital Few Inputs and activities.

• Variation must be managed and controlled to deliver consistent quality.

• Data and measurement enables understanding, which is the foundation of effective improvement.

• 6σ quality = 3.4 defects per million activities, or, 99.9997% right first time.

Six Sigma production


A key success factor for effective implementation of Lean, Six Sigma or Lean Six Sigma is having the expertise to guide you.

Structure


Each level has its own certification bodies and standards that need to be met, the minimum requirements are listed below:

The levels explained

Basic

1 week training

1 project/event with quantified results

Intermediate

2 weeks training

2 projects/events with validated results

Exam and peer review

Advanced

3 weeks training and coaching skills training

2 projects with validated results

Exam and peer review

Evidence of mentoring and coaching


So, how does Lean Six Sigma work?

Despite the variations, no matter what approach you take for your business, they share some common factors:

• Defined program structure.

• Structured methodology.

• Standard tool sets.

• Focus on identifying and eliminating causes of waste and defects.

• Use the expertise of the workers

By doing so, the desired results of improving cost, quality and delivery should be achieved.

Lean Six Sigma explained


Programme structure


The basic methodology consists of a series of sequential steps that are followed to deliver the result.

There are numerous variations in the names for these steps due to many changes in translation and adaption to different business cultures. Some examples are listed below:

There are also multiple tools used, including: 5 Lenses, Genchi Genbutsu/Go & See, Measurement Systems Analysis and Poke Yoke to name just a few.

Lean Six Sigma variants

Lean 6σ

Standard 5D Agile 5D Standard Manufacturing

Define Discover Define Measure

Diagnose Define Measure Analyse

Design Design Analyse Improve

Develop Develop Improve Control

Deliver Deliver Control


So, does it work?

The research quotes conflicting results, with success rates varying from 30-80%.

The common causes of failure are a lack of management support, expert knowledge and change management.

However, the success is notable, with enterprises that have made it work reporting results such as:

• 10% year on year cost reduction.

• 50% productivity improvement.

• 30% increase in customer satisfaction.

• 85% reduction in time spent controlling and correcting.

• 55% reductions in operating cost.

• 50% reduction in floor space.

These are all results which have seen these businesses lead their market sectors.

Lean Six Sigma at work

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Sysdoc - Demystifying Lean Six Sigma

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