Lean Six Sigma A to Z Guide for Dummies
Table of Contents
Introduction Lean Six Sigma (LSS) is an approach to management that focuses on streamlining business processes and boosting customer satisfaction, to deliver customer value. This approach is supported by a set of tools, methodologies and frameworks that deliver this value. Efficient operational processes and quality outcomes are a result of minimizing variances and removing discrepancies. The benefit of using Six Sigma is to help companies produce better products and services. LSS as a part of the organization’s strategy enables meeting the needs of customers, clients, or end-users. This guide is written for readers who would want a basic understanding of the concept of Six Sigma. Then on, they can take up the Six Sigma Combo course to upskill and expand their skill-set as a Lean Six Sigma manager.
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History of Six Sigma, Lean, and Their Differences
Six Sigma history dates back to the 19th-century mathematician Carl Friedrich Gauss who introduced the idea of a normal curve. In the 1920s Six Sigma was used as a measurement standard in product variation, American engineer Walter Shewhart contributed to the advancement of Six Sigma and process improvement. In 1985, an engineer named Bill Smith coined the name “Six Sigma”. Motorola engineers and Chairman Bob Galvin adopted Six Sigma as a quality management technique for detecting defects and optimizing business processes. In fact, the process was so effective that Motorola saved more than USD 16 billion from adopting this approach. Since then, countless companies spanning multiple industries have implemented Six Sigma.
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Lean Six Sigma can be traced back to 2000 when it first forked out of Six Sigma and became an individual process. The concept was designed as a part of Toyota Production Systems and embraced ideas from lean manufacturing.
There
has
been
a
constant debate in the business which
world
about
methodology
is
more effective whether Lean or Six Sigma for minimizing
costs
and
Lean Improve process through the reduction or elimination or elimate of wastage. Focus Lean focuses on waste elimination and support six sigma quality process.
Six Sigma Improve process through the reduction or variation. Focus Six sigma focuses on reducing the variation in quality and supports lean speed.
reducing wastage. However, both of these concepts have similar objectives but undertake different approaches to determine the root cause of waste. On one hand, Six Sigma is a group of effective techniques leveraged to minimize the rate of errors. On the other, Lean is a systematic way of removing waste and designing a seamless flow in the production process.
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2 What is Lean Six Sigma
Lean and Six Sigma are the two crucial process improvement methods that together make Lean Six Sigma for achieving operational excellence. It is wellrecognized as a data-driven and fact-based improvement philosophy that gives importance to detect prevention more than detect detection. The Lean principle focuses on reducing or removing process waste. Six Sigma helps in variation-reduction in processes. Combined, Lean Six Sigma improves the efficiency and quality of the process across industries, ranging from manufacturing, electronics, online retailing to healthcare. The fundamental idea behind Lean Six Sigma is to provide the organizations with a path to realize their missions quickly and efficiently. Lean Six Sigma depends on a collaborative team effort to optimize performance by eliminating waste and minimizing variation for achieving bottom-line results and customer satisfaction.
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Fundamental Principles of Lean Six Sigma
Three crucial elements add up as the basics of Lean Six Sigma. They include: I. Tools & Techniques - A designed set of tools and methodologies to identify and fix problems. II. The Modus Operandi - A sequence of phases that put the problem-solving techniques for precisely implementing the solution by determining the root cause of the problem. III. Psyche & Culture - A mannerism that depends on data and processes to keep improving and realize operational performance objectives.
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What is DMAIC DEFINE • • • • • • • •
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MEASURE
Launch Team
•
Estalish Charter
• • • • •
Plan Project Gather the
Document the • Process • • Collect baseline data • • Narrow Project focus
ANALYZE Analyze Data Identify Root cause Identify and Remove wastes
IMPROVE • • • • • • • • • • • • •
Generate Solutions Evaluate Solutions Optimize Solutions
CONTROL • • • • •
Control the Process Validate project benefits
Pilot Plan and implement
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Crucial Lean Six Sigma Tools
DMAIC stands for Define, Measure, Analyze, Improve, and Control which is a highly effective five-phase method and problem-solving approach that drives the Lean Six Sigma. DMAIC involves a data-driven improvement cycle used for improving, optimizing, stabilizing business processes. Besides, DMAIC isn’t restricted to Six Sigma and can be deployed in other improvement applications as well. The key objective of DMAIC is to remove costly variations from manufacturing and business processes. I. SIPOC Diagrams SIPOC Diagrams are the tools that help in defining complex projects that aren’t scoped properly. Teams use these diagrams before the project work begins to determine all the relevant methods.
II. Critical to Quality (CTQ) Critical to Quality (CTQ) is a crucial tool used while designing new products or services for a business. CTQs are measurable data needed on a specific product or service that your customers have specified as extremely important. III. Value Stream Maps Value Stream Maps are lean tools that use flow chart documenting at every phase in the project. According to lean experts, this methodology is fundamental for minimizing process cycle times, identifying waste, and implementing process improvement seamlessly. IV. Voice of the Customer A specific statement made by customers on specific products or services is called the Voice of the Customer. This includes user expectations, comments and preferences.
SIPOC Diagram
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Diagram:Value Stream Map
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V. Voice of the Process It guides you on what needs to be improved by providing all the information from the current processes. This includes various data for your organization such as maintenance, shortcomings and downtime. VI. Cost of Poor Quality Cost of Poor Quality (COPQ) are costs engendered because of manufacturing faulty material. Also included are the costs involved in bridging the gap between the real and desired product. VII. Process Mean & Variation It is a theory of significance that happens when processes fail to stick to a definite pattern and is the primary cause of quality issues cropping up in production or transactional processes. VIII. Multi-vari Chart Multi-vari chart analysis help in determining the sources of variation. They are used to observe time to time, piece to piece and within piece variations.
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IX. Sampling Sampling is the process of picking a small number of elements from a larger defined target group. The two techniques for accomplishing this are probability sampling or non-probability sampling. X. Process Control Process control is a control technique for confirming that the process performance is sustained at the level. It facilitates ongoing improvement and fulfills customers’ requirements. Poka-Yoke is a fundamental tool for making a process mistake-proof by targeting mistakes and defects. This helps in removing inaccuracy by developing systems that instantly either prevent or identify the mistakes. XII. Continuous Improvement Six Sigma is a widely-accepted lean version that is a data-driven and sophisticated approach to Continuous Improvement. It is an intentional and dynamic practice focused on removing variances and boosting predictability in businesses.
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XIII. Hypothesis Testing Hypothesis testing helps in identifying whether the observed variations in between two or more samples is because of random chance or due to actual differences by leveraging statistical analysis. XIV. Regression Correlation Regression and correlation test the relationships and not the means or variations. These tools help teams in controlling the key inputs by finding out the variables and the degree they affect the response.
XV. Design of Experiments This lean tool helps project teams to figure out the impact of various inputs of the processes on the end product. Companies hire Lean Six Sigma certified
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professionals so they don’t have to invest additional funds in designing Lean Six Sigma Strategies. Certified employees can train other team members and educate them about relevant principles.
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Lean Six Sigma Certifications
Lean Six Sigma certifications are classified into four levels or categories referred to as “belts” that are awarded to the learners in a hierarchical format. Let’s take a look at the four levels of Lean Six Sigma certification courses: I. Yellow Belt Certificate: Lean Six Sigma Yellow Belt certificate comprises the fundamental aspects of the method that helps the learners understand how to implement, perform, interpret, and apply the concepts in a skilled yet limited context. It is best suited for beginners who want to acquire knowledge about
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the different Six Sigma tools and techniques. II. Green Belt Certificate: Lean Six Sigma Green Belt certificate is an advanced level that involves a thorough understanding of all the aspects of the program. Course undertakers get a complete idea of implementing, performing, interpreting, and applying the principles of Lean Six Sigma at a high level of proficiency. It is ideal for professionals who are either serving as team members in more complex improvement projects or
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III. Black Belt Certificate: Lean Six Sigma Black Belt certificate provides a comprehensive understanding of the advanced Six Sigma methodologies and techniques. Professionals who have this certificate qualify for managerial positions. This certificate is best suited for individuals who work in a full-time capacity and lead complex improvement projects. Also, the individuals who’ve earned the Lean Six Sigma Green Belt certificate are eligible for enrolling in the Black Belt certificate.
IV. Master Black Belt: Master Black Belt is the highest level in Lean Six Sigma certification levels. It can be taken up by the individuals who’ve earned the Black Belt certification. The holders of this certification are referred to as champions who act as mentors to the Black Belt Lean Six Sigma professionals. A Lean Six Sigma certification is crucial from a professional’s perspective as it gives them an edge over others as these certifications are highly recognized by organizations worldwide.
7 The Lean Six Sigma Glossary 1. Accuracy It is the difference between the true value and the set of numbers by having data or results centered on a familiar target. 2. Affinity Diagram The affinity diagram is used to facilitate a brainstorming session to get lots of ideas quickly by displaying activities in affinity or homogeneous groupings. 3. Alternative Hypothesis The alternative hypothesis is the opposite of the null hypothesis and cannot be anticipated through randomness.
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Alternative hypothesis is crucial for making the process of writing statements more intuitive. 4. Balanced Scorecard A management methodology to align the Key Business Objectives (KBO) of an organization with enterprise activities, a balanced scorecard helps in keeping everything in check. Measuring performance in various areas like finance, customer satisfaction and innovation is a crucial aspect of a balanced scorecard.
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5. Benchmarking Benchmarking is used by organizations to compare the performance of their outputs with that of industry standards. 6. Capability Ratio The opposite of the Cp index, capability ration involves dividing the process spread with the specification spread for understanding the percentage of specification window consuming by process variation. 7. Cause-effect Diagram Also called the fishbone diagram because
fish, a cause-effect diagram is a graphical tool for showcasing various causes associated with a particular effect. 8. Charter It is a project document comprising the fundamentals such as business case, problem statement, and scope along with their descriptions. 9. Chi-square Distribution This is a statistical tool to compare a target variance against an observed variance for checking goodness-of-fit or dependence or independence ratio.
of its resemblance to the skeleton of a
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10. Data Collection Plan Data Collection Plan is a tactical plan comprising nine columns for collecting both baseline data and the data that can offer hints to the root cause. 11. Descriptive Statistics Mean and median are the measures of central tendency, standard deviation and range of dispersion are used to summarize and interpret properties of the data set referred to as descriptive statistics. 12. Design for Six Sigma Design for Six Sigma (DFSS) uses a DMADV approach which signifies - Define, Measure, Analyze, Design, and Verify. Progressive organizations leverage the Six Sigma philosophy to build into the design processes.
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13. Effort/Impact Matrix Impact/effort matrix is the other name for the Effort/Impact matrix that guides the team to identify which among the various solutions that look the easiest can be implemented and have a beneficial influence. 14. Factorial Experiment A factorial experiment can be of two types either “full factorial'' or “fractional factorial” which is a concurrent manipulation of factors at different stages to analyze their impact on a specific desired outcome. 15. Flowchart It's a graphical tool to represent distinct steps of the process in a systematic order. Starting from the top and moving to the bottom of a page to interpret performance information and include all the critical steps to the process.
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16. Force Field Analysis It is an analysis tool used for visualizing the restraining forces and driving forces that have an impact on some specific area of interest. 17. Gemba Gemba in Japanese means “the place”. It is the place where value is added and all activities usually take place. 18. Goldratt’s Theory of Constraints Theory of Constraints is inspired by the book “The Goal” by Eliyahu M. Goldratt. This theory resembles the notion of the adage, ‘a chain is only as strong as its weakest link’ and believes that in a series of steps the slowest step controls the entire flow. 19. Hypothesis (alternate/alternative) There are two hypotheses: alternative and null where the first one is the opposite of the latter. The null hypothesis is what you forecast through randomness but the alternate hypothesis can’t be anticipated like that. 20. Hypothesis Testing It is a method to make logical decisions about the actuality of effects. The decisions are incomplete and are made by choosing from one or more options.
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21. Inferential Statistics Inferential statistics are used to make generalizations, approximations, or projections. It is the sample that’s taken from inference space, a mathematical method for inferring the properties of a population with the help of probability theory. 22. Inference Space Inference Space is a mathematical technique for deducing the properties of a population by using probability theory from which the sample that’s taken is known as inferential statistics. 23. Interrelationship Diagrams (also known as digraphs) It graphically displays the cause-effect relationships existing among a group of issues, problems, opportunities, or items. Interrelationship Diagrams are used to identify the potential causal relationships hidden behind issues that are occurring continuously despite taking preventive measures to solve them. 24. Ishikawa Tools (also known as Seven Basic Tools) These tools comprise Cause-Effect Diagram, Check Sheet, Control Chart, Histogram, Pareto Chart, Scatter Diagram, and Run Chart.
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25. Jidoka It is one of the guiding principles of
means through which JIT is achieved. Kanban is a scheduling system for Just-
the Toyota Production System used to identify unusual working conditions and instantly pausing the work to remove the root cause of the problem.
In-Time (JIT) and lean production.
26. Kaizen Kaizen a Japanese word that means “improvement” which has evolved since the 1950s to a popular business strategy focused on making small but constant changes in company operations for betterment. 27. Kaizen Event Also known as kaizen blitz, this event is a focused improvement project that can realize sudden improvements in a short span of which five days is the most common timeline. 28. Kanban Kanban is a Japanese term that means “signboard”. According to Taiichi Ohno, Kanban’s creator, it is a
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29. Kano Model Kano Model categorizes the qualities of products and services based on the customers’ voice. Basic needs, performance, and excitement are three classifications for making better design decisions. 30. Least Squares Method (Least Squares Criterion) This is a statistical technique team uses the linear equation with the least-squares method that depicts the points found on the scatter diagram for identifying the best fit for a set of data points. 31. Load Leveling (also known as production leveling or production smoothing) Called “heijunka” in the words of the lean guru Taiichi Ohno, load levelling is a methodology to minimize the mode of
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Kaizen Event- Roadmap
02 03 04 05
01
Conceptial Training
Kaizen on Factory Floor Area
Measure Improvement
Business Process
Discover Problem
Create and map new process
Standard Operations
Measure & Analyse Current work process
Apply rapid implemetation
5S Kaizen Methology Tools & techniques
Brainstorm solutions & formulate Process improvements
waste and large fluctuations in the demands of customers. 32. Loss Function Designed by a Japanese quality consultant and engineer Dr. Genichi Taguchi, the loss function is a graph that demonstrates the cost when your product varies from the value. 33. Matrix Diagram A matrix diagram is a tool that picturizes the crucial relationship between or among two or more groups. A matrix diagram can be magnified to show strengths or various aspects of the relationships.
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Evalute Improvements
Establish New Standard Process Operate using new standard process
Present & Celebrate
Present & Celebrate Present Results and celebrate
Finalise New standard process Monitor & control
34. Measles Charts Also referred to as a defect map, a measles chart is a defect location check sheet prepared by gathering and examining the data that envisions the item being evaluated. 36. New Quality Management Tools These are also called seven management and planning (MP) tools developed by the Union of Japanese Scientists and Engineers (JUSE) in 1976 to promote communication information, innovation, and efficiency in planning crucial projects.
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37. Nominal Scale This is a scale that lists categories or names. There is no particular order in nominal scale and the nominal data is discrete.
41. Pareto Chart This is a bar graph named after Vilfredo Paret, an Italian economist, and is used to visualize the vital items vs. the trivial items.
38. Nominal Group Technique A decision-making methodology used by teams to differentiate the vital items from the insignificant ones.
42. Quality Control The concept of controlling the activities and the operational methodologies used to fulfill the requirements of quality is called quality control.
39. Ordinal Ordinal is the data arranged in order. An ordinal scale can be used by leveraging
43. Radar Chart Radar chart a graph in which each data series has its specific axis and
symbols or numbers to rank order based on severity, strengths, or importance. 40. P Chart This chart can be used when the data is in whole numbers. For example in counting that’s known as an attribute or discrete data. It uses a varying sample size for detecting the defectives in a sample size.
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radiates out from the focal point. It is used when various characteristics need to be compromised to a ‘sweet spot’ that is most pleasing to customers in a particular niche. 44. Scope Scope outlines the boundaries of the project for keeping the team aligned, motivated, focused, contained, and on purpose.
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41. Pareto Chart This is a bar graph named after Vilfredo Paret, an Italian economist, and is used to visualize the vital items vs. the trivial items. 42. Quality Control The concept of controlling the activities and the operational methodologies used to fulfill the requirements of quality is called quality control. 43. Radar Chart Radar chart a graph in which each data series has its specific axis and radiates out from the focal point. It is used when various characteristics need to be compromised to a ‘sweet spot’ that is most pleasing to customers in a particular niche. 44. Scope Scope outlines the boundaries of the project for keeping the team aligned, motivated, focused, contained, and on purpose.
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47. Value Stream Mapping A value stream map is a tool to analyze the process for the existence of excessive and superfluous activities for providing the visibility of information and material flow in a process. 48. Weibull Distribution One of the most common methodologies in reliability engineering, Weibull distribution is used for the Weibull examination of failure data by modeling several failure patterns along with their relative ease of use. 49. X-bar R Chart The role of an X-bar R chart is to facilitate the team to monitor, control and envision the behavior of variation in a process. 50. Z-Score Table The standard normal distribution is another name for the Z-Score table. It is used for large sample sizes especially where the population is beyond n=30 for various hypothesis tests such as tests on proportions, single mean tests, and the difference between two means.
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Lean Six Sigma FAQs Answered 1. Who invented Six Sigma? In 1985 an engineer named Bill Smith invented Six Sigma. 2. Who needs Six Sigma certification? Six Sigma certifications are best suited for individuals who are planning a career in Quality Management in any sector like healthcare, manufacturing, pharmaceutical, service industries, or technology. 3. What is the use of Six Sigma Certification? Six Sigma provides individuals the knowledge of a designed set of tools and techniques for optimizing the business processes with an organization to get hired by companies in better roles.
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4. Which is the most recognized Six Sigma certification? ASQ or IASSC are the leaders in Six Sigma certifications. They are widely-recognized certifications world-wide. 5. Is Lean Six Sigma Certification worth it? Yes, Lean Six Sigma certifications are beneficial because you implement your learning to solve real problems in an organization rather than just earning them for the sake of it. 6. How long does it take to get certified as a lean six sigma green belt? Two to seven weeks is the average time to complete the lean six sigma green belt certification program.
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12. Why is it called Six Sigma? “Sigma” signifies the calculation of deviation in a data set. “Six” is used because six standard deviation events are needed before the process results in an error. 13. What is Six Sigma certified? Six Sigma certification is the validation of a professional’s mastery of a wellrecognized technique of professional skills development. 14. What are the levels of Six Sigma? There are five levels of Six Sigma certifications: White Belt, Yellow Belt, Green Belt, Black Belt, and Master Black Belt. 15. What are 6 Sigma tools? Six Sigma tools are the problem-solving tools to facilitate Six Sigma and other process improvement initiatives.
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16. What is a good sigma level? Ideally, a process with Sigma level 6 or more than 6 is believed to be an excellent process. 17. Can I do Six Sigma Online? Yes, Six Sigma training and exams are conducted online so you can do it according to your convenience. 18. What are the 5 principles of lean? The five crucial lean principles are value, value stream, flow, pull, and perfection. 19. Why is learning Lean Six Sigma important? Lean Six Sigma certifications boost your capabilities as a leader. Although job duties vary industry-wise, most Six Sigma jobs focus on improving processes, managing projects and teams and analyzing data.
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Conclusion Earning Lean Six Sigma credentials help professionals in staying employable and competitive in today’s dynamic era. Employers prefer hiring professionals with Lean Six Sigma certification holders to ensure that their production lines are led by quality and process-driven individuals. GreyCampus offers a comprehensive Lean Six Sigma Certification course.
The job options for professionals with Lean Six Sigma certification are: • • • • • • • • • •
Six Sigma consultant Process engineer Manufacturing engineer Quality engineer Continuous improvement Operational excellence Project manager Mechanical engineer Industrial engineer Reliability engineer
Designed for working professionals, this combo-course of Green and Black Belt certification makes you proficient in the implementation of methods and principles of Lean Six Sigma. The online course is for working professionals and job seekers. The goal is to prepare them to satisfy the immense demand for talent with lean expertise, skills and certification.
20. Is there a difference between Six Sigma and Lean Six Sigma? The primary difference between Lean and Six Sigma is that Lean focuses on eliminating waste and streamlining business processes. On the other hand, Six Sigma strives to minimize the rate of defects through a set of techniques.
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