In its traditional form, Six Sigma is a structured and data driven method for identifying and managing the critical few variables that affect process performance. A beneficiary of its own continual improvement principles, Six Sigma has evolved over the past decade into a strategy that incorporates not only statistical analysis methods for process improvement, but also tools and processes for eliminating waste.

Process improvement with Lean Six Sigma comprises a sequence of steps that helps the user to (a) define the current situation, (b) measure, and (c) analyse a process for cause effect relationships and opportunities to remove waste, (d) improve the process through treatment of the most influential variables, and finally (e) control the process to ensure performance gains are sustained.

This sequence is known widely by the acronym DMAIC. Lean principles are often utilised on their own without passing formally through the DMAIC process. However, the logic of DMAIC is still applied in using these principles to eliminate waste.

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The traditional approach to quality has been to detect and correct defects after they occur. This approach still results in waste. By contrast, Six Sigma focuses on not producing waste (including defects) in the first place. Six Sigma and Lean compliment one another in that Lean focuses on eliminating or minimising waste beyond product defects; waste associated with movement or motion, inventory, transportation, over production, waiting or queuing and non-value added processing.

A major difference between Lean Six Sigma and past initiatives that have come and gone is the way it is implemented in an organisation. Where past initiatives might have been rolled out by telling employees to do it, a successful Lean Six Sigma initiative involves leaders and managers in a number of ways.

• They actively participate in selecting and leading projects as project champions
• They consistently focus on the discipline of continual improvement
• They challenge employees by setting new performance targets
• They provide the support and resources for project teams to make rapid and sustainable process improvements in achieving performance targets

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Companies that implement Lean and Six Sigma into the way they do business, can realise a number of key benefits:

• Increased Margins - By reducing variation and preventing defects before they occur, a company reduces the amount of waste it incurs. The bottom line benefits result from greater process yield.
• Maximum Performance – Lean thinking will drive a focus on the elimination of all waste. New levels of process efficiency and effectiveness can result in outstanding customer service, reduced cost, minimised working capital and the opportunity to build a true high performance organisation.
• Shareholder Return - The investment community have recognised and rewarded organisations that have achieved returns through successful implementation of Six Sigma.
• Common Language - A common language is one of the foundations of an organisation's culture. Lean and Six Sigma bring the language of continual improvement to an organisation.
• Problem Solving Based on Fact - Six Sigma mandates the use of quantitative and cause & effect analysis methods to solve problems. Guess work is eliminated, as is the common practice of treating symptoms to problems rather than causes.
• Clarification of Customer’s Requirements - Customers' needs and critical-to-quality requirements are translated into technically measurable responses. The performance of the company against customer requirements can be easily measured.
• Competitive Advantage - By continually raising the bar and exceeding customer requirements, a company can establish a significant advantage in a highly competitive world.

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For more than two decades now both Lean and Six Sigma have shown themselves to be tremendously successful ways of enhancing the performance of any business. There is greater understanding that these strategies can be applied in industries beyond manufacturing.

When implemented properly Lean and Six Sigma are an investment, not a cost. When implemented properly Lean and Six Sigma will add considerable value to a company’s bottom line and the people involved.

Can it add value to you and your organisation - the answer to that will ultimately be determined by the leaders of your business! A commitment to improvement and progressive change will see it work; continuing to do the same thing every day will guarantee its failure.

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