What is Six Sigma and Lean Six Sigma?

The Six Sigma method enhances the efficiency of project processes and elevates product quality by reducing defects and various risks.

The term “6 sigma” signifies virtually defect-free production. By controlling the production process, one can identify areas that need improvement even before defects arise.

This method emerged in the 1980s when Motorola specialists developed and applied it in their operations. Soon, Six Sigma became effectively utilized by other companies.

In 1986, Motorola faced numerous complaints due to a massive amount of production defects found in their products. Understanding the urgent need to address the situation, Chief Engineer Bill Smith developed the Six Sigma methodology to minimize defects in the development process.

The method’s goal is to produce consistently high-quality products, improve operations to eliminate deficiencies. The model has proven itself in the operations of large corporations with thousands of employees and is equally effective in small teams.

The Six Sigma methodology involves determining the level of deviations of process parameters from the scale of standard distribution of such deviations. There are certain limits, not violating which, production indicators remain at a high level, and product quality does not suffer. Deviations have their unit of measurement called sigma.

The goal of Six Sigma is to improve every aspect of the business with statistical measurement of results.

Phases of the Six Sigma methodology (DMAIC algorithm):

1. Define:

• Establishing end goals and project boundaries, identifying problems that need solving to achieve the required level of deviations.
• Defining customer needs for products.
• Identifying processes that need improvement.

2. Measure:

• Planning the collection and measurement of information data about product defects.
• Gathering information from various sources to determine the defect level.
• Processing and displaying the collected data to the team members.

3. Analyze:

• Analyzing and verifying the collected information.
• Identifying circumstances that led to the formation of defects.
• Determining necessary steps and setting priorities for improvements.

4. Improve:

• Formulating new solutions capable of improving the production process, including project management tools and other instruments.

5. Control:

• Monitoring and controlling programs that enhance quality.
• Evaluating the effectiveness of improvements.

Tools of the Six Sigma Methodology

Here, you can utilize quality management methods, namely:

• 5 Whys: Assemble the project team (in an informal setting if preferred) and conduct a brainstorming session. Ask each other “Why did this happen/Why like this?” until the main cause of defects surfaces.
• Business Process Map: Schematic representation of existing project resources and tasks. It helps identify what resources are available and what needs to be done.
• Experiment: Test a solution variant on a group from the target audience.
• Cost-Benefit Analysis: When choosing between multiple project options, opt for the one with the most favorable benefit-to-cost ratio.
• CTQ Tree (Critical to Quality): An excellent quality management tool for services, products, or a company’s overall work. Create a diagram with key characteristics that hold the most importance for your project.

The Six Sigma methodology symbolically alludes to Eastern martial arts. The role of each specialist in the project team depends on their belt. The belt color represents the level of knowledge and skills required for Six Sigma training. The specialist “pyramid” is structured as follows:

• At the top and leading the project is the Leader. They allocate tasks, authority, and resources. The Leader is also responsible for effective communication among team members, conflict resolution, and overcoming resistance to innovation.
• Champions implement the Six Sigma method and organize work according to new rules. They also serve as mentors to Black Belts.
• The Master Black Belt supervises the implementation of Six Sigma and leads regular Black Belts.
• Regular Black Belts manage projects and perform tasks assigned by the Leader, with the Master Black Belt overseeing them throughout the work.
• Green Belts are staff members who, like Champions, besides their main duties, work on implementing the methodology. Black Belts monitor Green Belts.
• Sometimes, in addition to Green belts, there are White Belts and Yellow Belts. These are employees who have a basic understanding of the Six Sigma method. They may occasionally participate in projects or undergo Six Sigma training as external observers. Yellow Belts have slightly more knowledge than White Belts, but the difference is minor, so they are often placed at the same level.

The undeniable advantage of applying the Six Sigma method is cost reduction. Due to the involvement of high-class specialists in projects, significant monetary savings can be achieved.

The methodology guarantees absolute customer satisfaction. However, the prolonged success of Six Sigma is possible only with offerings that can interest the customer. Continuous improvement of company activities is another condition for the effectiveness of the method.

Leaders opting to apply this methodology must forget about unconventional solutions, innovative approaches, and shortcomings. It’s crucial to understand that Six Sigma is not just a transformation of outdated quality assurance methods but an entirely new approach to company management.

Lean Six Sigma

In addition to the classical approach, there is Lean Six Sigma. It combines the advantages of Six Sigma and the principles of “lean production,” resulting in a set of methods for managing production and business processes capable of improving any company of any structure and industry.

“Lean production” was created in Japan in the 1960s by Toyota ideologist Taiichi Ohno. It’s a practically Eastern philosophy based on the idea that ideal order should reign in all company processes. In the U.S., this concept only spread by 1990, and to this day, its principles remain unchanged:

• The key to reducing production defects and ensuring high-quality work is the interest of the employees in their success. For this, everyone should be given equal conditions for professional growth and realization of ambitions.
• Management and change management should be based not only on technologies and rules but also on the use of human resources. This, in itself, is the best quality management tool.
• Much depends on effective corporate culture. Constantly improving it to increase the comfort and cohesion of employees is one of the priority goals of a successful company.
• The company’s leader acts as the “leader of the pack.” It is their responsibility to timely identify the pack’s problems and causes of errors and to maintain a favorable climate in the teams.