Six Sigma is a business methodology invented by the engineer of Motorola, Bill Smith. He created this system by reducing variations in his company’s electrical manufacturing process because it was causing defective products.
Six Sigma is a system that seeks to improve quality. Its main task is to measure the defects in currently used products and devise ways to eliminate them.
Lean Six Sigma is a mix of Lean and Six Sigma. The few tasks which this methodology deals with are the identification of the root cause of inefficiency. It can work with any product or service with a large amount of data.
What is Six Sigma?
Since the invention of Six Sigma in various fields of business, its strategies and management tools have been adopted. Six Sigma follows six principles: customer focus, use data, improve continuously, involve people, and be thorough.
It is a crucial business strategy because its users claim that, because of using this methodology, they can get up to fifty percent process cost reduction. They also claim that Six Sigma assures they waste fewer materials and understand better what their customers require. Through understanding customers' needs, clients' satisfaction becomes more and more significant, and so, through using Six Sigma, companies acquire more reliable products and services.
If you want to learn more about Six Sigma, you can read this article.
What Methodologies Does Six Sigma Use?
There are two main improvement methods that Six Sigma uses, and all of them apply the principles mentioned above.
The first method, Six Sigma DMAIC, stands for Define, Measure, Analyze, Improve, and Control. Each represents a step in the Six Sigma DMAIC process.
The first step is defining, which means identifying the company's project goals.
The following steps are to measure and analyze, through which you understand the current performance and identify the root causes of any defects.
The last steps are to improve and control. Through these two, you first implement methods through which you can eliminate defects and improve the process, and then you manage future process performance.
The second methodology is called Six Sigma DMADV. It stands for Define, Measure, Analyze, Design and Validate.
The first three steps of this methodology are the same as the ones of Six Sigma DMAIC. The last two mean that the method aims to create a new process that meets the customer's needs and expectations and then to verify if it does indeed meet those requirements and perform adequately.
These two methodologies have the same base, but their difference is in what they aim to achieve. For Six Sigma DMAIC, it is to correct an already existing process, while for Six Sigma DMADV, it is to create a whole new process.
What is Lean Six Sigma?
Lean Six Sigma is a variation of Six Sigma made through the mix of Lean and Six Sigma. It is a process based on prevention rather than detection. It is a fact-based and data-driven method that reduces variation, work, and cycle time. Lean Six Sigma creates a competitive advantage, promoting flow and work standardization.
The Lean method is focused on removing waste, while the Six Sigma method monitors the process, identifies issues, and works towards solving them as quickly as possible.
Lean Six Sigma uses the first methodology that the usual Six Sigma uses, DMAIC. It identifies the goals of the project and the roots of the problems, and then it focuses on improving the already existing process.
Lean Six Sigma, this synergy between methods works to remove waste, which can be divided into eight types according to Lean.
The first type of waste is defects, including products not meeting quality standards. The following types of waste are overproduction and waiting. Overproduction means exceeding demands and producing way more than is ordered.
The ineffective usage or misallocation of human resources is another type of waste, called non-utilized talent. Transportation waste is defined as inefficient shipping. The following two types of waste are inventory and motion waste. Inventory waste consists of having a surplus of products or prime materials, and motion waste is the unrequited moving of products or employees. And lastly, extra processing waste means putting in more work than is needed.
What are the Benefits of Using Six Sigma?
There are a few benefits of using Six Sigma, including a decrease in waste, an increase in efficiency, and a reduction of a company’s legal risk.
The Six Sigma methodology was designed to help companies decrease the amount of waste. Six Sigma helps you to identify the areas of waste in your company and how to remedy them so you end up saving money and time.
By using Six Sigma, you will notice an increase in efficiency. With formal training in Six Sigma, you can learn how to achieve the maximum effectiveness in the business process you have in usage.
By using Six Sigma, your company meets international compliance standards, so this methodology also saves you from potential legal fees
Six Sigma is an efficient methodology that can be helpful for a business. It helps you to minimize your company’s amount of waste, it also allows an increase in efficiency, and assists with legal aspects.
Lean Six Sigma is a very prevalent method. It focuses on prevention more than detection, as opposed to the usual Six Sigma, and promotes flow and work standardization. It would be best if you, too, used this methodology if you want to use fewer materials but get a better understanding of what your customers require because, by doing so, you increase the quality of your services and products. High-quality products and services ensure happy clients who will reach out to you again. This way, you can build your clientele and get regular clients who consider your services or products the best quality. A good reputation assures new clients so your company can get even more successful and its popularity spreads. You enjoy the maximum revenue of all your work using the Six Sigma methodology.