How to make Lean Six Sigma relevant to Start-Ups?Lean Six Sigma is slowly dying; the era of Manufacturing Service Bases Organizations where Six Sigma focus was to reduce defect rates is past challenge is to make Lean Six Sigma relevant to Start-ups.
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Disrupting Lean Six Sigma; How to make Lean Six Sigma relevant to Start-Ups?
1. Disruption and Lean Six Sigma, we always learn that Lean Six Sigma is a
tool for disruptive process improvement. But not the business is itself
disruptive so how can Lean Six Sigma still be made useful in such
disruptive businesses.
I have worked 80% of my
professional experience in
industries where we need
highly organized processes,
SOPs and very high Quality
standards. These
organizations were the
convectional had a very
strong and defined Top down
structure with few and
limited changes. The
products had a long life one
of the product I worked was
as old as 80 years and still
we transforming its
manufacturing process.
But when I changed my path to the Modern business, which we generally
call as “Start-ups” here the business, is very dynamic. The Organization
structure, product, strategy all is dynamic. The 6 months I spent here
were about 2-3 years you spend in a convectional industry.
Lean Six Sigma is slowly dying; the era of Manufacturing
Service Bases Organizations where Six Sigma focus was to
reduce defect rates is past challenge is to make Lean Six
Sigma relevant to Start-ups.
How to Make Lean Six Sigma
relevant for Start-Ups?
Disrupting 6 σ
By Ashish J Michael Lean Six Sigma MBB,
IIM S
Oct 2019
ashishjudemichael@gmail.com
https://www.linkedin.com/in/ajmichaeliims
Challenges with
existing Lean Six
Sigma project
Structure
Page 2 Page 3
Advantages over
Convectional
Methodology
Page 4
For Lean Six Sigma to be
make useful in a Start-up
Environment we need the
following:
1. Lean Six Sigma has to
be Dynamic
2. The time line of Six
Sigma Project cannot
be more than that of
Yellow Belt need
Impact of Black Belt
Project.
3. Change from Top
down to Bottom Up
Problem Solver
Importance of Lean
Six Sigma in Start-
ups
Detailed Comparison of
the convectional VS
Disruptive Six Sigma
Convectional Vs
Disruptive Structure
2. 1
Lean Six Sigma projects as we know can be divided
into White, Yellow, Green & Black Belt. They have a
very hardwired structure and strict toll gates and even
the timelines. On an average a Six Sigma Black belt
can take 6 months to 1 Year to get completed. Even
though each organization has slightly modified the Six
Sigma methodology where the immediate solves and
long term solves are treated separately. i.e.
Immediate Solve can be put in place during the second
stage it self while the Long term solves follow the
complete the project schedule.
Even 4 months is a very long time for a Modern
Business (i.e. Ecommerce Start-up) the priorities get
changed the problem might itself gets changed. The
Max time, which can be invested, is 3 Months on an
average and we need to bring Transformational
changes within it. That’s the expectation. This was a
challenge for me and I identified a Hack and somehow
it works for me and thought of sharing it with you.
My basic nature is a Problem Solver and with
experience I learned that if we can some how can
create a methodology around the Problem you are
solving for 80% of the problems you can solve the
problem in a fast and efficient manner.
The rest 20% you have to really have to give your best
and improvise.
On an average a Six Sigma Black belt can take 6 months to 1 Year to get
completed. Even though some organization have slightly modified the Six Sigma
methodology where the immediate solves and long term solves are treated
separately. i.e. Immediate Solve can be put in place during the second stage it
self while the Long term solves follow the complete the project schedule
2
Structure, which are Impossible to follow
in A Start-up:
1. The Organizational Lean Six Sigma structure
headed by Champion, followed by Master
Black Belt ,Blackbelt etc. The Start-ups
generally don’t have such an elaborate
structure, as most of the Leadership is too
busy in Business Strategies, Operations etc
compared to convectional businesses where
Strategies are Long term & operations are
stabilized.
2. Time is a luxury, which is not available in
Start-ups. During the timeline of a Black Belt
project there might be so many changes that
the either the Project might have lost its
usefulness or priority due to new business
requirements. Hence ideally the project
timeline should not exceed 3 months.
3. In Start-ups every 6 months there will be a
change, it can be people, Product and
customer requirement. The current Six Sigma
Project is Hardwired and not as dynamic as
the business is. There is lot of Documentation
dependence on Cross-functional teams etc.
3. Convectional Lean Six Sigma
Methodology (DMAIC)
Disruptive Lean Six Sigma
Methodology
1. Define:
Define is the phase where the problem is
dissected and a correct problem state is
formed. This is a crucial phase specially if the
correct problem statement is not defined that
the entire project may me misdirected.
“Project Charter” Template is the tool which
can help in defining the problem as well as the
current and expected returns of Project.
2. Measure:
During measuring phase the data is collected,
Variables are identified. The data need not be
a qualitative but also quantitative such as thru
FGD (Focused Group studies etc.). The
complexity of problem is understood.
3. Analyze:
The data gathered is analyzed to find the
relation, Value for each process is studied thru
Value stream Mapping then Hypothesis is
formed and based on it the solves are
identified. Pilots are conducted based on
hypothesis and result for effectiveness are
studied based on it Final Solve/Solves are
identified.
4. Improve:
The Execution phase where the identified solve
is implemented, stakeholders are trained. And
improved process is rolledout. Key outputs
matrices are identified and monitored.
5. Control:
Dashboards are created for monitoring health
of Process and in case of deviation corrective
actions are implemented.
1. Define:
In addition to define phase of convectional DMAIC
methodology following steps are added:
1a. Immediate Solves
Quick solves/fixes are identified which can stop
immediate bleeding. Best is the implementation LEAN at
this stage to identify the waste and stop it. The solve
identified shall not take more than 7 days to implement
and results should be visible within the week of
implementation.
1b. Pilot & Analysis
Pilot period can be within 3 to 5 days depending upon
complexity of process. Analysis and refinement should be
done within 2 days.
1c. Control & Execute
Identify max of 4 key matrices and measure them before
and after the Immediate solve implementation.
2. Measure: Same as DMAIC except that:
2a. Identify Resources available in organization to solve
problem:
Keep a stock of resources that are readily available in
Organization, which can be used to solve the problem,
being resourceful & Frugal is a key for successful project.
3. Analyze: Same as DMAIC.
4. Improve: Same as DMAIC.
5. Control: Same as DMAIC.
4. Always keep in mind the Top 5
Six Sigma Principles.
1. Practical Approach
2. Limited number of Team
members max 4 who are
problem solvers and Cross-
functional related to the
process identified.
3. Standardize the Process,
identify variables
and how their variability
effect end result.
We have to reduce
variation in output.
Advantage of the disruptive Methodology over
Convectional DMAIC Methodology
3PointAdvantages
FasterResults,LowerCosts,Dynamic
Continued…
Dynamic:
You must be thinking how are we
dynamic when we are covering all the
stages of DMAIC but actually adding few
stages more.
Well, As you are working on Immediate
solves first itself if the management
decides to pull out the plug on project as
they might have decided to change the
priority we would have at least stop
bleeding and can hold work on this
project and start another project and
suppose with time if the priority again
changes you don’t have to start from
beginning as there has already a
foundation built and you can start from
where you left.
Also, even the immediate solve will don’t
let the situation worsen and you can
have an eye on it. In case you see it’s a
high risk you can alert management as
ask them to assign priority along with
damage, which can be induced.
5. Always keep in mind the Top 5 Six Sigma
Principles.
1. Practical Approach
2. Limited number of Team members max
4 who are problem solvers and Cross-
functional related to the process
identified.
3. Standardize the Process, identify
variables and how their
variability effect end result.
We have to reduce variation in output. 4. Always check the sanity of Data before
proceeding with analysis. I have seen many
times the data can be garbage we should
not use it. Don’t get stuck into too much as
analysis sometimes too much “Analysis
leads to Paralysis” as we delay the entire
project.
5. Always keep an eye on customer
requirement. Their buy-in is required hence
always get them involved and explain them
the status of project and progress in a
simple language focusing on the Outcome
as they are most interested in Outcome,
Timeline and Budget.
Next image shows a basic path of Six Sigma
Project its self explanatory.