Lean Six Sigma is a methodology that combines Lean and Six Sigma approaches to process improvement. Lean focuses on speed and efficiency while Six Sigma aims for precision and reducing variation. Both arose in the 1980s, with Lean developing in auto manufacturing and Six Sigma in the semiconductor industry. Combining the two approaches allows organizations to address all types of process problems using the most appropriate tools. Lean Six Sigma seeks to achieve total customer satisfaction, remove waste, improve processes, and develop leaders to meet goals of better products delivered faster and at lower cost. It provides a common vision and language for organizations and promotes teamwork to continuously improve processes.

1. Lean Six SigmaLean Six Sigma
A Methodology for CulturalA Methodology for Cultural
Change and Continuous ProcessChange and Continuous Process
Improvement (CPI)Improvement (CPI)

2. Lean Six Sigma: A Vision
Empowered People Operating in a Culture
and Climate of Creativity & Innovation
Constantly Eliminating Waste and Variation

3. Lean Six Sigma: What is it?
 Lean and Six Sigma are both process improvementLean and Six Sigma are both process improvement
methodologiesmethodologies
 Lean is about speed and efficiencyLean is about speed and efficiency
 Six Sigma is about precision and accuracy –Six Sigma is about precision and accuracy –
leading to data-driven decisionsleading to data-driven decisions
 Both rooted in the 1980s (and earlier)Both rooted in the 1980s (and earlier)
 Lean arose as a method to optimize auto manufacturingLean arose as a method to optimize auto manufacturing
 Six Sigma evolved as a quality initiative to reduceSix Sigma evolved as a quality initiative to reduce
variance in the semiconductor industryvariance in the semiconductor industry

4. Why Lean and Six Sigma
 Six Sigma will eliminate defects but it will not address theSix Sigma will eliminate defects but it will not address the
question of how to optimize process flowquestion of how to optimize process flow
 Lean principles exclude the advanced statistical toolsLean principles exclude the advanced statistical tools
often required to achieve the process capabilities neededoften required to achieve the process capabilities needed
to be truly 'lean‘to be truly 'lean‘
 Each approach can result in dramatic improvement,Each approach can result in dramatic improvement,
while utilizing both methods simultaneously holds thewhile utilizing both methods simultaneously holds the
promise of being able to address all types of processpromise of being able to address all types of process
problems with the most appropriate toolkit.problems with the most appropriate toolkit.
 For example, inventory reduction not only requires reducing batchFor example, inventory reduction not only requires reducing batch
sizes and linking operations by using Lean, but also minimizingsizes and linking operations by using Lean, but also minimizing
process variation by utilizing Six Sigma tools.process variation by utilizing Six Sigma tools.

5. Lean Six Sigma Goals and Benefits
 Achieve total customer satisfaction and improvedAchieve total customer satisfaction and improved
operational effectiveness and efficiencyoperational effectiveness and efficiency
 Remove wasteful/non-value added activitiesRemove wasteful/non-value added activities
 Decrease defects and cycle time, and increase firstDecrease defects and cycle time, and increase first
pass yieldspass yields
 Improve communication and teamwork through aImprove communication and teamwork through a
common set of tools and techniquescommon set of tools and techniques
(a disciplined, repeatable methodology)(a disciplined, repeatable methodology)
 Develop leaders in breakthrough technologies toDevelop leaders in breakthrough technologies to
meet stretch goals of producing better products andmeet stretch goals of producing better products and
services delivered faster and at lower costservices delivered faster and at lower cost

6. Lean Six Sigma Principles
• Specify value in the eyes of the customer
• Identify the value stream and eliminate waste / variation
• Make value flow smoothly at the pull of the customer
• Involve, align and empower employees
• Continuously improve knowledge in pursuit of perfection

7. Lean Six Sigma: A Powerful
Methodology (DMAIC)
MeasureDefine ImproveAnalyze Control
what is important
to the customer:
Project Selection
Team Formation
Establish Goal
how well we are doing:
Collect Data
Construct Process Flow
Validate Measurement System
the process:
Analyze Data
Identify Root Causes
the process gains:
Ensure Solution is
Sustained
the process performance measures:
Prioritize root causes
Innovate pilot solutions
Validate the improvement

8. The Tools and Techniques
Define Measure Analyze Improve Control
Benchmarking
FMEA
IPO Diagram
Kano’s Model
Knowledge Based Mgt
Project Charter
SIPOC Model
Quality Function
Deployment
Voice of Customer
Task Appraisal / Task
Summary
Value Stream Mapping
Confidence Intervals
Measurement System
Analysis
Nominal Group
Technique
Pairwise Ranking
Physical Process Flow
Process Capability
Analysis
Process Flow Diagram
Process Observation
Time Value Map
Value Stream Mapping
Waste Analysis
Affinity Diagram
Brainstorming
Cause & Effect
Diagram
e-test
F-test
Fault Tree Analysis
FMEA
Histogram
Historical Data Analysis
Pareto Chart
Reality Tree
Regression Analysis
Scatter Diagram
t-test
Thematic Content
Analysis
Tukey End Count Test
5 Whys
DFSS
DOE
Kanban
Mistake Proofing
PF/CE/CNX/SOP
Standard Work
Takt Time
Theory of Constraints
Total Productive
Maintenance
Visual Management
Work Cell Design
5S Workplace
Organization
Control Charts
Control Plan
Reaction Plan
Run Charts
Standard Operating
Procedures

9. An ExampleAn Example
Six Sigma Project: Engineering ChangesSix Sigma Project: Engineering Changes
Define:Define: Large number of changes from client after approvingLarge number of changes from client after approving
engineering design. Schedule slipping.engineering design. Schedule slipping.
Measure:Measure: Number of changes, time involved in changes,Number of changes, time involved in changes,
compliance to critical path schedule.compliance to critical path schedule.
Analyze:Analyze: No clear authority on client team to establish scope,No clear authority on client team to establish scope,
any of client team could make changes, verbal communicationany of client team could make changes, verbal communication
of changes, conflicting changes by client team members.of changes, conflicting changes by client team members.
Language issues between client and engineers.Language issues between client and engineers.
Improve:Improve: Regular engineering/client meetings where topicsRegular engineering/client meetings where topics
include: scope for each section and desired objective, knowninclude: scope for each section and desired objective, known
limitations defined, unclear requirements were questioned andlimitations defined, unclear requirements were questioned and
options discussed. Written plan signed by clientoptions discussed. Written plan signed by client
representative and engineering lead. Change requests inrepresentative and engineering lead. Change requests in
writing and signed by client representative. Changeswriting and signed by client representative. Changes
decrease by factor of 4.7 and schedule met.decrease by factor of 4.7 and schedule met.
Control:Control: Change requests all in writing. Shared approachChange requests all in writing. Shared approach
with other disciplines on project.with other disciplines on project.
From: www.adamssixsigma.com/Sample_Projects/six_sigma_projects.htmFrom: www.adamssixsigma.com/Sample_Projects/six_sigma_projects.htm

10. Some Results…Some Results…
 Motorola – 10 years; $11 BillionMotorola – 10 years; $11 Billion
SavingsSavings
 Allied Signal - $1.5 Billion estimatedAllied Signal - $1.5 Billion estimated
savingssavings
 General Electric – started efforts inGeneral Electric – started efforts in
19951995
 1998: $1.2 Billion less $450 Million1998: $1.2 Billion less $450 Million
in costs… net benefits = $750 Millionin costs… net benefits = $750 Million
 1999 Annual Report: more than $21999 Annual Report: more than $2
Billion net benefitsBillion net benefits
 2001: 6,000 projects completed; $32001: 6,000 projects completed; $3

11. Six Sigma according to GESix Sigma according to GE
““A highly disciplined process that helps usA highly disciplined process that helps us
focus on developing and delivering near-focus on developing and delivering near-
perfect products and services. The word Sixperfect products and services. The word Six
Sigma is a statistical term that measures howSigma is a statistical term that measures how
far a given process deviates from perfection.far a given process deviates from perfection.
The central idea behind Six Sigma is that ifThe central idea behind Six Sigma is that if
you can measure how many “defects” youyou can measure how many “defects” you
have in a process, you can systematicallyhave in a process, you can systematically
figure out how to eliminate them and get asfigure out how to eliminate them and get as
close to “zero defects” as possible. Sixclose to “zero defects” as possible. Six
Sigma has changed the DNA at GE – it is theSigma has changed the DNA at GE – it is the
way we work – in everything we do and inway we work – in everything we do and in
every product we design.”every product we design.”

12. • Provides aProvides a world classworld class business strategybusiness strategy
• Encourages aEncourages a common visioncommon vision andand common languagecommon language
shared by allshared by all
• PromotesPromotes teamworkteamwork and REWARDS successand REWARDS success
• CombinesCombines aggressive goalsaggressive goals with awith a methodmethod and a set ofand a set of
toolstools
• Requires theRequires the applicationapplication ofof toolstools throughoutthroughout entire lifecycleentire lifecycle
of a product or serviceof a product or service
• Produces knowledge forProduces knowledge for improved cycle timeimproved cycle time,, reducedreduced
defectsdefects, and, and lower costlower cost
Better products and services
delivered faster and at lower cost
=
Improved Customer Value
Summarizing the Power
of Lean Six Sigma