Contributed on December 7, 2015

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Introduction to Lean Six Sigma Methodology

LEAN SIX SIGMA is a management concept used to effectively improve business processes based on the combination of the different tools & principles of Lean and Six Sigma.

Organizations face rising costs and increasing competition every day. Those ones that implement Lean Six Sigma correctly, achieve significant benefits that contribute to competitive advantage and to changing the culture in an organization from reactive problem solving to proactive problem prevention. Specifically, the proven benefits are diverse. First, Lean Six Sigma achieves faster processes by removing all forms of non-value added work according to the seven types of waste. Secondly, Lean Six Sigma aims to realize higher quality in terms of process stability and capability through the reduction of variation and the elimination of defects.

Since the methodology involves a strong focus on customer needs and requirements, another significant benefit of using the tools and concepts of Lean Six Sigma is an increase in customer satisfaction. But the primary desired benefit of all process improvement activities within the scope of Lean Six Sigma is a reduction in costs. By achieving streamlined processes that are completed faster and more efficiently, less resources are required, resulting in decreased costs. In addition, less variation and defects lead to less cost of poor quality. Cost of poor quality includes costs that arise due to the gap between the desired and actual product or service quality. On the other hand, Lean Six Sigma increases revenue by enabling an organization to do more with less.

Finally, a major benefit of Lean Six Sigma is an increase in employee engagement and effectiveness. Lean Six Sigma not only reduces costs and increases revenue, it positively affects people by engaging them in improving the way they work. By involving employees in Lean Six Sigma projects, they gain a greater appreciation for the impact of the work they do on bottom-line business results, as well as an appreciation for how the work of other employees and departments also contribute to success. And once employees get comfortable with Lean Six Sigma skills learned through trainings or projects, they can proactively continue to improve their business processes based on a well-established methodology.