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Module 1: Introduction to Lean Six Sigma
What is Lean Six Sigma?
Lean Six Sigma is a powerful methodology that combines two complementary approaches to improving business processes:
Lean
Originated from Toyota Production System (TPS)
Focuses on eliminating waste and creating flow in processes
Goal: Reduce the time from order to cash
Six Sigma
Developed by Motorola
Focuses on reducing variation and defects in processes
Goal: Improve quality by minimizing errors
When combined, these methodologies create a powerful approach that enhances both speed and quality in business processes.
"Lean Six Sigma is not just about tools and techniques; it's a mindset focused on continuous improvement and customer satisfaction."
The Origins of Lean Six Sigma
Lean Origins
What we now call Lean is derived from the Toyota Production System (TPS), which was initiated in the late 1940s. Toyota could not use the mass production systems practiced by the major car manufacturers as they did not have the resources – so they came up with the philosophy of "doing more with less".
The term "Lean" was first coined by John Krafcik in his 1988 article "Triumph of the Lean Production System," based on his master's thesis at the MIT Sloan School of Management.
Six Sigma Origins
Six Sigma was developed by Motorola in the mid-1980s as a set of tools and techniques to improve manufacturing processes. The methodology gained widespread recognition after General Electric's Jack Welch made it central to his business strategy in the 1990s.
The name "Six Sigma" comes from statistical modeling of manufacturing processes. A six sigma process produces 99.99966% of all opportunities free of defects (3.4 defects per million opportunities).
The Lean Six Sigma Belts
Similar to martial arts, Lean Six Sigma practitioners are categorized by "belts" that indicate their level of expertise:
As a Yellow Belt, you will:
- Understand the fundamentals of Lean Six Sigma
- Apply basic tools to improve processes in your area
- Participate effectively in improvement projects
- Identify waste and contribute to eliminating it
- Speak the language of process improvement
Key Principles of Lean Six Sigma
- Focus on the customer - Understanding customer needs and expectations
- Identify and understand process flow - Mapping the value stream
- Eliminate waste - Removing non-value-adding activities
- Manage, improve and smooth the process flow - Creating pull and flow
- Remove variation and defects - Using data to reduce process variation
- Involve and equip the people in the process - Empowering the team
- Undertake improvement activities in a systematic way - Following DMAIC
The DMAIC Improvement Cycle
The DMAIC methodology is at the heart of Lean Six Sigma process improvement:
As a Yellow Belt, you'll learn how this framework guides improvement projects and what your role is in each phase.
Key Takeaways:
- Lean Six Sigma combines the waste elimination focus of Lean with the variation reduction focus of Six Sigma
- The methodology originated from manufacturing but is now applied across all types of industries and processes
- Yellow Belts support process improvement efforts and need to understand basic concepts and tools
- The DMAIC framework provides a structured approach to process improvement
Knowledge Check
Test your understanding of the concepts covered in this module.