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:

White Belt
Basic awareness of Lean Six Sigma principles
Yellow Belt
Understands basic improvement methodology and supports projects
Green Belt
Leads projects and applies tools under guidance of Black Belts
Black Belt
Leads complex projects and coaches Green Belts
Master Black Belt
Trains and coaches Black Belts and Green Belts, develops strategy

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

  1. Focus on the customer - Understanding customer needs and expectations
  2. Identify and understand process flow - Mapping the value stream
  3. Eliminate waste - Removing non-value-adding activities
  4. Manage, improve and smooth the process flow - Creating pull and flow
  5. Remove variation and defects - Using data to reduce process variation
  6. Involve and equip the people in the process - Empowering the team
  7. 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:

Define
What is the problem?
Measure
How big is the problem?
Analyze
What causes the problem?
Improve
How can we fix the problem?
Control
How can we sustain the 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.

1. What are the two methodologies that make up Lean Six Sigma?

2. What does DMAIC stand for?

3. What is the primary focus of Lean methodology?

4. What does the term "Sigma" refer to in Six Sigma?

5. As a Yellow Belt, what is your primary role in a Lean Six Sigma project?