A Lean Six Sigma (LSS) approach to operations excellence is inherently challenging. The core ideas (the impacts of statistical variation and sequential events) are abstract and subtle. They are not emphasized in secondary education or easily acquired through experience. Implementation requires some training in theory and significant experience applying the ideas. Lean Six Sigma applies to all functions and processes, including those which prize creativity and exceptions, rather than structure and consistency. LSS provides a new language, shifts power and seeks a cultural change that values process owners, operators and change agents.
Hence, a successful Lean Six Sigma transformation takes time, often 3-5 years. Progress is cumulative, with cycles of learning and application progressing from an initial core team to project teams and functions. Jim Collins’ flywheel analogy is appropriate. Consistent, constructive progress generates momentum, a shared language and understanding, demonstration projects, senior management confidence, measurement and feedback systems, continuous improvement from process operators and expanded functional coverage.
While most organizational change efforts require a comprehensive top-down plan and senior management direction, Lean Six Sigma often starts with a single function, plant or process and senior management tolerance. A defect rate is too high. A large customer’s demands cannot be met. The sales team needs ISO 9000 certification to sell products. A new factory or distribution center is required. Some management appreciation of the potential benefits is required to allow the initial investment. LSS expansion best advances through proof of its effectiveness one project or process at a time. The break-through improvements convince staff and management skeptics of the potential value.
Although every company takes its own path, a common progression is outlined below:
- A perceived operations need exists. An experienced staff member sells management on a new quality system, factory layout or transaction process. LSS tools are used to produce a significantly more effective system than existed before.
- A senior manager reads an article, attends a conference, networks or meets with a customer. Support grows for staff training and application of these tools.
- More projects are undertaken. Select training is begun. Process mapping and improvements begin in earnest. Senior managers monitor results.
- Value from the initial projects is recognized. A consensus forms that the firm ought to leverage these tools through a centralized quality or project office. Permanent staffing is added.
- Front-line quality control staff members expand their impact as process measurement and improvement agents. Improved technical skills and software are acquired. Quality assumes a higher profile.
- A single, comprehensive quality management system is proposed. The organization learns more about quality, process flows and quality assurance. A central staff is created to manage the project and function.
- Functional and project staff members are trained in ISO 9000 standards, process mapping and quality basics.
- All processes are mapped. Process improvements are implemented.
- Larger process improvement projects are proposed in more areas and resources are allocated.
- The importance of process flow and the critical role of cycle time are recognized, leading to the use of lean techniques, including pull scheduling, JIT flows, inventory reduction and set-up time reduction.
- Standardized training is developed for project leads, project members, executives and functional staff. The training covers processes, quality, statistics and tools.
- Supplier management becomes an area of emphasis, through quality or procurement. Supplier scorecards are used to measure and improve performance.
- Formalized customer goals are defined and prioritized. Measurement systems are created to monitor overall operations progress at meeting the goals.
- Operations and financial measures are reconciled and combined in some form of balanced scorecard. The quality management system is integrated with the financial management system.
- An official Lean Six Sigma program with formalized roles and training for project managers and black belts is adopted.
- The combination of operations, financial and strategic planning results in a prioritized portfolio of process improvement projects.
- The product development process is standardized in some type of stage-gate approach.
- Continuous process improvement becomes routine.
- Business units, factories and processes begin to experience near zero defect rates, daily or hourly cycle times, 3X process flexibility, annual cost reductions, minimal WIP inventories, smaller batches, immaterial set-up times/costs, free transactions, instant information sharing and faster product introductions.
Lean Six Sigma makes audacious promises about its ability to improve organizational effectiveness. The implementation process is messy, but the required techniques, tools and steps are well-known. Organizations that make the commitment to get the flywheel spinning will be rewarded by a self-controlled and self-improving system that requires minimal maintenance while delivering increasingly valuable benefits.