Unit 1
Lean is, "a set of tools that assist in the identification and the steady elimination of waste."
Lean Six Sigma is a process improvement methodology designed to eliminate problems,
remove waste and inefficiency, and improve working conditions to provide a better response
to customers’ needs.
The principles of Lean Six Sigma can be summarized as follows:
Customer Focus: The primary objective is to maximize benefits for customers. To achieve this,
businesses must understand customer needs and align quality standards with market or
customer demands.
Assess the Value Chain and Identify Problems: Begin by analyzing the steps of a process to
identify areas that are not meeting expectations or causing issues. Define clear goals for data
collection, gather relevant data, and ensure it aligns with the objectives. Identify the root causes
of problems within the process.
Eliminate Defects and Outliers: After identifying problems and their root causes, make
necessary process modifications to eliminate defects and inefficiencies. Remove any activities
that do not add value to the customer. Use various tools to pinpoint problem areas and outliers,
ultimately removing bottlenecks in the process.
Involve Stakeholders: Collaborate with all relevant stakeholders to find solutions to complex
issues. Ensure that the team is proficient in Lean Six Sigma methodologies and principles
through specialized knowledge and training, reducing the risk of project failure and optimizing
process performance.
Flexible and Responsive System: Embrace flexibility and adaptability when implementing
changes to eliminate inefficient processes. Recognize that changes may require adjustments in
employee approaches and work practices. A responsive environment is key to efficiently
implementing process improvements.
These principles emphasize customer satisfaction, problem identification and resolution, waste
reduction, collaboration among stakeholders, and adaptability to changes, all of which contribute
to the successful application of Lean Six Sigma to improve processes and enhance overall
business performance.
In Lean Six Sigma (LSS), there are commonly recognized "Eight Wastes" that represent various
forms of inefficiencies in a process. These wastes are also known as "Muda" in Japanese
terminology. Here is a brief explanation of each waste:
Defects: This waste includes any errors, defects, or mistakes that require rework, repair, or
correction. Defects can lead to increased costs, delays, and customer dissatisfaction.
Overproduction: Overproduction occurs when a process produces more output than is needed
or required. It leads to excess inventory, storage costs, and potential obsolescence.
Waiting: Waiting waste involves idle time or delays in a process due to bottlenecks, inefficient
scheduling, or lack of coordination. Waiting wastes time and resources.
Non-Productive Assets: This waste refers to underutilized human resources or equipment. It
occurs when people or machinery are not fully engaged in productive activities.
Transportation: Transportation waste occurs when unnecessary movement of materials,
products, or information takes place within a process. Extra handling and transportation can
lead to inefficiencies.
Inventory: Excess inventory, also known as inventory waste, ties up capital, takes up space, and
can lead to obsolescence or deterioration of products.
Motion: Motion waste relates to unnecessary or excessive physical movement by employees
within a process. It can lead to fatigue, reduced efficiency, and increased risk of errors.
Extra Processing: Extra processing waste occurs when more work is performed on a product or
service than what is required by the customer or what adds value. This includes redundant or
unnecessary steps.
Identifying and eliminating these eight wastes is a fundamental principle of Lean Six Sigma, as it
leads to process optimization, reduced costs, improved quality, and enhanced customer
satisfaction.
Quality is a concept that refers to the degree of excellence of a product or service in meeting the
expectations and requirements of its intended users or stakeholders.
Based on the Product: Quality can be understood from the perspective of the product itself. In
this view, differences in quality are tied to variations in the quantity of specific ingredients or
desired attributes within a product. The perception of quality is intimately tied to the product's
composition and how well it aligns with consumers' preferences.
Based on the Production: From a production perspective, quality is defined as conformity to
specific requirements. Any variability in the production process poses a threat to the quality of
the end product.
Based on the Value: Quality can also be evaluated based on the value it provides. In this
context, quality is defined as achieving a level of excellence at an acceptable price or controlling
variability while keeping the cost reasonable. The relationship between quality and cost is
complex, and achieving "value for money" is a key consideration.
Based on the User: Quality can be defined based on the user's perspective, emphasizing the
capacity of a product or service to fulfill specific user needs. Quality is seen as satisfying or even
exceeding consumers' expectations. However, this perspective can be challenging to translate
into specific product specifications.
Quality is not solely about meeting a single criterion but involves multiple dimensions, including
product attributes, process adherence, cost-effectiveness, and user satisfaction.
15 Quality Values
Quality First: Emphasizes the importance of prioritizing and maintaining high standards of
quality in all aspects of the organization's operations.
Market-In / Customer Focused: Stresses the need to align products and services with customer
needs and market demands.
Next Process is Your Customer: Encourages employees to consider the downstream processes
and treat them as internal customers, ensuring that what they deliver meets their needs.
People Building First: Recognizes the significance of developing and empowering employees as
a means to improve quality and productivity.
Vital Few / Focusing on Priorities: Advocates for concentrating efforts on critical issues and
priorities rather than spreading resources too thin.
Control by Facts and Data: Promotes the use of data and evidence-based decision-making to
control and improve processes.
Process Vs. Result Oriented: Emphasizes the importance of focusing on improving processes,
which in turn leads to better results and outcomes.
Control of Variation: Highlights the need to manage and reduce variability in processes, which
can lead to consistent quality.
PDCA Cycle: Refers to the Plan-Do-Check-Act cycle, a continuous improvement framework, to
drive quality improvements.
Upstream Management: Encourages proactive problem-solving and quality management at the
early stages of a process.
Preventing Recurring Problems: Aims to identify and address the root causes of issues to
prevent them from happening again.
Control Starts with Measurable Goals: Promotes setting clear and measurable goals as a
foundation for quality control and improvement efforts.
Don't Blame Others: Encourages a culture of accountability and problem-solving rather than
assigning blame when issues arise.
Respect for Humanity: Advocates for treating employees and stakeholders with dignity and
respect, recognizing their contributions.
Teamwork: Recognizes the value of collaboration and collective effort in achieving quality goals.
DMAIC is a structured problem-solving methodology within the Six Sigma framework, used to
improve processes by reducing defects and variability.
Case Study: Reducing Customer Complaints in a Call Center
Define Phase:
In the "Define" phase, the problem is clearly defined, and project goals are established. In our
case, a call center is experiencing an increasing number of customer complaints related to long
wait times and inaccurate information. The team defines the problem as "Reducing customer
complaints by improving call center efficiency."
Measure Phase:
In the "Measure" phase, the team gathers data to understand the current state of the process.
They measure metrics like call wait times, the number of complaints received, and the accuracy
of information provided. They find that the average wait time is 15 minutes, and there are 50
customer complaints per week.
Analyze Phase:
In the "Analyze" phase, the team digs deeper to identify root causes of the problems. They
perform root cause analysis and use tools like fishbone diagrams and Pareto charts. They
discover that the main reasons for complaints are understaffed shifts during peak hours and
inadequate training for call center agents.
Improve Phase:
In the "Improve" phase, the team develops and implements solutions to address the root
causes. They hire additional staff to cover peak hours, provide comprehensive training to
agents, and implement a new call-routing system to minimize wait times. These changes are
carefully planned and executed.
Control Phase:
In the "Control" phase, the team establishes controls to ensure that the improvements are
sustained over time. They monitor key metrics continuously, conduct regular agent performance
reviews, and maintain an open line of communication with customers for feedback.
The case study explains how DMAIC can be applied to real-world problems to achieve
measurable and sustainable process improvements. It provides a structured and data-driven
approach for organizations to solve complex issues and enhance their operational excellence.
