In recent years, there has been increasing debate surrounding the effectiveness of Lean Six Sigma. So, is Lean Six Sigma still relevant today, or is it just a business buzzword of the past?
To answer this question simply…
Yes, Lean Six Sigma is definitely still relevant.
Lean Six Sigma is not dead, it has simply evolved.
Key Takeaways
✔️ Yes, Lean Six Sigma is still relevant today. It is not dead, but it has evolved.
✔️ Lean Six Sigma focuses on reducing waste and variation in a process in order to improve profitability and customer satisfaction. This will always be relevant.
✔️ The original Lean Six Sigma system does have some faults that need to be addressed to fit modern society.
✔️ Integrating Agile Thinking, Big Data analysis, and Change Management with Lean Six Sigma principles addresses these faults and drives the most successful results.
What is Lean Six Sigma?
Lean Six Sigma is the combination of Lean manufacturing and Six Sigma principles.
Although these two systems were developed independently, they are highly complementary which has led them to commonly be taught as one combined model.
Lean manufacturing focuses on reducing all forms of waste in a process in order to reduce costs and improve efficiency. In particular, Lean manufacturing focuses on 8 forms of waste:
- Defects
- Overproduction
- Waiting
- Non-utilized talent
- Transportation
- Inventory
- Motion
- Excess processing
🤿 DIVE DEEPER: Learn more about the 5 key principles of Lean manufacturing in my article here.
Therefore, Lean manufacturing places a large emphasis on improving the flow of a process by eliminating non-value add steps. For example, this could look like reducing the number of times operators need to walk to a different area to grab a tool or limiting the waiting time between steps in a process.
In contrast, Six Sigma focuses on reducing defects and variation in a process in order to achieve high quality standards that will meet customer’s needs without significant waste generation.
Both of these models instill a mindset of continuous improvement where people are constantly identifying, analyzing, and improving issues in a process.
Therefore, by combining these two systems together, you have a cycle of continuous improvement that is working towards achieving maximum efficiency and profits. In doing so, Lean Six Sigma will result in…
- Happy, loyal customers
- Engaged employees
- A highly profitable business
What is the Origin of Lean Six Sigma?
Lean manufacturing and Six Sigma were both slowly developed over time, so they are difficult to trace back to a single person or date, but there are some generally accepted derivations for these two models.
The Origin of Lean Manufacturing
Toyota was the first company to begin developing the principles that make up the foundation of Lean manufacturing with the introduction of the Toyota Production System in the 1940s.
Since then, companies such as Toyota, Ford, and General Electric have further used and developed these principles to dramatically improve their businesses.
Then, John Krafcik created the term “Lean” in his 1988 article “Triumph of the Lean Production System”.
The Origin of Six Sigma
Although most of the statistical basics of Six Sigma were developed much earlier, the development of Six Sigma itself happened in the 1980s at Motorola.
This original use of Six Sigma in manufacturing was hugely successful with Motorola reporting over $16 billion in savings as a result of Six Sigma. This resulted in many companies worldwide adopting the same principles to improve the quality of their processes.
The Origin of Lean Six Sigma
The combination of Lean manufacturing and Six Sigma emerged in the 1990s as manufacturers in the US tried to compete with production by Japanese competitors.
In 2002, Michael George and Robert Lawrence Jr. introduced the combination method in their book Lean Six Sigma: Combining Six Sigma Quality with Lean Speed.
At this time, organizations tended to approach Lean Six Sigma in an ineffective way. They often placed too much focus on the number of employees certified in Lean Six Sigma but did not promote hands-on use from the ground level of the organization.
This led to a large number of managers with some knowledge of Lean Six Sigma principles, but without a culture of continuous improvement in place throughout the entire organization, these managers had no path to make impactful, sustainable changes.
Over time, companies have begun to understand the importance of developing a mindset of continuous improvement throughout the entire organization. This meant that everyone, from frontline workers on production equipment all the way up to senior leadership, would work together to share ideas and solve issues.
Therefore, the emphasis of Lean Six Sigma has shifted from counting the number of managers trained in the methodology to driving meaningful results, such as:
- Customer value
- Employee involvement
- Sustainable productivity
- Improved profitability
Is Lean Six Sigma Still Relevant?
So, is Lean Six Sigma still relevant? This question can be answered with a simple analogy:
Are regular exercise and a proper diet still relevant to your overall health? The answer is clearly yes.
But what if you were to follow the same approach to a healthy lifestyle as people were 50-100 years ago? Well, if that were the case, you would be consuming extra sugar for energy and using a fat roller to massage the extra weight away.
Health is obviously still relevant today, but the means of achieving it has evolved as new research and goals have emerged. This is the same for Lean Six Sigma!
Every organization wants higher profits, reduced costs and waste, improved efficiency, and more loyal customers. Over the years, companies have proven time and time again that Lean Six Sigma can be used to achieve all of these goals.
Many people view Lean Six Sigma as a strict methodology, but the real success comes when you recognize that Lean Six Sigma is a mindset more than anything else. If you develop a mindset of continuous improvement in your organization and commit to executing strategies to improve your weaknesses, you will naturally begin to improve quality and efficiency.
What is the Modern Approach to Lean Six Sigma?
Since the beginning of their development, Lean manufacturing and Six Sigma have been slowly evolving to meet the changing needs of a rapidly developing society. This is no different in modern times.
The modern approach to Lean Six Sigma is not identical to the Lean principles developed in the 1940s by Toyota. It is not identical to the Six Sigma system created in the 1980s by Motorola. It is not even identical to the combination of these strategies into Lean Six Sigma in the 1990s.
It is not entirely different from these previous iterations though, and it is DEFINITELY not irrelevant.
Let’s take a deeper dive into the common criticisms of Lean Six Sigma and how the modern approach addresses these concerns…
4 Common Criticisms of Lean Six Sigma
The original system of Lean Six Sigma was not without faults. This has led to some pieces of criticism over the years.
The four biggest criticisms are:
- Lean Six Sigma methods are not flexible.
- The processes are too long and complex.
- Improvements are difficult to maintain.
- It is only useful for manufacturing companies.
How does the modern approach to Lean Six Sigma address these criticisms?
| CRITICISM OF ORIGINAL LEAN SIX SIGMA SYSTEM | MODERN APPROACH |
| Lean Six Sigma methods are not flexible. | Agile |
| The processes are too long and complex. | Big Data Analysis |
| Improvements are difficult to maintain. | Change Management |
| It is only useful for manufacturing companies. | Widespread Implementation |
Lean Six Sigma and Agile Thinking
One of the key criticisms of Lean Six Sigma is that it is a very structured process that does not allow for any flexibility. With the rapid development of society today, we often prioritize flexibility over structure and results over method which makes Lean Six Sigma’s original system seem outdated.
This is where Agile Thinking comes together with Lean Six Sigma to form a powerful system.
Similar to Lean Six Sigma, the Agile method focuses on delivering value to customers just with a slightly different approach.
Agile focuses heavily on smarter project management by putting an emphasis on speed and flexibility while maintaining quality control. For example, Agile teams will work in sprints to complete different projects. During these sprints, they will constantly re-evaluate the situation to see if their focus needs to shift to resolve the issue more quickly.
Therefore, combining Agile Thinking with Lean Six Sigma is very powerful. Lean Six Sigma focuses on methodical continuous improvement by reducing waste and variation in a process, and adding the flexibility of Agile project management will…
- Enhance project-to-market speed
- Boost team collaboration
- Improve process quality and efficiency
- Raise customer satisfaction
Lean Six Sigma and Big Data Analysis
Another criticism of the original Lean Six Sigma system is that the processes are complex and take too long to complete.
Lean Six Sigma places a heavy focus on validation. For example, two of the primary project frameworks in Lean Six Sigma are the DMAIC and DMADV methods. In both of these methods, the last phase of every project is the control or validation phase where the team must ensure that an improvement makes sense.
In general, this validation step primarily involves data analysis. In the era of Big Data, this validation step is even more relevant, but it can also be hindered by the fact that there is so much data to analyze. Therefore, it can cause projects to take even longer to complete.
Does this mean we should just write off Lean Six Sigma as too long and complex then?
No! With the emergence of Big Data, we have also seen drastic improvements in data analysis software that can speed up the validation and implementation phases of projects. For example, software today can help with:
- Project management
- Statistical process control
- Process analysis
- Simulated project improvements to understand the potential effects of a change
Therefore, companies will see tremendous success from Lean Six Sigma methods if they invest in modern data analysis solutions that can help us rapidly understand the wealth of data that is at our fingertips today.
Lean Six Sigma and Change Management
Another criticism is that it is very difficult to maintain improvements made through Lean Six Sigma. People are creatures of habit, and we need a thorough system in place to ensure a change is adopted and sustainable for the long-term.
That’s where Change Management comes in.
The main principle of Changes Management is that it forces an organization to thoroughly examine all potential impacts of a change and get feedback from every employee who is affected before making a change. Then, once the change is implemented, the team will continuously follow-up to see if the change was sustainable or if any unexpected issues arose that need to be addressed.
Change Management gives everyone a chance to have a voice in what changes are made which will boost collaboration and employee morale.
Therefore, Change Management leads to:
- Stronger employee engagement
- Quicker, sustainable results
Lean Six Sigma Beyond Manufacturing
The final criticism of Lean Six Sigma is that it can only benefit manufacturing companies.
Although it is true, that Lean Six Sigma was developed within a manufacturing environment, the tools and mindset associated with it are tremendously beneficial in all areas of business and life.
The focus of Lean Six Sigma is to create efficient processes to improve customer satisfaction. Therefore, Lean Six Sigma results can benefit any industry. Just a few examples of industries that can benefit from Lean Six Sigma are given in the table below.
| INDUSTRY | EXAMPLE OF LEAN SIX SIGMA | BENEFIT |
| Education | Improved administration procedures | More time to focus on student learning |
| Service Industry | Faster service at restaurants | Improved customer satisfaction |
| Healthcare | Efficient transfer processes | More time to spend caring for critical patients |
| Government | Elimination of wasted resources | Improved services for citizens |
| Entertainment | Shorter wait times in lines at concerts or amusement parks | Better customer experience |
Even beyond the traditional industry or work setting, the mindset of Lean Six Sigma has incredible benefits. For example, even if you are a stay-at-home parent, the principles of Lean Six Sigma can help drive efficiency in your day and allow you to continuously improve your life and yourself.
10 Tips to Successfully Implement Modern Lean Six Sigma
- Be flexible/agile.
- Invest in employee training at all levels. Self-paced, online training can be best for this.
- Focus on creating a culture of continuous improvement.
- Emphasize hands-on training and practice.
- Be sure to work cross-functionally.
- Keep an open mind and be willing to try new ideas.
- Use software to draw conclusions faster.
- Use tools and templates to organize sustainable processes.
- Reflect on what works and what doesn’t to improve future project management.
- Focus on making small changes through continuous improvement and using change management to drive long-term success.
Conclusion
So, is Lean Six Sigma still relevant?
Hopefully it is now very evident to you that Lean Six Sigma is still relevant and always will be. The statistical analysis and validation methods that have made this system such a widespread success are not only still applicable but are arguably even more vital in today’s era of Big Data.
With that being said though, it is important for us to recognize the faults of Lean Six Sigma in the modern world and evolve the method to fit our changing society.
The use of Agile Thinking, Big Data analysis, and Change Management along with Lean Six Sigma principles provides a robust, powerful problem-solving system that can be used in any industry or area of life today.
Do you have any other thoughts on the relevancy of Lean Six Sigma today or predictions on how it will continue to evolve in the future? I’d love to hear your thoughts in the comment section below!
