Lean 6 Sigma & The DMAIC Methodology

Enabling enterprise performance! By, Dr. Arul Aruleswaran

Speed, customer satisfaction and lower cost through operations excellence are the essential factors for organizations that deliver products and services, with the aim to achieve and sustain superior shareholder returns in businesses.

Organizations such as manufacturing, banking, insurance, retail, and government always drive towards prioritizing operational excellence as for these sectors so much of their costs are tied into operations. Analysis from Lean and 6 Sigma consultants say that 30-80% of the costs in a service business are pure waste. Eliminating this waste can not only reduce costs, but more importantly allows businesses and services to become faster and much more responsive to its customers, driving revenue growth.

Why Lean 6 Sigma?

Lean 6 Sigma can be described as a data driven principle and process optimization, adopted by businesses to enhance process or service efficiency, customer satisfaction, eliminating waste and reduction of operational costs.

By integrating of the DMAIC methodology, through the proven practices, focused deployment and implementation into the day-to-day running of an operation that ensures flawless execution and rapid results.
Without leaders, people, the workforce, results that matters to the customers and the stakeholders are hard to come by. Hence the well know saying “the soft stuff is the hard stuff!”!!

Lean 6 Sigma is a new paradigm that has been introduced to industries to challenge the traditional notion that a gain in excellence for a particular key performance area requires the trade off in excellence of other significant key performance area. An example of a traditional paradigm is shown below.

The Lean 6 Sigma paradigm can be defined as gaining excellence in one key performance area through the requirement and achievement of excellence in all significant key performance areas, as illustrated.

The fusion of Lean and 6 Sigma is required because:

  • Lean can not bring a process under statistical control.
  • 6 Sigma alone cannot dramatically improve process speed or reduce invested capital.
The DMAIC Methodology
The foundation of Lean 6 Sigma lies in the rigorous adoption of the DMAIC methodology of problem solving. The DMAIC methodology, or Define – Measure – Analyse – Improve – Control, is a proven way for solving a problem where the solution is unknown. DMAIC is the over-riding methodology that unifies a framework for problem solving and continuous improvement that are determined by critical business needs. These business needs are driven by fundamental voices that make a business operate, Voice of Customer, Voice of Business and Voice of Employee.

Define

Define is the phase when a problem or an improvement initiative is identified and scoped. In this phase, the problem statement is developed to describe the pain for the problem that needs solving or the improvement that is required. This is often supported by the extent and consequences and importantly the solution is yet to be known.

During this phase the problem is also defined in term of the measurable criteria or metrics and is factors that are critical to customer’s quality requirements are identified.

Measure

In this phase, a baseline data is established. The ability to measure the critical to customer’s quality and the metrics is also determined. The process in which the problem is occurring or improvement is required would be mapped out in detail and would include time, people and material elements to ensure that the current state is clearly understood.
Impact to the Critical to Customer’s quality is also established by identifying the key input variables and key output variables. These measures are essential to establish the capability and stability of the process.

Analyse

In this phase, a thorough data analyses is carried out to narrow down, from the trivial many reasons of a problem occurring to the critical few. A relationship between the input factors to the output factors will be established.

Additionally, activities such cause and effect study, time and motion analysis, analysis of statistical data will be performed in this stage and the results are expected to assist with the identification of the critical few root-causes.

Improve

This phase is the most crucial phase where upon identifying the root-causes, solutions would be generated and tested by piloting it. During this phase team creativity often helps to generate solutions that results maximum gains.
Data collected during this phase will be reviewed against the baseline data as a measure of improvement. Risk analysis would also be carried out during this phase to determine the impact of not accepting a solution.

Control

In this phase, the improvements that are identified during Improve would need to be documented and thoroughly captured. A roadmap of solving the problem would need to be established. Implementation plans as well as change management procedures will be developed to ensure the successful transition of the solution to team that ultimately responsible to the process.
With the DMAIC methodology, a consistent and standardized way of problem solving can be established throughout the organization. A rigor in which the importance and contribution of each phase will assist in ensuring the problem or improvement are achieved and these in turn would lead toward an improved enterprise performance.

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