Most Important Lean Six Sigma Tools you should know

The way firms operate has evolved dramatically during the last decade. Forget about monopoly right now. It's becoming increasingly difficult to come by in any business. Today, sector-specific rivalry is at an all-time high and in a decade, only those businesses who strive for not only profit, but also efficiency and effectiveness in how they earn those profits will thrive. And here is where Lean Six Sigma and Six Sigma come into play.

What is Six Sigma?

While Six Sigma may appear to be a novel concept to many, it dates back to the 1980s. Motorola was the first to coin the word. Six Sigma tools helped the company stay afloat in a market where its Japanese competitors were putting up stiff resistance. Six Sigma tools are designed to improve the efficiency of any industry's operations. It ensures that businesses make the most money and provide the best service to their customers for the least amount of money. It's the quality target of reducing the amount of defects in a product or service to 3.4 defects per million opportunities, or 0.0003%. Sigma is derived from statistical studies and stands for standard deviation.

Motorola embraced Six Sigma quality goals across all areas after it was able to endure strong competition by implementing it. Many firms began to use Six Sigma to accomplish quality goals soon after. Six Sigma is now considered as an"essential" in any sector.

What is Lean Six Sigma? 

The notion of Lean Six Sigma is relatively new. When initially hearing these two terms – Six Sigma and Lean Six Sigma – one can be perplexed and feel they are identical. Both approaches are distinct when examined closely. Lean Six Sigma is the result of combining two theories: Lean Management and Six Sigma. Let's take a closer look at Lean Six Sigma and how it differs from Six Sigma. Lean Six Sigma is a management technique that focuses on reducing waste in a company's operations. Six Sigma, on the other hand, is a management tool that aids in the elimination of errors and flaws in a product or service.

Lean Six Sigma Tools for MEASURE Phase

1. Histogram - This is a graphical representation of the frequency distribution of data in different groups. Histograms are 'the thing' if you want to express the results of your operations in the simplest way possible. It provides a rapid visual summary of the information you need to know.
2. Trend Chart - This tool will tell you if you're on the correct track. It displays outcomes over an extended period of time. It allows you to reflect on where you were, where you are now and where you want to go in the future.
3. Pareto Chart - This allows you to compile a list of all your issues and analyze the one that has or may have a significant influence on your operations. Sometimes a slew of issues affects only 10% of your operations, while the other 90% is caused by a single issue. Concentrate on that one issue and a slew of other challenges in your business will fall into place.

Lean Six Sigma Tools for ANALYSE Phase

1. The 5 whys - Asking questions and finding answers is the best method to get to the base of any problem. 'Why did the X occurrence happen?' is a good question to ask yourself. Your quest for answers will lead you to ask more questions, which will eventually bring you to the root of the problem.
2. Ishikawa Diagram - This technique, also known as a Fishbone Diagram, aims to identify all contributing root causes that are or could be leading to a process issue. The issue is depicted as a fish spine, with all contributing root causes represented as branches coming from that spine, resulting in the appearance of a fishbone, thus the name.
3. Regression Analysis - In any process model, this provides a relationship between the X and Y components. The variables X and Y are input and output variables, respectively. There will always be some errors in the process model you established, no matter how excellent it is. But what you need is regression analysis to create a line with the fewest error points that is closest to the company aim.

Lean Six Sigma Tools for DEFINE Phase

1. Process Mapping - Process Mapping, often known as Flow Charts, is a visual representation of the steps that make up a process. This is a huge aid for new employees who are absolutely bewildered and wish to learn how to operate in a company. In an industry, using six sigma technologies to eliminate communication gaps is really advantageous and helpful.
2. 7 Wastes - Toyota's Taiichi Ohno has made our lives easier by pinpointing seven waste areas that every organization should be aware of. It identifies key locations in any business where time and money are likely to be wasted. Defective Products, Overproduction, Waiting, Underutilization of Resources, Extra Time in Processing, Transportation and Motion are the seven waste points.
3. Prioritization Matrix - This is an analytical tool that aids in determining which projects require the most attention. It employs a concept known as Project Priority Calculator, which is a statistical or rather mathematical representation that determines which project, out of all the others, is most likely to provide the best return on investment. This means that there will be no more guesses. You have the facts and the technology you need to be confident in your project's viability.
4. PDSA - This is a simplified version of the DMAIC approach with four phases. This, among other six sigma techniques, can be utilized to implement certain improvements in your company. The acronym PDSA stands for Plan, Do, Study and Act. The Plan stage entails recognising a key issue, Do entails formulating a hypothesis, Study entails delving deeper into the causes of a problem and Act is taking the necessary steps to remedy it.
5. Takt Time - A Japanese phrase that refers to the interval between two clocks. Takt Time refers to the rate at which minor tasks must be completed in order to complete a bigger job. This aids in time management and increases employee productivity.

Lean Six Sigma Tools for IMPROVE Phase

1. Kaizen - Kaizen is a Japanese phrase that translates to "continuous improvement." Every day, the goal is to improve the product and service to boost revenues and customer pleasure. It also entails keeping up with industry-specific information and keeping up with the world's fast-paced changes.
2. Heijunka box - This tool is used to distribute the burden evenly. You don't want your staff to have a heavy workload one day and then be idle the next. Working on an average basis ensures that the staff deliver on a consistent basis and are kept up to date on the company's actions. This also helps employees work more efficiently.
3. Kanban Pull System - Kanban is a tool for keeping an organization's inventory up to current at all times. It simply means having enough inventory to meet demand while also ensuring that demand is not exceeded and inventory does not become obsolete. Regular information exchange and the creation of communication channels between the inventory and sales departments aid in this.
4. Poka Yoke - Mistake proofing is another name for it. You don't want a customer to criticize your items or services because of flaws. Preparing checklists and going through them one by one before sending them out is the best method to deliver without making any mistakes. You will avoid embarrassment in this manner.

Lean Six Sigma Tools for CONTROL Phase

1. Standardised Work - This Six Sigma tool instructs us to use best practices and methods to complete a task. Employees with a lot of experience already know how to handle this. All they have to do is write them down properly, document them and if necessary, revise them on a regular basis. This also serves as a starting point for new staff.
2. Statistical Process Control - You must maintain a process improvement once it has been made. This Lean Six Sigma accreditation assists us in both sustaining development and satisfying end requirements at the same time. The process is kept stable thanks to SPC.

What industries can benefit from Lean Six Sigma?

Lean Six Sigma is no longer limited to a single industry. It's an idea that can help any company run more smoothly. It can also be employed in our daily lives because it is more function specific.

Here are some examples of sectors that have been adopting Lean Six Sigma for a long time:

1. Manufacturing
2. Pharmaceuticals
3. Finance
4. Legal
5. Consulting
6. Hi-Tech
7. Logistics
8. Construction

Conclusion

The creation of Lean Six Sigma and other six sigma tools is relatively new. However, its tools and principles have been used in numerous areas over the world for centuries, in some form or another. Most of us have seen our parents use these in the office, in their enterprises and in their daily lives at home. However, as enterprises and organizations get more complex, we require a much improved version. A version that can quantify issues while also being simple to comprehend. And Lean Six Sigma takes care of everything.

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