Let us discuss here, how Six Sigma and lean operates (in a brief manner) and how Lean and Six Sigma are used in conjunction with each other and what are the advantages and disadvantages in using them together.
Lean focuses on waste elimination,continuous improvement and Six Sigma focuses on reducing or minimal variation and thereby focuses on improvement. Both approaches are used for improvement of processes.
Let us dwelve further on these.
Six Sigma is a process-oriented problem solving methodology (and even defined as a management technique) which focuses on getting minimal variation(or optimised result) of the process( which produces the product/ service) such that it results in 3.4 defects per million opportunities. The six sigma approach includes of defining the problem, measuring the current process in place, analysing the problem, improve (on the existing process/design(Create new if process cannot be improved), optimize(if needed), then establish the control on the process. This is how a six sigma project is executed. At every stage/phase of a six sigma project, there are a set of quality tools(and in some stages, statistical control tools come into play as well), that may be required to be used. There is an important equation in six sigma which is Y=f(x) where 'Y' is the Dependent Variable and 'x' is the independent variable. 'x' is a factor(input) that can shape 'Y' (outcome). Assume that there are quite a few web pages in your web application which takes 15 seconds to get loaded (assuming there is no solution found for 6 months- customer though not happy understands the practical issues and is ok to have this six sigma approach). For the customer, the response time (Y) of the web pages should be less than or equal to 3 seconds. Imagine if this is the need of the customer. There could be factors such as Database efficiency, 3rd party components, interfaces with legacy systems, etc... one of which (or few of them) when improved can fasten the response and therefore the response time can match with the customer needs. These factors are the Vital 'X' factors. Therefore, Six Sigma focuses on attacking the vital factors that will produce the necessary outcome.
Lean is about waste elimination and continuous improvement of process(es). A process (which produces the product or service) that requires improvement is analysed threadbare - in terms of value added steps, non value added steps and value enabled steps. The non-value added steps of that process are eliminated. 7 Wastes is one such technique in lean which talks about waste elimination. There are many such lean techniques like 5S, Kaizen, Kanban... Kaizen apprach is used for continuous improvement activities.
Let us compare and contrast some of the key aspects/characteristics Six Sigma and Lean approaches.
1. Six Sigma approach is very expensive when compared with Lean approach
2. Six sigma focuses primarily on minimal or reducing variation and thereby improvement on a process/product/service whereas Lean focuses on waste elimination,continuous improvement
3. Six Sigma is time-consuming as it will have to gather data, analyse (lot of statistics involved) and can involve lot of dedicated people when in comparison with lean approach.
4. Six Sigma has multiple stages(phases) of approvals (pre-defined toll-gate reviews) when compared with techniques of Lean approach
5. Realising the Outcome(or Return on Investment) of the Six Sigma will take long time(after quite a few months or a year or so even) when compared with using a lean approach
6. Acquiring Six Sigma knowledge might have a relatively deeper learning curve when compared with lean approaches- primarily due to the amount of tools used in each phase of Six Sigma and also the concepts surrounding various aspects of Six Sigma.
7. Six Sigma is not right approach for immediate results, whereas lean techniques can be used for immediate/quick visible results (in general).
Let us see the advantages of combining Six Sigma and Lean approaches together:
1. By combining both the approaches which is called the Lean Six Sigma approach, the focus shifts to both waste elimination and also variation reduction.
2. During analyse phase of Six Sigma project, Value Stream Map technique helps in analysing the needed steps only for a process (which is under study). It identifies unnecessary steps. This, in addition to attacking the vital 'X's. This will be quite useful in cases where cycle time/processing time/execution time needs to be reduced.
3. Six Sigma tools are interspersed with lean techniques/tools across the phases of Lean Six Sigma. Therefore the six sigma team can afford to use the right or best tool/technique according to the needs.
We will see the advantages of a Lean Six Sigma approach with an example.
Problem Statement: The time taken to deliver the software code (by an IT organisation) to an external Quality Assurance(QA) team was more across several projects (which are running in a traditional waterfall model) and the end-delivery of these projects to the customer took considerable time due to code quality issues as QA team found more bugs and thereby the development team took time to fix the bugs . . This was happening for the past 6 months. The customer was unhappy with the situation. The mgmt decided to have a six sigma project to tackle this issue , in agreement with the customer. The objective was to fix the code with highest code quality (<2% bugs-only minor ones) and provide 100% of time-bound deliveries in 5 months of time.
A Six Sigma team was formed to address this issue and they decided to attack this with a lean six sigma approach.
Let us get into the crux of the issue.
Elaborating onto the software development processes, developer1 wrote her code in her machine(local) and tested that code(called unit testing which was done via automation using JUnit framework).
Developer1 now waited for her project lead to review. Meanwhile developer2 wrote his code in his machine(local) and did the unit testing. He also waited for the lead to review. Similarly other developers had written their parts of the code. Often , the lead was busy in other project related activities. Now these codes were awaiting the lead's review before they could be put into the Code repository from which the developed codes was built by a Continuous Integration server and put into an integrated environment, where once again the lead reviewed the integrated codes and all the codes were automatically unit tested as well (when the codes were built by the Server. Note: Build is nothing but compilation of the software code - if it is successfully done, then it would normally programmed to deploy the code in an environment where users of the software application can test it. If the build is not successful, then the errors will be notified to the relevant teams. During the build process, automation things are integrated as part of that so that they are automatically triggered.Here Unit testing automation triggered). Since the integrated code contains all the codes from all developers, for which the review happens, there was no need for a separate review to be done (by the lead) for each of the codes developed by the respective developers . Therefore that waiting done by each developer for the lead to review his/her code was not necessary and that was eliminated as a Non-Value Added step using the Value-Stream Map analysis. This helped in increasing the speed(reduced the time) to deliver the code to the external Quality Assurance (QA)team.
Next now was to fix code quality issues and thereby increasing the quality of the code and adhering to the timelines to be delivered to the customer. There were no. of bugs (errors) in the code (given by the teams) to the QA team. To address this , the Six Sigma team came up few approaches after lot of analysis and evaluating multiple options and going through lot of criteria. They chose Test-Driven Development (TDD - it talks about writing test cases first and then do the coding- in a nutshell) and automation of functional testing using Selenium framework. While TDD was needed for codes that were written newly (to avoid issues in future), usage of Selenium (with the help of internal testers) resulted in developers finding functional defects(bugs) and fixed the issues before it reached to the external QA. This resulted in time savings as the external QA team found minimal or negligible bugs and therefore the time taken to deliver the code to the customer , for each of the projects were on-time and the customer was pleased with the results. The key to the success was the elimination of waste step involved in this entire process and then subsequently the improvement made on the automation for functional testing and redefining the coding way by introducing the TDD approach. Thus we can see how lean Six Sigma can be harnessed
Let us see the disadvantages of combining Six Sigma and lean approaches together.
1. There are quite a number of tools that need to be analysed and learned while trying to find best fit when using lean six sigma approach. Multiple tools need to be known
2. Lean techniques are gaining popularity now in non-manufacturing/automobile industries but still not every industry is fully harnessing it yet. Learning curve will be there for people who has been involved in traditional six sigma approach
Consider the example that was discussed above on improving the delivery and quality of the IT projects. The Six Sigma project was delivered on using a Lean Six Sigma approach. But the project lead(BB) and also the team was not too much aware of the nuances of many of the lean techniques as lean technique was not still getting popularised in their IT organisation. Often they struggled to find the right techniques at the initial stages of the project. This gave less confidence to the stakeholders/project sponsors who were hoping to see a good positive result from this Six Sigma project. The project however turned out well after that initial stuttering. Nevertheless the bottom line was that there was some kind of learning curve for that team.
Conclusion:
We have seen both how lean and Six Sigma works at a high level. Also we have seen how Lean Six Sigma can help in streamlining a process. While using a Lean Six Sigma approach, there are pros and cons, the positives in this approach outweigh the negatives in using that approach.