If you are a working professional in a business or management role in just about any industry, you must’ve heard about Lean Six Sigma. With the competition among industries increasing by the day as new companies keep rising, it has become more crucial than ever to come up with solutions that help reduce costs and maximize profits.
General electric, one of the world’s most popular electric companies has used Lean 6 Sigma to accelerate growth and reduce costs since the year 1995 and today it reaps benefits of around $2.5 billion annually as a result!
And that is just one big name of the many others we’re yet to discover ahead in this blog.
What is Lean 6 Sigma?
Perhaps the easiest way to put it will be that it consists of two parts: Lean and Six Sigma. Lean, as indicated by the very word is a methodology of streamlining an organisation’s processes by reducing wastage. 6 Sigma refers to a set of methods that help in problem solving thereby facilitating reduction of flawed products or services that helps increase revenues and results in greater customer satisfaction.
Here’s a short video that thoroughly explains the gist of the methodology.
The work was the approach of Joseph Juran, an American pioneer of quality management. He came up with a statistical method to measure the amount of defects in a particular product or service; simply stating, 1 sigma being the bad quality and 6 sigma indicating the least amount of defects that could exist.
Now, moving on to the more important question.
Why is Lean 6 Sigma important?
This question may seem redundant to those who know the significance of Lean 6 Sigma for better outcomes in a business. But it is perfectly relevant for those who are relatively new to business and want to pursue a career in project management, business analysis and/or other related fields.
The Benefits Of Lean Six Sigma LSS Approach
The concept of LSS was first adopted around the 1980s and soon became widely embraced to increase efficiency in businesses of all kinds. You’ll come across various research works that have been carried out specifically about the effects of LSS on organisations. Here in this section, I am going to outline them for you.
- Optimal efficiency – This is a rather obvious one, but worth mentioning. The LSS enables organisations to analyse workflows at each level to identify and mitigate weaknesses for better performance.
- Increased quality – This is an outcome of achieving optimal efficiency; the more weaknesses are eliminated, the better the quality of the product or service being produced or provided.
- Better employee performance – Applying LSS at every level in organisations helps increase the efficiency of employees. Apart from setting SMART goals, the implementation of LSS helps increase output on an individual level. Read more at the 6 unexpected ways Lean 6 Sigma can benefit your company.
- Enhanced customer satisfaction – This is an indirect but a very fruitful result of the LSS. When you achieve better quality of product or service production and good employee performance, this automatically leads to greater customer satisfaction and retention. More people would want to stick to your brand once they have established good faith in your services.
- Brings sustainability to the business – This point may seem far-fetched but research suggests it could be true! Organisations using LSS are able to identify the impacts that primarily need to be achieved in a project to enhance sustainable management. Find the complete research at Impacts of Lean Six Sigma Over Organisational Sustainability.
- Increased competitive advantage – Of course this benefit stands to be one of the most important in this time and age where global competition is ablaze. In a study on the white goods (home appliances) sector of Turkey, the adaptation of the LSS approach resulted in a 60 – 79% market share. Read more about the research here.
Who’s Using Lean Six Sigma?
We know just the theory isn’t reason enough to prove the success or failure of something. So here’s a list of success stories that indicate the triumph of LSS.
Yes, the online retail giant, Amazon stands to be one of the biggest success stories that used the implementation of LSS over years to achieve the status it has today.
The company first adapted the LSS model back in 1986. It managed to save $16 billion between 1986 and 2001.
This American conglomerate multinational recorded cost savings worth $1.8 billion within two years of the adaptation of LSS.
In the year 2000, shortly after the adoption of LSS, the chemical industry giant stated that its potential pre-tax benefit from active projects was $700 million!
Known for its low fares, Ryanair is one of the most successful airlines of its time. Read more about its strategy here.
The American paper-based consumer products multinational dealt with its malfunctioning employee base by adapting the LSS to increase and optimise employee productivity. Read more about Lean manufacturing companies here.
By now I’m sure you’re convinced about the LSS being productive for a business no matter which sector it belongs to.
Considering a career in Lean Six Sigma/LSS yet?
Well if you are, you couldn’t be at a better place than this. Let me shed some light on the levels and kinds of qualifications you can get if you want to master the Lean 6 Sigma. Below is a simplistic description of the 3 main levels that exist.
Here’s Where You Can Begin
Although it has become fairly easy to know what is in business and what’s not, it can still be hard to find the best ways to reach a successful career. We’ve jotted down all the important things you should know about the Lean Six Sigma; we won’t leave you clueless to figure out what to do next on your own. Get your Lean Six Sigma certification course for the best and the most trusted.
You might graduate from your university and realise that what you once wanted to do is not in the big picture any longer and frankly, there’s no one to blame for it except for the dynamic job market and evolving technologies. But one blessing that these two things have brought is the magnificence and power of e-learning. Not only do we now have instant, easy and cheap access to all kinds of knowledge, we also have a wide variety to choose from.
Choose the Six Sigma e-learning route to success!
Here’s a list of Lean 6 Sigma online training certifications you may find helpful.
Lean Six Sigma Certification Training Courses IASSC Lean Six Sigma Green & Black Belt Courses Lean Six Sigma Yellow Belt Exam Lean Six Sigma Green Belt Exam Lean Six Sigma Black Belt Exam IASSC Lean Six Sigma Bundle – Yellow, Green & Black Belt + All 3 Official Exams
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