Lean is a philosophy and a set of principles that focus on eliminating waste and maximizing value in any process. Waste is anything that does not add value to the customer or the process, such as defects, overproduction, waiting, inventory, motion, transportation, and overprocessing. Value is what the customer is willing to pay for or what satisfies their needs and expectations. Lean helps you identify and eliminate waste by applying tools such as value stream mapping, 5S, kaizen, kanban, and root cause analysis. Lean can help you achieve BPI by streamlining your processes, reducing cycle times, increasing productivity, and enhancing quality.
Without a science-based approach, outcomes from the use of any of these methods is uncertain. Sometimes success, often-times failure to achieve desired results. Operations science fills the gap between overly academic and highly technical approaches and psuedo-scientific, best practices approaches. Operations science comprehensively describes the relationships between capacity, inventory, response time, and variability. So it is a practical foundation which will strengthen any of these efforts. Six Sigma is indeed scientific but it is not comprehensive.
While specifically looking at waste within a process or system can seem daunting or challenging, try turning that question around and instead of "Is this waste?", ask "What value does this add?". Value-add may be a more palatable approach to looking at tasks and mapping their value to the purpose of the process, department, organization, company, etc. AS they teach during the kaizen events, every step should either add value or be REQUIRED by law, statute, etc. The greatest question to ask in an organization is simply "Why?". Why are there so many steps? Why are all these people approving this? Why do we do it in this order? Challenge the status quo. Ask "Why?". Find the Value-Add. Eliminate the waste. You can do it.
Lean principles core is to reduce and eliminate non value adding activities and wastes {over production, over processing, waiting, defects, etc.}, applying lean principles to running business processes will help enhance CT, maximize productivity, streamline end to end processes and improve quality, all that will end up achieving BPI. In my experience, VSM, RCA / 5 whys, and Kaizen could be useful techniques to support in identifying wastes/ gaps within business processes.
In Toyota, Lean is a part of the culture. Toyota does not call it Lean or Continuous Improvement. It is a way they do things. Lean is a way to help drive continuous improvement through learning, employee empowerment, and removing waste and non-value add.
Hereunder is the tips of each method: 1. Lean: Use when focusing on reducing waste and optimizing processes for efficiency. It's great for streamlining workflows and eliminating non-value-added activities. 2. Six Sigma: Ideal for reducing variation and defects in processes, particularly in manufacturing or service industries where consistency and quality are critical. 3.Agile: Best suited for projects that require flexibility and adaptability, particularly in software development and fast-paced environments. It emphasizes iterative development, collaboration, and customer feedback. Choose:- Lean for efficiency Six Sigma for quality Agile for flexibility Thanks.
Six Sigma is a methodology and a set of tools that aim to improve the quality and consistency of any process by reducing variation and defects. Variation is the deviation from the desired or expected outcome, and defects are errors or mistakes that result in customer dissatisfaction or rework. Six Sigma helps you measure, analyze, improve, and control your processes by applying tools such as DMAIC (Define, Measure, Analyze, Improve, Control), DMADV (Define, Measure, Analyze, Design, Verify), SIPOC (Suppliers, Inputs, Process, Outputs, Customers), and statistical analysis. Six Sigma can help you achieve BPI by improving your process performance, reducing errors and rework, increasing customer satisfaction, and saving costs.
Just as Lean is a part of the culture, Six Sigma can be too. I often teach my students LSS together so they can incorporate both methodologies into their culture. As Lean reduces waste, Six Sigma reduces the variation in the process. By using both together, you create a powerful toolset.
Six Sigma is a data-driven methodology and set of tools used to improve process performance and reduce variation in organizations. It aims to achieve high levels of quality and efficiency by identifying and eliminating defects or errors in processes. Six Sigma uses statistics to measure the variation in each process and helps you to control this variation. There are many tools in Six Sigma such as DMAIC (Define, Measure, Analysze, Improve, Control), DMADV (Define, Measure, Analyze, Design, Verify), problem solving techniques, and statistical analysis. The main goal for Six Sigma is to achieve a level of quality that is nearly perfect, with only 3.4 defects per million opportunities, which is equal to 99.99966%
In my opinion and simply stated, LSS is a scientific approach that maximizes value and improves quality in business processes, LSS is a methodology that focuses on reducing process variations (unsatisfied outcome) and/or process defects (unsatisfied CX —internal /external), having LSS applied, orgs can deliver optimized value to the customer and achieve their goals in more sustainable ways. LSS has well-known tools that are used by process leads to Define, Measure, Analyze, Improve, Control (DMAIC), and/ or Define, Analyze, Measure, Design, Verify (DAMDV) depends on the process structure, besides data collection and analysis (qualitative and quantitative) after, process leads can achieve BPI and streamline running business processes.
Six Sigma is a method that helps businesses reduce mistakes and improve quality. It focuses on finding and fixing problems in processes by using data and careful measurement. This helps companies make things more consistent, reduce costs, and ensure their products or services meet high standards every time.
Agile is an approach and a set of values and principles that emphasize flexibility, collaboration, and customer feedback in any project or process. Agile helps you deliver value to your customers faster and more frequently by applying tools such as Scrum, Kanban, user stories, sprints, retrospectives, and daily stand-ups. Agile can help you achieve BPI by adapting to changing requirements, involving customers and stakeholders, testing and validating your solutions, and learning and improving continuously.
Adding Agile thinking with LSS creates an even more powerful toolset! It shouldn't be about whether to use Lean, Six Sigma, and Agile separately; it is about learning how to use all three together.
Definitely an approach I prefer because of the ability to incorporate feedback and continuously improve process. But there is a risk to scope creep and lose sight of original objectives, if not managed carefully.
When you think of Agile, imagine what if Lean Six Sigma thinking was applied to and implemented in the process of building software. Agile to me looks like the result of a LSS project! When you learn about Agile I hope you hear about the “old way” because then you can appreciate how the tenets of LSS can yield game-changing results.
To apply Agile methodology to business process improvement, begin by identifying the specific processes that need enhancement and prioritize them based on their impact and feasibility. # Form cross-functional teams to tackle each process improvement initiative, ensuring diverse perspectives and expertise. # Break down the improvement tasks into smaller, manageable iterations with clear objectives and timelines. # Regularly review progress, gather feedback, and make adjustments as necessary to continuously refine and optimize the processes for maximum efficiency and effectiveness.
Agile is a way of working that helps teams be flexible and fast. It divides tasks into smaller steps, so teams can finish parts of a project and make improvements along the way. This approach allows businesses to quickly respond to changes, solve issues, and keep refining their work as they go forward.
When deciding which method to use for BPI, you need to consider your goals, context, and resources. Lean is best for simple and stable processes that have a lot of waste and inefficiency, while Six Sigma is better for complex and stable processes that have a lot of variation and defects. Agile is ideal for complex and dynamic processes that have a lot of uncertainty and change. The level of customer involvement and feedback should also be taken into account; Lean and Six Sigma rely on data and analysis to determine customer value and quality, whereas Agile relies on frequent and direct customer feedback. Additionally, the culture and mindset of your organization should be considered; Lean and Six Sigma require a culture of discipline, rigor, and standardization, whereas Agile requires a culture of flexibility, collaboration, and experimentation.
Pharmaceutical PMO Director, B.Sc., PMP®, Product Launch, QMS, Lean Enterprise
I think there is a misunderstanding about agile at times. Agile also requires discipline, rigor and standardization the same way a mixed martial artist has to train and continuously evolve their skills and techniques. This is where Disciplined Agile comes in which integrates all WoWs (Ways-of-Working) and applies deliberate continuous improvement across the enterprise to adjust to all contexts. "Freestyle" is often mistaken as agile, but agile requires frameworks. Agile without Lean = undirected / additional rework or adaptation without stakeholder value considered. Agile without Six Sigma = adaptation and iterations without statistical data to inform decisions. Continuous improvement inherently must be agile (i.e. Adaptive). See PDCA.
I find that a lot of these get overly complicated when trying to explain to others, but what never gets mentioned is the overlap of the "tools" to use. DMAIC is the framework while lean goes after identifying inefficiencies and therefore targets faster completion or less of something while six sigma adds in for ensuring that lean process also delivers with consistent, high quality results. And finally, agile is the methodology of testing and iterating on changes for "continuous" improvement versus the big change projects.
When picking a way to improve business, think about the issue. If a drink company wastes a lot during filling bottles, using Lean can help by cutting out extra steps. For a fabric company with color problems, Six Sigma can help get consistent colors. If a drink company wants to test a new flavor, Agile lets them change plans quickly based on customer likes. Always start by understanding the problem, test a solution, and then make changes if needed.
Process design | Strategic planning | Corporate communication | Business Agility | UX |
Practice = theory + context. In 30 years of project management, I never found a single context where any given framework works just as it does in the books. The secret here is to boost our toolboxes. We must bring all available knowledge to the table when tackling a challenge or the infinite challenges that fill our corporate life. Once we know how to use the tools, we assess and immerse ourselves in the context, which will guide us in adapting, merging, and evolving frameworks or methodologies to address our specific day-to-day expected results.
To choose the right method for Business Process Improvement, first look at your goals. Lean is great for cutting waste, Six Sigma helps with quality control, and Agile is perfect for flexible, step-by-step progress. Pick the method that best fits your needs and the type of changes you want to make.
You do not have to stick to one method for BPI. You can combine the methods to leverage their synergies and complementarities. For example, you can use Lean to eliminate waste and streamline your process, then use Six Sigma to reduce variation and improve quality, then use Agile to deliver value faster and more frequently. Or you can use Agile to test and validate your solutions, then use Lean to eliminate waste and optimize your process, then use Six Sigma to measure and control your process performance. The key is to align the methods with your goals, context, and resources, and to use them in a way that makes sense for your situation.
In my experience implementing change using the combination of Lean and Six Sigma, it is critical that you use the toolsets in that sequence - Lean first, Six Sigma second. Using Lean methods you challenge the existing process to eliminate unneeded and unnecessary process steps. It is key to perform this work BEFORE you spend time and effort eliminating variation. If you choose to pursue Six Sigma methods first, you risk investing time, energy, and effort reducing variation in unnecessary process steps. You don't need to get good at process steps that you should not be doing...
Lets take an example of the Nonwoven fabric industry, combining BPI methods can be powerful. Use Lean to cut out unnecessary steps in the production line, ensuring smoother operations. Implement Six Sigma to tackle quality variations in fiber thickness or texture. Lastly, introduce Agile for quicker adaptation to changing market demands, like eco-friendly products. Together, they optimize efficiency, quality, and adaptability.
Combining methods like Lean, Six Sigma, and Agile can be super effective. Start by using Lean to streamline processes and cut waste. Then, apply Six Sigma to fine-tune quality and reduce errors. Use Agile to stay flexible and adapt as you go. Mixing these methods helps you get the best of all worlds—efficiency, high quality, and adaptability.
Implementing any method for BPI requires careful planning, execution, monitoring, and improvement. To begin, you must define the problem or opportunity and identify the gap between your current and desired state. Then, select the method and tools that best suit your problem, goals, context, and resources. Use the method and tools to design a solution that addresses the root causes of the gap and adds value to customers and stakeholders. Execute the solution in a controlled manner following the guidelines of the method and tools. Measure the outcomes and outputs of the solution against the baseline and goals. Use feedback from the evaluation to identify areas for improvement and make adjustments to the solution. Repeat this cycle until you reach your desired state.
In my experience, the most effective way to start is to fully understand and document the current state in all its flaws and ‘weirdness’. A crucial failure point of any business process improvements (BPIs) is when the current state is not clearly identified. In today’s complex organization, it takes a tenacious and detailed oriented project manager or project champion to bridge the walls between each team’s sub processes to fully understand the business process end to end before attempting any BPIs.
Change is nonlinear and dynamic, and an effective improvement process will require a continuous feedback loop and learning. In this sense, I have successfully applied Agile methodology in different team settings to foster flexibility, adaptability, and agility, which comprises the following steps: 1. Define BPI's vision and objectives. 2. Mapping processes to evaluate and determine the current state. 3. Identify the gap between 1 and 2. 4. Brainstorm BPI strategies between the team and/or across departments to close the gap. 5. Select and implement the strategies. 6. Continuously monitor, collect feedback, and implement optimization changes. 7. Deliver values and retreat quickly until the desired state is achieved.
To identify the gap between current state and future state one should document the current state as a detailed process map. From there, I typically ask my clients to "wave a magic wand" and tell me what they would like to see, what does there data tell them about their business problems, and what are their customers saying about their processes. Afterwards, we move into documenting the desired future state.
To implement methods for Business Process Improvement, start by understanding the basics of each approach. Lean can help you eliminate waste, Six Sigma can improve quality, and Agile can make your team more adaptable. Then, train your team, set clear goals, and apply the methods step-by-step to see which works best for your needs. Make sure to track progress and adjust as necessary.
Focusing on which tool to use (Lean, Six Sigma, Agile, ad infinitum) ignores the human factor. People, not the tool, drive sustainable BI. In the short-term, tools to identify issues, processes and mandates to mitigate those issues work. The short-term is often the main consideration (see I/we did something!) in larger organizations with the capacity to absorb waste and other costs. For sustainable BI, you MUST consider the stories being told by the people doing the work and surrounding the impacted areas.
In my opinion the most important step is leadership buy-in and championing the work. No matter what approach you take, they all require time and effort, proper stakeholder analysis, and a commitment to improvement. That means resources dedicated to the work. Yes it is work, not magic. Without it you will struggle, or you will make short term gains that fade over time. One of the biggest challenges I have faced is getting everybody on the same page in this regard.
Another toolset that I have found very effective in increasing throughput of a set of process steps is using the Theory of Constraints. Based on the work of Goldratt, it is critical to understand and align the pace of your processes to that step that is the constraint or bottleneck. Additionally, this concept allows you to anticipate where your next bottleneck will occur when you improve / eliminate the constraining bottleneck of an existing process.
People are asking if I am using Waterfall or Agile when running projects as a Project Manager. “I don’t fall into any of the categories as it depends, mine is a hybrid if I need to tag a term to the approach.” Similar to BPI, we do not need to stick to a single approach. The tools are there to assist us and not as a limiter. Apply the tools or methodologies to the situation that best supported by the tools. The only thing that matters is if the outcome is what we intended to start the BPI process. Regardless of approach, don’t put digitisation as the first step, this should be the 2nd step, at best. Start by improving the PROCESS and not the MEANS.
The strategy is determined by the process's stability and complexity, data accessibility, business environment,and metrics you want to enhance in response to consumer feedback. When driving business improvement projects in dynamic circumstances, a hybrid strategy that combines lean, six-sigma, agile, and design thinking methodology is sometimes necessary. An executive project champion who is persistent and meticulous is necessary to manage resistance to change and navigate the organizational hierarchy from top to bottom in order to gain buy-in.