Summary

Six Sigma has been successfully deployed across organizations all around the world. It is a data-driven methodology built around a framework to identify and reduce defects and variation in critical organization processes. It addresses the accuracy and consistency of these processes. Six Sigma also helps to build a culture of continuous improvement through its prescriptive framework.

Lean originated in a manufacturing setup but its concepts have found application across a range of industries. Unlike Six Sigma, it addresses the speed and efficiency of a process by identifying waste and eliminating non-value adding activities from it. This also helps simplify it. Studies have shown that the cost of poor quality, the cost associated with defective products or services, increases as the number of steps or the complexity of a process increases. Probability of defects being generated goes up as the number of steps increase. This results in greater reworking, and this of course costs money.

Lean Six Sigma is a combined approach that utilizes the strengths of the two methodologies. The two approaches complement each other well. By combining the two approaches, organizations and businesses will find dramatic improvements.

The next chapter describes the life cycle and process of implementing Lean Six Sigma in an organization.

Quiz

1. Which of the following statements is true about Six Sigma quality?

   1. Motorola invented Six Sigma methodology

   2. Six Sigma implies 3.4 defects per million opportunities

   3. Six Sigma is a statistics and data-driven methodology

   4. All of the above

2. Which of the following statements is not correct?

   1. Accuracy is indicated by measures of central tendency

   2. Precision implies the gap between actual and target performances

   3. Precision is measured by standard deviation

   4. Precision is an indication of variation within the process

3. The equation Y=f(X) is at the core of Six Sigma methodology. Which of these statements is not correct?

   1. Y is a dependent variable and X is an independent variable

   2. Y is an independent variable and X is a dependent variable

   3. Y should be controlled and X should be monitored

   4. Both B and C

4. Which of these statements is correct in view of Lean principles?

   1. Waste is any non-value added activity in a process that should be eliminated

   2. Process cycle efficiency is an indicator of the time taken by value added activities as the percentage of the total process time

   3. The lower the number of steps in a process, the higher the velocity of the process

   4. All of the above

5. Six Sigma does not focus on:

   1. Reduction of defects

   2. Improving the cost of poor quality

   3. Reduction of variation

   4. Eliminate NVA

6. Lean does not focus on:

   1. Reduction of variation

   2. Eliminating waste

   3. Reduction of defects

   4. Improvement in process velocity

7. Sigma Level indicates:

   1. Closeness of process performance to the customer requirements

   2. Variation in the process

   3. Capability of the process

   4. All of the above

8. Lean Six Sigma methodology:

   1. Is applicable only for manufacturing organizations

   2. Has cost saving as the primary objective

   3. Has not been effective in service organizations

   4. None of the above

Answers: 1 – D; 2 – B; 3 – D; 4 – D; 5 – D; 6 – C; 7 – D; 8 - D