Lean Six Sigma A to Z

Guide for Dummies

Table of Contents
Introduction
Lean Six Sigma (LSS) is an approach to management that focuses on streamlining
business processes and boosting customer satisfaction, to deliver customer value.
This approach is supported by a set of tools, methodologies and frameworks that
deliver this value. Efficient operational processes and quality outcomes are a result of
minimizing variances and removing discrepancies. The benefit of using Six Sigma is to
help companies produce better products and services. LSS as a part of the organization’s
strategy enables meeting the needs of customers, clients, or end-users.

This guide is written for readers who would want a basic understanding of the concept
of Six Sigma. Then on, they can take up the Six Sigma Combo course to upskill and
expand their skill-set as a Lean Six Sigma manager.

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 History of Six Sigma,
1 Lean, and Their Differences
Six Sigma history dates back to the 19th-century mathematician Carl Friedrich Gauss
who introduced the idea of a normal curve. In the 1920s Six Sigma was used as a
measurement standard in product variation, American engineer Walter Shewhart
contributed to the advancement of Six Sigma and process improvement. In 1985, an
engineer named Bill Smith coined the name “Six Sigma”.

Motorola engineers and Chairman Bob Galvin adopted Six Sigma as a quality
management technique for detecting defects and optimizing business processes. In
fact, the process was so effective that Motorola saved more than USD 16 billion from
adopting this approach. Since then, countless companies spanning multiple industries
have implemented Six Sigma.

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Lean Six Sigma can be traced back to 2000 when it first forked out of Six Sigma and
became an individual process. The concept was designed as a part of Toyota Production
Systems and embraced ideas from lean manufacturing.

There has been a

constant debate in the
Lean Six Sigma
business world about Improve process through Improve process through
the reduction or elimination or the reduction or variation.
which methodology is elimate of wastage.
Focus
more effective whether Focus Six sigma focuses on
Lean focuses on waste reducing the variation in
Lean or Six Sigma for elimination and support six quality and supports lean
sigma quality process. speed.
minimizing costs and
reducing wastage.
However, both of these concepts have similar objectives but undertake different
approaches to determine the root cause of waste. On one hand, Six Sigma is a group
of effective techniques leveraged to minimize the rate of errors. On the other, Lean is
a systematic way of removing waste and designing a seamless flow in the production
process.

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2 What is Lean Six Sigma

Lean and Six Sigma are the two crucial process improvement methods that
together make Lean Six Sigma for achieving operational excellence. It is well-
recognized as a data-driven and fact-based improvement philosophy that gives
importance to detect prevention more than detect detection.

The Lean principle focuses on reducing or removing process waste. Six Sigma
helps in variation-reduction in processes. Combined, Lean Six Sigma improves
the efficiency and quality of the process across industries, ranging from
manufacturing, electronics, online retailing to healthcare.

The fundamental idea behind Lean Six Sigma is to provide the organizations with
a path to realize their missions quickly and efficiently. Lean Six Sigma depends
on a collaborative team effort to optimize performance by eliminating waste and
minimizing variation for achieving bottom-line results and customer satisfaction.

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 Fundamental Principles of Lean
3 Six Sigma

Three crucial elements add up as the basics of Lean Six Sigma. They include:

I. Tools & Techniques - A designed set of tools and methodologies to identify and
fix problems.

II. The Modus Operandi - A sequence of phases that put the problem-solving
techniques for precisely implementing the solution by determining the root cause
of the problem.

III. Psyche & Culture - A mannerism that depends on data and processes to keep
improving and realize operational performance objectives.

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4 What is DMAIC

DEFINE MEASURE ANALYZE IMPROVE CONTROL

• Launch Team • Document the • Analyze Data • Generate • Control the

• Process • • Solutions Process
• Estalish • • Identify Root • •
• Charter • Collect cause • Evaluate • Validate
• • baseline data • • Solutions • project
• Plan Project • • Identify and • • benefits
• • Narrow Proj- Remove • Optimize
• Gather the ect focus wastes • Solutions
•
• Pilot
•
• Plan and
• implement

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5 Crucial Lean Six Sigma Tools
DMAIC stands for Define, Measure,
Analyze, Improve, and Control which is
a highly effective five-phase method and
problem-solving approach that drives
the Lean Six Sigma. DMAIC involves a
data-driven improvement cycle used
for improving, optimizing, stabilizing
business processes.
Besides, DMAIC isn’t restricted to Six
Sigma and can be deployed in other
improvement applications as well. The
key objective of DMAIC is to remove
costly variations from manufacturing
and business processes.
I. SIPOC Diagrams
SIPOC Diagrams are the tools that help
in defining complex projects that aren’t
scoped properly. Teams use these
diagrams before the project work begins
to determine all the relevant methods.
SIPOC Diagram
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II. Critical to Quality (CTQ)
Critical to Quality (CTQ) is a crucial tool
used while designing new products
or services for a business. CTQs are
measurable data needed on a specific
product or service that your customers
have specified as extremely important.
III. Value Stream Maps
Value Stream Maps are lean tools that use
flow chart documenting at every phase
in the project. According to lean experts,
this methodology is fundamental
for minimizing process cycle times,
identifying waste, and implementing
process improvement seamlessly.
IV. Voice of the Customer
A specific statement made by customers
on specific products or services is called
the Voice of the Customer. This includes
user expectations, comments and
preferences.
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 Diagram:Value Stream Map

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V. Voice of the Process
It guides you on what needs to be
improved by providing all the information
from the current processes. This includes
various data for your organization such
as maintenance, shortcomings and
downtime.
VI. Cost of Poor Quality
Cost of Poor Quality (COPQ) are costs
engendered because of manufacturing
faulty material. Also included are the costs
involved in bridging the gap between the
real and desired product.
VII. Process Mean & Variation
It is a theory of significance that happens
when processes fail to stick to a definite
pattern and is the primary cause of
quality issues cropping up in production
or transactional processes.
VIII. Multi-vari Chart
Multi-vari chart analysis help in
determining the sources of variation.
They are used to observe time to time,
piece to piece and within piece variations.
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IX. Sampling
Sampling is the process of picking a
small number of elements from a larger
defined target group. The two techniques
for accomplishing this are probability
sampling or non-probability sampling.
X. Process Control
Process control is a control technique for
confirming that the process performance
is sustained at the level. It facilitates
ongoing improvement and fulfills
customers’ requirements.
Poka-Yoke is a fundamental tool for
making a process mistake-proof by
targeting mistakes and defects. This helps
in removing inaccuracy by developing
systems that instantly either prevent or
identify the mistakes.
XII. Continuous Improvement
Six Sigma is a widely-accepted lean
version that is a data-driven and
sophisticated approach to Continuous
Improvement. It is an intentional and
dynamic practice focused on removing
variances and boosting predictability in
businesses.
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 XIII. Hypothesis Testing
Hypothesis testing helps
in identifying whether the
observed variations in
between two or more samples
is because of random chance
or due to actual differences by
leveraging statistical analysis.

XIV. Regression Correlation

Regression and correlation
test the relationships and not
the means or variations. These
tools help teams in controlling
the key inputs by finding out
the variables and the degree
they affect the response.

XV. Design of Experiments professionals so they don’t have to invest

This lean tool helps project teams to additional funds in designing Lean Six
figure out the impact of various inputs Sigma Strategies. Certified employees
of the processes on the end product. can train other team members and
Companies hire Lean Six Sigma certified educate them about relevant principles.

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6 Lean Six Sigma Certifications
Lean Six Sigma certifications
are classified into four levels or
categories referred to as “belts” that
are awarded to the learners in a
hierarchical format. Let’s take a look
at the four levels of Lean Six Sigma
certification courses:
I. Yellow Belt Certificate: Lean Six
Sigma Yellow Belt certificate comprises
the fundamental aspects of the method
that helps the learners understand how
to implement, perform, interpret, and
apply the concepts in a skilled yet limited
context. It is best suited for beginners
who want to acquire knowledge about
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the different Six Sigma tools and
techniques.
II. Green Belt Certificate: Lean Six
Sigma Green Belt certificate is an
advanced level that involves a thorough
understanding of all the aspects of
the program. Course undertakers
get a complete idea of implementing,
performing, interpreting, and applying
the principles of Lean Six Sigma at a high
level of proficiency.
It is ideal for professionals who are
either serving as team members in
more complex improvement projects or
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III. Black Belt Certificate: Lean Six
Sigma Black Belt certificate provides a
comprehensive understanding of the
advanced Six Sigma methodologies and
techniques. Professionals who have
this certificate qualify for managerial
positions.
This certificate is best suited for
individuals who work in a full-time
capacity and lead complex improvement
projects. Also, the individuals who’ve
earned the Lean Six Sigma Green Belt
certificate are eligible for enrolling in the
Black Belt certificate.
7 The Lean Six Sigma Glossary
1. Accuracy
It is the difference between the true
value and the set of numbers by having
data or results centered on a familiar
target.
2. Affinity Diagram
The affinity diagram is used to facilitate
a brainstorming session to get lots of
ideas quickly by displaying activities in
affinity or homogeneous groupings.
3. Alternative Hypothesis
The alternative hypothesis is the opposite
of the null hypothesis and cannot be
anticipated through randomness.
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IV. Master Black Belt: Master Black
Belt is the highest level in Lean Six Sigma
certification levels. It can be taken up
by the individuals who’ve earned the
Black Belt certification. The holders
of this certification are referred to as
champions who act as mentors to the
Black Belt Lean Six Sigma professionals.
A Lean Six Sigma certification is crucial
from a professional’s perspective as it
gives them an edge over others as these
certifications are highly recognized by
organizations worldwide.
Alternative hypothesis is crucial for
making the process of writing statements
more intuitive.
4. Balanced Scorecard
A management methodology to align
the Key Business Objectives (KBO)
of an organization with enterprise
activities, a balanced scorecard helps in
keeping everything in check. Measuring
performance in various areas like finance,
customer satisfaction and innovation is
a crucial aspect of a balanced scorecard.
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5. Benchmarking
Benchmarking is used by organizations
to compare the performance of their
outputs with that of industry standards.
6. Capability Ratio
The opposite of the Cp index, capability
ration involves dividing the process
spread with the specification spread
for understanding the percentage of
specification window consuming by
process variation.
7. Cause-effect Diagram
Also called the fishbone diagram because
of its resemblance to the skeleton of a
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fish, a cause-effect diagram is a graphical
tool for showcasing various causes
associated with a particular effect.
8. Charter
It is a project document comprising the
fundamentals such as business case,
problem statement, and scope along
with their descriptions.
9. Chi-square Distribution
This is a statistical tool to compare a
target variance against an observed
variance for checking goodness-of-fit or
dependence or independence ratio.
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10. Data Collection Plan
Data Collection Plan is a tactical plan
comprising nine columns for collecting
both baseline data and the data that can
offer hints to the root cause.
11. Descriptive Statistics
Mean and median are the measures of
central tendency, standard deviation
and range of dispersion are used to
summarize and interpret properties of
the data set referred to as descriptive
statistics.
12. Design for Six Sigma
Design for Six Sigma (DFSS) uses a
DMADV approach which signifies - Define,
Measure, Analyze, Design, and Verify.
Progressive organizations leverage the
Six Sigma philosophy to build into the
design processes.
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13. Effort/Impact Matrix
Impact/effort matrix is the other name
for the Effort/Impact matrix that guides
the team to identify which among the
various solutions that look the easiest can
be implemented and have a beneficial
influence.
14. Factorial Experiment
A factorial experiment can be of two
types either “full factorial'' or “fractional
factorial” which is a concurrent
manipulation of factors at different
stages to analyze their impact on a
specific desired outcome.
15. Flowchart
It's a graphical tool to represent distinct
steps of the process in a systematic
order. Starting from the top and moving
to the bottom of a page to interpret
performance information and include all
the critical steps to the process.
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16. Force Field Analysis
It is an analysis tool used for visualizing
the restraining forces and driving forces
that have an impact on some specific
area of interest.
17. Gemba
Gemba in Japanese means “the place”. It
is the place where value is added and all
activities usually take place.
18. Goldratt’s Theory of Constraints
Theory of Constraints is inspired by the
book “The Goal” by Eliyahu M. Goldratt.
This theory resembles the notion of
the adage, ‘a chain is only as strong as
its weakest link’ and believes that in a
series of steps the slowest step controls
the entire flow.
19. Hypothesis (alternate/alternative)
There are two hypotheses: alternative
and null where the first one is the opposite
of the latter. The null hypothesis is what
you forecast through randomness
but the alternate hypothesis can’t be
anticipated like that.
20. Hypothesis Testing
It is a method to make logical decisions
about the actuality of effects. The
decisions are incomplete and are made
by choosing from one or more options.
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21. Inferential Statistics
Inferential statistics are used to make
generalizations, approximations, or
projections. It is the sample that’s taken
from inference space, a mathematical
method for inferring the properties of a
population with the help of probability
theory.
22. Inference Space
Inference Space is a mathematical
technique for deducing the properties of
a population by using probability theory
from which the sample that’s taken is
known as inferential statistics.
23. Interrelationship Diagrams (also
known as digraphs)
It graphically displays the cause-effect
relationships existing among a group
of issues, problems, opportunities, or
items. Interrelationship Diagrams are
used to identify the potential causal
relationships hidden behind issues
that are occurring continuously despite
taking preventive measures to solve
them.
24. Ishikawa Tools (also known as
Seven Basic Tools)
These tools comprise Cause-Effect
Diagram, Check Sheet, Control Chart,
Histogram, Pareto Chart, Scatter
Diagram, and Run Chart.
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25. Jidoka
It is one of the guiding principles of
the Toyota Production System used to
identify unusual working conditions and
instantly pausing the work to remove the
root cause of the problem.
26. Kaizen
Kaizen a Japanese word that means
“improvement” which has evolved since
the 1950s to a popular business strategy
focused on making small but constant
changes in company operations for
betterment.
27. Kaizen Event
Also known as kaizen blitz, this event
is a focused improvement project that
can realize sudden improvements in a
short span of which five days is the most
common timeline.
28. Kanban
Kanban is a Japanese term that means
“signboard”. According to Taiichi Ohno,
Kanban’s creator, it is a
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means through which JIT is achieved.
Kanban is a scheduling system for Just-
In-Time (JIT) and lean production.
29. Kano Model
Kano Model categorizes the qualities
of products and services based on
the customers’ voice. Basic needs,
performance, and excitement are three
classifications for making better design
decisions.
30. Least Squares Method (Least
Squares Criterion)
This is a statistical technique team uses
the linear equation with the least-squares
method that depicts the points found on
the scatter diagram for identifying the
best fit for a set of data points.
31. Load Leveling (also known as
production leveling or production
smoothing)
Called “heijunka” in the words of the
lean guru Taiichi Ohno, load levelling is
a methodology to minimize the mode of
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Kaizen Event- Roadmap

01 02 03 04 05
Conceptial Kaizen on Measure Evalute Present &
Training Factory Floor Improvement Improvements Celebrate
Area

Business Discover Create and map Establish New Present &

Process Problem new process Standard Celebrate
Process
Standard Measure & Apply rapid Present Results
Operations Analyse Current implemetation Operate using and celebrate
work process new standard
5S process
Brainstorm
Kaizen solutions & Finalise New
Methology formulate standard
Process process
Tools & improvements
techniques Monitor &
control

waste and large fluctuations in the 34. Measles Charts

demands of customers.
32. Loss Function
Designed by a Japanese quality consultant
and engineer Dr. Genichi Taguchi, the loss
function is a graph that demonstrates
the cost when your product varies from
the value.
33. Matrix Diagram
A matrix diagram is a tool that picturizes
the crucial relationship between or
among two or more groups. A matrix
diagram can be magnified to show
strengths or various aspects of the
relationships.
Also referred to as a defect map, a
measles chart is a defect location
check sheet prepared by gathering and
examining the data that envisions the
item being evaluated.
36. New Quality Management Tools
These are also called seven
management and planning (MP) tools
developed by the Union of Japanese
Scientists and Engineers (JUSE) in
1976 to promote communication
information, innovation, and efficiency
in planning crucial projects.

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37. Nominal Scale
This is a scale that lists categories or
names. There is no particular order in
nominal scale and the nominal data is
discrete.
38. Nominal Group Technique
A decision-making methodology used
by teams to differentiate the vital items
from the insignificant ones.
39. Ordinal
Ordinal is the data arranged in order. An
ordinal scale can be used by leveraging
symbols or numbers to rank order based
on severity, strengths, or importance.
40. P Chart
This chart can be used when the data
is in whole numbers. For example in
counting that’s known as an attribute or
discrete data. It uses a varying sample
size for detecting the defectives in a
sample size.
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41. Pareto Chart
This is a bar graph named after Vilfredo
Paret, an Italian economist, and is used
to visualize the vital items vs. the trivial
items.
42. Quality Control
The concept of controlling the activities
and the operational methodologies used
to fulfill the requirements of quality is
called quality control.
43. Radar Chart
Radar chart a graph in which each
data series has its specific axis and
radiates out from the focal point. It is
used when various characteristics need
to be compromised to a ‘sweet spot’
that is most pleasing to customers in a
particular niche.
44. Scope
Scope outlines the boundaries of the
project for keeping the team aligned,
motivated, focused, contained, and on
purpose.
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41. Pareto Chart
This is a bar graph named after Vilfredo
Paret, an Italian economist, and is used
to visualize the vital items vs. the trivial
items.
42. Quality Control
The concept of controlling the activities
and the operational methodologies used
to fulfill the requirements of quality is
called quality control.
43. Radar Chart
Radar chart a graph in which each
data series has its specific axis and
radiates out from the focal point. It is
used when various characteristics need
to be compromised to a ‘sweet spot’
that is most pleasing to customers in a
particular niche.
44. Scope
Scope outlines the boundaries of the
project for keeping the team aligned,
motivated, focused, contained, and on
purpose.
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47. Value Stream Mapping
A value stream map is a tool to analyze
the process for the existence of excessive
and superfluous activities for providing
the visibility of information and material
flow in a process.
48. Weibull Distribution
One of the most common methodologies
in reliability engineering, Weibull
distribution is used for the Weibull
examination of failure data by modeling
several failure patterns along with their
relative ease of use.
49. X-bar R Chart
The role of an X-bar R chart is to facilitate
the team to monitor, control and envision
the behavior of variation in a process.
50. Z-Score Table
The standard normal distribution is
another name for the Z-Score table. It
is used for large sample sizes especially
where the population is beyond n=30 for
various hypothesis tests such as tests on
proportions, single mean tests, and the
difference between two means.
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 Lean Six Sigma FAQs Answered
1. Who invented Six Sigma?
In 1985 an engineer named Bill Smith
invented Six Sigma.
2. Who needs Six Sigma certification?
Six Sigma certifications are best suited
for individuals who are planning a
career in Quality Management in any
sector like healthcare, manufacturing,
pharmaceutical, service industries, or
technology.
3. What is the use of Six Sigma
Certification?
Six Sigma provides individuals the
knowledge of a designed set of tools and
techniques for optimizing the business
processes with an organization to get
hired by companies in better roles.
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4. Which is the most recognized Six
Sigma certification?
ASQ or IASSC are the leaders in Six Sigma
certifications. They are widely-recognized
certifications world-wide.
5. Is Lean Six Sigma Certification worth
it?
Yes, Lean Six Sigma certifications are
beneficial because you implement your
learning to solve real problems in an
organization rather than just earning
them for the sake of it.
6. How long does it take to get certified
as a lean six sigma green belt?
Two to seven weeks is the average time
to complete the lean six sigma green belt
certification program.
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12. Why is it called Six Sigma?
“Sigma” signifies the calculation of
deviation in a data set. “Six” is used
because six standard deviation events
are needed before the process results in
an error.
13. What is Six Sigma certified?
Six Sigma certification is the validation
of a professional’s mastery of a well-
recognized technique of professional
skills development.
14. What are the levels of Six Sigma?
There are five levels of Six Sigma
certifications: White Belt, Yellow Belt,
Green Belt, Black Belt, and Master Black
Belt.
15. What are 6 Sigma tools?
Six Sigma tools are the problem-solving
tools to facilitate Six Sigma and other
process improvement initiatives.
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16. What is a good sigma level?
Ideally, a process with Sigma level 6 or
more than 6 is believed to be an excellent
process.
17. Can I do Six Sigma Online?
Yes, Six Sigma training and exams
are conducted online so you can do it
according to your convenience.
18. What are the 5 principles of lean?
The five crucial lean principles are value,
value stream, flow, pull, and perfection.
19. Why is learning Lean Six Sigma
important?
Lean Six Sigma certifications boost your
capabilities as a leader. Although job
duties vary industry-wise, most Six Sigma
jobs focus on improving processes,
managing projects and teams and
analyzing data.
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 Conclusion
Earning Lean Six Sigma credentials help
professionals in staying employable
and competitive in today’s dynamic era.
Employers prefer hiring professionals
with Lean Six Sigma certification holders
to ensure that their production lines
are led by quality and process-driven
individuals.

GreyCampus offers a comprehensive

Lean Six Sigma Certification course.
Designed for working professionals,
this combo-course of Green and Black
Belt certification makes you proficient
The job options for professionals with
in the implementation of methods and
Lean Six Sigma certification are:
principles of Lean Six Sigma. The online
course is for working professionals
• Six Sigma consultant
and job seekers. The goal is to prepare
• Process engineer
them to satisfy the immense demand
• Manufacturing engineer
for talent with lean expertise, skills and
• Quality engineer
certification.
• Continuous improvement
• Operational excellence
• Project manager
• Mechanical engineer
• Industrial engineer
• Reliability engineer

20. Is there a difference between Six

Sigma and Lean Six Sigma?
The primary difference between Lean
and Six Sigma is that Lean focuses on
eliminating waste and streamlining
business processes. On the other hand,
Six Sigma strives to minimize the rate of
defects through a set of techniques.

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