The concept of Lean Six Sigma represents a significant evolution in management methodologies, combining two distinct approaches for even more effective results. Lean Six Sigma is an insight from Michel L. George, ex CEO of Daewoo America and a pioneer in combining Lean Thinking and Six Sigma. The method, originally developed in the '90s, is known for being a structured and highly methodical approach to project management. It is particularly suitable for solving complex problems, highly structured, and oriented towards the radical improvement of processes. It applies to repetitive, measurable, and controllable processes through the use of statistical methods.
Six Sigma already existed as a very rigorous technique, aimed at achieving effective results. It is an application of Six Sigma that places a particular emphasis on the Lean philosophy, focused on eliminating waste and non-value-added activities by working on variability in favor of predictability and standardization.
How? One can use the DMAIC method, an acronym representing the fundamental phases of the process: Define, Measure, Analyze, Improve, and Control.
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Define: recognize insufficient processes and performances in order to focus on delineating problems and objectives through the identification of the customer and their requirements
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Measure: collect data on current processes to understand their performance and identify areas for improvement
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Analyze: use statistical data analysis to understand the causes of any issue
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Improve: implement solutions by experimenting with their application
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Control: establish procedures to constantly monitor processes and ensure that improvements are sustained over time
The Six Sigma organization is based on defining different levels of competence confirmed by certification; starting from the lower level, one can progressively acquire the yellow belt, green belt, black belt, or master black belt. Semantic similarities with the martial arts field aim to underline the shared ethical and moral values, emphasizing the importance of discipline and rigor, along with the fundamental concept of addressing challenges with determination, commitment, and precision.
In addition to certification levels, advanced Six Sigma organizations incorporate other roles and tools for effective implementation:
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Champion: a senior management member playing a crucial role in channeling necessary support and resources, managing an escalation system to resolve obstacles
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Strategic alignment: essential for aligning the company's strategic objectives with initiatives at various levels and with CEOs
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Six Sigma Council: an entity serving a strategic guidance role, responsible for leading strategy implementation
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Results monitoring: successful organizations have a results monitoring system; for example, a financial report can certify achieved results, stimulating increased commitment from collaborators
The Six Sigma methodology extends beyond individual certification, incorporating an organizational framework that engages senior management, fosters strategic alignment, and maintains ongoing result surveillance to aid in accomplishing improvement goals.
When considering its relevance in project-centric business environments, skepticism often arises about the applicability of Lean Six Sigma, particularly in scenarios where the predominant activity involves projects rather than repetitive processes. This raises questions and uncertainties among many stakeholders.
Several factors contribute to the argument against the applicability of Lean Six Sigma in the IT domain, notably the absence of its characteristic repetitive nature; each software development project is unique and, therefore, different from others, the lack of comparable objective factors, and the greater emphasis on people rather than processes makes the approach hardly relevant. However, arguments denying the applicability of Lean Six Sigma in IT contexts might overlook the fact that IT projects also follow well-defined phases and processes. Moreover, there is an opportunity to develop performance measurement indicators to evaluate the efficiency and effectiveness of activities. In other words, although the nature of IT projects may differ from repetitive processes, the targeted application of Lean Six Sigma could still lead to significant improvements through more efficient project phase management and increased attention to performance measurement.