Lean vs. Six Sigma: Why Understanding the Differences is Key to Improving Your Organisation’s Efficiency

All organisations want to be as efficient as possible when it comes to how their operations are run.

This is why many employ the tried and tested project management methodologies known as Lean and Six Sigma.

But the strongest businesses out there are constantly seeking to better understand these methodologies - and to further sharper their processes. With that in mind, let’s take a closer look at the key differences between Lean and Six Sigma, as well as talk through which tools might be most useful for your organisation.

When it comes to companies which seek to improve their processes, maximise their output, and minimise their waste, Lean and Six Sigma stand out as two approaches which have revolutionised business operations in the last century.

Understanding the definitions and applications of Six Sigma and Lean Manufacturing is obviously crucial for any organisation out there which wants to improve in terms of quality and efficiency.

But, equally, businesses need to understand the key differences between Lean and Six Sigma. Businesses should want to be fully aware of how these two pivotal methodologies work in practice, so that they can consider whether or not it would be useful to apply either of them to their own processes.

It should also be noted that, while many businesses use either Lean or Six Sigma, many are increasingly choosing ‘Lean Six Sigma’, which applies tools from both methodologies. Of course, this dynamic approach only works when an organisation can fully understand both methodologies - thereby knowing exactly how to adapt them to their specific needs.

In this article, we’ll cover all of this. We’ll take a closer look at what both these methodologies mean, what tools they offer to businesses, how they can be used for your organisation, and whether they can complement each other to ensure maximum efficiency for an entrepreneurial business.

Understanding Lean Manufacturing and Six Sigma

Let’s start with a refresher on what the terms we’re discussing actually mean: 

Lean Manufacturing:

Lean Manufacturing is defined as a systematic approach to identifying and eliminating waste in production processes. Its stated goal is to maximise efficiency and value for customers.

At the heart of lean manufacturing is a focus on continuous improvement, collaboration between workers, and a holistic approach within an organisation - with the end goal being to eliminate non-value-added activities and bring the full benefit to an organisation’s customers.

Six Sigma:

Six Sigma is defined as a data-driven methodology, where tools are employed to improve processes by reducing defects and variation, in order to achieve perfect quality across the board.

Six Sigma focuses on systemically identifying and eliminating causes of defects, variations, and/or errors. As with Lean, the ultimate end goal to is pass these benefits of efficiency on to the customers, in terms of increased product quality and cost savings.

Lean Vs Six Sigma: Same But Different?

Organisations looking to learn more about Lean Manufacturing and Six Sigma should note that they are viewed as complementary methodologies, rather than direct competitors. Both aim to streamline processes and eliminate waste - and both aim to pass on the benefits to the customer. We’ve used the word ‘versus’ in this article to highlight how one might be better than the other for your specific organisation, not because we think one methodology is inherently better overall!

The main differences are in the approach. As highlighted above, Lean focuses on reducing waste and increasing efficiency by optimising processes, while Six Sigma emphasises minimising defects and variations to enhance quality and consistency.

At its core, Lean Manufacturing targets waste reduction more broadly within an organisation’s processes - including overproduction, waiting time, excess inventory, defects, and other aspects of the wider production process.

Meanwhile, Six Sigma involves a clinical, targeted approach to minimising variations and defects within a process. In doing so, it seeks consistency and high-quality output within processes.

A Company Manager Asks: “Is Lean and Six Sigma the Same at Heart?”

Often, organisations that seek business process solutions will ask the question of whether Lean and Six Sigma are the same thing.

The answer is that both methodologies obviously share a common goal when it comes to improving performance, but they employ different tools and offer divergent approaches. Businesses which understand these individual nuances - which are highlighted above - will be the best placed to unlock their potential.

Business Process Analysis: How Organisations Can Seek to Understand Their Individual Needs

Organisations which want to understand how these methodologies can be applied to their own processes, will want to undertake a business process analysis. This analysis will serve as their first step for effectively implementing Lean and/or Six Sigma methodologies.

A useful definition of a process analysis is that it involves identifying a wide range of inefficiencies, instances of wastage, and areas for improvement within existing processes.

By conducting a thorough process analysis within a business, organisations can pinpoint opportunities for optimisation and build a framework for implementing the methodologies we have discussed in this article.

‘Lean Six Sigma’: Why Some Businesses Synergise Their Processes

Some businesses seek to integrate both Lean Manufacturing and Six Sigma into their processes, creating a powerful synergy that addresses both efficiency and quality simultaneously.

The best organisations will always seek to understand both methodologies, however, it is essential that the methodology used fits with an organisation’s specific processes, rather than assuming that a combined approach would always be the best approach.

Based on my experience working for more than seventeen years at TBM, it's clear that the majority of clients favour a comprehensive strategy, blending methodologies to suit their specific needs. This fusion, known as LeanSigma, seamlessly integrates our methods. Significantly, TBM holds a patent for LeanSigma®, demonstrating our proficiency in this integrated approach.

Conclusion

In summary, the primary distinctions between Lean and Six Sigma reside in their fundamental objectives and areas of emphasis. Through a thorough comprehension of the unique characteristics of each methodology, organisations can make informed decisions regarding their suitability. Alternatively, organisations may opt to explore the potential for synergising these methodologies, thereby harnessing their complementary attributes to enhance operational efficacy.

TBM Consulting Group has extensive expertise when it comes to helping businesses implement process changes in every facet of their operations. TBM Consulting Group will ensure that your organisation is fully able to embrace the methodology that works for it - and ensure that it is thriving, competitive, and customer-focused in the long run.