Previously, you learned about Agile and Waterfall project management approaches. We will define some key concepts from Lean and Six Sigma methodologies. We will know how these methodologies can be used to organize and manage your projects, and we will discuss the most effective for different projects.
Lean
Lean methodology is often called Lean Manufacturing because it originated in manufacturing. The main principle in Lean methodology is removing waste within an operation. By optimizing process steps and eliminating waste, only value is added at each production phase.
Today, the Lean Manufacturing methodology recognizes eight types of waste within an operation: defects, excess processing, overproduction, waiting, inventory, transportation, motion, and non-utilized talent. In the manufacturing industry, these types of waste are often attributed to issues such as:
- Lack of proper documentation
- Lack of process standards
- Not understanding the customers' needs
- Lack of effective communication
- Lack of process control
- Inefficient process design
- Failures of management
These same issues create waste in project management.
Implement Lean project management when you want to use limited resources, reduce waste, and streamline processes to gain maximum benefits.
You can achieve this by using the pillars of the Lean 5S quality tool. 5S refers to the five posts for good housekeeping: sort, set in order, shine, standardize, and sustain. Implementing the 5S method means cleaning up and organizing the workplace to achieve the smallest amount of wasted time and material. The 5S method includes these five steps:
- Sort: Remove all unnecessary items for current production operations and leave only the bare essentials.
- Set in order: Arrange needed items to be easy to use. Label items so that anyone can find them or put them away.
- Shine: Keep everything in the correct place. Clean your workspace every day.
- Standardize: Perform the process in the same way every time.
- Sustain: Remember to maintain correct procedures and instill this discipline in your team.
Within the Lean methodology, 5S helps you boost performance.
The final concept of Lean uses a Kanban scheduling system to manage production. The Kanban scheduling system, or Kanban board, is a visualization tool that enables you to optimize the flow of your team's work. It gives the team a visual display to identify what needs to be done and when. The Kanban board uses cards that are moved from left to right to show progress and help your team coordinate the work.
Kanban boards and 5S are core methods of the Lean methodology. They can help you successfully manage your project. Now, let's analyze the Six Sigma method and learn the best time to use it.
Six Sigma
Six Sigma is a methodology used to reduce variations by ensuring that quality processes are followed every time. "Six Sigma" originates from statistics and generally means that items or methods should have 99.9996% quality.
The seven fundamental principles of Six Sigma are:
- Always focus on the customer.
- Identify and understand how the work gets done. Understand how work happens.
- Make your processes flow smoothly.
- Reduce waste and concentrate on value.
- Stop defects by removing variation.
- Involve and collaborate with your team.
- Approach improvement activity in a systematic way.
Use this methodology to find measurable aspects of the product or process, like time, cost, or quantity. Then, inspect that measurable item and reject products not meeting the Six Sigma standard. Any method that creates unacceptable products has to be improved upon.
Now that you understand Lean and Six Sigma, let's see how they improve your project's performance!
Lean Six Sigma
After both Lean and Six Sigma were implemented, it was discovered that the two methodologies could be combined to increase benefits. The tools used in Lean, such as Kanban boards and 5S, build quality in processes from the beginning. Products developed using Lean methods are inspected or tested using Six Sigma standards. The products that meet these standards are accepted.
The most significant difference between these methodologies is that Lean streamlines processes. At the same time, Six Sigma reduces product variation by building on quality from the beginning and inspecting products to ensure quality standards are met. You may find that one of these two methods — or using them both—can improve your projects' efficiency.
