After the 2008 financial crisis many organizations implemented Lean Six Sigma programs in order to control costs and become more efficient.
In order to successfully implement Lean Six Sigma the management of the organization must understand the basic elements of Define, Measure, Improve, Analyze and Control (DMIAC) that are integral to any Six Sigma initiative.
The Define aspect is about defining the goals & targets of the program and implementation schedule. It also includes identification of the human resources who can be trained as Six Sigma champions. This stage involves giving some training to the management so that they can have a clear idea about the program.
The Measure aspect is about choosing the right project where Lean Six Sigma implementation can bring fruitful results. This aspect also involves setting the Key Performance Indicators of the project.
The Analyze aspect of a Lean Six Sigma program is about continuously analyzing the performance of the program. This analysis involves assessment of the performance of the Six Sigma practitioners like the Green Belts who have rolled out the program. From among the Green Belts, those who perform well are chosen for training for Black Belt certifications.
The improvement aspect involves focusing on continuous improvement in the implementation of Lean Six Sigma. From the initial projects, the Lean Six Sigma philosophy can be imbued through the entire organization. The certified Green Belts and Black belts employees become the Six Sigma leaders of the organization. Awareness training in Six Sigma philosophy is provided to all the key personnel of the organization.
The Control aspect of DMIAC focuses on controlling the implementation of Lean Six Sigma over the extended period of time. The actual cost savings realized is measured against the targets set at the initiation of implementation. If the actual savings are less than the target then the reasons for the shortfall is analyzed. The control aspect involves such activities as periodic project review meetings, new project identification meetings, and meetings for validation by the finance department of actual savings achieved by the Six Sigma program.
An organization that follows the basic principle of DMIAC is likely to achieve such capabilities in the long run that it can implement Lean Six Sigma in its every activity and process. Such an organization achieves the peak of efficiency.