- The first of the two management systems in Lean Six Sigma is the Lean Manufacturing system. This focuses on increasing the value of an organization's expenditures by identifying and eliminating causes of waste within production processes. Lean Manufacturing is championed by the Toyota organization. Its principles originate from the Japanese manufacturing industry. This management style is concerned with producing more value with less work.
- The second of the two management systems in Lean Six Sigma is the Six Sigma program. This program measures the number of defects produced by an organization, according to parts per million. It asserts that no greater than "3.4 noncomformances per million parts" produced is an allowable number of defects. Furthermore, besides measuring and assessing the quality of an organization's output, the Six Sigma system provides managers with two key methods of refining an organization's operations: DMAIC (define, measure, analyze, improve, control), used to improve business processes, and DMADV (define, measure, analyze, design, verify), used to create products and product designs. Quality control is a hallmark of the Six Sigma program.
- Concepts of Lean Manufacturing may be used to complement those of the Six Sigma program, effectively creating a new system of management called Lean Six Sigma. Combined, these two systems are able to simultaneously increase production speed within an organization while dramatically decreasing the number of defects yielded through the production process. Daily operations of an organization may be enhanced with Lean Manufacturing, as essential activity within the organization is identified while waste is eliminated. At the same time, elements of the Six Sigma program may used to encourage long-term innovation in business process, product development or product design.
- Simplicity is key when applying Lean Six Sigma within an organization. Decision making is based on data gathered with tools provided through the program, preventing a company from spending money on unnecessary equipment or manpower. While Lean Six Sigma involves the use of complex methods of data assessment, most of the tools included in the program can be used by anyone with a modicum of training. Basic concepts of Lean Six Sigma can be applied across a range of businesses, including the health care industry, information technology and even the military.
- The Lean Six Sigma system, if maximized for effectiveness, helps reduce waste during the production process and increase quality. Customers may benefit from the implementation of this system through decreased product costs and improved product quality. For example, if a food processing plant uses the Lean Six Sigma system, plant managers focus attention on eliminating waste in the production process, thus saving money. Management also focuses on discovering ways to reduce the number of defects produced by the factory. Costs saved through such management measures allow the prices of products created by the plant to be lowered.
