6 Reasons Why Companies Must Use Lean Six Sigma for IT

The massive adoption of Information Technology (IT) does not always proceed smoothly or yield the best result as the process may bring technical issues and cultural challenges instead. Fortunately, this global problem can be identified and resolved by implementing the logical concepts from Lean Six Sigma. Although primarily developed for the manufacturing industry, the methodology of Lean Six Sigma is remarkably ideal and useful as a guide to integrating IT into modern business.

Table of Contents

1) Issues & Bottlenecks of Integrating IT for Business

2) Lean Six Sigma Explanation

3) How Lean Six Sigma Solves IT Issues

4) Real Case Example of Lean Six Sigma for IT

5) Benefits of Implementing Lean Six Sigma for IT

6) Lean Six Sigma Certifications

7) Premium Lean Six Sigma Certifications

Issues & Bottlenecks of Integrating IT for Business

The use of IT in modern business practice (also known as business technology) is increasingly prevalent regardless of the sector and industry. However, the practical application of this idea is not as straightforward as it may seem. Instead of achieving maximum efficiency and effectiveness, many companies that integrate IT into their operations tend to suffer from wasted resources, unnecessary spending, and operational defects.

These problems are resulted because of various IT integration challenges such as:

• Ever-upgrading nature of technology
• Compatibility & integration issues
• Managerial resistance to adaptation
• Inadequate training & support
• Lack of skilled workforce
• Data security concerns

Understanding these major issues and bottlenecks is crucial for organisations to prepare strategies for overcoming the challenges. This is how Lean Six Sigma can be taken into account and used as a helpful guideline to navigate through the problems and ensure optimal results of business technology can be accomplished.

Lean Six Sigma Explanation

Before understanding the concept as a whole, it’d be better to get a grasp of its origin as Lean Six Sigma was created from a mix of two separate yet similar managerial frameworks, Lean and Six Sigma.

Lean methodology was developed in the 1940s in Japan. It focuses on the creation of streamlined business processes by minimising “waste” or unnecessary human effort, inventory, time, and space to maintain the production of top-quality products as efficiently as possible.

On the other hand, Six Sigma was then introduced in the 1980s. The concept emphasises more on optimal product quality by removing the causes of defects and reducing variability in processes. In essence, Six Sigma is often viewed more as a program for a specific business task without necessarily altering the organisational culture.

Both methods were applied and grown in the manufacturing industry, but business experts soon recognised the similarities, connections, and benefits of the two frameworks. This led to the combination of the two methods into a single methodology, named Lean Six Sigma.

Lean Six Sigma is globally proven to be insightful in solving organisational problems and increasing output throughout divisions and functions, including IT. The methodology has been widely used in various other industries such as healthcare, finance, and public service. This is because Lean Six Sigma is comprehensive yet also flexible to fit different organisational philosophies and systems.

How Lean Six Sigma Solves IT Issues

Lean Six Sigma uses and integrates techniques and tools from both of the methods. One of the key techniques in Lean Six Sigma is the DMAIC cycle.

• Define: Identify the problem or improvement opportunity.
• Measure: Collect data to understand current performance.
• Analyse: Investigate data to identify root causes of defects or inefficiencies.
• Improve: Develop solutions to address identified issues.
• Control: Implement measures to sustain improvements over time.

(In the case of a new product, service, or process; the cycle will be DMADV: Define, Measure, Analyse, Design, & Verify)

The DMAIC cycle above enables management and employees to possess a problem-solving mindset that prioritises improvements and customers. With this mindset, any issues and bottlenecks in implementing IT for business can be spotted, mapped out, and solved before they become harmful.

Additionally, Lean Six Sigma promotes continuous improvement and innovation. This mindset is also extremely important in the IT field, where rapid advancements occur every year. The constant upgrades of technology force companies to innovate and adapt continuously to stay relevant, compliant, and competitive.

Real Case Example of Lean Six Sigma for IT

The implementation of Lean Six Sigma for IT is ideal in any different case, but here’s a little illustration of how the DMAIC cycle as the most popular technique can be applied in a software development process so the concept is easier to understand:

A new customised system is created by a team of software developers for a customer. However, the software is run with multiple bugs, and the developers take an average of 10 days to deal with the bug resolution. This period is considered too long and it may cause customer dissatisfaction. Thus, the DMAIC cycle is implemented to see how the problem can be solved.

• Define

The development team identifies the problem as an excessive bug resolution period leading to delayed updates and customer dissatisfaction. They set a goal to reduce the average bug resolution time to 5 days within three months.

• Measure

The team collects historical data on bug resolution times and calculates key performance metrics.

• Analyse

Statistical analysis is conducted to identify patterns in bug resolution delays. The analysis then reveals that 60% of bug incidents were resolved in over 10 days and 70% of them are caused by miscommunication with the quality assurance teams regarding bug severity and priority.

• Improve

The developers implement a new procedure for bug reporting such as standardised severity levels and conduct regular meetings with QA personnel to maintain communication. After making these changes, they begin to experience a reduction in average resolution time to 4 days.

• Control

As the goal is met, the team establishes a monitoring system to continuously track bug resolution performance, to ensure the progress can be sustained over time. As a result, customer satisfaction improved significantly due to faster response times and better communication regarding bug fixes.

Benefits of Implementing Lean Six Sigma for IT

• More Proper Use Case

Lean Six Sigma allows IT to be adopted and utilised according to the user needs and organisational conditions. For instance, a small local business may only need a simple accounting system and not the expensive ones with excessive enterprise features by big vendors.

• Increased Process Efficiency

The main goal of the frameworks is to focus on streamlining processes by eliminating waste and reducing variation. In the context of business technology, this means a digital procedure such as reporting and communication can be shortened and simplified to ensure employees’ time and focus are at work.

• Maintained Quality Control

The methodology also emphasises defect prevention through data analysis and process monitoring. As an example of Lean Six Sigma for IT implementation, this means a company’s website can be accessed all the time with fewer bugs or server crashes.

• Data-Driven Decision Making

Every action in Lean Six Sigma heavily relies on data. Using statistical tools and analysis, the data-driven approach allows organisations adaptive and well-informed with a solid foundation based on facts and historical events to create future decisions.

• Lower Operational Cost

By eliminating inefficiencies and redundant processes, Lean Six Sigma helps organisations reduce operational costs significantly. In IT departments, this can lead to lower spending on resources such as hardware, software licenses, and personnel.

• Higher Customer Satisfaction

Implementing Lean Six Sigma for IT can enhance customer satisfaction and garner loyalty by reducing errors and improving service or product quality.

Lean Six Sigma Certifications

As with other frameworks, Lean Six Sigma can be learned through training and requires certifications as validation of mastery. The Lean Six Sigma certifications are structured into different levels, and uniquely, they are referred to as "belts” like in martial arts to indicate the depth of expertise in the methodology.

If you’re interested in mastering Lean Six Sigma for your career or in need of training personnel into certified Lean Six Sigma practitioners, we at Adding Value Consulting (AVC) get you covered with multiple e-learning Lean Six Sigma certification programs:

• Yellow Belt

Lean Six Sigma Yellow Belt certification is an introductory level that provides a foundational understanding of Lean Six Sigma. It will cover the basic concepts of process improvement, the DMAIC framework, and the role of team members in L6S projects.

• Green Belt

Lean Six Sigma Green Belt certification continues the basic knowledge and focuses on the application of Lean Six Sigma tools to real-world projects. It teaches you about data analysis, statistical tools, process maps, and improvement projects. The certification also drills your skills in team dynamics and project management.

• Black Belt

Lean Six Sigma Black Belt certification signifies the most advanced knowledge of Lean Six Sigma methodologies and leadership capabilities in managing complex improvement projects. The program delves deeper into statistical analysis, advanced problem-solving techniques, and change management strategies.

Premium Lean Six Sigma Certifications

In addition, there are also Premium Lean Six Sigma programs that consist of the Green Belt and Black Belt certifications that are IASSC standardised. IASSC (The International Association for Six Sigma Certification) is the institution dedicated to creating the universal standards and curriculums for Lean Six Sigma. Certifications with IASSC accreditation are widely considered the most credible credentials.

In case you’re willing to take both of the IASSC-accredited certifications at once, feel free to enroll in the Lean Six Sigma Expert Master's Program Certification. The Master's Program is designed to comprehensively teach the Green Belt and Black Belt certifications with 10 simulation tests and 9 case studies to help you pass the tests.

Conclusion

The integration of IT into modern business practices presents significant considerable technical issues and cultural bottlenecks. Organisations must recognise these potential organisational problems that arise during this process. Adopting Lean Six Sigma is one effective way to navigate these obstacles, streamline their operations, and enhance overall efficiency.

If you’re interested in more tech insights and updates, please feel free to read more of our blogs.