1. Lean

It aims at optimizing the process itself as much as possible. It means, for example, finding a low-value step in a process and cutting it out completely – something that would improve employee productivity, but not have much of an effect on the end-product.

The system was developed by Toyota. Typically, the steps for lean process improvement would include…

1. Defining what value is for the end-customer
2. Mapping out the process and identifying which steps aren’t creating any value
3. Cutting out the steps that don’t add value, or modify them in a way that they do
4. Repeat the steps 1 – 3 for other business processes, repeat until the organization is sufficiently more efficient

2. Six Sigma

It was first developed by the engineers at Motorola and is used to measure defects or inconsistencies in a process. This, in turn, can be used to perfect the end-product.

Six Sigma is also used as an indicator for the level of efficiency for a process. A “Six Sigma Process” is a process that, out of a million output, doesn’t produce more than 3.4 defects.

For process improvement, specifically, DMAIC is one of the core tools. It consists of 5 parts…

• Define – Find the opportunity for improvement.
• Measure – Identify the metrics you’re going to benchmark new processes to.
• Analyze – Uncover any defects or inconsistencies in the process.
• Improve – Get rid of the aforementioned problems
• Control – Monitor the new process, making sure that there aren’t any new problems

3. Total Quality Management (TQM)

Originated in the 1950s, but only becoming popular in the early 1980s.

As with the Lean methodology, it’s main priority is delivering value to the end-customer. The difference is, however, that TQM focuses on the organization as a whole, rather than individual processes. The key idea here is that every department (anything from engineering to marketing) within the company should be optimized with customer values in mind.

What really makes TQM shine, however, is that it involves the alignment of an entire organization. It’s not just the responsibility of the senior management to carry out change – rather, it’s a company-wide initiative, all the way down to the lowest level employees.