Lean Six Sigma and Internet of Things (IoT)

Six Sigma thrives on data and Internet of Things (IoT) can provide data in abundance. All the sensors working from chassis of a car to the assembly line of a manufacturing plant can provide data now with the maturing of the IoT devices. However, the information needs to be processed to derive value. Lean Six Sigma provides structure to process data. The inputs can be defined based on the envisaged output.

Data from wearables and context aware computing enhances voice of the customer analysis to better pinpoint the processes for value stream mapping.

In the measure and analyze phases, IoT data makes kinks coming from sampling non-existent for getting good information on process performance. Terabytes of data is available and so is the infrastructure to harness it at a cost that is becoming affordable for smaller companies.

Connected equipment and devices bring the ability to analyze streaming data in both the analyze and control phases. IoT provides predictive modeling data to analyze process performance. Traditional Six Sigma tools are enhanced with IoT for creating tools like control charts.

The thought leaders in the industry are already predicting big things about the importance of improvements in the processes. GE, one of the leader in using Lean Six Sigma has estimated that there is an opportunity worth US$ 1 trillion annually by improving how assets are used and how operations and maintenance are run in industries. Similarly, McKinsey has predicted large economic impact from operations optimization and predictive maintenance.   

Overall there had not been a time when utility of six sigma was more prominent than today when processes are the focus of IoT, automation and artificial intelligence.

:-The author, Sumit K Jha, is a certified lean six sigma black belt with extensive experience in bringing process and technology driven improvements in organizational efficiency. He is well versed with IoT and Blockchain use cases and architecture having provided consulting around these areas to various clients.

Source: https://industrial-iot.com/2016/01/how-advanced-analytics-can-integrate-with-and-enhance-the-lean-six-sigma-process/