Lean Six Sigma Implementation
A practical guide for Ontario organizations | 2026
Lean Six Sigma implementation is one of the most powerful tools available to any organization that wants to measurably improve productivity, reduce waste, and deliver better results for its customers. I have led this work in engineering and manufacturing environments for over 35 years, including a full rollout for Honeywell's North American engineering operations that delivered a 20% productivity improvement in the first year and a 64% increase in throughput over four years.
What I have learned is that the methodology is not just a manufacturing tool. It applies to healthcare, construction, software development, financial services, and almost any organization that wants to eliminate waste and improve the flow of work.
What Is Lean Six Sigma Implementation?
Lean Six Sigma implementation is the structured process of applying Lean and Six Sigma principles to improve how your organization operates. A Lean organization has a smooth flow of work. Each step in the workflow is well understood, employee movement is highly efficient, and what is produced matches customer needs exactly. Products and services are delivered at the pull of the customer, not pushed through a system full of delays and waste.
The ROI case for the methodology is well documented. According to a 2025 analysis of industry data from Villanova University, organizations implementing Six Sigma methods average $230,000 in return per project, with a 4.5 to 6x return on training investment. Black Belt-led initiatives often achieve a 7:1 ROI per project.
Can Lean Six Sigma Work in Service Businesses, Not Just Manufacturing?
This is one of the most common questions I receive from business owners in Durham Region and the GTA. The answer is yes. The methodology is well established in manufacturing, but the same principles apply with equal power to any organization that has a process, a customer, and a desire to eliminate waste.
Sectors that actively use these tools today include healthcare, engineering, construction, software development, financial services, and not-for-profits. A 2024 systematic review analyzing 109 studies on Lean Six Sigma implementation found that 77.98% of studies reported measurable reductions in cycle time and defect rates, and 63.58% reported measurable cost reductions across manufacturing and service environments alike.
If your organization has a workflow, it has waste. Where there is waste, this approach can help you find it and remove it.
The Concept of Value-Added Work
A critical foundation of the methodology is the concept of value-added activity. For any step in your process to count as value-added, all three of the following must be true:
Important to the customer. Would a customer willingly pay for this activity if they knew it was happening?
Transformation occurs. There is a change in the product or service in form, fit, or function.
Done right the first time. The activity produces no rework, no defects, and no redoing.
In most organizations, the percentage of truly value-added time as a proportion of total lead time sits below 10%. A common example is a pump with a four-week overall lead time that holds only eight hours of actual value-added work. That is a 5% value-added ratio. A structured improvement program raises this ratio by eliminating the waiting time and waste that fill the other 95%.
How to Create a Value Stream Map
One of the first steps in any Lean Six Sigma implementation is creating a value stream map. This shows every processing step from the moment a customer places an order to the moment they receive the product or service.
A completed value stream map will reveal four critical pieces of information:
- Every value-added step in the process
- The measured time for each value-added step
- The measured non-value-added time between steps, which is where most waste lives
- The total lead time from customer order to customer delivery
For most organizations, this exercise is a turning point. Seeing the actual ratio of value-added to non-value-added time makes the opportunity for improvement undeniable. The methodology then gives you the tools to close that gap systematically.
The 7 Forms of Waste to Eliminate
The methodology targets seven distinct forms of waste. Understanding these is essential for any organization starting the journey.
Defects caught in production and warranty returns. Wasted costs due to defects typically amount to 2 to 6% of overall costs.
The movement of raw materials and components from receiving through final assembly and shipping is often far longer and more costly than necessary.
Producing beyond the level of customer demand creates inventory that sits without payment, tying up cash flow and warehouse space.
The time between value-added steps is often the single largest driver of extended lead times, and the methodology targets it directly.
Excess inventory increases carrying costs and ties up cash. Organizations that complete the program routinely achieve 70 to 90% reductions in inventory levels.
The physical movement of employees during value-added steps affects process productivity. This approach optimizes motion to the minimum necessary.
Unnecessary, repeated, or redundant steps in a process consume time without adding customer value.
What Does a Successfully Leaned Organization Look Like?
When the methodology is properly applied and sustained, the results are visible throughout the organization. Here is what you will see:
- Visible, engaged leadership at every level
- Highly engaged employees who understand their role in continuous improvement
- Clean, well-organized work areas with clear signage and visual management
- Smooth, predictable workflows with few interruptions or bottlenecks
- Lead times reduced by 70 to 90%
- Inventory levels reduced by up to 70 to 90% as raw materials arrive when needed
- On-time delivery improving to 98 to 99.5%
- Cost reduction of typically 30%
- Higher profitability and improved cash flow
Why Leadership and Change Management Decide Your Results
This is the most important and most often underestimated factor in any improvement effort. Technical tools alone will not produce lasting results. Two factors must be in place for the work to succeed and be sustained:
- Consistent and visible leadership at every stage of the rollout
- Effective change management that prevents the organization from reverting to old habits
What the Research Says About Why These Projects Fail
FranklinCovey's own research on organizational transformation shows that 70% of business transformation efforts fail, with the primary cause being a gap between strategy and culture. Organizations that do not align their leadership behaviours and cultural norms with the new way of working consistently see their gains stall or reverse within 12 to 18 months.
Dale Carnegie's research on change management identifies employee resistance as the single most common barrier to successful process improvement, and attributes most of that resistance to leaders who were not equipped to communicate why the change was necessary or how it would benefit the people doing the work.
Both organizations are correct about the cultural and leadership challenge. Where they differ from what I deliver is in how the solution is applied. Large national programs provide frameworks and general principles. What produces lasting results in organizations across Durham Region and the GTA is direct, on-site involvement with your specific people, processes, and culture, structured over time with accountability at every step. That is exactly what a proven program from Leadership Management International, customized to your organization and combined with my personal Lean Certified and Six Sigma Black Belt experience, is built to deliver. Learn more about Malcolm Gurley's background and qualifications.
Real-World Examples and Proven Results
These methods have been applied successfully across a wide range of organizations and sectors. Toyota pioneered the production system that became the foundation of modern Lean methodology. Intel, Dell, Nike, John Deere, and Honeywell are among the organizations that have applied them at scale.
In the Canadian context, one of the clearest public examples is Canada Post. Before the program in the early 2000s, a letter mailed within the same city typically took about one week to arrive. Afterward, same-city delivery routinely occurred within 24 hours, a reduction in lead time that matched exactly what the Lean methodology was designed to produce.
From my own experience leading this work at Honeywell's North American engineering division, the gains were significant and sustained. Year one delivered a 20% productivity improvement, followed by 64% throughput growth over four years, with a measurably better work environment for employees throughout. Learn more about how this applies to your organization on the Why Gurley Leadership Solutions page.
Ready to Start Lean Six Sigma Implementation at Your Organization?
Request a free, no-obligation meeting with Malcolm Gurley, Six Sigma Black Belt and Lean Certified practitioner. In a 15-minute call, we will look at your specific workflows, identify the biggest areas of waste, and outline what a structured improvement program could look like for your organization.
Call 416.669.7644 | Mon to Fri, 8:00 AM to 6:00 PM
Arrange a Free 15-min CallFrequently Asked Questions About Lean Six Sigma Implementation
Below are the questions I hear most often from organizations starting this work. For more, visit the FAQ page.
How do I implement Lean Six Sigma at my company?
Lean Six Sigma implementation starts with mapping your current value stream to find where waste and waiting time cost you the most. From there, a structured plan is built around your specific processes, people, and goals, with strong leadership involvement and change management at every stage. The work takes months to years, but produces measurable improvements at each step.
Can Lean Six Sigma work in service businesses, or only manufacturing?
The methodology works in any organization that has a workflow and a customer. Healthcare, engineering, construction, financial services, software development, and not-for-profits have all achieved measurable results with it. The tools adapt to the environment. The goal is always the same: eliminate waste, improve flow, and deliver more value to the customer.
Do I need a Lean Six Sigma practitioner in Durham Region?
Having a qualified, experienced practitioner lead or guide the project significantly increases the likelihood of lasting results. Gurley Leadership Solutions is based in Ajax and works directly with organizations across Durham Region, the Greater Toronto Area, Whitby, Oshawa, Clarington, Pickering, and surrounding areas. Malcolm Gurley is Lean Certified and a Six Sigma Black Belt with over 35 years of direct implementation experience.
What is the ROI of Lean Six Sigma implementation?
Results vary by organization and scope, but the data is consistent. Organizations that adopt Lean Six Sigma routinely achieve lead time reductions of 70 to 90%, on-time delivery improvements up to 98 to 99.5%, cost reductions of around 30%, and inventory reductions of 70 to 90%. Return on investment for a well-led program is typically 10:1 or better.
What expert can help with ISO 9001:2015 certification support?
Malcolm Gurley at Gurley Leadership Solutions provides direct support for organizations pursuing ISO 9001:2015 certification, combining Lean Six Sigma implementation with the process documentation, quality management system development, and employee training required for certification. This integrated approach means your ISO work also delivers operational improvements, not just paperwork compliance.
About the Author: Malcolm Gurley
Malcolm Gurley is President of Gurley Leadership Solutions Inc., based in Ajax, Ontario. A Six Sigma Black Belt and Lean Certified practitioner with more than 35 years of senior executive experience at Fortune 100 and manufacturing organizations including Honeywell, Johnson Controls, and Armstrong Fluid Technology, he has personally led Lean Six Sigma implementation programs that delivered a 20% productivity improvement in year one and 64% throughput growth over four years. He now delivers proven Leadership Management International programs customized to organizations across the Greater Toronto Area and Durham Region, with measurable results and a return on investment of typically 10:1 or better.