Six Sigma

Definition of Six Sigma

Six Sigma is a disciplined, data-driven approach and methodology for eliminating defects (driving toward six standard deviations between the mean and the nearest specification limit) in any process – from manufacturing to transactional and from product to service. Six Sigma at many organizations simply means a measure of quality that strives for near perfection.

Six Sigma is:

• A Business Strategy: Using Six Sigma Methodology, a business can strategize its plan of action and drive revenue increase, cost reduction and process improvements in all parts of the organization.
• A Vision: Six Sigma Methodology helps the Senior Management create a vision to provide defect free, positive environment to the organization.
• A Benchmark: Six Sigma Methodology helps in improving process metrics. Once the improved process metrics achieve stability; we can use Six Sigma methodology again to improve the newly stabilized process metrics. For example: The Cycle Time of Pizza Delivery is improved from 60 minutes to 45 minutes in a Pizza Delivery process by using Six Sigma methodology. Once the Pizza Delivery process stabilizes at 45 minutes, we could carry out another Six Sigma project to improve its cycle time from 45 minutes to 30 minutes. Thus, it is a benchmark.
• A Goal: Using Six Sigma methodology, organizations can keep a stringent goal for themselves and work towards achieving them during the course of the year. Right use of the methodology often leads these organizations to achieve these goals.
• A Statistical Measure: Six Sigma is a data driven methodology. Statistical Analysis is used to identify root-causes of the problem. Additionally, Six Sigma methodology calculates the process performance using its own unit known as Sigma unit.
• A Robust Methodology: Six Sigma is the only methodology available in the market today which is a documented methodology for problem solving. If used in the right manner, Six Sigma improvements are bullet-proof and they give high yielding returns.

source: Six Sigma Institute

Implementing Six Sigma

Six Sigma implementation strategies can vary significantly between organizations, depending on their distinct culture and strategic business goals. After deciding to implement Six Sigma, an organization has two basic options:

• Option 1: Implement a Six Sigma Program or Initiative: With this approach, certain employees (practitioners) are taught the statistical tools from time to time and asked to apply a tool on the job when needed. The practitioners might then consult a statistician if they need help. Successes within an organization might occur; however, these successes do not build upon each other to encourage additional and better use of the tools and overall methodology. When organizations implement Six Sigma as a program or initiative, it often appears that they only have added, in an unstructured fashion, a few new tools to their toolbox through training classes. One extension of this approach is to apply the tools as needed to assigned projects. It’s important to note, however, that the selection, management, and execution of projects are not typically an integral part of the organization. Implementing a Six Sigma program or initiative can present unique challenges. Because these projects are often created at a low level within the organization, they may not have buy-in from upper management, which may lead to resistance from other groups affected by the initiative. In addition, there typically is no one assigned to champion projects across organizational boundaries and facilitate change. A Six Sigma program or initiative does not usually create an infrastructure that leads to bottom-line benefits through projects tied to the strategic goals of the organization. Therefore, it may not capture the buy-in necessary to reap a large return on the investment in training. For true success, executive-level support and management buy-in is necessary. This can help lead to the application of statistical tools and other Six Sigma methodologies across organizational boundaries.
• Option 2: Create a Six Sigma Infrastructure: Instead of focusing on the individual tools, it is best when Six Sigma training provides a process-oriented approach that teaches practitioners a methodology to select the right tool, at the right time, for a predefined project. Six Sigma training for practitioners (Black Belts) using this approach typically consists of four weeks of instruction over four months, where students work on their projects during the three weeks between sessions. Deploying Six Sigma as a business strategy through projects instead of tools is the more effective way to benefit from the time and money invested in Six Sigma training. Consider the following Six Sigma deployment benefits via projects that have executive management support:
  • Offers bigger impact through projects tied to bottom-line results
  • Utilizes the tools in a more focused and productive way
  • Provides a process/strategy for project management that can be studied and improved
  • Increases communications between management and practitioners via project presentations
  • Facilitates the detailed understanding of critical business processes
  • Gives employees and management views of how statistical tools can be of significant value to organizations
  • Allows Black Belts to receive feedback on their project approach during training
  • Deploys Six Sigma with a closed-loop approach, creating time for auditing and incorporating lessons learned into an overall business strategy

A project-based approach relies heavily on a sound project selection process. Projects should be selected that meet the goals of an organization’s business strategy. Six Sigma can then be utilized as a road map to effectively meet those goals. Initially, companies might have projects that are too large or perhaps are not chosen because of their strategic impact to the bottom line. Frustration with the first set of projects can be vital experience that motivates improvement in the second phase. Six Sigma is a long-term commitment. Treating deployment as a process allows objective analysis of all aspects of the process, including project selection and scoping. Utilizing lessons learned and incorporating them into subsequent waves of an implementation plan creates a closed feedback loop and real dramatic bottom-line benefits if the organization invests the time and executive energy necessary to implement Six Sigma as a business strategy.

Methodologies of Six Sigma

There are two major methodologies used within Six Sigma, both of which are composed of five sections, according to the 2005 book “JURAN Institute Six Sigma Breakthrough and Beyond” by Joseph A. De Feo and William Barnard.

DMAIC: The DMAIC method is used primarily for improving existing business processes. The letters stand for:

• Define the problem and the project goals
• Measure in detail the various aspects of the current process
• Analyze data to, among other things, find the root defects in a process
• Improve the process
• Control how the process is done in the future

DMADV: The DMADV method is typically used to create new processes and new products or services. The letters stand for:

• Define the project goals
• Measure critical components of the process and the product capabilities
• Analyze the data and develop various designs for the process, eventually picking the best one
• Design and test details of the process
• Verify the design by running simulations and a pilot program, and then handing over the process to the client

There are also many management tools used within Six Sigma. Some examples include the following.

Five Whys This is a method that uses questions (typically five) to get to the root cause of a problem. The method is simple: simply state the final problem (the car wouldn’t start, I was late to work again today) and then ask the question “why,” breaking down the issue to its root cause. In these two cases, it might be: because I didn’t maintain the car properly and because I need to leave my house earlier to get to work on time.

CTQ Tree The Critical to Quality (CTQ) Tree diagram breaks down the components of a process that produces the features needed in your product and service if you wish to have satisfied customers.

Root Cause Analysis Much like the Five Whys, this is a process by which a business attempts to identify the root cause of a defect and then correct it, rather than simply correcting the surface “symptoms.”

All the Six Sigma tools and methodologies serve one purpose: to streamline business processes to produce the best products and services possible with the smallest number of defects. Its adoption by corporations around the globe is an indicator of its remarkable success in today’s business environment.

Six Sigma Levels and Roles

• Six Sigma Champions Are:
  • Those who implement and back the introduction of Six Sigma within the firm.
  • Company executives who lead Six Sigma by backing projects.
  • Leaders responsible for choosing employees to be “Belts” and mentoring project leaders.
  • Individuals who receive instruction regarding the basic principles of Six Sigma and its methodology.
• Six Sigma Master Black Belts Are:
  • Masters of Six Sigma Methodologies with proven track records.
  • Individuals with an advanced understanding of the Statistical Tools used within Six Sigma.
  • Aligned with a Champion to offer support and provide Project Descriptions.
  • Experts who will advise and instruct Green Belts and Black Belts.
  • Professionals with widespread project management knowledge.
  • Prospective leaders of a corporation.
• Six Sigma Black Belts:
  • Individuals who obtain instruction concerning the road map of Six Sigma.
  • Receive four weeks of instruction that focus on the Six Sigma road map. This training will include an extensive look at statistical methodologies.
  • Successful Black Belts are project leaders whose job requires at least 75% of their time dedicated to completing four to six month Six Sigma Projects.
  • Individuals who successfully complete all required training, exams, and a live project.
  • Learn More About Six Sigma Black Belt
• Six Sigma Green Belts:
  • Receive two weeks of class time which will cover the important aspects of the statistical methods needed to complete Six Sigma projects while learning the Six Sigma road map.
  • Green Belts spend up to 50% of their time working on Six Sigma projects that last for four to six months each.
  • Individuals who successfully complete all required training, exams, and a live project.
  • Learn More About Six Sigma Green Belt

See Also

Lean Six Sigma
TAKT Time