Six Sigma - Revision history

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 == 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 [[Transaction Cost Theory|transactiona]]l and from product to service. Six Sigma at many organizations simply means a measure of quality that strives for near perfection.<ref>[https://www.isixsigma.com/new-to-six-sigma/getting-started/what-six-sigma/ Defining Six Sigma]</ref>
+'''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.<ref>[https://www.isixsigma.com/new-to-six-sigma/getting-started/what-six-sigma/ Defining Six Sigma]</ref>
 '''Six Sigma is:'''<ref>[https://www.sixsigma-institute.org/What_Is_Six_Sigma.php What is Six Sigma?]</ref>
 *A Business Strategy: Using the 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 the 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 the 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 Benchmark: Six Sigma Methodology helps in improving process metrics. Once the improved process metrics achieve stability; we can use the 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 the Pizza Delivery process by using the 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 the Six Sigma methodology, organizations can keep a stringent goal for themselves and work towards achieving them during the course of the year. The 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 the root-causes of the problem. Additionally, the Six Sigma methodology calculates the process performance using its own unit known as the Sigma unit.
+*A Statistical Measure: Six Sigma is a data-driven methodology. Statistical Analysis is used to identify the root causes of the problem. Additionally, the Six Sigma methodology calculates the process performance using its own unit known as the 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.
@@ Line 29: / Line 29: @@
 *Generation I Six Sigma focused on defect elimination and basic variability reduction, primarily in manufacturing. Motorola is a classic exemplar of Generation I Six Sigma.
 *In Generation II Six Sigma, the emphasis on variability reduction and defect elimination remained, but now there was a strong effort to tie these efforts to projects and activities that improved business performance through improved product design and cost reduction. General Electric is often cited as the leader of the Generation II phase of Six Sigma.
-*In Generation III, Six Sigma has the additional focus of creating value throughout the organization and for its [[Stakeholder|stakeholders]] (owners, employees, customers, suppliers, and society at large).
+*In Generation III, Six Sigma has the additional focus of creating value throughout the organization and for its stakeholders (owners, employees, customers, suppliers, and society at large).
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-== Methodologies of Six Sigma<ref>Methodologies of Six Sigma [https://www.sixsigmadaily.com/what-is-six-sigma/ Six Sigma Daily]</ref> ==
+== Methodologies of Six Sigma<ref>[https://www.sixsigmadaily.com/what-is-six-sigma/ Methodologies of Six Sigma]</ref> ==
 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.
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 == Six Sigma Levels and Roles<ref>[https://www.6sigma.us/six-sigma.php Six Sigma Levels and Roles]</ref> ==
 *Six Sigma Champions Are:
 **Those who implement and back the introduction of Six Sigma within the firm.
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-== Six Sigma Disadvantages<ref>Disadvantages of Six Sigma [https://davidkigerinfo.wordpress.com/2017/06/13/the-advantages-and-disadvantages-of-six-sigma-methodology/ Disadvantages of Six Sigma]</ref> ==
+== Six Sigma Disadvantages<ref>[https://davidkigerinfo.wordpress.com/2017/06/13/the-advantages-and-disadvantages-of-six-sigma-methodology/ Disadvantages of Six Sigma]</ref> ==
 It is difficult to imagine that a methodology created to improve can actually bring problems to an organization.
 *Six Sigma can create amazing bureaucracy and rigidity because the methodology covers all the processes of the company and this, in turn, leads to delays and problems in creativity. Furthermore, when Six Sigma is taken to the extreme problems can arise because companies tend to favor policies that follow the Six Sigma methodologies and forget about policies or approaches that can only apply to their company. So, for example, a company can prefer to follow the Six Sigma methodology and apply a very expensive measure rather than trying a very inexpensive measure that evidence is needed in the business.

← Older revision		Revision as of 17:09, 2 January 2023
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	*[https://www.researchgate.net/publication/239433605_Six_Sigma_and_Total_Quality_Management_TQM_similarities_differences_and_relationship Six Sigma and Total Quality Management (TQM): similarities, differences, and relationship]		*[https://www.researchgate.net/publication/239433605_Six_Sigma_and_Total_Quality_Management_TQM_similarities_differences_and_relationship Six Sigma and Total Quality Management (TQM): similarities, differences, and relationship]
	*[https://medium.com/business-process-management-software-comparisons/the-demise-of-six-sigma-the-right-sizing-of-a-problem-solving-methodology-4e49b4442bf7 The Demise of Six Sigma: The Right-Sizing of a Problem-Solving Methodology]		*[https://medium.com/business-process-management-software-comparisons/the-demise-of-six-sigma-the-right-sizing-of-a-problem-solving-methodology-4e49b4442bf7 The Demise of Six Sigma: The Right-Sizing of a Problem-Solving Methodology]
		+	__NOTOC__

← Older revision		Revision as of 19:19, 7 December 2022
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	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.”		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.	+	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.

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 *A [[Benchmarking|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 [[Business Goals|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 [[Statistics|Statistical Measure]]: Six Sigma is a [[data]] driven methodology. [[Statistical Analysis]] is used to identify [[Root Cause Analysis|root-causes of the problem]]. Additionally, Six Sigma methodology calculates the process performance using its own unit known as Sigma unit.
+*A Statistical Measure: Six Sigma is a [[data]] driven methodology. [[Statistical Analysis]] is used to identify [[Root Cause Analysis|root-causes of the problem]]. Additionally, Six Sigma methodology calculates the process performance using its own unit known as Sigma unit.
 *A [[Methodology|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.

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 **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.
+**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:

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 == Key Concepts of Six Sigma<ref>Key Concepts of Six Sigma [https://www.ge.com/sixsigma/SixSigma.pdf GE]</ref> ==
 At its core, Six Sigma revolves around a few key concepts.
-*Critical to Quality: Attributes most important to the customer
+*Critical to Quality: Attributes most important to the [[Customer|customer]]
 *Defect: Failing to deliver what the customer wants
 *Process Capability: What your process can deliver
 *Variation: What the customer sees and feels
 *Stable Operations: Ensuring consistent, predictable processes to improve what the customer sees and feels
-*Design for Six Sigma: Designing to meet customer needs and process capability
+*Design for Six Sigma: Designing to meet [[Customer Needs|customer needs]] and process capability
 == The Evolution of Six Sigma<ref>The Evolution of Six Sigma [https://usu.instructure.com/files/61598707/download?download_frd=1&verifier=HjfO9LhpwYAYIQoLPUePh7du3ttkxnguc6sN1mWr Douglas C. Montgomery and William H. Woodall]</ref> ==
-Since its origins, there have been three generations of Six Sigma implementations. Generation I Six Sigma focused on defect elimination and basic variability reduction, primarily in manufacturing. Motorola is a classic exemplar of Generation I Six Sigma. In Generation II Six Sigma, the emphasis on variability reduction and defect elimination remained, but now there was a strong effort to tie these efforts to projects and activities that improved business performance through improved product design and cost reduction. General Electric is often cited as the leader of the Generation II phase of Six Sigma. In Generation III, Six Sigma has the additional focus of creating value throughout the organization and for its stakeholders (owners, employees, customers, suppliers, and society at large).
+Since its origins, there have been three generations of Six Sigma implementations.
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 **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
+**Provides a process/strategy for [[Project Management|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
+**Facilitates the detailed understanding of critical [[Business Process|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.
+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 [[Roadmap|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.
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 ===See Also===
 [[Lean_Six_Sigma|Lean Six Sigma]]<br />
-[[TAKT Time]]
+[[TAKT Time]]<br />

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 Since its conception in 1985, Six Sigma has realised significant tangible cost savings to those organizations that have embraced it. General Electric, who started Six Sigma in 1995, reported $12bn of savings in their first 5 years. They are not alone in their success – the list of organizations reaping the benefits continues to grow.
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 *An Introduction to Six Sigma [https://innocentrix.com/files/presentationintrosixsigma.pdf Jeffrey T. Gotro, Ph.D.]
 *Six Sigma and Total Quality Management (TQM): similarities, differences and relationship [https://www.researchgate.net/publication/239433605_Six_Sigma_and_Total_Quality_Management_TQM_similarities_differences_and_relationship Souraj Salah, Juan Antonio Carretero, Abdur Rahim]