Find out what your customer wants and does not want. Determine the best way to do that. Then, figure out a way to keep doing it that way over and over. At the root of Six Sigma is this simple idea. While the idea itself may be simple, you could not use the word easy to describe exactly how this is accomplished, not even at the most basic of production processes. If you could, there would be no need for an entire professional discipline focused on the simple idea of delivering a product when, where, how the customer would like it and to their specifications. Before quality management methodologies like Six Sigma and its predecessors, such as TQM (Total Quality Management), quality measurement and control was evaluated at the end of the process. For example, just before goods were sent to be packaged and shipped, someone looked at them and determined whether they were fit for customers. With the advent of modern quality management methodologies, the quality process now begins even before the supplies or resources to manufacture the end product are delivered to the factory. Experts in these methodologies commands formidable salaries and are sought-after in a variety of job roles including Supply Chain Management, Quality Assurance, Systems and Process Engineering, Logistics and Purchasing/Procurement.
An Overview
By definition, Six Sigma is a strategy for managing a business. Six Sigma’s goal is to improve the quality of processes by removing defects or errors in those processes, with specific attention given to definitively determining the cause of the defect. Once identified and isolated, the removal of the cause of the defect is the focus, with the goal of reducing to a minimum the variances that allow the cause to arise. Six Sigma employs a prescribed collection of quality management and statistical methods, as well as a specialized structure of roles and responsibilities. These roles are referred to as “belts” similar to martial arts rankings. Each belt comes with a tested set of skills and experience; the higher the belt, the deeper the expertise. Six Sigma is highly dependent upon measurements and targets. Every Six Sigma project follows a defined sequence of phases and steps for which target metrics have been established. These can include financial goals, such as reducing costs or increasing profits, or customer satisfaction improvement, by responding more rapidly to inquiries or reducing errors that generate calls to customer service.
Six Sigma is distinguished from its predecessors by several characteristics. Decision-making is based on specific, verifiable information. Very little subjectivity is tolerated in Six Sigma measurement. The goal is to bring processes to that quality level or greater. Passionate and involved top level leadership drives and supports the Six Sigma effort. New business processes are developed, which can be measured and evaluated, so that they may be examined and improved. The organization as a whole is focused on the goal of repeatable, measurable and improvable success.
History
While it originated at Motorola in 1986, it is used widely across many organizations in both product and service industries. Six Sigma remains a registered trademark of Motorola Inc., who has reported cost savings due to Six Sigma programs in excess of 17 billion dollars (US). Early adopters of the methodology include Honeywell and General Electric. By the late 1990s, approximately 66% of the Fortune 500 had come on board with Six Sigma for improving profitability and quality. The name Six Sigma is derived from the process capability discipline of statistics. Applied initially to manufacturing metrics, it identifies the range of quality expressed in Defects per Million Opportunities (DPMO). Lean Manufacturing, sometimes expressed as just Lean, another management strategy has been combined in some organizations with Six Sigma and has yielded a hybrid called Lean Six Sigma. In recent years, some practitioners have combined Six Sigma ideas with lean manufacturing techniques to yield a methodology named Lean Six Sigma. Lean tends to concentrate on processes from the Supply processes forward; whereas Six Sigma begins with customer requirements.
Six Sigma Terminology
Six Sigma projects project methodologies were derived from Dr. W. Edwards Deming’s Plan-Do-Check-Act Cycle. Each Six Sigma methodology is made up of 5 phases and are generally referred to by one of these acronyms: DMAIC, RDMAIC and DMADV. The first two are applied to processes that are already in place but, which have been determined to be less effective than they need to be. DMADV is applied for new processes.
DMAIC stands for define, measure, analyze, improve and control. Define the problem, the customer’s wants and needs, and goals. Measure the current process and collect data. Analyze with the intent of verifying connections between cause and effect. Identify relationships. Determine root causes of defects. Improve the process using techniques such “poka yoke” (fail safes) and standardization. Implement pilot tests to prove process capability. Control the process in future state by detecting deviations and applying correction action ahead of defects. These steps should be tightly tied to metrics and reported in such a way as to involve all staff involved.
RDMAIC includes all the above steps, but preceded by an additional phase: Recognize key success factors for the organization, and direct efforts and resources toward projects that will have the most significant impact.
DMADV stands for define, measure, analyze, design and verify. Define design goals consistent with customer wants and needs and organizational mission. Measure and identify Critical-To-Quality (CTQ) factors, process capabilities, and risks. Analyze data and create alternatives, followed by a high-level design. Evaluate designs and choose the optimal one. Design details, refine the design, and strategize design verification. Simulations can be applied here. Verify the design and execute pilot tests. Upon verification and execute the hand off to the ultimate process owners.
Roles
Six Sigma is characterized by the unique hierarchy of roles. The following definitions are ordered from the closest to the process being evaluated, to executive management.
Yellow Belts: These individuals are trained in the application of Six Sigma tools on the job. They are on a Black Belt’s team on the entire project.
Green Belts: Operating under the guidance of Black Belts, Green Belts are involved in the implementation of initiatives alongside their current job responsibilities.
Black Belts: This is a full-time, 100% dedicated Six Sigma role. Black Belts are primarily focused on Six Sigma project implementation.
Master Black Belts: This is the other 100% dedicated role. These individuals function as Six Sigma coaches and have teams of Black Belts and Green Belts. Selected by Champions, they spend most of their time on statistical analysis and monitoring the application of Six Sigma across the organization.
Champions: This role is essentially in command of company-wide Six Sigma implementation. These individuals are typically drawn from Senior Management staff and mentor Black Belts.
Executive Leadership: This includes the C-level and other top management staff. They initiate the vision for Six Sigma efforts. They empower all other roles to fulfill their responsibilities for Six Sigma.
The statistical and process analysis skills required for Black Belt roles are evidenced by certification. The standards are relatively high for passing the exam at 80% or better. The exam is followed by the demonstration of the ability to complete all phases of Six Sigma project. Whether “real world” or classroom lab experience, the candidate must successfully report on and prove competency in all phases to receive certification. The effort to complete the certification process will likely be rewarded with “top of the list” treatment as a job candidate, a valuable advantage in a challenging job market.
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