Six Sigma

What is Six Sigma?

All you need to know about six sigma and its benefits for you and your company.

So what is six sigma anyway?

In most cases Six Sigma is a method to measure process quality with the end goal of near-
total perfection. The goal of using Six Sigma is to improve the end product (what a
surprise!) by removing errors in the production process in any sphere where it’s
applicable. It’s mostly a data-driven approach that relies on management strategies for
improving process flow and end results.

The Six Sigma Levels and their corresponding defects

Six sigma methods

There are two methods used:

DMAIC (duh-may-ick) – Defining the problem, Measuring important aspects, Analyzing
the information flow, Improving and Controlling.

DMADV (duh-mad-vee) – Defining goals, Measuring Critical to Quality CTQs

characteristics, Analyzing, Designing details, Verifying.

As said above one of the important characteristics of Six Sigma is that it’s used all across
the organization. Unlike most of the previous systems for quality management and control
that were used only on the top management level and by statisticians Six Sigma is used at
all levels of the organization that it’ll be implement in. There is still hierarchy of the
methodology and who does what.

Three main differences Six Sigma has from other process improvement
methodologies:

 It uses two disciplined approaches:

o DMAIC – used to develop/improve existing practice
o DMADV – used to devise/design a defect-free procedure
  Uses varied numerical and problem solving techniques and tools

Six Sigma uses a collection of numerical and problem solving techniques and tools taken
from Kaizen, Total Quality Management, and Lean Manufacturing. Each tool is associated
with a particular phase/stage of the DMAIC/DMADV approach.

Six Sigma Project Hierarchy

 Leader/Leadership Council – senior-rank management who is accountable for
executing Six Sigma project within the association
 Champion – performance head in-charge with directing and enlivening the Six
Sigma efforts
 Finance Representative – substantiate projected and concrete savings
 Project Sponsor – senior-rank management who funds the Six Sigma projects and
has directorial power to modify changes in the process
 Process Owner – a certified person accountable for the business course of action
that is the target of Six Sigma project
 Coach – gives technical help and support to the project group
 Team Leader – also identified as the Project Head, responsible in organizing the Six
Sigma projects from launch to finish
 Master Black Belt – a highly practiced Black Belt who has supervised numerous
projects and is a specialist in Six Sigma techniques and methods. Person
accountable for training and mentoring Black Belts and for assisting the Six Sigma
Champions and Head.
 Black Belt – permanent expert who acts as a team lead on Six Sigma assignments.
Usually has four to six weeks of classroom education in methods, numerical tools,
and team proficiency
 Green Belt – trained person who plays a part-time role on a Black Belt project team
or leads less significant assignment. Usually has three weeks of classroom education
in methods and basic numerical tools
 Yellow Belt – usually has one to two weeks classroom education. Devotes part-time
work while doing the usual work duties

 Determine core procedure and target customers

 Identify the requirements of the customers
 Evaluate the current performance
 Analyze, prioritize, and implement development
 Develop and incorporate the Six Sigma structure
Six Sigma Methodology
The Six Sigma Methodology can be defined as one of the many highly controlled
approaches in process management. It helps companies boost their profits and trim down
on costs. With the use of Six Sigma Methodology, companies are able to produce the finest
products and services, higher proceeds and retain more satisfied customers.

Benefits of The Six Sigma Methodology

  Focus on customers and consumers
 Increased and stronger customer loyalty
 Reduce cycle time
 Minimize waste
 Decisions based on data
 Efficient time management
 Continuous gains and improvements
 Systematic method of problem solving
 Maintains employee motivation
 Products can be marketed in less time
 Fosters team building
 Enhanced customer relations
 Secures strategic planning
 Lessens number of incidents
 Quantify value in accordance with customers’ needs and specifications
 Superior safety performance
 Better understanding of processes
 Efficient supply chain management
 Ease of designing and redesigning of products and services
 Greater knowledge and understanding of competition and competitors
 Develop leadership skills
 Eliminates barriers between different departments and functions
 Management training
 Improve presentation skills
 Incorporation of services, products and distribution
 Utilization of standard operating procedures
 More sound decision making
 Improve project management skills
 Sustained and continuous improvement
 Ensures alignment with vision, values and strategy
 Bigger margins
 Larger market share
 Supervisor training
 Minimize costs to provide goods and services
 Lessens customer complaints

Types of Six Sigma Methodologies

There are two known types of methodologies applied in Six Sigma projects. The simplicity
of the two methodologies makes its implementation in any organization possible. The two
methodologies are DMAIC and DMADV. Both methodologies can be best described by
dissecting the meaning of the acronyms.

DMAIC
When the aim is to improve current business processes, DMAIC is the methodology used.
The letters of the acronym defines the steps that need to be done in order to implement it.

1. Define: This phase of the methodology consists of identifying the goals and sub-
goals of the project, creating a plan to achieve these goals and project-planning to
enhance functioning.
2. Measure: This phase of the methodology comprises of collection of relevant data,
determination of metrics or variables based on data and other information. This
phase basically entails taking measurement of vital characteristics of the current
process.
3. Analyze: In this phase, deficiencies or defects are studied closely to find out the
‘Cause and Effect’ relationship. This step of the methodology ensures that any and
all factors are thoroughly evaluated and establishes the root causes of the different
defects in the current process.
4. Improve: This phase utilizes the data collected and measurement analysis done in
the previous phases. The current process is enhanced by eliminating the root cause
of defects through the employment of better techniques.
5. Control: In this phase continuous monitoring and control of process is done to
ensure zero defects in products and services.

DMADV

1. Define: In this phase of the DMADV type of methodology, the goals that meet the
business needs of the organization in conjunction with the customers’ needs or
demands are determined.
2. Measure: The measure phase in this Six Sigma methodology is when the team
identifies and measures the characteristics or variables Critical To Quality or CTQ.
This is also when customer needs, customer specifications and product capabilities,
risk factors and others are determined.
3. Analyze: Alternative processes are created and analyzed. These processes are
designed to meet customer specifications and needs. After analysis, the design that
best meets the requirements of the process, product, and customer specifications is
selected.
4. Design: This phase is where the best design selected from the previous phase is
created, optimized and carefully planned.
5. Verify: In this phase of this type of methodology, the process design’s performance
and capability to meet or answer the customer needs and specifications is verified.

Seven QC Tools

Seven basic tools of quality, first emphasized by Kaoru Ishikawa, a professor of

engineering at Tokyo University and the father of “quality circles.” These tools are as
given as below –

1. Cause-and-effect diagram (also called Ishikawa or fishbone chart): Identifies many

possible causes for an effect or problem and sorts ideas into useful categories.
2. Check sheet: A structured, prepared form for collecting and analyzing data; a
generic tool that can be adapted for a wide variety of purposes.
3. Control charts: Graphs used to study how a process changes over time.
4. Histogram: The most commonly used graph for showing frequency distributions, or
how often each different value in a set of data occurs.
5. Pareto chart: Shows on a bar graph which factors are more significant.
6. Scatter diagram: Graphs pairs of numerical data, one variable on each axis, to look
for a relationship.
7. Flow chart: A process flow chart is simply a tool that graphically shows the inputs,
actions, and outputs of a given system.