What is Six Sigma?

• 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 a 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 non as Sigma unit.

What Six Sigma Means

• Experts credit Shewhart with first developing the idea that any part of the process that deviates three sigma from the mean requires improvement. One sigma is one standard deviation.
• The Six Sigma methodology calls for bringing operations to a “six sigma” level, which essentially means 3.4 defects for every one million opportunities. The goal is to use continuous process improvement and refine processes until they produce stable and predictable results.
• Six Sigma is a data-driven methodology that provides tools and techniques to define and evaluate each step of a process. It provides methods to improve efficiencies in a business structure, improve the quality of the process and increase the bottom-line profit.

The Importance of People in Six Sigma

•  A key component of successful Six Sigma implementation is buy-in and support from executives. The methodology does not work as well when the entire organization has not bought in.
• Another critical factor is the training of personnel at all levels of the organization. White Belts and Yellow Belts typically receive an introduction to process improvement theories and Six Sigma terminology. Green Belts typically work for Black Belts on projects, helping with data collection and analysis. Black Belts lead projects while Master Black Belts look for ways to apply Six Sigma across an organization.

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.