Over the years, many techniques have evolved that systematically analyze data to help increase the efficiency of business processes. One of the most popular techniques to analyze data for fruitful implementation is the “Six Sigma”.
Six Sigma is a systematic approach that businesses use to improve the quality of their products which in turn aids in their sales. In other words, this technique detects the errors in the business processes and strategizes the best ways to fix them.
This article aims at giving you some insights into the Six Sigma and its principles along with the methodologies that churn out the best results out of it.
What is Six Sigma?
Six Sigma is a popular method that works on sets of principles that guide the business to identify and correct a defect in their processes from manufacturing to purchases and now spread across services and retail as well. It is a continuous methodology that keeps the quality of products and services offered to customers in check.
It works on the two fundamentals of statistics: mean and deviation. Mean refers to the mathematical average of a processed data set, while deviation is the measure of the difference between the mean and the set data limits.
More the difference between the mean and the set data limits, the less likely for a product to fall out of the desired range. After years of thorough research, the practitioners found that six times the deviation yields the optimal results. Hence the term Six Sigma came into use.
This technique was first introduced by Bill Smith during his tenure with Motorola company in 1986. However, it was implemented into a mainstream business strategy by Jack Welch at General Electric in 1995. Since then, this methodology has been widely used by businesses globally to improve customer satisfaction by delivering good quality products.
The Goal of Six Sigma Implementation
The main motive of any business is to garner maximum profit which is only possible when their customers are happy. A consumer, on the other hand, always looks out for the quality and reliability of the products.
Therefore, the most prominent goal of a company to use the Six Sigma techniques is quality improvement. This is achieved by a thorough analysis of the whole process and identification of the potholes in the whole system.
It adds a significant amount of value to the credibility of an organization, thus increasing the overall profit.
The Core Six Sigma Principles
Successful implementation of the Six Sigma technique involves 5 core principles.
1. Keep interests of customers’ first
For any business to prosper, the customers’ needs have to be considered first. The product has to meet the customer’s standards and hence they are the ones who define the “quality” of the product.
2. Analyze the data to identify variation in the business process
A complete understanding of the business structure is necessary to find out the root cause of a defect. This means that an organization needs to collect relevant data that would give rightful insights into the areas which need more attention. It also helps in finding the underlying problem that is responsible for the recurring defects.
This can be achieved by ensuring the accuracy of the data collected. The data is then used to frame an optimum plan of action for the company to reduce the defects or errors in their processes.
3. Continuously eliminate the errors
The next step to ensure an optimum result out of Six Sigma is to constantly look out for defects especially in the areas found to produce more errors in the analysis stages.
The company has to be proactive in identifying the errors and correcting them at the right time. This not only saves a lot of time and money but also ensures the best quality products.
4. Follow Systematic approach to problems
Any problem needs to be addressed in a way that is easily understood by the work-force of a company. The company, therefore, needs to build a team, where each of the members contributes effectively in a systematic way to the whole process.
5. Improve flexibility and adaptability of the organization
Organizations cannot grow if they are resistant to changes in market trends. It is therefore imperative that the company prepares its employees to accept the challenges which the consumer base demands. This also requires that the organization train its workforce in various quality management courses to adapt to the change in the policies due to changing market scenarios.
Importance of Six Sigma
Six Sigma is a data-driven technique that helps businesses grow in more ways than one. For an organization to achieve Six Sigma, it has to keep the maximum number of defects within 3.4 per million opportunities which sum up to 99.99% of the total.
This is precisely important for a business to grow because:
- It enables easy documentation of the process flow chart
- It reduces the number of defective products
- It gives more scope of continuous improvement
- It boosts employee morale
- It enhances the productivity of the organization as a whole
Six Sigma Methodologies
Six Sigma has two key methodologies based on the goal of the process.
1. DMAIC Methodology
DMAIC is an acronym for:
- Define the desired output of the process while addressing the problem
- Measure the gravity of the problem by collecting data and identifying the important areas that directly affect the quality
- Analyze the data and look for the origin of the defects
- Improve the defects using the analysis results
- Control the process so that the defects are cleared and not repeated
This methodology is specifically used in an organization when it aims to improve the quality of an existing product.
2. DMADV Methodology
This methodology is slightly different from DMAIC as this is used mainly when the organization wants to design a new product that is reliable and free of defects
DMADV stands for:
- Define the nature of the product according to which the design has to be assigned
- Measure and understand what the product demands
- Analyze the points where the designs may or have found a defect
- Design the product using the data collected
- Verify if the design meets the desired standards
Quality Management Tools for Six Sigma
Even though the true power to analyze the quality of a product lies with the customers, organizations need to use some quality management tools for better implementation of Six Sigma.
Over the years, several tools to monitor the quality and eliminate the waste have been developed to aid the Six Sigma process.
Some of them include:
- VSM: Virtual stream mapping helps the businesses to identify the potential waste or defect in their process. This greatly aids in eliminating waste and increase the efficiency of the whole process.
- 5 WHYs: 5 WHYs in root cause analysis involves asking why a particular decision has been taken. It has been proved that by questioning the objective of a decision at least 5 times, it becomes quite clear if the whole process is going in the right direction.
Six Sigma Principles: A Quick Overview
Six Sigma techniques underscores the value of customer satisfaction. It helps the organization help achieve optimum business process by aiding in identifying the weak points. This extensive analysis, in turn, is used to deliver a high-quality product that meets consumer demands.
This technique reforms the whole business structure of a company such that efficient teams work together towards the ultimate goal. This also involves taking care of the employees by adequately training them in Lean Six Sigma training programs, which in turn boosts their overall morale.
