Six Sigma

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Focus on developing and delivering near-perfect products and services. Explanation of Six Sigma.

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What is Six Sigma? Description

Six Sigma is a quality management methodology that provides businesses with the tools to improve the capability of their business processes. This increase in performance and decrease in process variation lead to defect reduction and improvement in profits, employee morale and quality of product. It is a quality measure and improvement program that was pioneered by Mikel Harry and Motorola. It focuses on the control of a process until the point of six sigma (standard deviations) from a centerline, or 3.4 defects per million items. It includes identifying factors which are critical for the quality as determined by the customer. It reduces process variation and improvement capabilities, increases stability and designs systems to support the six sigma goal.

The Six Sigma model is a highly disciplined approach that can help companies to focus on developing and delivering near-perfect products and services. It is based on the statistical work of Joseph Juran, a Rumanian-born US pioneer of quality management. The word "Sigma" is a Greek sign used for a statistical term that measures how far a given process deviates from perfection (standards deviation). If the sigma number is higher, you are closer to perfection. One sigma is not very good; six sigma is defined as only 3.4 defects per million. The central idea behind Six Sigma is that if you can measure how many "defects" you have in a process, you can systematically figure out how you can eliminate them. Thus you can almost come to "zero defects".

The Japanese origin of Six Sigma can still be seen by the system of "belts" which it uses. If you are new to Six Sigma and you go on a basic training, you get a green belt. Anyone who has the responsibility for leading a Six Sigma team is called a black belt. Finally there is a special elite group called Master Black Belts who supervise the Black Belts.

Five Steps in Six Sigma. Process

Typically, a Six Sigma process has the following five stages:

Definition. The first step in any Six Sigma project is to clarify the problem and narrow its scope in such a way that measurable goals can be achieved within a few months. Then a team is assembled to examine the process in detail, suggest improvements, and implement those recommendations. In the manufacturing world, project managers and their sponsors typically begin by defining what constitutes a defect and then establish a set of objectives designed to reduce the occurrence of such defects.
Measurement. In the second step of a Six Sigma project, the team gathers data and prepares it for high-level analysis.
Analysis. Once a process has been mapped and documented, and the quality of the hard supporting data has been verified, the Six Sigma team can begin the analysis. The team members usually start by identifying the ways in which people fail to act as needed, or by identifying the ways in which people fail to ensure effective control at each stage.
Improvement. Recommend, decide and implement improvements.
Control. In the final stage of a Six Sigma project, the team creates controls. These are enabling the company to sustain and extend the improvements.

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Recent User Comments

    			 
  			   Kaizad - India
  	       
  		     Six Sigma in HR
  	  		 "How can Six Sigma be implemented in an HR department?"
  			   
    	  		 0

    			 
              - UK
  	       
  		     Six Sigma Questionnaire
  	  		 "Dear Fellow Six Sigma users.

For my PhD research i have created a questionnaire, it takes 5-10 minutes to complete and is anonymous. Your advice and knowledge will be invaluable.

sdands.com/5strial/Green%205S%20Tool/lss environment questions.htm"
  			   
    	  		 1

    			 
  			   Mohammed Imtiyaz - India
  	       
  		     Six Sigma In Inbound Call Center
  	  		 "How can Six Sigma be used in an inbound call center? What are the basic parameters to be defined?"
  			   
    	  		 -5

    			 
  			   Lek - UK
  	       
  		     Six Sigma for Retail
  	  		 "What is best way to messure defects in a retail business in order to improve effeciency?"
  			   
    	  		 4

    			 
  			   Peer Gelser - UAE
  	       
  		     Six Sigma Terms
  	  		 "LEAN components: Inventory reduced by kanban management.

Plant layout with D-cells provides minimal handling, transportation, materials, space and people.

Line layout means that the machinery and processes of the same type are located in the same area.

U-layout gives longer lead times It is important to have defined and measurable objectives for values, success factors, business processes, resources and organization.

TPM is a comprehensive repair and maintenance system. TPM is common sense put into system. If you are busy, you are also doing something rationel.

Kaizen is based on the continual improvements of all functions of a business.

Single Minute Exchange of Die (SMED) is one of the many lean production methods for reducing waste in a manufacturing process by e.g. change of die/tools/moulds in less than e.g. 10 minutes.

5(+1)S ensures order and the system at work Improvement and systematization of working routines with minimal investment."
  			   
    	  		 0

Best User Comments

    			   
    			     gerardo acosta - mexico
  	         
  				   six sigma concept
  				   "Many of the tools of Six Sigma (and the concept of lean manufacturing with which Six Sigma is most closely identified) can be found in statistical process control, total quality management, statistics, process improvement, inventory control and operations management textbooks. However, it is not just the tools that deliver Six Sigma performance - it is the logic, discipline and practical application that drives the search for perfection. 

Six Sigma has a customer focus :
The aim is to ensure that all ou"
    			   
        	  		 36

    			   
    			     Tanner C. - USA
  	         
  				   3 Six Sigma levels
  				   "Besides the Sigma levels 1 to 6, we can actually also distinguish between 3 other levels of using Six SIgma: A. Use Six SIgma as a statistical measurement unit (comparable to degrees or dollars) B. Use it as as a structured, measurement-centered improvement system (this is where the DMAIC and DMADV methods come into play) C. Use 6 Sigma as a management philosophy, in which the other 2 levels are used to establish a fact-based company culture which is aimed at continuous improvement of business and/or manufacturing processes."
    			   
        	  		 19

    			   
    			     Theresa - S-Africa
  	         
  				   Six Sigma in and R&D context
  				   "Is it possible to use Six Sigma to improve the quality of R&D processes? Or do R&D activities naturally defy systematic improvement efforts?"
    			   
        	  		 19

    			   
    			     Fred Allen - US
  	         
  				   SPC
  				   "According to many, Six Sigma is based on Statistical Process Control (SPC), a method of visually monitoring production processes. In Six Sigma, each business process must be measured and for this often the SPC methodology is used.  Aims of SPC are: 1. Adjustment: To detect quickly when a process needs readjustment or repair. 2. Improvement: To find the most urgently needed improvement in the system itself."
    			   
        	  		 18

    			   
    			     Antonio - Puerto Rico
  	         
  				   Six SIgma DMAIC DMADV
  				   "Two Six Sigma sub-methodologies are called DMAIC (Define, Measure, Analyze, Improve and Control), and
DMADV (Define, Measure, Analyze, Design, Verify). DMAIC is an improvement system for EXISTING processes which
fall below specifications and need to be improved incrementally. DMADV is also an improvement
system which is designed to develop NEW processes and/ or products at Six Sigma quality levels."
    			   
        	  		 18

    			   
    			     Eli Pablo - Philippines
  	         
  				   Organization Structure
  				   "Usually, Six Sigma organizations are composed of the following: Champions - these are members of the Senior Management Team with responsibility for the success of the quality initiative; Master Black Belts - these are the teachers, trainers, reviewers, and the mentors of the Black Belts (full-time); Black Belts - these are the leaders of the teams that employ the DMAIIC or DMADV (full-time); Green Belts - are the owners of projects that improve a process or product (part-time); and the Deployment Team - which are composed of key stakeholders, firm, or supplier resources assigned to a Six Sigma Project (part/full-time)"
    			   
        	  		 16

    			   
    			     Manwel - Lebanon
  	         
  				   6 Sigma....Frame period
  				   "Hi..., I have a concern regarding the execution of 6 sigma... When a business has to move from one sigma level to another, for how long we have to measure and analyse and how long (approximately) does the total process lasts ?"
    			   
        	  		 4

    			   
                  - USA
  	         
  				   Six Sigma for Marketing
  				   "Six Sigma for Marketing (SSFM) is newest Six Sigma variant – drives growth.  SSFM links interdependencies of strategic marketing, tactical & operational processes. It proactively drives growth (e.g. new offerings) in a balanced way, versus simply cutting costs. It includes "leading indicators" to identify potential issues and build-in prevention. If a marketing process is broken, incapable or out of control, then use one of the traditional Six Sigma approaches to improve or re-design it. Applicable beyond marketing to sales, strategic planning, customer operations & services, and finance.

References:  
* Six Sigma in Marketing Processes - An Overview for Executives, Leaders and Marketing Managers; by CM Creveling, L. Hambleton, and B. McCarthy; Prentice-Hall, March 2006.  ISBN-13: 978-0131990081. [Selected as a top 2006 business book by Booz-Allen.]
* Treasure Chest of Six Sigma Growth Methods, Tools & Best Practice; by L. Hambleton; Prentice-Hall, July 2007. ISBN-13: 978-0132300216."
    			   
        	  		 4

    			   
    			     Mary Babin - USA
  	         
  				   Organizational Development  + Six Sigma or Lean
  				   "Have any of you integrated tools from Organizational Development with the use of Lean and Six Sigma. I would be interested to hear your reactions and experiences."
    			   
        	  		 3

    			   
                  - Netherlands
  	         
  				   What a concept
  				   "I have used the Six Sigma method now several times in a very practical (maybe not fully official) way. The emphasis on customer satisfaction and customer value(s) in explicit combination with process improvements demonstrates repeatedly to be very rewarding and (not unimportant) stimulating.

A common hurdle is an agreement to define and measure objectives. At first it often looks like a confrontation, a potential stick to beat the dog. In that sense the organization (including its management) should be open minded and willing to change for improvements.
With my private company CUSOE I have worked with the method also in small(er) businesses and have experienced that also in these 'simple' environments the required data are available  - only some more creativity and pragmatics are needed to collect and analyze.
"
    			   
        	  		 3

    			   
    			     Aly Kamel Al-Ariny - Egypt
  	         
  				   Lean and SIX Sigma
  				   "My perception to Six Sigma. is that it should start after Lean Implementation, at least basic (Stability Phase and Continuous Flow), then can go in parallel, since Lean helps set the standards and Six Sigma controls deviation from standards. But the DMAIC problem solving methodology can be simplified as the PDCA from the start of Lean Implementation. The certification process of Black / Green belts is a rigorous part of the subject that I hope to be spread to all Operations Management Consultancy fields."
    			   
        	  		 0

    			   
    			     Barry Demers - USA
  	         
  				   Six Sigma Roles
  				   "These names (some are from martial arts) are used for Six Sigma professional roles:

Sponsor - Senior executive who sponsors the overall Six Sigma Initiative.

Leader - Senior-level executive who is responsible for implementing Six Sigma within the business.

Champion - Middle- or senior-level executive who sponsors a specific Six Sigma project, ensuring that resources are available and cross-functional issues are resolved.

Master Black Belt - Highly experienced and successful Black Belt who has managed several projects and is an expert in Six Sigma methods/tools. Responsible for coaching/mentoring/training Black Belts and for helping the Six Sigma leader and Champions keep the initiative on track.

Black Belt - Full-time professional who acts as a team leader on Six Sigma projects. Typically has four to five weeks of classroom training in methods, statistical tools, and (sometimes) team skills.

Green Belt - Part-time professional who participates on a Black Belt project team or leads smaller projects. Typically has two weeks of classroom training in methods and basic statistical tools.

Team Member - Professional who has general awareness of Six Sigma (through no formal training) and who brings relevant experience or expertise to a particular project.
 
Process Owner - Professional responsible for the business process that is the target of a Six Sigma project."
    			   
        	  		 0

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More Management Methods, Models and Theory

12manage for:

● (India)	Six Sigma	"Take the number of calls as opportunities and define response time as the target. If a response time is beyond the limit, then it is a defect. Use simple statistical tools for analysis and find a suitatable method for control and improvement."
● (Uk)	Call Centre Six Sigma	"Most people hate calling a call center - waiting to connect to the operator is probably the bane (curse) of people's lives! The 'caller on-hold' time must be on top of the critical success factors short listed for any call centre Six Sigma analysis."
● (Canada)	Six Sigma in Inbound Call Centre	"Consider any variable as an opportunity and the result as a target, try the scatter graph though I prefer least square regression method to verify if opportunity(X) affects the target (Y) - greater the extent Y is affected bcoz of X or vice-versa - greater is the correlation among them, then follow the DMAIC."

	● (netherlands)	'defects' in retail	"Dear Lek, your question is basically to general - it generates to much potential answers for the brief space we have to respond. However a good technique is to analyze the processes your addressing and the CSF's for your business, retail in this case. Example in the last category: out-of-stock, to differentiate for store either for warehouse. If you can produce a base measure for OOS instore (and this figure is often to high), you have a good challenge for improvement. OOS in warehouse on the other hand produces not only lack of delivery to the stores (with all result of loss of sales etc.) but also waste of costs in DC for non-productive pick-pack labour + additional effort to restore stock levels. Can continue with dozens of other examples but the issue is: analyze and define cost drivers with large(st) impact. "
	● (RSA)	Six Sigma for Retail	"Lek, start with customer complaints. As starting point this will indicate out of stock situations \ poor quality products \ poor service from staff etc. From there you can start with processes described from earlier comments. Regards"

                       
                        ●  (India)
                        
                      What is six sigma
                      "Six sigma is a tool based on data. the data should be correct and from the process under observation. This is backed by scientific statistical tools for interpretation and conclusion. The selection of the tool depends on the expertise of six sigma practitioner and it largely determines the accuracy."

● Maarten Peters (The Netherlands)	Six Sigma in Development	"The DMAIC-process as the basis of Six Sigma offers a structural problem-solving methodology. The Define phase is typical one of the phases also critical for a development process with 'Voice of the Customer'. If there is no customer, there is no market for a product. Typical development process end at the Implementation phase and the Control phase (producing the product) is in many cases outside the scope of the Product development team but it is the scope if you look at it from a company perspective. So yes Six Sigma as a problem solving methodoly is applicable to product development."
● Abhay (India)	Six Sigma in an R&D Development	"Six Sigma methodology can be used in R&D. However, the DMAIC format may be difficult to use, unless there is a specific process in place for research activities. Another format of Six Sigma- DFSS (Design for Six Sigma) can be used in the development stage. Generally DMAIC is used for existing processes and DFSS for new ones."
● Sundar (India)	Six Sigma	"It is possible to improve results of R&D function via the deployment of DFSS (Design For Six Sigma) methodology and tools"
● James Gunn (UK)	Six Sigma in R&D	"Six Sigma is about reducing variance in a process, which doesn't sound like a good thing in R&D. And while you may repeat certain design tasks for products of a certain type, the work content of the process will depend on the nature of the product. As someone who was doing busines process improvement before someone called it Six Sigma, I wouldn't use 6 sigma in R&D."

● Alice (China)	PC	"What is the difference between PPK & CPK?"
● (China)	What is the difference between PPK & CPK?"	"PPK is measured by unknowed process, cpk is measured by stable process"
● (France)	Cpk or Ppk??	"Cpk - It's the capability index for a stable process (the process must be in a state of statistical control). The sigma calculation is based on within subgroup variation. Ppk - It's the performance index (the actual process PERFORMANCE). The estimate of sigma is based on total variation. Ppk must be calculated if less than 100 samples or when the process is chronically unstable but meeting the specifications and in a predictable pattern."

                       
                        ● Ali (UAE)
                        
                      Six Sigma
                      "Very clear and simple tip"

                       
                        ● Amy Wrown (USA)
                        
                      6 Sigma Organization
                      "Helpfull"

                       
                        ●  (USA)
                        
                      6 Sigma Frame Period
                      "The time depends on the project.  You don't move forward without the milestones being achieved but, I've seen improvements in administrative procedures take just a few days to complete the entire project.

As far as measuring the Defects per Million Opportunities to come up with a current sigma level, you will always be measuring this and you could be at any sigma level for as long as you have problems that are creating defects."

                       
                        ● Cesar Y. Yamuta (Philippines)
                        
                      Six Sigma in Marketing Processes
                      "I have been looking for a book that would somehow provide good insights on the marketing process. Having the six sigma methodology come into the picture, I would think this should be a wonderful book, especially for those looking for a process-oriented approach in marketing. Seems like this could be it."

● Kholisile Mazaza (South Africa)	Interface between OD and Six Sigma	"I am also interested in the interface between Organisation Development and Six Sigma, in both private and public sectors."
● Anne-Marie Harrison (UK)	OD and Six Sima or Lean	"We found that the impact of Lean and Six Sigma was greatly increased when we added in training on change management. Until then some great ideas came up and were part implemented, but not fully integrated into day to day work; once there was a better understanding of how to introduce and sustain change, there was a great deal more commitment from those implicated by the changes."
● (India)	No Six Sigma or Lean without prior OD	"For lean or six sigma, organizational development is the first action. Without this six sigma or lean will not be sustainable. I tried to implement six sigma and lean but prior to that i had to spent about one year effort in organizational development particularly the development of employees and trade unions."

	● Peter Sheffield (Vietnam)	Six Sigma Roles and General Common Sense	"As a martial artist of many years training I like the idea of grading people. However high level managers and people who can think of, and apply protocols to problems are born, not taught in a class room. I could teach several students the same techniques over months, but only some would do it naturally. It takes the right people with an innate common sense to be able to see the big picture. Time would be better spent testing the type, level of IQ and EQ before even putting those people into the classroom. Systems are under performing... the human side has been neglected with the importance being placed on learning coded language and abbreviations, rather than plain understanding. Basically they are taught a system, not how to think and many (not all!) can't think out of the box. Some people will find the same solution without any knowledge of the existing system. This tells us that this 'Sense' is 'Common'. Don't take any system as the gospel."
	● Prakash rao (INDIA)	Six Sigma Roles	"The above six sigma role definition is very clear. To implement six sigma and lean knowledge is only one part, attitude is very important. As a leader one has to lead the team rather than pulling and pushing. Hence AKD (Aspire,Know and Do) is critical in implementing lean six sigma."