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History Of Six Sigma

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Initially developed by Motorola (and current Motorola's registered service mark and trademark), the Six Sigma is a business management strategy. It is widely adopted in today's many industries. By using various management methods such as statistical methods, the Six Sigma tries find and delete any defects or errors during the manufacturing and business process. The strategy is also responsible for training a group of quality management method experts. Similar to some other business management methods, the Six Sigma project teams always have a specific plan with milestones along with a clear financial target.



History

Originally, the Six Sigma was designed to be a practice to solely improve the manufacturing process by eliminating the defects, which is defined as anything that could dissatisfy a customer. It quickly became adopted in other parts of the business too as the Six Sigma showed great success.

The idea was first proposed and developed by Bill Smith in 1986. However, the idea sprung from the works of others such as Shewhart, Juran, Taguchi, Deming, and Ishikawa and their contributions to quality control, TQM, and Zero Defects.

The term and the symbol (6σ) itself comes from the study of process capability, a section from statistics. At first, its goal was to create a level of manufacturing so that a high number of the output will meet the minimum specifications. Now, it has grown, and the quality demands and strives to keep the defect level at 3.4 defects per million opportunities (DPMO) or below. Of course, its goal is to keep the number even lower.

In 2006, Motorola reported a savings of over $17 billion US dollars and since, many other companies such as the Honeywell International (previously known as Allied Signal) along with General Electric adopted the model, headed by the famous Jack Welch. Recently, many corporations have been adopting the Six Sigma with lean manufacturing to conduct a methodology known as the Lean Six Sigma.

The Core of Six Sigma

There are quite a few things that the Six Sigma emphasizes:

One is that constant effort should be made to achieve expected and stable results, as it is of high importance to the success of a business.

Another is that all manufacturing and business processes can somehow be measured, analyzed, enhanced upon, and controlled.

Commitment from the organization, especially those in the top-level management, is integral to maintaining continuous improvements.

The Uniqueness of Six Sigma

Six Sigma is quite different from other business improvement initiatives in a few ways.

It has a very definite and straight plan to achieve quantifiable monetary returns.

It calls for an enthusiastic management team with great leadership skills.

It has a special infrastructure that administers the implementation of the Six Sigma.

It requires decision making based on verifiable statistics rather than pure assumptions and guesses.

Six Sigma Criticisms

Although Six Sigma's low defect rate is impressive, it has its downsides.

Not Original: The Six Sigma has been dubbed ?unoriginal? by a quality expert Joseph Juran, saying that it is just a fancy version of a simple quality improvement method.

Not Progressive: The Six Sigma is said to be effective at solving the current programs that exist. However, it is not so effective at coming up with new and innovative technologies and products.

Incorrect Standard: The 3.4 defects per million might be suitable for some products and some companies, but it certainly is not for all. Thus, its numbers are certainly not universal.
History Of Six Sigma
Six Sigma doesn't improve the customer experience. It may seem that Six Sigma turns the focus away from the customer because it is driven by data. In so many companies, quality improvement is driven by the latest customer complaint, or some manager's latest issue. This may seem like you are being responsive to the customers, but such an ad hoc and scatter-shot approach is inefficient and ultimately doomed to failure. The question you need to ask is what data is presented to the organization in order to select improvement projects? Without the right data, how can you succeed? Unless the approach is systematic and the solution driven by measurement and analysis, there is little hope for lasting quality improvement.

Six Sigma is oriented toward the solution of problems at their root cause and the prevention of their recurrence, as opposed to attempting to control potential causes of failure on a project-by-project basis. Six Sigma inspired process redesign will change the way a company thinks about how they do their work and deliver their services. So many companies are focused on short-term financial goals. The “show me the money" attitudes of shareholders and the stock market shift focus away from the customer. Six Sigma, on the other hand, is clearly focused on the customer. It accomplishes this because it centers its attention on the end results and long-term cultural change.

Six Sigma is not just about number crunching and finances. All of the numbers are just data used to reach the real goal of Six Sigma: helping increase quality and service for the customer. Companies need to figure out what their customers want and need. One thing any customer of any business in any industry wants is a better experience. Quality and efficiency don't only help the financial bottom line, they help the customer experience.

Companies need to remember that their first and final allegiance should be to the customer. By embracing Six Sigma, a company can achieve greater quality and efficiency in the flow of information and interaction between people, especially interactions with customers. Transforming the process of these flows will yield quality results for the customer experience.

Six Sigma is just another fad. There have been so many quality improvement fads over the years. It is not surprising that people are now a little jaded. The weakness of many of these fads is that they have the superficial appearance that something profound is happening, yet the substance is not there. A whole bunch of numbers and graphs on spreadsheets are not enough to bring about substantial and lasting quality improvement in an organization. The fads sell themselves as cheap and easy quick fixes. The reality is that there are no quick fixes to significant process improvement. Six Sigma understands that.

Six Sigma is neither a fad nor a quick fix. The data and descriptive statistics that Six Sigma mines out of a project are real data and meaningful data. You use data to create actionable goals, analyze and determine the root cause(s) of defects, and then measure the results to shows how those goals were achieved. The data determines the causes of the problems that need improvement and how to eliminate the gap between existing performance and the desired level of performance. Tools are put in place to ensure that the key variables remain within the acceptable ranges over time so that process improvement gains are maintained. The changes brought about through Six Sigma are real, significant, and long-lasting.

Also, Six Sigma is not a simple 1-2-3-you're done process. It is a “way of life." It is a multi-level, cyclical movement toward continual process improvement. Six Sigma is a time-consuming and high-energy process. Companies develop a long-term plan that outlines the move from current performance levels to Six Sigma performance levels, with tangible, short-term goals in between.

Successful Six Sigma programs are built on a solid organizational foundation. The organizational structure and system needs to be clearly identified and communicated to the entire organization to successfully implement Six Sigma Quality. Becoming a Six Sigma organization doesn't just happen. Planning and training goes into setting up a successful Six Sigma organization. Employee roles and responsibilities must be established and clearly communicated to all.

The more Six Sigma projects your company completes, the more involved you become with more mature and meaningful projects than when you began. Six Sigma becomes part of the core of your business. It isn't a quick knock-off program; it keeps growing and changing as your business needs grow and evolve. The other fads didn't last at your organization, but Six Sigma will.

Peter Peterka is President of Six Sigma us. For additional information on Six Sigma DMAIC or other Six Sigma Green Belt Training project programs contact Peter Peterka.

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Both Robert D. Thomson & Peter Peterka are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.

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