By definition, Six Sigma is a series of systems of metrics that are used to measure defects and improve quality by application of a methodology to reduce defect levels to under 3.4 instances per million. Six Sigma is a trademark of Motorola that, by its implementation, saved the company some $17 billion. It has so much evolved and come of age that comparison with the original process is hardly possible. Fundamentally, Six Sigma manages process variations that cause defects and systematically and statistically tackles the unacceptable deviations from the defined standards and works towards eliminating defect incidences.
Core Concepts Of Six Sigma
By and large, customers don't judge a product by averages like performance but by what they actually get out of each product. Overall customer satisfaction rests heavily on the consistency with which the products are delivered. This is a result of the combination of reduced process variation and improved process capability.
The Core Concept Of Six Sigma
Today Six Sigma core concepts concentrate around defects and process variations. Defects are measured by metrics known as DPMO, defects per million opportunities. We can think of defects as offsets from the standard. Nothing is subjective, as all parameters are quantifiable. Basic measurable dimensions include time/delivery, cost/price, quality etc. In industry jargon these are called Critical to Delivery (CTD), Critical to Price (CTP) and Critical to Quality (CTQ), respectively. Each of these has a different significance to different industries, which needs to be identified before embarking on Six Sigma implementation.
What comes under the microscope next is the measurement system. Common sense tells us that a little element of subjectivity is present in all man-made measurements. For example, the some singers may be marginally better than others. A group of observers will score each singer a little differently, even if standards for performance have been established. Thus the criteria for an individual's passing or failing is purely subjective, exposing the chinks in the measurement system. It is this way with companies? relationships with customers as well.
Process Variability is the second Six Sigma core concept. The more variability in a process the larger the probability for a defect somewhere. At the heart of this concept is elimination of variation of process for defect removal. For example, if a carriage takes 40 minutes to transport a 5-ton load a distance of 10 miles at 99.9997% defect free Six Sigma, a four sigma will take 45 minutes to cover the same distance per same load but at 99.94% defect free. It might appear that 99.94% is quite good ? if this is your conclusion, you will need to think again. Taking Six Sigma concepts into account, this equals a 20% defect in the product, which passes on to the customer.
The concept of Six Sigma is to improve the existing methodology or create a new, defect- free methodology for production. This is achieved through a methodology known as DMAIC, which is an acronym for Define opportunities, Measure performance, Analyze opportunity, Improve performance, Control performance. DFSS is the design for Six Sigma principles. Black and green belts evaluate the whole system and various fixes are chosen to be implemented.
Both of these are recognized as the finest quality management concept ever devised.
So - What Makes Six Sigma So Effective?
Well, there are many reasons for that and you can identify a few just by going through the history of Six Sigma. You see, it was the Motorola Company that devised Six Sigma and used it for the first time in the seventies. The entire initiative proved to be a grand success and enabled the company to save millions of dollars.
If you look at this as a case study, you will realize that the success of Six Sigma was mainly due it's comprehensive and structured approach towards quality improvement initiatives. You will also realize that Six Sigma had made the best possible use of available organizational resources, something that enabled Motorola to achieve the desired objectives.
Other Reasons That You Need To Know
Six Sigma's effectiveness can also be traced to its inherent nature that lays stress on following a data driven approach. Following this approach helps a lot because it basically eliminates the chances of human errors that might occur during the implementation phase. Since all decisions are based on statistical tests and analysis, it greatly increases the probability that the quality improvement initiatives will be able to achieve the desired results.
It also makes it easier for implementation team members to understand the real meaning and purpose behind the proposed quality improvement initiatives.
Another reason is that in spite of following a data driven approach, Six Sigma does not fail to give due consideration to the human factor, without which even the best quality management concept will fail to achieve the set targets. During implementations, Six Sigma lays stress on change management, which helps businesses to provide the right motivation, support and guidance to organizational members. This in turn ensures that the employees will not falter while dealing with new challenges and responsibilities that might come up during the implementations. So how effective Six Sigma really is?
Well, for that you just need to have a look at some of the dramatic results obtained through Six Sigma implementations. Six Sigma aims at achieving near-perfect businesses processes and this has been achieved by many businesses over the past few decades. Many businesses that implemented Six Sigma were able to lower their defect rate to no more than 3.4 defects per million opportunities that might have existed for such defects to occur.
This is quite enough for proving the effectiveness of Six Sigma. However, if you are still not convinced, just have a look at the ensuing benefits that come in the form of increased customer satisfaction, sales, and profitability. You will then know exactly why Six Sigma is the best quality management concept.
Tony Jacowski has sinced written about articles on various topics from University, Six Sigma and Information Technology. Tony Jacowski is a quality analyst for The MBA Journal. Aveta Solution's Six Sigma Online offers online and certification classes for lean six sigm. Tony Jacowski's top article generates over 90500 views. to your Favourites.