The Six Sigma

Globalization coupled with round the clock access to information, products and services have transformed the manner in which business are conducted. The highly competitive environment of the present day does not allow any scope for error to creep in. Customers must have to be kept always delighted and companies have to persistently work out novel ways to exceed the expectations of the customers. Due to these reasons, Six Sigma came to be part of the culture of eminent companies. Six Sigma is an extremely structured process that assists companies in focusing on the development and delivery of product and services that are close to perfect.

Sigma is a statistical term that calibrates the degree a particular process deviates from perfection. The core concept behind Six Sigma remains that in case it is possible to calculate the number of flaws or defects one has in a given process, it is possible to thoroughly know the manner in which to remove them and attain the level of ‘zero defect’ as far as practicable. Adoption of Six Sigma has transformed the basic structure of General Electric — GE and has become the work culture in everything one does and every product designed. (Making customers feel Six Sigma)

In order to attain Six Sigma quality, a process should not exceed 3.4 defects per million opportunities. An ‘opportunity’ stands for a chance for noncompliance, or not fulfilling the needed stipulations. This implies that businesses have to be close to ‘zero-defect’ in implementing the core processes. Six Sigma constitutes a vision which companies endeavor towards and a philosophy that is a constituent of business culture of companies. In its core, Six Sigma centers on a few important concepts.

These are

1. Critical to quality: Attributes are vital to the customer.
2. Defects: Unsuccessful in delivering what the customer desires.
3. Process capability: What process it is able to deliver.
4. Variation: The things that the customer witnesses and feels
5. Stable operations: Making sure consistent, predictable processes so as to improve what the customer is able to see and feel.
6. Design for Six Sigma: Designing to fulfill the requirements of the customer and process capability.

One of the most important aspects which companies fail to recognize is that assessment from the company level is based on average or averages that are based on mean of the latest results. However, customers do not judge companies on averages, they perceive the variance in every transactions and every product that is shipped. The main idea of Six Sigma remains primarily in reducing process variation and thereafter on improving the capability of processes. (Key concepts of Six Sigma)

A question that is usually put is the difference between Six Sigma and TQM. The tools are fundamentally identical based on the level of TQM sophistication. In case Six Sigma is applied exclusively at the project stages to eliminate flaws, it constitutes a segmental improvement approach with some structure and discipline. This can be extremely precious, however misses much of the real importance of Six Sigma and the crucial differences between TQM and Six Sigma. It is important that the real values of Six Sigma begins to exhibit when it is integrated with the strategic plan of the organization assisting to execute that plan with a concentration on paying the customers. (Differences and similarities between Six Sigma and TQM, total quality management)

Various Methodologies of Six Sigma

The DMAIC Model: Six Sigma originated in Motorola’s quality enhancement initiatives in the later part of 1980s. During the 1990s, Six Sigma attained popularity due to the success of General Electric and Honeywell implementing Six Sigma. Whereas the name Six Sigma has assumed wider implications, the basic idea of Six Sigma statistically speaking is to enhance the processes in such a manner that at the minimum six standard deviations between the worst case specification limit and the mean of process variation is present. In common meaning it implies that the process is essentially free from flaws. The apparatus used in Six Sigma are the identical tools applied by the Quality Improvement Tools in the 1970s and the initial part of 1980s. Of course it has appealing tags attached to it like ‘Black Belt’, however its true value lies in the methodical approach to development. (Six Sigma: Total Quality Engineering)

The DMAIC acronym stands for Define, Measure, Analyze, Improve, and Control. Important product process performance variables are measured, analyzed, improved and controlled through the use of statistical methods. The simple “statistical” tools which gained popularity in the Total Quality reign are strengthened with the Design of Experiments — DOE and higher sophisticated Statistical Process Control techniques. The DMAIC process is an edition of the PDCA — Plan-Do-Check-Act which a lot of people find helpful. Undoubtedly, Six Sigma can be helpful for organization to improve processes. The most optimum approach is to align the Six Sigma projects with the strategic business plan of the organization. (Six Sigma: Total Quality Engineering)

The DMADV Model: This model is applied to build new product or process designs in such a manner that it outcomes in an increasingly expected, established and ‘zero-defect’ performance. Five phases are present that consists of Define, Measure, Analyze, Design and Verify. Under ‘Define’, goals are formally defined of the design activity, which are in keeping with the demand of the customer and the enterprise strategy. ‘Measure’ identifies the capabilities of the product, capability of the production process, assessment of risk etc.

‘Analyze’ develops the design alternatives, building of high-level design and assess design capability to choose the best design. ‘Design’ develops detail design, design optimization of design and plan for design confirmation. This phase might need simulations.’ ‘Verify’ validates the design, establishes pilot runs and executes the production process and handover to the process owners. This phase might also need simulations. (Six Sigma: Wikipedia, the free encyclopedia)

Usefulness of Six Sigma in the Organizational Strategic Planning Processes

Six Sigma characterizes a distinct roadmap in the achievement to Total Quality.

1. Leadership Commitment: The top management not just initiates the deployment of Six Sigma; it also contributes actively in the entire deployment cycle. Six Sigma starts by giving the senior leadership with the training in the principles and instrument requires in order to direct the development of a management infrastructure to support Six Sigma. This entails lowering the levels of hierarchy of the organization and elimination of procedural hurdles to experimentation and change.
2. Customer focus: Systems are built for setting up close communications with “external customers’ — i.e. direct customers, the suppliers, end-users, law making agencies and with internal customers — i.e. employees. Right from the upstream suppliers till the final end-users, Six Sigma removes the scope for flaws.
3. Strategic Deployment: Under the aegis of Six Sigma, it aims at a small number of high-financial leveraged items. It concentrates the company’s resources: correct support, correct people, correct tools and correct proposals on finding and enhancing the performance metrics which link to bottom-line success. (iv) Disciplined framework: The projects under Six Sigma are implemented through the use of Measure, Analyze, and Improve as well as Control disciplined roadmap. It is this MAIC structured approach which establishes a distinct procedure to help in the internal communication.

Apart from this, from a business viewpoint, Six Sigma is also a structure for continuous business improvement. (v) Education and Training: Six Sigma considers that right dedication is propelled by correct understanding. Since it is fact-based methodology, it deeply makes use of quality and statistical tools to convert a practical problem to a practical solution. Therefore a top-to-bottom training is undertaken according to the Six Sigma philosophy and system improvement methods for every level. (Total Quality through Six Sigma)

To conclude, the approach and deployment of Six Sigma render it distinguishable from other quality endeavors. Six Sigma methods uses the statistical tools within a structured method for benefiting the knowledge necessary to attain better, speedier and less costly products and services compared to what the rivals are offering. The continuous, structured application of the master strategy repeatedly in projects, where the projects are chosen based on important business objectives propels the return on investment to the bottom-line with the outcome that it leads to remarkable profits. Besides, prompted by the improvement to the bottom-line, the apex management will be repeatedly be dedicated to this approach, the work culture will be repeatedly cultivated, the customer will certainly be satisfied ones and this will ultimately lead to Total Quality.