Friday, October 1, 2010

SIX SIGMA- New Approach to Quality Management and Efficiency...


Six Sigma stands for Six Standard Deviations (Sigma is the Greek letter used to represent standard deviation in statistics) from mean. Six Sigma methodology provides the techniques and tools to improve the capability and reduce the defects in any process. Six Sigma is a business improvement methodology. Its main objective is to implement a vigorous process to systematically eliminate defects and inefficiency. It was originally developed by Motorola in the early 1980's and because of its proficiency has become extremely popular in many corporate and small business environments around the world.

Six Sigma is a management philosophy developed by Motorola that emphasizes setting extremely high objectives, collecting data, and analyzing results to a fine degree as a way to reduce defects in products and services. The Greek letter sigma is sometimes used to denote variation from a standard. The philosophy behind Six Sigma is that if you measure how many defects are in a process, you can figure out how to systematically eliminate them and get as close to perfection as possible. In order for a company to achieve Six Sigma, it cannot produce more than 3-4 defects per million opportunities, where an opportunity is defined as a chance for nonconformance.

"...Six Sigma has evolved over the last two decades and so has its definition. Six Sigma has literal, conceptual, and practical definitions. At Motorola University (Motorola's Six Sigma training and consultancy division), we think about Six Sigma at three different levels:
·         As a metric
·         As a methodology
·         As a management system
Essentially, Six Sigma is all three at the same time." -- Motorola

Processes:

There are two Six Sigma processes: Six Sigma DMAIC and Six Sigma DMADV, each term derived from the major steps in the process.

DMAIC- Six Sigma DMAIC is a process that defines, measures, analyzes, improves, and controls existing processes that fall below the Six Sigma specification. Central Six Sigma process and acronym to ensure you remember it: Define, Measure, Analyse, Improve, Control, more recently extended to DMAICT by others in the Six Sigma consulting and training communities, to Transfer (transfer best practice and thereby share learning).

·         D - Define opportunity
·         M - Measure performance
·         A - Analyse opportunity
·         I - Improve performance
·         C - Control performance, and optionally:
·         T - Transfer best practice (to spread the learning to other areas of the organization)

DMADV- Six Sigma DMADV defines, measures, analyzes, designs, and verifies new processes or products that are trying to achieve Six Sigma quality.   An alternative/substitute abbreviation to DFSS (Design For Six Sigma), and like DFSS DMADV is central to Six Sigma initiatives. DMADV more specifically describes a method comprising linked steps; Define, Measure, Analyze, Design, Verify, for ensuring that products and processes are designed at the outset to meet Six Sigma requirements. All Six Sigma processes are executed by Six Sigma Green Belts or Six Sigma Black Belts, which are then overseen by a Six Sigma Master Black Belts, terms created by Motorola.

Some Six Sigma practitioners have in recent years combined Six Sigma ideas with lean manufacturing to invent new a methodology. This new methodology is called Lean Six Sigma.

In many organizations, it simply means a measure of quality that strives for near perfection. Six Sigma is a disciplined, data-driven approach and methodology for eliminating defects (driving toward six standard deviations between the mean and the nearest specification limit) in any process -- from manufacturing to transactional and from product to service.

Statistics is at the core of the Six Sigma methodology. Six Sigma focuses on using data to problem solve and create systematic approaches to lowering deficiencies. Because data is at the core of the Six Sigma methodology, statistical analysis and tools are commonly used. It is important to note that while the Six Sigma methodology is data driven at its core, rudimentary statistical tools and analysis are usually proficient.

The statistical representation of Six Sigma describes quantitatively how a process is performing. To achieve Six Sigma, a process must not produce more than 3-4 defects per million opportunities. A Six Sigma defect is defined as anything outside of customer specifications. A Six Sigma opportunity is then the total quantity of chances for a defect. Process sigma can easily be calculated using a Six Sigma calculator.

Implementation of Roles in Six Sigma Methodology

There are many roles that that are used in the Six Sigma Methodology. While most of the roles below are used in many organizations Six Sigma implementation, it should be noted that they are not universal. The roles include:

Executive Leadership - Top level executives are responsible for vision and ultimately implementation of the Six Sigma Methodology. They also empower others to take initiative and ownership of the Six Sigma principles.

Champions - Champions are usually upper management that is responsible for the implementation of Six Sigma throughout their organization.

Master Black Belts - are usually handpicked by Champions to coach others within the organization on the Six Sigma methodologies. They allocate either all or most of their time to the Six Sigma methodologies. It should also be noted, that they usually have mentoring responsibilities to coach and train lowers roles including Black Belts and Green Belts.

Experts - while this role is not in every organization, it can play a huge role in major engineering or manufacturing sectors. They improve overall services, products, and processes for their end customers.

Black Belts - Black Belts focus on six sigma execution. They are usually middle managers.

Green Belts - These roles are usually taken on by employees who help Black belts execute specific projects, as well as other job responsibilities.

Six Sigma is more than just a quality system like TQM or ISO. It's a way of doing business. As Geoff Tennant describes in his book Six Sigma: SPC and TQM in Manufacturing and Services: "Six Sigma is many things, and it would perhaps be easier to list all the things that Six Sigma quality is not. Six Sigma can be seen as: a vision; a philosophy; a symbol; a metric; a goal; a methodology." We couldn't agree more.

Finally, many organizations use the Six Sigma methodology as a way of protecting themselves from liability. For instance, if a company produces a product that is low in quality or can harm its user, the organization can use the defense that quality is at the forefront in order to be viewed positively. In this respect, it is unclear if an organization has implemented Six Sigma for its methodology or to cover its liability.

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