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SixSigmaBasics
SixSigmaisthemosteffectivemethodologyavailableforimprovingtheperformanceofanyorganizationbyminimizingthedefects
initsproductsorservices.Everyerrorcommitted,hasacostassociatedtoitinformoflosingcustomers,redoingatask,replacinga
part,wastetime/materialorlosingefficiency.
TheSixSigmamethodologywasfirstendorsedatMotorolainthemid1980s.Thecompanywastryingtodeviseamethodologythat
couldmeasuredefectsatagranularlevelthanpreviousmethodsandthushelpinreducingthesedefects.Thisresultedinan
astoundingincreaseinthequalitylevelsofseveralMotorolaproducts,andthecompanyreceivedtheinauguralMalcolmBaldrige
NationalQualityAwardin1988.MotorolasharedtheSixSigmasecretopenly,andsoonvariouscompaniesstartedreapingrewards.
Andbyyear2003,totalcombinedsavingsaccumulatedtoover$100billion.
UnderstandingtheSigmaScale:TheSigmascaleisauniversalmeasure
oftheperformanceofanybusinessororganization.Sigma()isa
statisticaltermtorepresentstandarddeviationwhichisameasureof
variationinadataset.Highersigmascoreindicatesbetterperformanceor
morepreciseresults.Inotherwords,iftheoutputisdefectivesixtynine
percentofthetime,itimpliesthattheperformanceisOneSigmacompliant.
Ontheotherhandifitisdefectivethirtyonepercentofthetime,itmeans
thattheperformanceisdemonstratingTwoSigmacompliance.
Table:TheSigmaScale
Sigma
PercentDefective
DefectsperMillion
69%
691,462
31%
308,538
6.70%
66,807
0.62%
6,210
0.02%
233
0.00%
3.4
0.00%
0.019
Asmentionedinthetableabove,SixSigmaimpliesalmostperfectoutputresultinginonly3.4defectspermillionopportunities
(DPMO).
DPMO:Thetermdefectcanbeexplainedasthenonconformitiespresentintheoutputthatfallsbeyondthesatisfactorycustomer
limits.Thenumberofdefectspresentpermillionopportunities(DPMO)isusedtodetermineastowhichSigmascaleaparticular
processcorrespondsto.MostoftheorganizationsaroundtheworlddeliverresultsintheThreetoFourSigmabandwhichimpliesthat
theyarelosingaroundaquarteroftotalrevenueduetothepresenceofdefectsintheirorganizations.
ApplicationofSixSigma:DMAICandDFSSaretheelementary
methodologiesthatexistfortwopotentialscenarios
DMAIC:TomodifyanexistingprocessortheapplicationofDMAIC:This
methodology(DMAIC)isrequiredtomodifyanexistingprocessandmake
itSixSigmacompliant,hencemoreefficient.
DMAICrefersto:
Definethegoalsforprocessimprovementincoherencewiththe
customersdemandandtheorganizationsstrategies.
Measurethecurrentperformanceandamassrelevantdataforfuture
Analyzethecurrentsettingandobservetherelationshipbetweenkey
parametersandperformance.
Improvetheprocessbasedontheanalysistofurtheroptimizethe
process.
Controltheparametersbeforetheyaffecttheoutcome.
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DFSS:TostartanewprocessfromscratchortheapplicationofDFSS:Whenanewprocessisstarted,straightfromscratch,such
thatitisSixSigmacompliant,theDFSSorDesignForSixSigmamethodologyisincorporated.Itissometimesconsideredasan
offshootofSixSigmawhileothertimes,itisconsideredasanentirelydifferentmethodology.DFSSrequiresIDOVapproachthat
refersto:
Identifyanddefinetheprocessgoalsinconsistencewiththecustomersdemandsandindustrystandards.
Designincludesreckoningallthepossiblesolutionsandselectingtheoptimalsolution.
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SixSigmaBasics
Optimizetheperformancebytheapplicationofadvancedsimulationsandstatisticalmodeling.
Validateorverifytheselectedsolution.
Attimes,DMAICendsupinDFSSwhentheprocessunderstudyrequiresacompleteredesigntoachievethedesiredstandards.
ImplementationofSixSigma:SixSigmaprofessionalizedthequalitymanagementroles.SixSigmahasadoptedmartialarts
rankingnomenclaturetodefinethehierarchythatcoversallkindsofbusinessfunctions.SixSigmahasidentifiedcertainrolesforits
implementation.Thesedesignationsdefineapromotionpath.
ExecutiveLeadershipreferstotopmanagementincludingtheCEO.Theyarethevisionarieswhoauthorizeotherteammembers
andprovidethemwithresourcesforprocessimprovement.
ChampionsorQualityLeadersimplementandintegrateSixSigmamethodologythroughouttheorganization.Theyarechosen
fromtheuppermanagementbytheExecutiveLeadership.TheyalsoactasmentorstoBlackBelts.
MasterBlackBelts,identifiedbyChampions,areexpertcoachesonSixSigma.TheyactasguideBlackBeltsandGreenBelts
andassistChampionstoimplementSixSigmaandintegratethemethodologythroughouttheorganizationincludingall
departmentsandtheirrespectivefunctionsandprocesses.
BlackBeltsoperateundertheguidanceofMasterBlackBeltsandtheirtaskistoapplySixSigmamethodologytovarious
projectsspecified.TheirprimaryfocusistheexecutionofSixSigmaproject,asagainsttoChampionsandMasterBlackBelts
whoprimarilyfocusonidentifyingfunctionsandgoalsfortheSixSigmaproject.
GreenBeltsworkonSixSigmaimplementationalongwithotherjobresponsibilitiesunlikeBlackBelts,MasterBlackBeltsand
Championswhodevote100%oftheirtimeonSixSigmaexecution.TheyareguidedbyBlackBeltsandprovidethemsupportin
achievingthedesiredresults.
YellowBeltsareemployeeswhoaretrainedinSixSigmatechniques,buthavenotpracticallyappliedtheirknowledgetoaSix
Sigmaproject.
1.5SigmaShift:Ithasbeenobservedthattheaccuracyorefficiencyofanyprocesserodeswithtime.Inotherwords,processesdo
notworkasefficientlyinlongtermastheydoinshorttermi.e.thequalityortheSigmalevelislikelydropoverastretchedperiodof
time.Takingthisdropinaccount,anempirical1.5Sigmashiftisintroducedinstatisticalcalculations.IfaprocessisSixSigma
compliantinashortrunislikelytodeliver4.5Sigmaleveloutcomes.Therefore,thepopular3.4DPMOinrealitycorrespondsto4.5
Sigmalevelviz.6Sigmaminus1.5Sigma.
WhyisSixSigmaUsed?
Thequalityoftheproductandtheproductivityofthecompanyimproveimmensely.
Thenumberofpossibledefectspermillionopportunitiesreducesimmensely.Thus,thequalityoftheproductimprovesfurther.
Theresultofanyprocessisdefined,basedoncollectivedataandfactsratherthanassumptions.
Theprofitlevelofthecompanyincreasesimmenselyandtherebyprovidesagrowthinthecorporatesector.
Itcallsforamoreintegratedandcorrelatedapproachtosolvetheexistingproblem.
Ratherthanadoptingtheconventionalcostcuttingmethod,itprefersremovingcoststhatgivenovaluetothecustomers.
Thenetproductioncostincurredwhilemanufacturingaproductreduces.
Byreducingthenumberofdefect,itprovidesthecompanyarayofhopeforhigherexpectations.
Theneedandexpectationsofthecustomersaremetbyprovidingthemthesameproductwithabetterquality.
Theinternalunderstandingbetweenthedepartmentsincrease,therebytheemployeestendtobemoreawareofthetechniques
andstrategiesusedforsolvingaparticularproblem.
Thereisabetterprospectofjobsatisfactionforemployees,becauseofwhich,theinternalcommunicationwithintheorganization
increases.
Theproductiontimespentwhilemanufacturingaproductdecreasestherebythedeliveryoftheserviceisfast.
Themarketvalueofthecompanyimproves.
TheOtherSideofSixSigma:EventhoughtheSixSigmastandardof3.4defectspermillionopportunitiessoundsfantastic,this
qualitystandardmaynotbeoptimalforsomeprocesses.Aprocessconcerningahumanbeingshealthmayrequireahigherquality
standard.Ontheotherhand,certainotheroperationmightworkwellwithlowerSigmalevels.Thereisnoclearjustificationforchoosing
thenumberSix.
Becauseofthiscapriciousness,severalQualityManagersdonotrateSixSigmamethodologyveryhighly.
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