Overview of Six Sigma Methodology

Six Sigma Methodology
Six sigma is a systematic approach used by organizations in order to enhance business profitability, overall business performance, productivity, reduce company’s operational cost and improve customer satisfaction. Six sigma is a rigorous analytical methodology and uses business data and statistical analysis, follows disciplined techniques in order to help company reduce operational cost, achieve high profitability and eliminate problems (defects/errors/bugs) in any possible area. Six sigma is a proven and very efficient approach in order to help organizations improve business processes and establish correct and disciplined strategies to improve business processes predictability.

Statistical thinking in six sigma methodology is process driven i.e. it marks everything as a process and suggests that the processes needs to be understood and studied in depth in order to improve them hence contributing towards reduction of defects and enhancement in profitability.

Origin of Six Sigma methodology:
Six sigma methodology was first derived/implemented by Motorola in early 80s during the quest to formulate/find out processes which can help in reduction of failure at all level in production. The challenge needed in depth and accurate study and analysis of various processes used, and understanding the root-cause of failures in order to minimize the defects and increase profit.

Why Six Sigma is so important?
Six sigma refers to 99.997% perfection rate i.e. 3.4 parts per million. If a company is producing only 3.4 defective products per million units of the product then it is considered to have achieved six sigma level. Top notch companies around the world generally are considered to be operating on around 99% perfection, which suggests that there can be further improvement and reduction in defects hence helping company increase profitability. This improvement can save millions of dollar for the companies which are wasted in various un-necessary processing and defects those lead to customer dissatisfaction.

Six sigma uses process data and analytical techniques in order to find out various process variables. Once the process variables are obtained, they help in developing the exact understanding of various processes. This understanding/data is then used to improve the processes and help in reducing defects/losses in other areas of the organization.

Due to the simplicity it offers, Six sigma methodology is very easy to implement and integrate into any organization if all the processes are properly followed. The six sigma methodology operates on the following main steps:

• Define: In this step, the team responsible for six sigma methodology implementation in the organization collectively define various goals and sub-goals. Define step emphasizes on customer satisfaction, identification of root causes of any identified defect, improvement and establishment of infrastructure in order to help achieve the defined goals and sub-goals.
• Measure : This step involves activities such as preparing various metrics based on the data available in hand, more data collection activities, basic data packets creation or sampling etc.
• Analyze: This step involves analysis of defects using ‘Cause & Effect’ and other diagrams, study of possible modes of failure i.e. root cause analysis etc. in order to prepare various charts to improve process and control & monitor the process improvement activities. This step can help in establishing the facts about processes currently being utilized in terms of there effectiveness, contribution to six sigma methodology success, defect rates and at what extent these processes help in achieving the organization level success etc. and can help in achieving various goals.
• Improve: This step involves utilization of data collection, metrics and analysis done during the Define, Measure and Analysis steps. Improvised techniques are brought into action and applied to process improvement model. The team working on six sigma methodology application to the organization also may experiment various techniques to help in process improvement.
• Control: In this step, all the techniques being utilized for process improvement are monitored and adherence to procedural methodology is assured. Various charts based on the techniques being utilized against time frame are used to help keep a check on the successful execution of six sigma methodology.

It’s very important to understand the six sigma methodology and its application for any industry/organization. Six sigma methodology not only emphasizes on reduction of defects i.e. only 3.4 per million, it also gives a significant importance to customer satisfaction and customer voice.

There are currently three types of expertise levels in six sigma implementation: Green Belt, Black Belt Practitioner and Black Belt (Master). The degree of expertise and skill sets increases from Green Belt to Black Belt (Master). Cost of six sigma methodology implementation in an organization depends on the organizational needs; it varies based on deployment and utilization of the six sigma trained resources in various projects or on organization level.