Innovative Six Sigma tools and practices have been transforming businesses for over 40 years.
Key Takeaways:
- Six Sigma is a mathematical ideal that underscores the concept of continuous improvement through statistical methods.
- The DMAIC process (Define, Measure, Analyze, Improve, Control) establishes a template to drive Six Sigma projects from beginning to end.
- Six Sigma teams create their roadmap for success during the project planning stages with the project charter.
- Resistance to change and lack of management commitment can undermine the successful implementation of Six Sigma programs.
Fortune 500 companies swear by it. Employers search for it on candidate resumes. But what is Six Sigma and why is it important?
A traditional bell curve is often used to graphically display the standard deviation of a process, aka Sigma. Imagine a process so robust that twelve standard deviations fit between the specification limits, six on either side of the mean. Although not perfect, a mere 3.4 defects per million is not too shabby either. This statistical ideal gave rise to a problem solving approach that has transformed businesses for over 40 years.
In this blog post, we’ll explain the basics of Six Sigma and help you understand the underlying tools and principles that benefit companies of all sizes and types.
What Is Six Sigma?
Six Sigma is a methodology used to improve business and manufacturing processes selectively, using statistical tools rather than guesswork. The first Six Sigma program was developed by Engineer Bill Smith of Motorola in the early 1980’s, and the success of this program prompted General Electric and other large companies to implement and improve upon the concept.
The DMAIC approach forms the core of the Six Sigma methodology: Define, Measure, Analyze, Improve, and Control phases prompt teams to quantify the problem and objectives before moving forward, and ensure the solution produces the desired results. DMADV (Define, Measure, Analyze, Design, Verify) is a variation of DMAIC that focuses on innovation and design rather than process improvement.
The Six Sigma experts known as Black Belts might sound like masters of self-defense, but they are actually team members who receive advanced training in statistical methods, project management, and problem solving, then successfully complete at least two projects to obtain their certification. Not everyone on the Six Sigma project team needs to attain Black Belt status, but everyone should be well-versed in the underlying principles.
Benefits of Implementing Six Sigma
Companies that have developed and implemented internal Six Sigma programs have often reported tangible benefits. The data-driven and analytical approach to problem solving improves business outcomes and the bottom line by:
- Identifying and eliminating areas of material, time, or human resource waste
- Continually improving the efficiency of existing processes
- Reducing errors on the production floor and in the office
- Building customer satisfaction and brand identity by improving outgoing quality
- Developing a shared commitment to statistical methods and problem solving
In the first 20 years of Six Sigma, participating companies reported an estimated $427 billion in savings through their improvement projects. Success stories have included manufacturing giants like Boeing, Microsoft, and Ford as well as the US Military, Starbucks, and retailers Target and Staples. These varied successes prompted those who labeled Six Sigma a management fad to sit up and take notice.
Six Sigma Principles and Methodologies
The DMAIC methodology might seem self-explanatory, but each phase includes a well-defined set of deliverables:
- Define: Create a project charter and define the problem, activities, and goals in detail.
- Measure: Collect detailed data on the existing issue or process to increase understanding.
- Analyze: Use root cause analysis tools and statistical methods to find potential solutions.
- Improve: Implement a set of solutions that allows you to reach predefined goals.
- Control: Monitor the process to ensure the positive changes are permanent.
The DMADV approach replaces Improve and Control with Design and Verify in cases where the solution to a problem is a newly designed product. Verification is the key to determining whether the new design can successfully replace the old one.
Throughout the Six Sigma project lifecycle, data-driven decision making tools and techniques like fishbone diagrams, design of experiments (DOE), and regression analysis are essential. Problem prioritization using pareto analysis, affinity diagrams, and other logic-based methods are used to optimize resource allocation.
Building and Managing a Six Sigma Team
A Six Sigma team takes advantage of the diverse backgrounds and experiences of team members working towards a common goal. Along with individual team members selected for their relevant skills, each team must also include a leader who organizes and guides team activities, a facilitator (usually a Black Belt) who guides the team in Six Sigma practices, a scribe to record team activities, and a sponsor to garner management support and resources.
The team works together to create a Six Sigma project charter. This is where the details, goals, and business case for the project are outlined for management and the project team itself. Once a project is approved and initiated, it is the responsibility of the team leader and facilitator to instill positive team dynamics. Collaboration, communication, and active listening are among the traits that lead to successful Six Sigma project outcomes.
Challenges and Solutions in Six Sigma Implementation
It can be tempting to move headlong into one or more Six Sigma projects as the program begins to take root. However, lack of training and resistance to change are among the common pitfalls of Six Sigma implementation, so ensuring all team members have received adequate training before joining project teams is a wise practice. Resistance to change begins to evaporate as employees become engaged in the process and the organization sees positive results.
To be successful, Six Sigma must be a company-wide initiative rather than a side effort practiced by a select few. This makes support from senior management essential to secure the necessary training budgets, time allotment for projects, and cultural changes necessary for successful implementation. Six Sigma proponents within the organization play an important role by educating and influencing decision makers on the potential benefits.
Six Sigma FAQs
What are the differences between Six Sigma, Lean, and Lean Six Sigma?
Lean principles focus on minimizing waste through the elimination of non-value-added activities. Lean Six Sigma combines Lean principles with statistical tools intended to solve problems and eliminate defects to form a comprehensive process improvement approach.
How can I obtain a Six Sigma certification, and what are the levels of certification?
Six Sigma training is divided into six levels, ranging from White Belt to Master Black Belt. Certification can be obtained through the American Society for Quality (ASQ), International Association for Six Sigma Certification (IASSC), and many other independent agencies.
Can small businesses benefit from implementing Six Sigma?
The improved quality and customer satisfaction produced through Six Sigma can benefit businesses of any size, as long as a commitment to intensive training and data driven project execution is established and maintained.
What is the Role of a Six Sigma Black Belt?
The Black Belt uses their expertise and experience with Six Sigma practices to train and mentor other team members on the effective use of Six Sigma tools and to ensure project goals and objectives are successfully met.
How do you determine the success of a Six Sigma project?
Cost savings, process improvement, and adherence to schedule are among the metrics detailed in a Six Sigma project plan that are later used to quantify success. Improved customer satisfaction is the desired outcome from this combination of metrics.
References
https://blog.lifeqisystem.com/bill-smith
https://www.6sigma.us/lean-six-sigma-articles/so-which-is-it-dmaic-or-dmadv/
https://www.sprintzeal.com/blog/six-sigma-black-belt-certification-in-2020
https://www.sixsigma.com/why-six-sigma/#:~:text=Six%20Sigma%20Saves%20%24427%20Billion,Six%20Sigma%20in%20public%20documents.
https://asq.org/quality-resources/dmaic#:~:text=DMAIC%20is%20an%20acronym%20that,(internal%20and%20external)%20requirements.
https://www.villanovau.com/articles/six-sigma/design-of-experiments/#:~:text=What%20is%20Design%20of%20Experiments,have%20on%20the%20final%20product.
https://sixsigmastudyguide.com/six-sigma-teams/
https://www.pmworld360.com/creating-a-project-charter-for-a-six-sigma-project/
https://www.simplilearn.com/what-is-six-sigma-a-complete-overview-article
https://asq.org/training/catalog/topics/six-sigma
https://medium.com/@broadbeach.in/how-to-measure-the-success-of-six-sigma-projects-c8ac1e995573
https://www.investopedia.com/terms/p/pareto-analysis.asp