When we hear Six Sigma, we normally conjure up images of large global multinationals spending millions of dollars on six sigma processes. However, interestingly, it’s our local Mumbai dabbawallahs who took the award recently for being a true six sigma company! As everyone in that company follows the defined processes and systems towards achieving a common goal of Absolute Quality resulting in PERFECTION.
As simply defined – Six Sigma is a measure of quality that strives for near perfection.
Though started initially for the manufacturing industry, Six Sigma today is the fastest growing business management system across all sectors. As per Wikipedia, “Six Sigma seeks to improve the quality of process outputs by identifying and removing the causes of defects (errors) and minimizing variability in manufacturing and business processes.
It uses a set of quality management methods, including statistical methods, and creates a special infrastructure of people within the organization ("Black Belts", "Green Belts", etc.) who are experts in these methods. Each Six Sigma project carried out within an organization follows a defined sequence of steps and has quantified financial targets (cost reduction or profit increase).”
It uses a set of quality management methods, including statistical methods, and creates a special infrastructure of people within the organization ("Black Belts", "Green Belts", etc.) who are experts in these methods. Each Six Sigma project carried out within an organization follows a defined sequence of steps and has quantified financial targets (cost reduction or profit increase).”
History of Six Sigma
Another interesting fact about Six Sigma is that even though it was developed and launched by Motorola’s CEO Bob Galvin on January 15, 1987; it was GE’s Chairman and CEO Jack Welsh who popularized it and made it a central focus of his business strategy in 1995. The company changed its incentive compensation plan for the entire company so that 60 percent of the bonus was based on financials and 40 percent on Six Sigma results.
Another interesting fact about Six Sigma is that even though it was developed and launched by Motorola’s CEO Bob Galvin on January 15, 1987; it was GE’s Chairman and CEO Jack Welsh who popularized it and made it a central focus of his business strategy in 1995. The company changed its incentive compensation plan for the entire company so that 60 percent of the bonus was based on financials and 40 percent on Six Sigma results.
Understanding the Concept: The Formula
A methodology based on mathematics and statistic, the objective of Six Sigma Quality is to reduce process output variation so that on a long term basis, which is the customer's aggregate experience with our process over time, this will result in no more than 3.4 defect Parts Per Million (PPM) opportunities (or 3.4 Defects Per Million Opportunities – DPMO). For a process with only one specification limit (Upper or Lower), this results in six process standard deviations between the mean of the process and the customer's specification limit (hence, 6 Sigma).
A methodology based on mathematics and statistic, the objective of Six Sigma Quality is to reduce process output variation so that on a long term basis, which is the customer's aggregate experience with our process over time, this will result in no more than 3.4 defect Parts Per Million (PPM) opportunities (or 3.4 Defects Per Million Opportunities – DPMO). For a process with only one specification limit (Upper or Lower), this results in six process standard deviations between the mean of the process and the customer's specification limit (hence, 6 Sigma).
Terminology & Core Concepts of Six Sigma
DFSS (Design for Six Sigma) is about developing a new product or service that is defect free. And DMAIC is short for Define, Measure, Analyze, Implement, Control.
Core Concepts:
- Critical to Quality: Attributes most important to the customer
- Defect: Failing to deliver what the customer wants
- Process Capability: What your process can deliver
- Variation: What the customer sees and feels Stable
- Operations: Ensuring consistent, predictable processes to improve what the customer sees and feels
- Design for Six Sigma: Designing to meet customer needs and process capability
Six Sigma Certifications & their Requirements
Six Sigma certification is widely recognized and can be taken online. The levels start from basic – Yellow to the highest Master Black Belt. Their requirements are mentioned below:
- Yellow Belt: Successful passing of 5 online exams with a 70% or higher
- Green Belt: Successful passing of 8 online exams with a 70% or higher
- Black Belt: Successful passing of 15 online exams with a 70% or higher & satisfactory completion of a final Black Belt Project.
- Master Black Belt: Successful completion of our Black Belt Program (90% minimum exam scores) & submission of 2 additional Black Belt Projects. The final project of the Black Belt Program is a written business plan that utilizes the Six Sigma method to reflect a cost benefit.
Suggested References:
Following are some useful web sites for additional information and reference:
Following are some useful web sites for additional information and reference:
Useful books about Six Sigma:
- Neil Decarlo and Bruce Williams Ph.D. - Six Sigma for Dummies
- Issa Bass and Barbara Lawton - Lean Six Sigma Using SigmaXL and Minitab
- Ian Cox, Marie A. Gaudard, Leo T. Wright, Mia L. Stephens, Philip J. Ramsey - Visual Six Sigma: Making Data Analysis Lean
- Keller, Paul A - Six Sigma Deployment: A Guide for Implementing Six Sigma in Your Organization
Videos to throw more light on the program:
Implementing Six Sigma in 4 Simple Steps:
Youtube
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