Six Sigma is a methodology that aims to drive process improvements by drastically reducing defects and costs. This guide explores the fundamental principles and effective tools, including the well-known DMAIC and DMADV frameworks. To achieve near-defect production, with less than 3.4 defects per million units, Six Sigma has become an indispensable tool for many.
Six Sigma (6σ) is a methodology that helps you improve processes through improvement projects. Six Sigma focuses on reducing errors and cutting costs by measuring defects and variations that exist in an ongoing process and systematically eliminating them.
The relationship between input and output is important in Six Sigma. To create a better product or service, you need to improve what you put in, to get something better out. The methodology is often associated with the manufacturing industry, but companies such as Microsoft, Amazon, Maersk, Google, and Bank of America are well-known examples of companies that use Six Sigma.
The Six Sigma concept was introduced by Bill Smith in 1986, who was then working at Motorola. Six Sigma was heavily inspired by PDCA and other earlier quality management methodologies. Motorola believes that Six Sigma has saved them $17 billion in lost costs.
Quality is achieved, according to Six Sigma, when a product or service is produced with an error margin below 3.4 errors per million units produced.
Combining Lean and Six Sigma has become popular. Both scaling out what does not add value to the customer and larger-scale process improvements have proven effective.
Lean is about working with resources as efficiently as possible and focusing these smaller numbers of resources and work efforts on creating as much value as possible. Lean’s focus on minimizing waste and working better with resource management marries well with Six Sigma’s focus on reducing errors and improving processes and quality by using statistical methods to identify and eliminate causes of variations and defects.
When working with Six Sigma, you will likely work with one of two methods, depending on whether you are aiming for improvement or creating something new. When improvement is the goal, DMAIC methods are often used, which stands for Define, Measure, Analyze, Improve, and Control:
By following these steps, organizations can systematically improve processes, increase efficiency, and reduce errors and variations.
The second method is DMADV, also known as DFSS (Design for Six Sigma). It is a methodology within Six Sigma that focuses on creating new processes or products to achieve higher levels of quality. DMADV stands for Define, Measure, Analyze, Design, and Verify.
This may involve testing, piloting, and other validation processes to ensure that the product or process performs as intended in the actual use environment.
DMADV is particularly useful when there is no existing process to improve (unlike DMAIC, which focuses on improving pre-existing processes) or when a completely new process or product must be developed to meet new needs or to achieve significantly higher levels of performance.
Today, many are faced with intense pressure internally and externally. They are trying to innovate and develop new things faster and better to meet customer needs. The fickle customers and the faster pace place higher demands on quality, flexibility, and efficiency.
What is often forgotten in all new thinking are the old methods and tried and tested tips:
In Six Sigma, it is often thought, and somewhat simplified, that a better product or service makes the customer happier. This is a logical conclusion, but “better” is sometimes difficult to define and people are not always logical. Remember to focus on what the customer wants, use data, continuously improve, be involved, and be thorough.
Six Sigma uses different belt levels to symbolize knowledge and expertise, similar to those used in martial arts. Each belt represents an increasing level of knowledge, expertise, and responsibility within the Six Sigma methodology. These belts are central to the successful implementation and long-term sustainability of Six Sigma within an organization.
It is recognized that it takes a long time to get started with and see results from Six Sigma, and therefore it is important to cultivate knowledge about Six Sigma in your organization. Smaller organizations have a harder time achieving success with the method.
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