Download as docx, pdf, or txt
Download as docx, pdf, or txt
You are on page 1of 11

The term "Six Sigma" refers to a statistical measure of how far a process deviates from

perfection. A process that operates at six sigma has a failure rate of only 0.00034%, which
means it produces virtually no defects. Six Sigma was developed by Motorola in the 1980s,
and it has since been adopted by many other companies around the world, including
General Electric, Toyota, and Amazon. It is used in industries such as manufacturing,
healthcare, finance, and service industries to improve customer satisfaction, reduce costs,
and increase profits.

What is Six Sigma?

Six Sigma is a set of methodologies and tools used to improve business processes by
reducing defects and errors, minimizing variation, and increasing quality and efficiency. The
goal of Six Sigma is to achieve a level of quality that is nearly perfect, with only 3.4 defects
per million opportunities. This is achieved by using a structured approach called DMAIC
(Define, Measure, Analyze, Improve, Control) to identify and eliminate causes of variation
and improve processes.

Six Sigma is a disciplined and data-driven approach widely used in project management to
achieve process improvement and minimize defects. It provides a systematic framework to
identify and eliminate variations that can impact project performance.

The etymology is based on the Greek symbol "sigma" or "σ," a statistical term for measuring
process deviation from the process mean or target. "Six Sigma" comes from the bell curve
used in statistics, where one Sigma symbolizes a single standard deviation from the mean. If
the process has six Sigmas, three above and three below the mean, the defect rate is
classified as "extremely low."

The graph of the normal distribution below underscores the statistical assumptions of
the Six Sigma model. The higher the standard deviation, the higher is the spread of values
encountered. So, processes, where the mean is minimum 6σ away from the closest
specification limit, are aimed at Six Sigma.

What Is Lean Six Sigma?


Lean Six Sigma is a methodology that combines two powerful process improvement
techniques: Lean and Six Sigma.

Lean focuses on minimizing waste and maximizing efficiency by identifying and eliminating
non-value-adding activities. This involves streamlining processes, reducing defects,
improving quality, and optimizing resources to deliver more value with less effort.

On the other hand, Six Sigma is a statistical approach to process improvement that aims to
reduce variation and defects by using data-driven decision making. It involves defining,
measuring, analyzing, improving, and controlling processes to achieve consistent and
predictable results.

By combining the strengths of these two methodologies, Lean Six Sigma provides a
comprehensive approach to process improvement that can be applied to any industry or
sector. It is widely used in manufacturing, healthcare, finance, and service industries to
improve efficiency, reduce costs, and enhance customer satisfaction.

The 5 Key Principles of Six Sigma

The concept of Six Sigma has a simple goal – delivering near-perfect goods and services for
business transformation for optimal customer satisfaction (CX).

Goals are achieved through a two-pronged approach:

Six Sigma has its foundations in five key principles:

1. Focus on the Customer

This is based on the popular belief that the "customer is the king." The primary goal is to
bring maximum benefit to the customer. For this, a business needs to understand its
customers, their needs, and what drives sales or loyalty. This requires establishing the
standard of quality as defined by what the customer or market demands.

2. Measure the Value Stream and Find Your Problem

Map the steps in a given process to determine areas of waste. Gather data to discover
the specific problem area that is to be addressed or transformed. Have clearly defined
goals for data collection, including defining the data to be collected, the reason for the
data gathering, insights expected, ensuring the accuracy of measurements, and
establishing a standardized data collection system. Ascertain if the data is helping to
achieve the goals, whether or not the data needs to be refined, or additional information
collected. Identify the problem. Ask questions and find the root cause.

3. Get Rid of the Junk

Once the problem is identified, make changes to the process to eliminate variation, thus
removing defects. Remove the activities in the process that do not add to the customer
value. If the value stream doesn't reveal where the problem lies, tools are used to help
discover the outliers and problem areas. Streamline functions to achieve quality control
and efficiency. In the end, by taking out the above-mentioned junk, bottlenecks in the
process are removed.

4. Keep the Ball Rolling

Involve all stakeholders. Adopt a structured process where your team contributes and
collaborates their varied expertise for problem-solving.

Six Sigma processes can have a great impact on an organization, so the team has to be
proficient in the principles and methodologies used. Hence, specialized training and
knowledge are required to reduce the risk of project or re-design failures and ensure that
the process performs optimally.

5. Ensure a Flexible and Responsive Ecosystem

The essence of Six Sigma is business transformation and change. When a faulty or
inefficient process is removed, it calls for a change in the work practice and employee
approach. A robust culture of flexibility and responsiveness to changes in procedures can
ensure streamlined project implementation. The people and departments involved
should be able to adapt to change with ease, so to facilitate this, processes should be
designed for quick and seamless adoption. Ultimately, the company that has an eye fixed
on the data examines the bottom line periodically and adjusts its processes where
necessary, can gain a competitive edge.
The Six Sigma Methodology

The two main Six Sigma methodologies are DMAIC and DMADV. Each has its own set of
recommended procedures to be implemented for business transformation.

DMAIC is a data-driven method used to improve existing products or services for better
customer satisfaction. It is the acronym for the five phases: D – Define, M – Measure, A –
Analyse, I – Improve, C – Control. DMAIC is applied in the manufacturing of a product or
delivery of a service.

DMADV is a part of the Design for Six Sigma (DFSS) process used to design or re-design
different processes of product manufacturing or service delivery. The five phases of DMADV
are: D – Define, M – Measure, A – Analyse, D – Design, V – Validate. DMADV is employed
when existing processes do not meet customer conditions, even after optimization, or when
it is required to develop new methods. It is executed by Six Sigma Green Belts and Six Sigma
Black Belts and under the supervision of Six Sigma Master Black Belts. We'll get to the belts
later.

The two methodologies are used in different business settings, and professionals seeking to
master these methods and application scenarios would do well to take an online certificate
program taught by industry experts.

The Six Sigma Process of Business Transformation

Although what is Six Sigma uses various methods to discover deviations and solve problems,
the DMAIC is the standard methodology used by Six Sigma practitioners. Six Sigma uses a
data-driven management process used for optimizing and improving business processes.
The underlying framework is a strong customer focus and robust use of data and statistics to
conclude.
The Six Sigma Process of the DMAIC method has five phases:

Each of the above phases of business transformation has several steps:

DMAIC is an acronym that stands for Define, Measure, Analyze, Improve, and
Control. It represents the five phases that make up the process:

1. Define the problem, improvement activity, opportunity for improvement, the


project goals, and customer (internal and external) requirements.
o Project charter to define the focus, scope, direction, and motivation for the
improvement team
o Voice of the customer to understand feedback from current and future
customers indicating offerings that satisfy, delight, and dissatisfy them
o Value stream map to provide an overview of an entire process, starting and
finishing at the customer, and analyzing what is required to meet customer
needs
2. Measure process performance.
o Process map for recording the activities performed as part of a process
o Capability analysis to assess the ability of a process to meet
specifications
o Pareto chart to analyze the frequency of problems or causes
3. Analyze the process to determine root causes of variation, poor
performance (defects).
o Root cause analysis (RCA) to uncover causes
o Failure mode and effects analysis (FMEA) for identifying possible product,
service, and process failures
o Multi-vari chart to detect different types of variation within a process
4. Improve process performance by addressing and eliminating the root
causes.
o Design of experiments (DOE) to solve problems from complex processes or
systems where there are many factors influencing the outcome and where
it is impossible to isolate one factor or variable from the others
o Kaizen event to introduce rapid change by focusing on a narrow project
and using the ideas and motivation of the people who do the work
5. Control the improved process and future process performance.
o Control plan to document what is needed to keep an improved process at
its current level
o Statistical process control (SPC) for monitoring process behavior
o 5S to create a workplace suited for visual control
o Mistake proofing (poka-yoke) to make errors impossible or immediately
detectable

What Is DMADV?
DMADV is a Six Sigma framework that supports the development of new products, services,
or processes. The process includes the following phases: define, measure, analyze, design,
and verify.
DMADV is a Six Sigma framework that focuses on the development of a new product,
service, or process. It is an acronym for the five phases of DMADV: define, measure, analyze,
design, and verify. The DMADV approach is useful when implementing new strategies
because of its early identification of success, basis in data, and thorough analysis.
The aim of the DMADV framework is to ensure the optimum balance between three
perspectives, namely the customer's needs, the process or procedure to fulfill these needs,
and the goal or objective of the company. It is a general strategic-level approach that tries to
help in solving problems related to the development of a new product, service, or process,
and its implementation and control. The DMADV model has been in use for over three
decades in various industries, including manufacturing, service industries, transportation
industry, etc., with significant success.
One of the main disadvantages of the DMADV method is that its implementation takes
precedence over creativity and innovation. The DMADV development is linear, but in reality,
it needs to be iterative due to the complexity of most projects. DMADV needs to be agile
and flexible in order to produce better projects.

What Is DMADV Used for?


DMADV is an important Design for Six Sigma methodology used for developing a new
product, service, or process. There’s a modified version called DFSS, or Design for Six Sigma,
and the process most often used in DFSS is called DMADV.
The DMADV methodology is implemented for inventing and innovating a completely new
product, service, or process, or for inventing and innovating major new features of an
existing product, service, or process. The DMADV focuses on resolving issues of tomorrow.
The DMADV approach is very critical to problem-solving within any enterprise using Six
Sigma in their product and service development processes.
What Does DMADV Stand for?
DMADV is an acronym for defining, measuring, analyzing, designing, and verifying.
1. Define
Define the first phase of the DMADV methodology, where the project goals and customer
deliverables are identified. The purpose of this step is to clearly identify the business
problem, goal, project scope, available resources, and high-level project timeline. A clear
definition of the project must be established during this step, and every strategy and goal
needs to be aligned with the expectations of the company and the customers.
2. Measure
The purpose of the Measure phase is to clearly understand the customer’s requirements
and develop the critical to quality (CTQs) to address those requirements. This is achieved by
dividing the market into different segments and then developing CTQs for each segment.
For each identified CTQ, measurement and metrics systems must be created. These systems
will then help to capture the performance of the Critical to Quality attributes (CTQs).
3. Analysis
The analysis is the third phase of the DMADV methodology. In this phase, the best design
concepts that will address the voice of the customer demands (CTQ) are developed. The
purpose of the Analyze phase is to generate alternative design concepts for each CTQ,
evaluate the alternative design concepts for each CTQ, and combine the best parts of the
design concepts to create the final design.
4. Design
Design is the fourth phase of the DMADV methodology. In this phase, the best design
concept developed in the Analyze Phase must be converted into a prototype. The purpose
of the Design phase is to create a prototype of the design model that will be studied in the
verification phase.
5. Verify
Verify is the fifth and the last phase of the DMADV methodology. In this phase, the
prototype of the best design is validated for its intended functions by testing the design.
This is done to make sure that the design meets the customer’s requirements, like no
damage being induced to packaging during distribution and product protection. The
purpose of the Verify phase is to test the prototype of the detailed design, inspect the
samples after testing, decide whether or not to scale up the design, and close the DMADV
project.

When Should DMADV Be Used?


DMADV is used to design a new process or product or to redesign an existing product or
process completely, and it should be used by incorporating the following phases
consequently. First, you have to define the process and its design goals. Second, you have to
identify and measure CTQs characteristics of the service, product, or process. Third, you
have to analyze the data to find the best possible design. In the fourth phase, design, you
have to create and test the prototype of the product, service, or process. In the final fifth
phase, you have to verify that the design output meets the design input requirements and
that the designed product performs satisfactorily under real conditions.

What Are the Advantages of Using the DMADV Process?


The main advantages of using the DMADV process can be characterized by the following
features.

 The DMADV process is customer-driven.


 The DMADV process helps to achieve maximum customer satisfaction while
increasing profits.
 The DMADV process helps to reduce defects.
 The DMADV process focuses on the entire production and planning process.
 The DMADV process helps to establish areas for improvement before encountering
defects.
What Are the Examples of DMADV Usage?
The DMADV process is used in many industries. Examples of DMADV usage in industries is
listed below.
 In packaging, to design a new package for a product or to improve an existing
package.
 In health care, to design high-quality products, where defects in healthcare products
may lead to death.
 In manufacturing, to eliminate defects in any process, from manufacturing to
transactional and from product to service.
 In different fields of service providers. For example, a service provider who wants to
introduce a new customer service team may use DMADV to design how many staff
are required to be present in each shift or what would be the turn-around time that
the team can respond to its customers.

What Is the Difference between DMADV and DMAIC?


Both DMADV and DMAIC are part of the philosophy of Lean Six Sigma. The main difference
between DMADV and DMAIC is that DMADV focuses on the development of new processes,
services, or products, while DMAIC is used to improve an existing process. DMADV measures
customer specifications and needs, while DMAIC measures the performance of a process.
While DMAIC focuses on improving a business process to reduce and eliminate defects,
DMADV develops business models to meet customers’ requirements.
Further, as DMADV is associated with new projects and product services, it doesn’t
necessarily mean that it will work with existing processes and products. For example, if a
process improvement doesn’t meet what’s expected or it fails, it might be time to use the
DMADV framework. Similarly, when an existing process or product no longer meets
customers’ specifications or needs, the DMAIC method must be used. The best way to
remember their difference is that DMADV works best for launching new features, products,
or projects, while DMAIC is designed to enhance a process, product, or service that the
organization will keep selling.

Six Sigma Techniques


The Six Sigma methodology also uses a mix of statistical and data analysis tools such as
process mapping and design and proven qualitative and quantitative techniques, to achieve
the desired outcome.
Fig: Key Six Sigma Techniques in use

A. Brainstorming

Brainstorming is the key process of any problem-solving method and is often utilized in the
"improve" phase of the DMAIC methodology. It is a necessary process before anyone starts
using any tools. Brainstorming involves bouncing ideas and generating creative ways to
approach a problem through intensive freewheeling group discussions. A facilitator, who is
typically the lead Black Belt or Green Belt, moderates the open session among a group of
participants.

B. Root Cause Analysis/The 5 Whys

This technique helps to get to the root cause of the problems under consideration and is
used in the "analyze" phase of the DMAIC cycle.

In the 5 Whys technique, the question "why" is asked, again and again, finally leading up to
the core issue. Although "five" is a rule of thumb, the actual number of questions can be
greater or fewer, whatever it takes to gain clarity.
C. Voice of the Customer

This is the process used to capture the "voice of the customer" or customer feedback by
either internal or external means. The technique is aimed at giving the customer the best
products and services. It captures the changing needs of the customer through direct and
indirect methods. The voice of the customer technique is used in the "define' phase of the
DMAIC method, usually to further define the problem to be addressed.

D. The 5S System

This technique has its roots in the Japanese principle of workplace energies. The 5S System
is aimed at removing waste and eliminating bottlenecks from inefficient tools, equipment,
or resources in the workplace. The five steps used are Seiri (Sort), Seiton (Set In Order),
Seiso (Shine), Seiketsu (Standardize), and Shitsuke (Sustain).

E. Kaizen (Continuous Improvement)

The Kaizen technique is a powerful strategy that powers a continuous engine for business
improvement. It is the practice continuously monitoring, identifying, and executing
improvements. This is a particularly useful practice for the manufacturing sector. Collective
and ongoing improvements ensure a reduction in waste, as well as immediate change
whenever the smallest inefficiency is observed.

F. Benchmarking

Benchmarking is the technique that employs a set standard of measurement. It involves


making comparisons with other businesses to gain an independent appraisal of the given
situation. Benchmarking may involve comparing important processes or departments within
a business (internal benchmarking), comparing similar work areas or functions with industry
leaders (functional benchmarking), or comparing similar products and services with that of
competitors (competitive benchmarking).

G. Poka-yoke (Mistake Proofing)

This technique's name comes from the Japanese phrase meaning "to avoid errors," and
entails preventing the chance of mistakes from occurring. In the poka-yoke technique,
employees spot and remove inefficiencies and human errors during the manufacturing
process.
H. Value Stream Mapping

The value stream mapping technique charts the current flow of materials and information to
design a future project. The objective is to remove waste and inefficiencies in the value
stream and create leaner operations. It identifies seven different types of waste and three
types of waste removal operations.

SOME OF THE IMPORTANCE AND BENEFITS OF SIX SIGMA


Improve customer service
Improve and increase efficiency or timeliness
Improve cash flow and make more money
Reduce operational costs and errors
Boost employee motivation
Cutting or decrease waste
Managing time
Reduce company’s legal risk

You might also like