Definition and Core Philosophy of Six Sigma - Essay Example

?Six Sigma Introduction: Definition and Core Philosophy of Six Sigma It is due to globalization that s have fast access to products, servicesand information. This concern has provoked organizations to improve the quality of their operations. Six sigma, therefore, is an approach aimed at improving quality. A number of researchers and authors have presented definitions on six sigma. Interestingly, their understanding of the concept is expressed in different words but the meaning is standardized. We can say that six sigma is a tool employed for the measurement and improvement of operational performance of an organization. This is done by distinguishing and correcting faults that occur in the organizational processes and products. In other words, six sigma is a management concept formulated by Motorola in 1986 which aims are defining high goals, data collection and carrying out the analysis of results to a fine degree so as to cut down the defects that appear in tangible products and services. Therefore, we can say that six sigma is focused on improving the quality of business processes and end products (Peter S Pande, Robert P. Neuman, Roland E. Cavanagh, 2000). The core aim of six sigma is to give businesses an error free performance. The philosophy of six sigma is that if an organization is able to measure the number of faults in its business processes, then it can systematically eradicate them and achieve close to perfection operations. The Greek alphabet Sigma is used to represent a deviation or variation from a defined standard. Organizations use sigma as a scale to measure their performance. The value of sigma is indirectly proportional to the number of defects. This means that smaller value of sigma will show less deviation from the norm that is less faults. For instance, two sigma covers ninety five percent of the bell curve whereas six sigma reaches to a point where there is absolutely no chance of defect. Simply put, six sigma is basically a standard for quality which aims at producing no more than 3.4 defects per million units or procedures. The goal however, is difficult to attain yet a number of manufacturing companies such as General Electric, Martin Dow, Johnson & Johnson, Nokia and many others have realized heavy savings with the application of six sigma. Service sector such as healthcare and financial institutions have also started benefitting from six sigma (Praveen Gupta, 2004). History: Whenever the origin of six sigma is talked about, the first name that strikes our mind is: Motorola. It is usually believed that the concept of six sigma was introduced by the employees of Motorola. A deep look into the history will show that the development of the concept began when Carl Frederick Gauss introduced major statistical element of bell curve called normal curve. In 1920’s Walter Shewhart analyzed the normal curve thoroughly and came up with his proposal that any business process or product may require rectification when the variation from mean is three sigma. After the second world war, Japan’s economy was poorly slashed down. However, with optimal utilization of natural resources and leadership, Japan became world leader in terms of quality. Noticing this sudden progress, U.S companies realized how important the role of quality in gaining profits and customer satisfaction is. The automobile industry of U.S was suffering to a great extent because Japanese had grabbed major share of its imports. In 1986, the engineers at Motorola implemented the concept of six sigma in their manufacturing processes. Bill Smith and team members decided to replace the measurement of defects in thousands by millions in order to make more sense out of the concept. Guidelines for addressing problems with six sigma were established and it was also suggested that projects in which six sigma is applied should always give positive outcomes. Therefore, six sigma is officially associated with Motorola. Observing Motorola’s increased efficiency, Allied Signal began implementing six sigma in its operations. Later Jack Welch of General Electric (U.S) also incorporated six sigma in more than two hundred projects and saw that the concept dramatically improves quality and savings (Matt Barney, Tom McCarty, 2003) Methodology of Six Sigma: The methodology of six sigma is a fine approach agreed by many six sigma specialists. Organizations use the standard methodology to improve the quality of their products, services and processes. The methodology was originally developed by Motorola team. It is assumed that the six sigma methodology has its roots in the popular Deming’s wheel which consists of four steps: plan, do, check and act. There are two methodologies of six sigma which are aimed at improving business operations and having delighted customers (Praveen Gupta,2004). DMAIC: The methodology of DMAIC has been designed for the improvement of those business processes which are already going on. DMAIC is the acronym for define, measure, analyze, improve and control. These five elements are basically the steps involved in the quality improvement process. Let’s have a look at them one by one: Define: The first step of DMAIC involves identifying the main goals and sub goals of the project, designing groundwork for the attainment of these goals and carrying out proper planning for the purpose of improving performance. Measure: This step includes measuring the significant facets of the current processes. This is done by collection of data and formation of metrics as per the data available. Analyze: This is an important phase of DMAIC. In this phase, the defects are analyzed thoroughly and cause and effect relationships are identified. It in ensured that all the factors are taken into account and the core cause of defects is determined. Improve: In this phase, the data, measurement and analysis carried above is used. The existing processes are improved by making use of better techniques to cut down the basic causes of defects. Control: In this phase, the improvement process undergoes continuous monitoring and control as to yield defect free products and services. DMADV: DMADV is the acronym for Design for Six Sigma. This methodology is applicable to those projects which are aimed at the creation of new processes or designs. Therefore it is essential that team work is carried on DMADV so as to develop such process, products and services that are up to the satisfaction level of the customers. DAMDV consists of following phases: Define: In this first step, the goals and objectives are laid down which are in accordance with the organizational philosophy as well as in alignment with the needs of customers. Measure: This phase of six sigma methodology requires the identification and measurement of those factors which are critical to quality (CTO) such as risk factors, customer demands, product specifications etc. Analyze: In this step, various alternative processes are developed and thoroughly analyzed for the purpose of selection of best design. Design: Design is the best and optimized option chosen after going through the phases mentioned above. Verify: In this last phase of DMADV Six Sigma methodology, the performance of the chosen design is verified in relation to the needs of customers. Six Sigma Certification: In the 1990s, the pioneers of six sigma that is Motorola and General Electric began training their employees on six sigma. They created three levels of certifications for them namely yellow belt, green belt and black belt. Later, many organizations started to provide six sigma certification to their employees. So far, there is no standard six sigma certification body. A number of training companies are educating employees on six sigma (Charantimath Poornima M, Poorinma M. Charantimat, 2011). Let us examine the six sigma certification levels one by one: Yellow Belt: Yellow belt certification of six sigma gives the learners an overview of the techniques and improvement methods. A yellow belt is expected to incorporate the six sigma quality improvement methods into the organization’s objectives so as to fulfill the customer’s expectations. Yellow belts are not capable enough to implement six sigma knowledge on large projects however, they are involved in the projects as a major subject matter expert. The core aim of yellow belt certification is to enable each employee to provide meaningful input in achieving organizational overall goal. Also they are able to bring improvement in their day to day workplace activities. Green Belt: The purpose of six sigma green belt is to polish the problem solving ability of the employees and train them especially in DMAIC. A green belt is the one who is known as a knowledgeable and trained member in his department and team; and he is allowed to lead a project. There are basically two purposes of green belts in organizations (a) to implement six sigma in business processes and (b) to ensure that improvements in terms of quality are made in projects. Unlike black belts who invest major portion of their working hours in six sigma implementation, green belts spend twenty fiver percent of their time towards it. Green belts can serve as assistants to the specialists-black belts. Six sigma green belts certified can apply the statistical tools and problem solving techniques for the success of organization and doing the same in their job responsibilities can bring a lift up in their career. Their role is vital in communicating the right strategy among organizational members. Black Belt: Six sigma black belt certification provides the trainees a through understanding of the concept, tools, philosophy and supporting systems. The role of black belts in an organization is that of a leader; they exhibit team dynamic and allocates responsibilities to the team members. The certification enables them to develop a better understanding of DMAIC and accordingly identify those elements and activities which do not add any value to the organization’s success. Black belts are held directly responsible for a significant project and they have all the right to take decisions on the proper implementation of six sigma tools. Black belts are given the task of integrating the learning on six sigma in business processes in order to ensure a profitable outcome. Advanced training on six sigma can make them a Champion or Master Black Belt (Charantimath Poornima M, Poorinma M. Charantimat, 2011). Benefits of Six Sigma: Six Sigma has brought a number of benefits to organizations such as: Six sigma functions to clarify the goals of the organization. In this manner the employees are able to understand what exactly the organization wants to achieve. Six sigma is responsible for dividing the role of certified employees. Yellow belts have the basic knowledge of six sigma and can focus on personal improvement. Green belts have a good understanding of six sigma philosophy and are able to execute small projects. Black belts are the leaders and assigned various projects for improvement. Master black belts and champions are the experts of six sigma techniques and implementation. Ranking in relation to belt colors makes the organization achieve objectives as a whole while improving quality of processes. Six sigma aims at reducing the defects while focusing on improving quality. As a result, customer satisfaction is accomplished. The focus of six sigma is on eliminating defects and giving the businesses an error free performance. Six sigma plays an important role in lowering the cost of production. Six sigma also aims at producing passionate leaders who can drive the organization in a better way. Being a statistical tool, six sigma yields quantifiable values which are easy to measure and analyze and help in making accurate decisions. Six sigma increases the efficiency of operations by reducing defects. Reduction of defects by applying six sigma results in improving the financial performance of the organization (Thomas Pyzdek, Paul A. Keller, 2001). Six Sigma Success Stories: Since the introduction of six sigma, many organizations have implemented the concept in their products, services and business processes and achieved remarkable results. For instance, Motorola saved about seventeen billion dollars by incorporating six sigma into their systems. General Electric invested three hundred and eighty dollars on training its employees on six sigma and within few months, they payback it received was seven hundred dollars due to the efficiency in production. In 1997, General Electric Systems were able to increase their savings to forty million dollars (Conlin, 1998). When it comes to development of product, General Electric Harris Energy Control System has also benefitted from six sigma. The production of energy management systems took them somewhere between twelve to eighteen months but with the help of six sigma, they were not only able to reduce the time frame to three months but also efficiently created two new products which were very much in the demand list of customers. Similarly, Allied Signals were making a profit of thirteen billion dollars and after the implementation of six sigma, they were able to reach annual sales of fourteen billion dollars with fifty percent less workforce. References: Charantimath Poornima M, Poorinma M. Charantimat (2011). Total Quality Management. 2nd ed. New Delhi: Pearson Education Ltd. p211-212 Conlin, M. (1998), “Revealed at last: the secret of Jack Welch's success”, Forbes, Vol. 161 No. 2, January. Peter S Pande, Robert P. Neuman, Roland E. Cavanagh (2000). The Six Sigma Way. New Delhi: Mc-Graw Hill Companies Praveen Gupta (2004), The Six Sigma Performance Handbook: A Statistical Guide to Optimizing Results, McGraw-Hill Professional Thomas Pyzdek, Paul A. Keller (2001). The Six Sigma Handbook: A Complete Guide for Green Belts, Black Belts, and Managers at all levels. 3rd ed. New York: Mc-Graw Hill Companies, Inc. Matt Barney, Tom McCarty (2003). The New Six Sigma: A Leader's Guide to Achieving Rapid Business Improvement and Sustainable Results. New Jersey: Pearson Education Ltd. Read More