Six-Sigma Method - Essay Example

Running Head: Six-Sigma Method Six-Sigma Method [Institute's Six-Sigma Method Introduction Six-Sigma is a term referred for the carrying out of exercises for the systematic improvement of the business processes, especially the supply management by the elimination of imperfections. An imperfection is described as an eccentricity of manufactured goods or services to its qualifications. While the essentials of the methods were initially invented by Bill Smith at Motorola in the year 1986, Six Sigma was profoundly enthused by six previous decades of excellence development strategies, such as quality management, TQM, zero defects, etc. In specific, emphasis has been given on the following matters by the Six-Sigma method. Firstly, process outputs usually confront variations that are reduced by continuous efforts of the executives, in order to develop the business in an effective manner. Secondly, measurement, analysis, and controlling of different business processes, such as manufacturing, supply, marketing, etc. is done by the people at managerial positions. Thirdly, entire organization should be encouraged to participate in the different business processes, in order to achieve a quality position of the company. In this regard, every employee from the top-level management to the clerk has been emphasized in the Six-Sigma method. Sigma Term In definition, when quality production according to the specifications is acquired by the highly capable procedures and strategies, the ability of these processes has been referred as the Six-Sigma. Particularly, improvement of all the processes involved in a business is the major objective of the Six-Sigma method. In the year 1986, Motorola Company registered the service and trademark, Six Sigma. One of the major achievements of utilization of Six-Sigma method is the savings of more than fifteen billion dollars that was achieved by the Motorola in the year 2006. In addition, some of the major multinational companies have acquired and implemented the strategies of six-sigma method in their practices and have achieved significant results, such as Honeywell International, General Electric, etc. In specific, standard deviation of a population is generally represented by the Greek letter '' in lower case and referred as Sigma. In this regard, every item can be produced and supplied according to the given specifications, is the chief objective and theory of the six-sigma method. However, a number of experts have criticized the practicality of its approach, but this method has been able to achieve implementation in a number of companies around the globe. (Brue, 2002) A business process that implements a six-sigma method usually results in the production of approximate four defective parts out of every million production according to the definition of a six-sigma method, which has been significantly accepted by most of the business companies around the world. In terms of supply, 3.4 products will be supply beyond the specifications in every one million products in a six-sigma method. The process mean and the closest limit of specification share the number of standard deviations that is referred as the sigma in a capability study. The six-sigma method usually implies perfection rather than imperfection; however, the creators of six-sigma method have accepted that this method usually works effectively in short term processes, rather than the long-term procedures that usually produce more products that are defective. Methodology Generally, two important methodologies of six-sigma method have been accepted by most of the businesses around the world. In this regard, W. Edwards Deming was the first person to introduce and inspired others to the two strategies of the six-sigma method. Specifically, DMAIC and DMADV are the two abbreviations of the important methodologies found in the six-sigma method. When efforts are made to improve an existing business process, the efforts under the six-sigma method is referred as DMAIC method. On the other hand, new business processes are acquired by the implementation of DMADV methodology of the six-sigma method. However, both the methodologies are implemented for the achievement of perfect production and supply management in the business. DMAIC Some of the steps are involved in the basic strategy of DMAIC method of the six-sigma system. In the DMAIC approach, demands of the consumers, as well as, strategies of enterprises are considered for the analysis of consistency of improvement goals in different existing business processes, which are defined in the first step of the DMAIC approach of the six-sigma method. Later, relevant data is collected related to the current business process, which helps in the planning of future prospects and its improvement in the company. Different factors related to the causality are analyzed during the approach that helps in the understanding of relationship of various factors in business process. In this regard, it is ensured that all the factors have been considered during the determination of their relationship with each other, as avoidance of a single factor can result in the inappropriate and imperfect results, contrary to the theory of the six-sigma method. (Pyzdek, 2003) Lastly, the existing business processes like supply management are improved and advanced by the utilization of data collected from the analysis of the abovementioned factors. In the DMAIC approach, correction of variances is done for the prevention of any future defects in the business process. In this regard, process capability is established in most of the companies that performs pilot studies for the consistency in the improvement of the processes. In this way, the DMAIC approaches of the six-sigma method has been significantly implemented in various companies of the world, and have achieved closest results to the perfect production and supply management. (Yang, 2003) DMADV Some of the steps are involved in the basic strategy of DMADV method of the six-sigma system. In the DMADV approach, demands of the consumers, as well as, strategies of enterprises are considered for the analysis of their consistency for the designing of different business processes, which are defined in the first step of the DMAIC approach of the six-sigma method. Secondly, CTQs are identified and measured during the DMADV approach, which is followed by the identification and measurement of the product capabilities, as well as, different risk assessments that can be associated with this new business activity. Moreover, alternatives are designed and developed through proper and detailed analysis for the creation of high level of designs, in case of any failure or defect in the new business process. (Pyzdek, 2003) In this regard, the design capability is evaluated during the DMADV approach, in order to acquire the best design for the implementation of a new business process. This approach of the six-sigma method has emphasized significantly on the details of the design, as it may play a major and crucial role in the successful production and supply of the products. In this regard, the created designs are optimized during the approach that is verified during the implementation of the six-sigma method. The DMADV approach generally involves the implementation of simulations that can provide expected results in this phase. Before handing over the process to the executives, it is very important that production process should be implemented after the verification of the design during the DMADV approach of the six-sigma method. Statistics Problems and difficulties are usually resolved by the implementation of the six-sigma method, which can be referred as an analysis and systematic approach implemented by the collection of data, which is the fundamental part of the six-sigma method. Moreover, customers enjoy the central and important position in the six-sigma method that is considered one of the most component and factor for the successful completion of the business process. The business processes have usually positive impact from the statistical tools and analysis that are utilized during the six-sigma method. However, statistical tools should not be taken as the only core of the six-sigma method, as a number of experts have considered the six-sigma methodology as the statistical analysis of a business process, which is very inappropriate. One of the major factors for the criticism of six-sigma method is the misunderstanding of its approaches in terms of the utilization of statistical tools. (Yang, 2003) Implementation Roles in Six-Sigma Method One of the important improvements of six-sigma method is the advancement of quality supply-management processes. Before the introduction of six-sigma methodology, supply management in terms of quality was demoted adversely on the production side. In this regard, six-sigma method has implemented the terminology of martial arts ranking for the description of a chain of command that results in the promotion and encouragement of employees associated with all the business functions. Moreover, the six-sigma method has provided hope to the employees to reach straight into the executive suite, which has increased the quality standard in a number of companies that have implemented the six-sigma method in their different functions and departments. In this regard, a number of roles have been identified by the six-sigma method that can result in the flourishing achievement and realization of this methodology, which have been discussed in the following section of the paper. Firstly, most of the companies comprise of chief executive officers and employees at managerial level that play a vital and crucial role in the success of an organization. Moreover, implementation of six-sigma method is mostly depended on the decision-making of the top management of the companies. One of the factors of its dependence is that provision of freedom and resources to the other employees is the sole responsibility of the top management of a company. Therefore, breakthrough improvements in the business processes required empowerment and freedom that is provided by the managers, which are considered an important part in the implementation of six-sigma methodology. Secondly, an integrated manner is acquired for the implementation of six-sigma methodology across the organization by the champions. The upper management is usually considered for the selection of champions by the executive leadership of a company. In addition, black belt holders are mentored by the champions. Thus, champions play an important role in the implementation of the six-sigma methodology. (Brue, 2002) Subsequently, champions play the role of selecting Master Black Belts that are also considered an important role in the implementation of six-sigma method in different business processes in an organization. The employees of an organization acquire in-house training of six-sigma methodology from the master black belts. One of the major characteristics of master black-belt holders is their time commitment that is utilized by the provision of training, as well as, assisting champions in different processes, which has been confirmed by most of the statistics related to the six-sigma methodologies. (Dirgo, 2006) Specific projects are provided to the black belts by the master black belts, which are accomplished by the implementation of six-sigma method. In this regard, the execution processes are normally focused by the black belts, whereas identification of projects and different business functions is performed by the champions, as well as, the master black belts. Then, implementation of the six-sigma methodology is performed on the employees that have been referred as Green belts. The achievement of overall results is one of the responsibilities of the green belts in the six-sigma method. When the black belts provide in-house training, some employees are not ready to accomplish a project according to the six-sigma method. These employees have been referred yellow belts that do not provide any significant effect on the business processes. In a number of current programs, Green Belts and Black Belts are authorized to commence, increase, and guide developments in their responsible area. Examples of Implementation A small number of commercial organizations have made efforts for the adaptation of the six-sigma methodology in their different business processes with varied success. Conceivably, former CEO Bob Nardelli's efforts for the adaptation of six-sigma method to his organization have been notably appreciated by most of the companies in the region. One intrinsic difficulty with endeavors for the application of Six Sigma to retail was the involvement of provision of service to the people, and defects are reduced in the six-sigma methodology. Therefore, successful implementation of six-sigma method in the retail domain required taking shortage areas as defects or imperfection. For instance, workforce of the Home Depot was successfully reduced and training programs were implemented for the remaining employees for the reduction of defects in the company. (Rahim, 2005) In the result, it was observed that the six-sigma methodology was very significant and efficient on paper, but enormous aggravation was confronted by the employees at the time of its implementation. Moreover, the customers confronted the same difficulty due to the unavailability of salespersons on the floor. Even though, the training was given to the employees, more percent of customers had to be dealt by a single salesperson, as compared to the previous condition that provided more salespersons on the floor, which was increasing efficiency. In this regard, a number of adjustments have been done in the implementation of six-sigma methodology, especially in the supply management where, more distributors and suppliers are needed that were reduced by the implementation of actual six-sigma methodology in various companies. Application of Six-Sigma Method in the Supply Management The complete cycle of material flow involves the place of production to the place of distribution of the final product. When the different management functions are grouped together to attain the complete cycle of material flow that includes warehousing, shipping, planning, and distribution in the retail market, etc, such kind of functions have been referred as the supply management. In this regard, it is very important that all these business processes should be perfect without any defects, which may result in the unsatisfactory responses of the consumers resulting in the breakdown of the company that contrasts to the objective of the six-sigma method. (Dirgo, 2006) One of the major factors of importance of supply management is that it results in the increase or reduction of the final price of a product in the market. In this regard, an uncertain environment with unbalanced shortages and excesses can be balanced by the proper implementation of the six-sigma methodologies that have already been discussed in the paper. Moreover, three broad areas have been considered by most of the companies during the implementation of the six-sigma methodology, which are capacity, cost of poor quality, and the yield. Firstly, data and information is collected before the implementation for the proper and detailed analysis of the subject. In addition, measurements of every function, variability, defects, etc. have been considered the most important thing after the collection of data and information from the different business processes, in order to allow perfect supply management in an organization, as most of the processes like planning, production, marketing, distribution, etc. are associated with the supply management. Thus, it is very important that every function should be measured effectively. Criticism A number of experts have criticized the implementation of the six-sigma methodology that has provided many difficulties at the time of its implementation. Most of the companies, experts, and business analysts have appreciated and encouraged the concepts and theories related to the six-sigma method. One of the analysts from the Qualpro consulting firm of Holland have noted that six-sigma method is very effective in terms of its theories and roles; however, it shows ineffectiveness at the time of its implementation in the companies. In this regard, implementation of six-sigma method has rarely provided any significant results to a company that has implemented its methodologies. However, the advocates of six-sigma method have responded by stating it as the result of misunderstanding and human errors during the implementation. Still, many experts criticize the implementation of six-sigma methodologies in different business processes, especially improvement in the supply management that has been focused significantly by the six-sigma methods. (Dirgo, 2006) Conclusion Conclusively, the paper has tried to define, discuss, and analyze the different approaches of six-sigma method that plays a vital role in the improvement of business processes of an organization. We discussed that six-sigma is a term referred for the carrying out of exercises for the systematic improvement of the business processes, especially the supply management by the elimination of imperfections. In definition, when quality production according to the specifications is acquired by the highly capable procedures and strategies, the ability of these processes has been referred as the Six-Sigma. Then, we noted that DMAIC and DMADV are the two abbreviations of the important methodologies found in the six-sigma method. When efforts are made to improve an existing business process, the efforts under the six-sigma method is referred as DMAIC method. On the other hand, new business processes are acquired by the implementation of DMADV methodology of the six-sigma method. In addition, six-sigma method has implemented the terminology of martial arts ranking for the description of a chain of command that results in the promotion and encouragement of employees associated with all the business functions. Most of the companies, experts, and business analysts have appreciated and encouraged the concepts and theories related to the six-sigma method; however, they have criticized the implementation of the six-sigma method that has not provided similar effectiveness during its implementation. It is hoped that the paper will be useful for the better understanding of the Six-Sigma Methodology for the improvement of business functions and procedures in an organization, especially the supply management that is one of the core functions of a business cycle. References Greg Brue. (2002). Six Sigma for Managers. McGraw-Hill Professional. Kai Yang. (2003). Design for Six Sigma. McGraw-Hill Professional. M. Afzalur Rahim. (2005). Current Topics in Management. Transaction Publishers. Robert Dirgo. (2006). Look Forward Beyond Lean and Six Sigma. J. Ross Publishing. Thomas Pyzdek. (2003). the Six Sigma Handbook. McGraw-Hill Professional. Read More