Six Sigma Methodology in Management - Research Paper Example

Six Sigma Six Sigma is a methodology in management that is applied so as to achieve accuracy in manufacturing processes and eradicate defects. It is a disciplined and rigorous methodology that utilizes data and statistical analysis in measuring and improving an organization’s operational performance. Statistically, its purpose is to decrease process variation to enable virtually all the services or products provided satisfy or exceed the client’s expectations. Motorola formulated the methodological particulars of Six Sigma in 1986, though it can be traced back to Statistical Process Control, which first emerged in the 1920s. I selected this topic so as to be better equipped with the knowledge and skills that can enable me improve the overall performance of a company I hope to work for in future; Caterpillar Incorporated. Importance Six Sigma is a concept that has been utilized by large and highly profitable organizations to aid their businesses to perform better than before. In fact, it has been deemed as an entirely new method that works, in managing businesses according to Pyzdek (26). Six Sigma will be important to me since, compared to other techniques of quality improvement; it scores much higher and allows organizations to realize their full potentials. For instance, the Total Quality Management (TQM) technique mostly focuses on attaining predetermined quality levels but does not push the business to perform at its peak. As future industry leader who will seek to get the most from his business, I will definitely find this concept to be of the uttermost importance since it has worked for other big companies and will definitely work for me too. Six Sigma focuses on making consistent quality improvements until the organization is fully optimized. On achieving a certain quality level, the technique calls for the business to shift gears and begin concentrating on attaining better quality levels. This whole process continues to the optimization off all the business processes. Six Sigma is therefore important for any company as it will push it to efficiently produce higher quality products. This will be advantageous to me as, apart from improving the company’s overall efficiency and reducing operational costs, it will in addition give me a lead over my competitors. Analysis DMADV and DMAIC are the acronyms of the two methodologies that Sigma Six projects follow in eliminating defects from products or processes. The methodologies are both made up of five phases. Define-Measure-Analyze-Implement-Control or in short, DMAIC, is used in improving the processes of an already existing process while DMADV is used in creation of new process or product designs. Caterpillar Incorporated is a company with already existing and running processes, and as such, I will choose to apply the DMAIC methodology to improve the efficiency of those processes. Before beginning the implementation of DMAIC, it will be important to note that everything to do with Six Sigma can be simply expressed into a statistical equation (Brue, 91). One can always develop a statistical analysis to evaluate the performance of a firm in quantifiable terms that is free from emotions and opinions. Six Sigma involves facts, not opinions as one cannot measure perceptions, but equations can be measured. The Define phase involves identifying the vital processes of a given process, selecting a project that would combat and define the project’s problems and perimeters, respectively and determining the few important factors to be measured, improved, analyzed and controlled (Brue, 92). It is vital for any process to first define specific goals whose outcomes will be consistent with both the business’ strategy and especially the client’s demands and expectations. Complaints from customers can be helpful in defining the problem as noted by Kumar and Kumar (361). A business without a strong customer base is surely on its death bed. A good way to achieve this strong customer base would be to listen and address any complaints brought by the customers. This phase enables individuals lay down the road map for any expected accomplishments that they hope to achieve. Once one has defined the project’s parameters, it would be easier to understand the projects scope and sequence which it turn will determine how long the project will run, the companies goals and the personnel and tools that are to be put in place to achieve the objectives. The Measure phase involves selecting a critical to quality (CTQ) characteristic in the process or product, for instance, CTQ Y, where Y is the process or project. This done, the next steps would be to define the process standards, validate the system for measurement and to establish the capability of the process for the creation of Y. In DMAIC, individuals do not just assume that they understand whatever problem there may be in a project, one has to measure and validate the findings with facts (Pande & Holpp, 30). This eliminates any probability of errors due to neglect and further educates the workers more about the problem. This is considered completed only when the any defects of a project can be appropriately and accurately measured. A good measuring system has to be able alert the project workers of any discrepancy so they are corrected at the beginning of the project and also be able to show the validity of a process as it continues. In the Analyze phase, one is to define the improvement objectives, identify variation sources and screen for potential causes for the change in Y (Brue, 92). This phase enables will enable me to understand the cause of the defects and enable me to break up my findings to multiple reasons of the causes. In order to effectively do this, one has to come up with hypotheses on the causes and test them so as to statistically determine what factors are critical to the outcome. The statistical conclusions enables the project manager take the appropriate corrective actions. The analyze and Improvement phases share a common principle of first generating a quantity of elements and then distilling the quality out of the mass of generated elements (Harvey, 277). Improvement Phase would entail discovering relationships and establishing operating tolerances among and on the vital few measurable factors, respectively. It also involves the validation of the measurement system for the measurable factors. The last phase would be the Control Phase which involves the determination of the ability to control the vital few factors and afterwards, implementing a process control system. This phase enables one to maintain the changes made in the earlier phases in order to maintain improved results (Bertels, Rath & Strong, 197). It entails the continuous monitoring and documentation of the process and assessing the projects viability over time. In some cases, this phase never stops as it may be difficult to completely eliminate the problem. Synthesis/Integration In my research, I found out that all the authors seem to agree that above stages will only lead to success when implemented correctly and in order. In the area of improving a process, one has to fist describe the process and investigate whatever problems the process may be facing. It would not be possible to actually know the exact extent to which the problem affects the process until one can device a statistical way of measuring it. Once measured, and the results recorded, they need to be analyzed so and made the findings made easily understandable so that the appropriate corrective measures can be applied. The control stage is important as it indicates whether the process is working well or not. When all the above phases are synchronized into one process, it will be easier to apply the methodology and improve the output, since they all work together towards the same goal. Trends Managers and leaders in the business world today are confronted with the challenge of succeeding and remaining successful in their various business fields. Some businesses start up and shoot to the top of their business field but soon vanish out from the scene due to fierce competition. Such businesses, in most cases, apply techniques with cannot withstand the current of the ever changing business world such that, a slight change in the market affects them negatively. There is a continuously growing clamor for newer ideas on the best ways to effectively run businesses and enable them to be ready for any changes in the business world that may come up (Pande et al., 3). In my research, I noticed that all the authors embraced the Six Sigma principle with hardly any criticism of the principle. I also noticed that the Six Sigma methodology seemed to work across all business, not regarding what they were specialized in. Challenges It employees, especially in non-professional fields, have always been perceived as resistant to change (Shapira et al., 122). The main challenge that I expect to experience is from employees who may resist the new system because of the “fear of the unknown phenomenon”. It will not be any easier to convince my bosses to adopt the new plan. The other challenge I am likely to experience is difficulty in finding experienced and qualified professionals in Six Sigma, in the company. They may be used to a different system and it may take time before they are ready for the new system. Application When I join the decision making panel of Caterpillar Inc., I will suggest the implementation of the DMAIC methodology in improving the operations of the company. I will start from the first phase, moving progressively to the last stage after the successful completion of the preceding stage. Works Cited Bertels, Rath, & Thomas, Strong. Rath & Strong’s Leadership Handbook. Hoboken, NJ: John Wiley and Sons, 2003. Brue, Greg Six Sigma for Managers. New York: McGnaw-Hill Professional, 2002 Harvey, Jean Managing service delivery processes: Linking strategy to operations. Milwaukee, WI: American Society for Quality, 2005. Kumar, Dinesh and Kumar Dinesh U. Reliability and Six Sigma. Basel, Switzerland: Birkhauser, 2006. Pande, Peter, Neuman, Robert and Cavanagh, Roland. The Six Sigma Way: How GE, Motorola and other Companies are Honing. New York: McGnaw-Hill Professional, 2000 Pande, Peter and Holpp, Lawrence. What is Six Sigma? New York: McGnaw Hill, 2002 Pyzdek, Thomas. Six Sigma and Beyond. New York: McGnaw-Hill, 1999 Shapira, Phillip. The R&D Workers: Managing Innovation in Britain, Germany, Japan and the United States. Abingdon, UK: Greenwood Publishing Group, 1995. Read More