6 Sigma and DMAIC - Article Example

Abstract: In modern times where globalization and international supply chain relations have reduced distances, every organization strives for achieving the position of a market leader in its respective domain. Competitive advantage and excellence have become the norms towards the success of any organization. The current day set ups are focused on increased productivity and customer satisfaction. What is the paper about? The paper contains a multi dimensional insight that is applicable for the purpose of literature study, organizational implementation and learning as well as those processes which contribute towards the benefit of an organization. The components of this paper contain the necessary recipe which will address the aforementioned issues and provide an outer edge in organizational environment. This paper will help understanding the true value of knowledge that is required in order to achieve the full fruit of success in an organization. The detailed description of DMAIC and Six Sigma allow identification of those processes which are contributing towards the cause and also allow highlighting of those processes which should be stopped. WHAT ARE YOUR RESEARCH QUESTIONS? 1-What are the salient features of Six sigma and DMAIC individually? 2-How does Six Sigma and DMAIC contribute towards the productivity of an organization? 3- What are the benefits that can be achieved through implementation of Six sigma and DMAIC. WHAT IS THE AIM OF THIS RESEARCH PAPER? Aim and Objective: The paper will provide an insight into the concepts of six sigma and DMAIC and further help understanding six sigma effectiveness in an organizational environment. The paper would further enable understanding the details of how these methods can be adopted for successful business operations. (IT READS LIKE A PREAMBLE RATHER THAN AN ABSTRACT. AN ABSTRACT SHOULD SAY WHAT IS IN THE WORK OR PAPER) These are just two business and management related terms yet there is a complete scheme of actions that needs to be adopt in bid to achieve the above two stated features. With advent of modern processes, equipment, automated procedures and their availability to the manufacturing industry - (WHAT IS THE WORKING INDUSTRY?/ ), the competition has become tough and each organization strives towards the objectives achievements through the methods that are most highly recommended by quality gurus and various other proponents from the field of manufacturing and production- (WHICH FIELD?). Introduction: The distinctive positions so achieved by companies like Motorola and others (WHOM?) have been made possible through the adaptation of number of working principles, standardized methods, tools and techniques and trainings. Six Sigma and DMAIC are two of the essential components that contribute in an equal way towards the organizational productivity and increased effectiveness (Goldsby & Martichenko,pg 217, 2005). Each of them has its own working procedures and guidelines that if followed ensure quality based results. It is being often said that “variation is the enemy” (Hill & Jones,pg 130, 2007), the six sigma and its specialized processes namely DMAIC work on minimizing and nearly eliminating the variations that might exist. The variations are the difference in the value of what is to be achieved, and what is being achieved. The defective parts and the undesired results can be in various forms. It can be in form of the deviation from the desired results, it could be the loss of customer satisfaction level, it could be the time spent on a particular process, since extra time spent on a single item results in time lost over the next item. Brief History: The concept of six sigma came to forefront in the 80s decade of the last century when number of Manufacturing and production based industries- Namely Motorola, Seagate and Allied Signal took the initiative and adopted it in its company businesses and since then the aforementioned companies -(WHO) has not looked back (Gitlow, et al.,pg4, 2006). Seeing the output from this technique many organizations embraced to the six sigma technique and have it as part of their organizational framework now. Six Sigma is a statistical approach towards organizational improvement. It is set of features and steps that work towards improving the processes in an organization (Smith, et al., 2002). This is achieved by identifying the low quality products and services in terms of numerical values. The prime function of six sigma is to identify the low value actions, the actions are not just limited to the identification, rather six sigma approaches allows their ramification of various processes in a manner that best suits the organization and its affectivity. It shows the dispersion and deviation of along a normal distribution curve (N.D.C). This is done with considerations of upper tolerance limit (U.T.L) and lower tolerance Limit, any process, component development, or any other variable that falls between these posts can be termed as in alliance with the desired results and objectives, while the elements that fall outside this goal post, tend to decrease the efficiency and add up to the deviations which result in reduced percentage of accuracy (Taghizadegan,pg7, 2006). In practical the material to be manufactured and later delivered to the customers is checked- (WHICH) against the conformance level, two goal posts are set namely Upper Tolerance Limit( U.T.L) and Lower Tolerance limit( L.T.L) , the increase in width of the goal posts mean increase in the number of defective parts, ultimately the entire quality deteriorates. Hence it is least desired to get an expansion in the curve between the two posts U.T.L and L.T.L. It defines a statistical value of a certain numerical figure which is a bench mark towards comparison of an organization’s performance towards the objectives desired. The six sigma approach is based on the idea of only 3.4 defective items every million parts produced (Kumar & Kumar,pg4, 2006)). Which in other form, is an attempt to achieving nearly hundred percent efficiency and no or limited defects. The analysis is based on determining and evaluating the components that are defective and later on, strategy is devised to isolate and finally eliminate the defective parts in the system. Capability Defects Per million items Percentage of outcome 6 sigma 5.5 Sigma 5 Sigma 4.5 Sigma 4 Sigma 3.5 Sigma 3 Sigma 2.5 Sigma 2 Sigma 1.5 Sigma 1 Sigma 3.4 32 230 1350 6210 22,800 66,800 159,000 308,000 500,000 690,000 99.99966% 99.9968% 99.97% 99.865% 99.4% 97.72% 93% 84 % 69.2% 50% 31% (Tennant,pg7, 2002) (WHAT IS THE USE OF THE TABLE?) The purpose of this table is to provide an insight into the effectivity level that can be achieved courtesy six sigma. The table shows that as the value of sigma increases, a gradual decrease in the defects is seen automatically. This table gives a relation about what percentage of accuracy can be achieved with help of six sigma tools and technqiues. A defective component in the managerial language is termed as one that is against the planned action and customers requirements. The defective product or service is anti parallel to the policies defined and objectives set. Similarly, time spent on correction of a product or process means, time lost that would otherwise be spent over production of new process or product. Six sigma not just provides improved results, rather allows identification of the strengths and weaknesses. The knowledge of strengths allows further improvements while the knowledge of weak zones allows over coming them and converting negatives into positives (Reidenbach , 2007). The statistical figure of only three to four defective parts has its impact on every discipline and dimension of the organization. It allows performing a litmus test of the entire organization, its personnel, its processes, and its environment. Results of smaller degree of efficiency, or results with more than the desired and described level of defects per million parts mean there is a weak link in the setup. Hence, six sigma allows identification of those weak lines, and allows countering them in various suitable manners. The countering and corrective approach is responsibility of the management team. The core function of six sigma is the identification of the degree of accuracy, and subsequent degree of deviations in a certain list of products and processes. The statistical value of results and deviations allow an insight into various components of the system. For example, the customers serve as the back bone towards any organization, with reduced level of output percentage, the customers are bound to complain and get distant from the organization and its products and services, Hence the tool of six sigma, with its mention of the percentage accuracy and deviations level per certain volume, gives idea of how to keep a customer satisfied. The six sigma application is not just limited to the customer satisfaction; it allows the scrutiny of the various other products and processes that are involved in yielding the end result. The increase or decrease in the level of accuracy can also be affected by the performance of individuals. This along with the employing of the right kind of personnel at the right place. Hence the figurative value of six sigma serves as bench mark towards various other components of the system. Six Sigma and Its Compliance with T.Q.M: Six Sigma falls under the umbrella of Total Quality Management, which itself is a continuous improvement process and it consists of all those factors and processes which are in accordance with the customer satisfaction, organizational growth and distinctive position in the market (Mukherjee ,pg 337, 2006). The concept of six sigma allows implementing the principle of prevention rather than correction, which itself is a strong managerial tool and skill that is being preached all over the industry. DMAIC: Six sigma allows usage of number of processes that serve towards the benefit of the organization. Out of the various processes and methodologies DMAIC is a salient feature of the six sigma body and it covers various aspects of the effective working mechanism and increased throughput achievement in a large number of ways (Evans & Lindsay,pg 515, 2008). DMAIC: it is acronym for Define, Measure, Analyze, Improve and Control. Each of the literals has its own importance and all these processes work in a unit to enable achieving excellence. Each of the above mentioned terms have a broad scope behind them and brings along various prerequisites and assigns duties to various individuals who are involved in quality initiative processes (Schutta,pg72, 2006). Define: This is the first and foremost component to be taken into consideration. The definition of the entity enables moving forward. The definition can be in terms of the quality product, service, activity or the below the quality service and activity. A common management rule goes by that states that the first step towards resolving an issue is its identification. Defining is a similar concept. This area of the process allows identification and highlighting of areas where improvements are possible. The scope of define phase is pretty large and it includes defining the purpose of task at hand, defining the goals that are being understated in the early phases. It further involves defining the customer satisfaction parameters along with the proper steps that need to be taken in accordance. This area further allows explaining and comprehending the scope of the project and organization based on the pre defined goals. In alignment with the goals set it allows identification of areas of improvement. The DMIAC approach allows improvement in the following areas: Productivity: Financial improvements: Quality aspect: Time constraint: Measure: Once the define stage has been fulfilled the next in line is the measure process. This stage is directly related to the ongoing processes and hence is of immense importance. The measurements and findings obtained during this phase will enable setting the pathway for future proceedings. Through the use of flow charts and schematic diagrams and alignments, various activities and equipment performance can be measured against the desired results. The measure phase also involves identifying the key variables which can play an important role towards the final achievement from the process. The key variables identification allows areas of strength as well as areas of weakness in the existing setup. This stage of the entire process has more to do with the present state activities, and hence based on that, it serves as the pivot towards the future proceedings because deviations and negligence in the present means a direct impact on the future and final outcome. Analyze: Once the measurement part of the process is completed, analyses are drawn based on the findings from the measurement phase. It allows identifying and analyzing the gaps that might exist between the ongoing processes and the desired results. This step allows a clear view of what is at hand, the current progress, against the desired objectives. Analysis stage enables isolation and segregation of the quality products and processes and the low quality processes. The steps undertaken in this stage are thorough enough to enable isolation and separation of those factors which do not add any value to the entire project and action undertaken. Improve: This step is a cause effect of the previous stages. Any findings and weak lines found in the previous stages are worked out in this phase. In this phase the strategies are devised which enable working on the areas where improvement is sought. The improvements can be in the processes zone, the employees working input zone, the procedures undertaken, the choice of tool and technique and most importantly the external variables which may have an impact on the entire process are deeply studied in this phase of the improvement initiative undertaken. In this stage the alternative lines are chosen and recommended. All those options that will lead to no or minimum deviations from the desired list and the customers satisfaction level are recommended and implemented with consideration that the existing setup does end up getting affected from the changes induced. Improvement may also include the re designing of the process flow mechanism. This may be done while keeping in view the effective rate of success at present. If it is being felt through the experts view point that the existing processes do not yield a maximum profit and productivity level, the process flow mechanisms can be revised and re visited. Improvement may also be in form of the establishing a more state of the art based environment that has more support for automotive processes and activities where the reliance on manual processes and hands is reduced. Improvement is not just bound to finding the defects, rather improving the level of what is present at hand. This could also include the up gradation of the existing tools and techniques as well as the equipment being used for conducting various processes and products manufacturing. Control: This is the final entity of the entire improvement and quality assurance steps. The control can be in different forms, it can be in terms of the external variables, the internal variables. Hence all those factors those have a direct impact on the final outcome of the events undergone. This stage allows control of the resources used .Since the various individual processes adopted are the building blocks towards the final product, therefore a direct check and control on these multiple processes is very vital. Slight deviations in the various processes can have large negative impact when gathered together in the final output (McIntyre, 2009). The control phase also involves the standardization of the changes suggested, the processes changed and other factors that were altered during the earlier stages of scrutiny. An integral part of the control phase is to cast an insight into all the changes made and see if they are fully contributing towards the improvement in the industry and project. The official documentation and presentation of various components is also part of this phase. Features like I.S.O standards are checked against the processes under taken and it is being ensured that the system in place and the processes undergoing are in alliance and are co existent with the standardized set of rules (Stimson,pg75, 2006). The control phase further ensures application and observance of the standard operating procedures since it is the standard operating procedures that hold the key towards the success. Standard operating procedures so developed must be flexible in order to adjust and adapt the system at hand to the challenges faced. The timing consideration is of critical view in the implementation of the DMAIC tool. Its timing is relatively short and should be implemented in a quick span of time. It should not be delayed or undue additional time must not be consumed during a single stage since it would directly mean time compromised over the next stage, and since each of the stage is equally important, it must be avoided. A strict action plan that is in accordance and synchronization with the desired and specified objectives must be followed during the entire course of DMAIC process. Conclusion: Hence the entire six sigma approach is not just limited to process improvement, rather it enables achieving the maximum growth in the industry and this all in line with the customers’ demands and satisfaction level. In other words, six sigma and DMAIC are another name for guaranteed success. AND WHAT ARE YOUR KEY FINDING? Through the study of characteristic of each of these quality tools, it can be deduced that both are the key to success in terms of organizational productivity and customer satisfaction. Their implementation and adaptation in the organizational environment not just increases productivity but also reduces the work stress and provides new dimensions of progress and self assessment. Works Cited: 1-Evans, J. R. & Lindsay, W. M., 2008. “Managing for Quality and Performance Excellence”. Mason: Cengage Learning. 2-Gitlow, H. S., Levine, D. M. & Popovich, E. A., 2006. “Design for Six Sigma for Green Belts and Champions: Applications for Service Operations--Foundations, Tools, DMADV, Cases”. Toronto: Upper Saddle River. 3-Goldsby, T. J. & Martichenko, R., 2005. “Lean Six Sigma Logistics: Strategic Development to Operational Success”. s.l.:J. Ross Publishing. 4-Hill, C. W. L. & Jones, G. R., 2007. “Strategic Management: An Integrated Approach”. 8th ed. Houghton: Cengage Learning,. 5-Kumar, D. & Kumar, U. D., 2006. “Reliability And Six Sigma”. New York: Birkhäuser. 6-McIntyre, W. W., 2009.” Lean and Mean Process Improvement”. New York: Walter McIntyre. 7-Mukherjee, P. N., 2006. “Total Quality Management”. New Delhi: PHI Learning Pvt. Ltd. 8-Reidenbach, 2007. “Strategic Six Sigma for Champions”. New Delhi: Pearson Education. 9-Schutta, J. T., 2006. “Business Performance Through Lean Six Sigma: Linking The Knowledge Worker, The Twelve Pillars, And Baldrige”. s.l.:ASQ Quality Press. 10-Smith, D., Blakeslee, J. & Koonce, R., 2002.” Strategic Six Sigma: Best Practices from the Executive Suite”. New Jersey: John Wiley & Sons. 11-Stimson, W. A., 2006. “ISO 9001 and Sarbanes-Oxley: A System of Governance”. s.l.:Paton Professional. 12-Taghizadegan, S., 2006.” Essentials of Lean Six Sigma”. Boston: Butterworth-Heinemann. 13-Tennant, G., 2002. “Design for Six Sigma: Launching New Products and Services Without Failure”. Burlington: Gower Publishing, Ltd.. Read More