Six Sigma is a phrase you have probably heard of in highly organized and efficient organizations. Still, the definition can’t easily describe it. Six Sigma is certainly something you should listen to when you’re looking for a career in management. Integrating this philosophy into your company would turn your successes significantly and maximize customer loyalty.
What is Six Sigma?
Six Sigma was used in 1979 by Motorola and is a method of improving quality by reducing mistakes and variation. It also seeks to build a culture that always seeks to improve. This Six sigma management concept is also paired with Lean. It is an alternative way of increasing the quality that reduces waste and inefficiency, decreases costs, and improves productivity.
A Sigma value or Sigma level indicates how many errors occur in a process. More precisely, it shows the number of errors per million choices — the higher the Sigma, the fewer mistakes. Six Sigma, which reflects just 3.4 defects or errors per million opportunities, is the highest in the Sigma scale, while one Sigma is the lowest.
What is the crucial goal of six sigma implementation?
The key objective of implementing Six Sigma differs from firm to firm. Every organization genuinely wants better results with the introduction of Six Sigma, but how can it do that varies. No two implementations are alike, even though the methods and terms on the surface are consistent.
Recall that Six Sigma is a technique for quality management that seeks to increase performance by reducing variance. Their unique employee community handles the processes of each organization. The company’s problems would also be unique, although it can categorize into familiar topics, such as 4Ms (Man, Method, Machine, and Material).
For example, a production company faces numerous challenges to a company that deals with transactional processes.
Therefore, you might find that the DMAIC method is used in most cases when you are looking at a cross-section of Six Sigma programs in various organizations. You will also find standard tools from the Six Sigma toolbox and typical roles, including black belts used for project execution. However, every Six Sigma implementation is highly unlikely to be the same.
Six Sigma’s core objectives must include these particular predicted program results, which generally fall into three key areas:
- Quality: For almost every Six Sigma campaign, quality is a primary natural goal. Any other improvement attempts would be short without any assault on issues of quality in any phase. For traditional Six Sigma projects, the key emphasis on quality involves minimizing error/malfunction (or bug proofing) and reducing the waste involved in manufacturing a product or service. The project team aims to recognize and remove the causes of defects in a given process using a specified methodology and statistical tools. Here the goal is to develop the process’s end product with the least possible defects. Secondary quality goals include improved customer loyalty and increased profitability.
- Variability: In this context, variability refers to the difference between the standardized product or service and the actual output. Often the end-user/client cannot agree and are rejected from the requirements resulting in needless waste, lower benefit, and higher costs. Variability may arise from common causes or particular reasons. The goal is to minimize uncertainty, resulting in predictable and consistent production processes.
- Productivity: Increasing efficiency is a widespread target for many Six Sigma projects. The company may also have significant advantages if a process’s performance is nominally increased. Six Sigma projects are usually based on cycle time reductions, such as a banking accountant managing a single customer. The more quickly the cycle time you can process, the more cycles (customers) in one step. Additional areas of change include the elimination of duplication or value-added measures in a process. Simplification of processes increases cycle time and reduces waste time, thereby increasing the overall process efficiency.
Six Sigma – Its application
Six Sigma is a standard business process used to highlight the quality and enforcement commitments. Any condition that is not entirely satisfactory for the customer can be described as a defect. It is unbelievably versatile for Six Sigma. You can apply this form of technology in almost every industry.
Six Sigma’s approach usually minimizes business costs in addition to rising customer loyalty and decreasing defects. A Florida-based power, water, and sanitation corporation has saved $579 million with Six Sigma and Lean programs. In 2015, the USDA reported that it had made $57 million in savings, partially due to Lean Six Sigma’s path.
Why implement Six Sigma?
But Six Sigma is to be implemented? Here are six goals you can expect from the implementation of Six Sigma:
Six Sigma’s organizational advantages are: a Six Sigma process removes the root cause of challenges and failures in a single process. The solution often comprises robust products and services that minimize the effect on a consumer’s variable input or output experience. For example, many electrical utilities have voltage variability and often a deviation from the nominal value of more than 10 percent. Therefore, most electrical products are built to withstand the fluctuations and draw more amperage without harming any components or the device itself.
The use of Six Sigma eliminates process variation and thereby reduces process waste. It guarantees customer loyalty and standardization of procedures. Rework is reduced because one gets correct at the first time. Six Sigma also discusses the main criteria for the company. Six Sigma may also be used by organizations in their respective fields to achieve profits and become world leaders. The entire Six Sigma process is essentially structured to reach consumers and achieve organizational objectives.
With rising pressures on clinical laboratories to cut costs and be effective, management tools like Six Sigma and Lean are increasingly gaining popularity in medicine. Six Sigma has many possible applications in many sectors.
Several training firms provide Six Sigma Green Belt Certification. These usually offer both educational materials as well as classroom training in Six Sigma best practices. Many levels of certification demonstrate increased expertise in this sector. Your belt color will determine which teams you are working on and which grades of projects you are eligible for.