Six Sigma is a set of methodologies and tools used to improve business processes by reducing defects and errors, minimizing variation, and increasing quality and efficiency.
The goal of Six Sigma is to achieve a level of quality that is nearly perfect, with only 3.4 defects per million opportunities.
This approach focuses on minimizing variability in processes, ensuring consistent and reliable outcomes.
This is achieved by using a structured approach called DMAIC (Define, Measure, Analyze, Improve, Control) to identify and eliminate causes of variation and improve processes.
Six Sigma is a disciplined and data-driven approach widely used in project management to achieve process improvement and minimize defects. It provides a systematic framework to identify and eliminate variations that can impact project performance.
The etymology is based on the Greek symbol "sigma" or "σ," a statistical term for measuring process deviation from the process mean or target. "Six Sigma" comes from the bell curve used in statistics, where one Sigma symbolizes a single standard deviation from the mean. If the process has six Sigmas, three above and three below the mean, the defect rate is classified as "extremely low."?
The concept of Six Sigma has a simple goal – delivering near-perfect goods and services for business transformation for optimal customer satisfaction (CX).
Six Sigma has its foundations in five key principles:
- Focus on the CustomerThis is based on the popular belief that the "customer is the king." The primary goal is to bring maximum benefit to the customer. For this, a business needs to understand its customers, their needs, and what drives sales or loyalty. This requires establishing the standard of quality as defined by what the customer or market demands.
- Measure the Value Stream and Find Your ProblemMap the steps in a given process to determine areas of waste. Gather data to discover the specific problem area that is to be addressed or transformed. Have clearly defined goals for data collection, including defining the data to be collected, the reason for the data gathering, insights expected, ensuring the accuracy of measurements, and establishing a standardized data collection system. Ascertain if the data is helping to achieve the goals, whether or not the data needs to be refined, or additional information collected. Identify the problem. Ask questions and find the root cause.
- Get Rid of the JunkOnce the problem is identified, make changes to the process to eliminate variation, thus removing defects. Remove the activities in the process that do not add to the customer value. If the value stream doesn't reveal where the problem lies, tools are used to help discover the outliers and problem areas. Streamline functions to achieve quality control and efficiency. In the end, by taking out the above-mentioned junk, bottlenecks in the process are removed.
- Keep the Ball RollingInvolve all stakeholders. Adopt a structured process where your team contributes and collaborates their varied expertise for problem-solving. Six Sigma processes can have a great impact on an organization, so the team has to be proficient in the principles and methodologies used. Hence, specialized training and knowledge are required to reduce the risk of project or re-design failures and ensure that the process performs optimally.
- Ensure a Flexible and Responsive EcosystemThe essence of Six Sigma is business transformation and change. When a faulty or inefficient process is removed, it calls for a change in the work practice and employee approach. A robust culture of flexibility and responsiveness to changes in procedures can ensure streamlined project implementation. The people and departments involved should be able to adapt to change with ease, so to facilitate this, processes should be designed for quick and seamless adoption. Ultimately, the company that has an eye fixed on the data examines the bottom line periodically and adjusts its processes where necessary, can gain a competitive edge.
