Six Sigma Tools to improve your Business

Introduction

Lately, Six Sigma and Lean have become critical buzzwords for progressive organizations seeking to improve efficiency. Six Sigma denotes a methodology in business management that uses a scientific approach to measure quality while reducing defects and variations. On its part, Lean is a combination of philosophies, tools, and methodologies that make up a management system to solve business problems scientifically.

These two methods are usually used hand in hand by many associations within a variety of industries which combine mindsets and techniques adopted from each approach. There also exist several frameworks for the two systems. Most of these tools can be used significantly by organizations of all kinds, even those that have not fully embraced the twin methodologies.

Six Sigma Tools

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DMAIC is a 5-step process, Six Sigma's foremost and most accustomed method/tool.

The five steps are:

• Define
• Measure
• Analyze
• Improve
• Control

The DMAIC process helps improve manufacturing methods by using data and measured objectives. Also, a process known as DMADV is used to develop a new strategy, product, or service, whereas DMAIC helps improve current processes.

DMADV Stands for:

• Define
• Measure
• Analyze
• Design
• Verify

The DMADV process helps develop a high-quality product or service by creating an efficient process doing thorough analyses, and using data.

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The 5 Whys

?In your organization, the tool 5 Whys is used To determine the root cause of problems, frequently deployed as part of the Analyze phase in DMAIC.

The 5 Whys works like this:

• Please write down the problem you are having so that every team member can focus on it specifically.
• Ask why the problem took place.
• If your preferred answer is not the main reason for your problem, ask why again.
• Repeat this question at least five times to find the valid reason for the problem.
• Whys do not mean that it has to be restricted to 5 times only; you can ask more than five times, but after five times, you will get clarity on the root cause of the problem.

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The 5S System

Workplace materials are organized following a tool known as the 5S System for immediate access and more proper management. The waste produced by poor conditions and workstations is eliminated with the help of this System. The 5S are:

• Seiri (Sort)?– Leaving only necessary items. All additional items are drawn from current production.
• Seiton (Set in order)?– Manage all things and label them according to being clutter-free.
• Seiso (Shine)?– Keep your job area clean, and examine everything in it regularly.
• Seiketsu (Standardize)?– Write the standards you have set, sort them, put them in order, and shine the steps above.
• Shitsuke (Sustain) –?Apply and achieve the standards you have set for your company and make everyone obey them regularly.

Value Stream Mapping

Value Stream Mapping is used in the Analyze phase of DMAIC and Lean Manufacturing, making it perfect for Lean Six Sigma. To help you enhance and optimize flow throughout your association, a value stream map was created to guide the flow of materials and knowledge in one of your operations.

Value Stream mapping helps you identify three things:

• Value Enabling Activities:?Identifying the activities that add value to your processes when enabled.
• Value-Adding Activities:?Identifying the activities that add value to your operations.
• Non-value adding activities:?Identifying and eliminating the activities that do not add value to your operations.

So to make your processes more compact, swift, and precise, you have to eliminate wait time between consecutive steps in your processes and eliminate all your non-value-adding activities with the help of Value Stream Mapping.

?Kanban System

Kanban is a Japanese word meaning billboard. The Kanban System, a supply chain control system, focuses on cost reduction by implementing a just-in-time inventory control system. It is straightforward to use and has many benefits, for which it is also one of the most famous six sigma tools. Kanban system increases efficiency and brings more focus to the business as it works on a simple and elegant idea by activating the supply chain when the demand requires it, by feeling additional resources and allowing it to use them better. This system helps all the current business processes by setting inventory holding limits.

Kaizen

Kaizen means continuous improvement. It is a practice that continuously involves observing, identifying, and implementing incremental improvement in your manufacturing process by involving all employees and managers and encouraging them in manufacturing improvements.

It ensures to rectification minor inefficiencies every day through the collective talents and knowledge of everyone working in the company. It also provides the reduction of waste in production.

Pareto Chart

Pareto Chart is a graphic illustration that envisions what part of the process results in outputs the most. You must first figure out the process's components and how to measure them to create such a chart. It allows Six Sigma teams to identify the process's most significant issues by displaying differences between data groups.

It is considered the essential tool of Six Sigma as it helps the team identify 20% of resources that causes 80% of problems in their processes. In short, it will give you a clear idea of which component requires your immediate attention.

Regression Analysis

Regression analysis used to define the mathematical relationship between an input and an output variable is a statistical process for estimating and understanding the relationship between variables. Graphing these inputs and outputs enables you to envision patterns or deviance from standard practices in your workflow.

You have to be careful when conducting a deterioration study. In Layman's language, Regression analysis is a statistical method that helps determine the extent to which a relationship exists between two variables. If the connection is strong enough, one can accurately identify one variable's values based on another variable's importance using a simple linear formula.

Suggested Reads

This is a guide to Six Sigma Tools. Here we discuss the powerful tools of Six Sigma for addressing control and problem-solving. Check out these blogs to know more about Six Sigma

1.?Six Sigma Certification Guide

2.?Project Management Methodologies

3.?Lean Six Sigma Certification Levels and Requirements