Why and What of Lean Six Sigma

Why and What of Lean Six Sigma

What is Six Sigma

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Six Sigma is a set of tools and strategies for process improvement originally developed by Motorola in 1985.[1] [2] Six Sigma became well known after Jack Welch made it a central focus of his business strategy at General Electric in 1995,[3] and today it is used in different sectors of industry.[4]

Six Sigma seeks to improve the quality of process outputs by identifying and removing the causes of defects (errors) and minimizing variability in manufacturing and business processes .[5] It uses a set of quality management methods, including statistical methods , and creates a special infrastructure of people within the organization ("Champions", "Black Belts", "Green Belts", "Orange Belts", etc.) who are experts in these very complex methods.[5] Each Six Sigma project carried out within an organization follows a defined sequence of steps and has quantified value targets, for example; process cycle time reduction, customer satisfaction, reduction in pollution, cost reduction and/or profit increase.[5]

The term Six Sigma originated from terminology associated with manufacturing, specifically terms associated with statistical modeling of manufacturing processes . The maturity of a manufacturing process can be described by a sigma rating indicating its yield or the percentage of defect-free products it creates. A six sigma process is one in which 99.99966% of the products manufactured are statistically expected to be free of defects (3.4 defects per million), although, as discussed below , this defect level corresponds to only a 4.5 sigma level. Motorola set a goal of "six sigma" for all of its manufacturing operations, and this goal became a byword for the management and engineering practices used to achieve it.

Six Sigma was heavily inspired by six preceding decades of quality improvement methodologies such as quality control, TQM, and Zero Defects. Like its predecessors, Six Sigma asserts the following:

Continuous efforts to reduce variation in process outputs is key to business success

Manufacturing and business processes can be measured, analyzed, improved and controlled

Succeeding at achieving sustained quality improvement requires commitment from the entire organization, particularly from top-level management

The term "Six Sigma" refers to the ability of highly capable processes to produce output within specification. In particular, processes that operate with six sigma quality produce at defect levels below 3.4 defects per (one) million opportunities (DPMO)[3]. Six Sigma's implicit goal is to improve all processes to that level of quality or better.

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Six Sigma is a registered service mark and trademark of Motorola, Inc.[4] Motorola has reported over US$17 billion in savings[5] from Six Sigma as of 2006.

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In addition to Motorola, companies that also adopted Six Sigma methodologies early-on and continue to practice it today include Bank of America, Caterpillar, Honeywell International (previously known as Allied Signal), Raytheon, Merrill Lynch, 3M and General Electric (introduced by Jack Welch).

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Methodology

Six Sigma has two key methodologies: DMAIC and DMADV, both inspired by W. Edwards Deming's Plan-Do-Check-Act Cycle: DMAIC is used to improve an existing business process, and DMADV is used to create new product or process designs for predictable, defect-free performance.

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DMAIC

Basic methodology consists of the following five steps:

Define the process improvement goals that are consistent with customer demands and enterprise strategy.

Measure the current process and collect relevant data for future comparison.

Analyze to verify relationship and causality of factors. Determine what the relationship is, and attempt to ensure that all factors have been considered.

Improve or optimize the process based upon the analysis using techniques like Design of Experiments.

Control to ensure that any variances are corrected before they result in defects. Set up pilot runs to establish process capability, transition to production and thereafter continuously measure the process and institute control mechanisms.

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DMADV

Basic methodology consists of the following five steps:

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Define the goals of the design activity that are consistent with customer demands and enterprise strategy.

Measure and identify CTQs (critical to qualities), product capabilities, production process capability, and risk assessments.

Analyze to develop and design alternatives, create high-level design and evaluate design capability to select the best design.

Design details, optimize the design, and plan for design verification. This phase may require simulations.

Verify the design, set up pilot runs, implement production process and handover to process owners.

Some people have used DMAICR (Realize). Others contend that focusing on the financial gains realized through Six Sigma is counter-productive and that said financial gains are simply byproducts of a good process improvement.

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Other Design for Six Sigma methodologies

Six Sigma as applied to product and process design has spawned an alphabet soup of alternatives to DMADV. Notable examples include:

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Methodology Proponent

DCCDI (Define, Customer Concept, Design and Implement) Geoff Tennant

CDOC (Conceptualize, Design, Optimize, Control) SBTI

DCDOV* (Define, Concept, Design, Optimize, Verify) *derived from SBTI CDOC roadmap[8] Uniworld

DMADOV (Define, Measure, Analyze, Design, Optimize and Verify) General Electric

DMEDI (Define, Measure, Explore, Develop and Implement) PricewaterhouseCoopers

IDOV (Identify, Design, Optimize and Validate)

I2DOV (Invent, Innovate, Develop, Optimize, Validate)

D-IDOV-M (Define, Identify, Design, Optimize, Verify, Monitor)

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Statistics and robustness

The core of the Six Sigma methodology is a data-driven, systematic approach to problem solving, with a focus on customer impact. Statistical tools and analysis are often useful in the process. However, it is a mistake to view the core of the Six Sigma methodology as statistics; an acceptable Six Sigma project can be started with only rudimentary statistical tools.

Still, some professional statisticians criticize Six Sigma because practitioners have highly varied levels of understanding of the statistics involved.

Six Sigma as a problem-solving approach has traditionally been used in fields such as business, engineering, and production processes.

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Implementation roles

One of the key innovations of Six Sigma is the professionalizing of quality management functions. Prior to Six Sigma, Quality Management in practice was largely relegated to the production floor and to statisticians in a separate quality department. Six Sigma borrows martial arts ranking terminology to define a hierarchy (and career path) that cuts across all business functions and a promotion path straight into the executive suite.

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Six Sigma identifies several key roles for its successful implementation

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Executive Leadership includes CEO and other key top management team members. They are responsible for setting up a vision for Six Sigma implementation. They also empower the other role holders with the freedom and resources to explore new ideas for breakthrough improvements.

Champions are responsible for the Six Sigma implementation across the organization in an integrated manner. The Executive Leadership draws them from the upper management. Champions also act as mentors to Black Belts. At GE this level of certification is now called "Quality Leader".

Master Black Belts, identified by champions, act as in-house expert coaches for the organization on Six Sigma. They devote 100% of their time to Six Sigma. They assist champions and guide Black Belts and Green Belts. Apart from the usual rigor of statistics, their time is spent on ensuring integrated deployment of Six Sigma across various functions and departments.

Experts This level of skill is used primarily within Aerospace and Defense Business Sectors. Experts work across company boundaries, improving services, processes, and products for their suppliers, their entire campuses, and for their customers. Raytheon Incorporated was one of the first companies to introduce Experts to their organizations. At Raytheon, Experts work not only across multiple sites, but across business divisions, incorporating lessons learned throughout the company.[citation needed]

Black Belts operate under Master Black Belts to apply Six Sigma methodology to specific projects. They devote 100% of their time to Six Sigma. They primarily focus on Six Sigma project execution, whereas Champions and Master Black Belts focus on identifying projects/functions for Six Sigma.

Green Belts are the employees who take up Six Sigma implementation along with their other job responsibilities. They operate under the guidance of Black Belts and support them in achieving the overall results.

Yellow Belts are employees who have been trained in Six Sigma techniques as part of a corporate-wide initiative, but have not completed a Six Sigma project and are not expected to actively engage in quality improvement activities[10].

In many recent programs, Green Belts and Black Belts are empowered to initiate, expand, and lead projects in their area of responsibility. The roles as defined above, therefore, conform to the older Mikel Harry/Richard Schroeder model, which is not universally accepted.

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attribution https://www.citehr.com/69116-about-sig-sigma-career-path.html#ixzz2VSrS3Tl9

Why Six Sigma Tools Are Important For All Businesses

Six Sigma is an initiative and a business philosophy relating to ways of enhancing the efficiency and productivity of a business to increase turnover and profits. There are three basic areas that this system has a focus on, namely the culture established by leaders, the implementation of various tools, and the infrastructure and systems that support the use of the concepts. Six Sigma tools are of value for a number of different reasons, this article helps to explain exactly why.

First of all, it should be noted that all businesses face problems and challenges from time to time. It does not matter what sector or industry a company is operating in, there will be issues that need to be overcome. Within the Six Sigma Methodology, there is on offer a structured method for tackling almost any problem. Without access to the right information and guidance, a simple problem can end up impacting many employees from many different departments, causing a serious downturn in productivity. 6 Sigma offers solutions and a structure that can reduce disruption considerably.

Diagrams and ideas laid out in these initiatives can help individuals understand the various aspects of business and how a disruption to a single process can have a negative impact on others, resulting in a snowball effect. When an employee is able to see the big picture, bottlenecks and related issues can be overcome with suitable solutions.

Many employees today are unaware of the way that businesses are holistic organizations. Individuals can often be closed-minded and ignorant of how their activities impact on others.?With six sigma tools, an employee can come to learn how their job is intrinsically important, and of value to the smooth running of an entire company. This knowledge can help to motivate individuals to develop a better understanding of their role in enhancing profits, and bring about a way of thinking that is positive for all.?Six Sigma is very much a process that relies on teamwork.?This teamwork must be ingrained within all employees and nurtured for 6 Sigma success!

In these days of intense competition, the latest management and training techniques can make a real difference on the efficiency and smooth running of all companies, no matter what their size. They provide an easy way to improve team building, develop a broader understanding of the running of the company, and create an environment that is conducive to growth and expansion.

Six Sigma tools are actually not that difficult to understand. Most involve the use of models, drawings, statistics, and diagrams that can be interpreted by employees from all backgrounds and education levels. They offer an easy way to bring about a positive change.

If you are not sure how to go about implementing an initiative relating to these type of tools and techniques, there is no shortage of free information available online that you can begin with. It is important to ensure that you involve all your employees in the development of the programs; by doing so, each will understand that they are valued. With time, you will come to see positive differences, and not just in the attitude of individuals, but also in the way that various departments work together to bring about results that benefit the organization as a whole.

To get your company started with a Six Sigma Initiative, research the training and certification options available to you, whether that be online, onsite, or both.?There are many different options that should be evaluated based upon budget, space, and employee learning styles.?Online Six Sigma Training is usually the most popular choice due to its lower cost and convenience.

Things Six Sigma Certification Can Do for You

Six Sigma Certification is beneficial to you as an individual or an entire organization.?If you are looking for training that will help you in your current career path, then a Six Sigma certification is definitely a step in the right direction.?Six Sigma courses can help you make positive changes with your current organization, improve your skills, and help you achieve success in your career in the marketplace.

The economy has taken its toll on many people and caused them to be unemployed looking for work or afraid they might be the next in line to lose their jobs.?People are nervous and want to hang onto their jobs.?Many people are going back to school to learn new skills in order to?improve themselves and their resumes.?The best way you can do this is through Six Sigma training.?Organizations recognize what an asset you are to them if you have been through Six Sigma courses and have a certification.?

If you are currently in a position and you want to better your skills, Six Sigma Certification is ideal.?Six Sigma courses will teach you how to see the big picture of an entire organization or of your department. You will learn how to identify problems within the business that cause a slow down of production, a decrease in efficiency, and even ways the company might be overspending.?Having the capability to identify these things is an asset.?You will also learn how to troubleshoot and come up with creative ways of resolving these problems, resulting in saving the company money, improving productivity, and improving overall processes.

If you are unemployed looking for training to make yourself look like the best candidate on your resume, Six Sigma training will help.?Employers like to see Six Sigma courses on a resume because it tells them that you are the perfect person to come in and act as a consultant, a team leader, or someone that can help the company achieve success.?In addition, you will have skills to motivate other employees in their current positions.?Companies want a leader who is capable of motivating others.?Six Sigma certification shows a company you are motivated and you have the skills they need to make changes for improvement.

Companies want change today and many are downsizing because they think they have to.?Six Sigma training will teach you ways to reduce cost without eliminating employees and improve overall processes with your company.?This can help you be sure you aren’t next on the lay off line and Six Sigma certification will also benefit you with your career goals in the future.?You will always be an asset to any company you apply for with a Six Sigma Certification.

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Using Six Sigma, You Can Find Your Dream Career Path

Executive Openings! Executive Career Opportunies: $80,000 to $500,000+

If it is time for you to choose a career path for the rest of your life, you really need to be selective and pick something that you think you would like to do for a long time. If being outside among wildlife and in fresh air is something you like, you could be a landscaper or a maintenance person who works on pools. If working in an office environment is more up your alley, you could work as an executive or manage an office.

Narrow down the options of your possible future career by making lists of things that you enjoy doing that could possibly lead to a career. Then you will want to find a college or training facility to help you on your way. You must be a diligent and dedicated student if you are to reach your potential. Concentrating on courses during high school and undergraduate college is also a great way to figure out what you would like to be doing in ten or twenty years.

For instance, if you enjoy baking cakes, working with food will probably satisfy you while you go through bakery school. It is important to be interested in the career you choose so that the business you have entered will profit from your presence. If you always want to go to work because you know you have the potential to really get things done, to achieve things you will not achieve sitting at home on the couch.

Many business careers will involve getting a great deal of education first. If you are prepared to go through some years of college and get all the necessary degrees to pursue your chosen career, it will be easier to maintain throughout those years. It is always good to plan ahead. Some people are not quite sure what kind of business plan they want to develop, or even how to create the plan, and they would benefit from utilizing a Six Sigma professional for this purpose. As long as there is an idea, a Six Sigma professional can help the business owner create a project from it.

The project will work toward making the idea a successful business. The methods used by Six Sigma professionals can be continued throughout the life of the business as it expands and when there is need for improvement. These two things should always be considered, perhaps not as a direct priority, but as something to keep on the back burner, even from the start of the business.

It is important to pick a career carefully so that you enjoy getting in the car and going to work each day. We all have enough stress in our day-to-day personal lives that there is no reason to have a job that you just don’t like doing. You should do something that will put a smile on your face.

Investigate how Six sigma principles can work to make various aspects of your life better. It is amazing how many things that Six sigma can be a help with.

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Six Sigma Black Belt Salaries

?https://www.payscale.com/research/IN/Certification=Lean_Six_Sigma_Certification/Salary

Six Sigma Training More Preferred Than MBA Programs in Recent Poll

It is no secret that in today's economy no job is secure. For the first

time in over 25 years, the United States unemployment rate has risen to

9.4% in May of 2009. Along with this grim statistic come salary cuts,

demotions, layoffs, and actual job cuts. Craig Setter, president and CEO

of Aveta Business Institute's Six Sigma Online Program,

(https://www.sixsigmaonline.org), has noticed a new trend in his company's

scope -- "At least a few times a day, someone will e-mail our customer

care team, asking if a Six Sigma training class or certification could

help them either get a job, or help cement their position in their

current job." He wanted to answer that question in a non-biased way.

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Setter was curious, so he put together a small research team who conducted

an email-based survey of United States management-level business

professionals between April 1, 2009 and June 1, 2009. There were 186

respondents, with questions centered around the subjects of work

experience, possessing an MBA, possessing a Project Management

Certification, and possessing various degrees of Six Sigma Certification.

All of the questions asked who the respondents would hire based on

qualifications alone.

When asked, work experience being equal, would you prefer to hire someone

with an MBA or a Six Sigma Green Belt, 162 (87.1%) respondents stated they

would prefer an MBA. When asked, if work experience being equal, would you

prefer to hire someone with an MBA or a Six Sigma Black Belt, 161

(86.56%) respondents preferred the Six Sigma Black Belt. When the MBA was

challenged by a Six Sigma Master Black Belt, a surprising 182 (97.8%)

chose the Master Black Belt.

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Then, a Project Management Certification was tested against various levels

of Six Sigma Certification. Of the respondents, only 41 (22.04%) chose a

Six Sigma Green Belt over a Project Management Certification. The Six

Sigma Black Belt certification and Six Sigma Master Black Belt

Certification both defeated the Project Management Certification with 116

(62.37%) and 168 (90.32%) respondents preferring Six Sigma Certifications

respectively.

?What does this mean? According to Setter, it means that, with experience

being equal, more Management-level business professionals would choose an

upper level Six Sigma trained individual over both an MBA and a Project

Management Certification. What makes a Six Sigma Certification so

job-worthy? "Maybe it is the great leadership and problem solving skills a

Lean Six Sigma trained individual possesses. Perhaps it is the knowledge

of the Six Sigma Methodology that could help their company cut out excess

processes and costs. The reason behind the Six Sigma Certification

preference will have to wait for another survey," laughs Setter. He

continues, "It just shows how valued a Six Sigma is in today's workplace."

Nafisah Lahadi

Unit Trust & Private Retirement Scheme Consultant | Million Dollar Producer Agency Manager | Financial Mentor | Sport Lady

2 年

Good information. Thanks Raman

Ravi Ventrapragada

Business Transformation | Management Consulting | GCC

2 年

Well written Raman Pushkar !!

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