Six Sigma is often a business management strategy, originally developed by Motorola that today enjoys wide-spread application in most sectors of industry.
Six Sigma seeks to distinguish and remove the cause of defects and errors in manufacturing and/or service delivery and business processes. It utilizes a group of management methods, including statistical methods, and creates a separate infrastructure of people in the organization who definitely are experts within these methods. Lean Sigma aims to supply “Breakthrough Performance Improvement” from current levels) operational and customer relevant operational and measures.
Six Sigma initiatives are planned and implemented in organizations on “Project by Project” basis. Each project aims not just to improve a chosen performance metric but additionally sustain the development achieved.
Each Six Sigma project carried out within a organization follows a detailed sequence of steps and has now quantified financial targets (revenue increase, cost reduction or profit increase)
Six Sigma – Historical background
Six Sigma was originally developed as a group of practices created to improve manufacturing processes and eliminate defects, but its application was subsequently extended with other forms of business processes as well. In Six Sigma, a defect is understood to be most things that might lead to customer dissatisfaction and also would not meet business set specifications.
The weather of the methodology were first formulated by Bill Smith at Motorola in 1986. Six Sigma was heavily inspired by six preceding decades of quality improvement methodologies such as quality control, TQM, and Zero Defects, using the work of pioneers like Shewhart, Deming, Juran, Ishikawa, Taguchi yet others.
Like its predecessors, Six Sigma asserts that:
Continuous efforts to obtain stable and predictable process results (i.e. reduce process variation) are of vital importance to business success.
Manufacturing and business processes have characteristics which might be measured, analyzed, improved and controlled.
Achieving sustained performance and quality improvement requires commitment with the entire organization, particularly from top-level management.
Bed not the culprit Six Sigma different?
Features that differentiate Six Sigma besides previous quality improvement initiatives include –
A clear concentrate on achieving measurable and quantifiable financial returns from the Six Sigma project.
An increased focus strong and passionate management leadership and support
A special organization infrastructure of “Champions,” “Master Black Belts,” “Black Belts”, “Green Belts” etc. to steer and implement the Six Sigma approach
A clear persistence for selection by verifiable data, in lieu of assumptions and guesswork.
The term “Six Sigma” comes from an area of statistics named process capability study. It means the ability of processes to make a extremely high proportion of output within specification. Processes that operate with “Six sigma quality” above the short-run are assumed to produce (long-term) defect levels below 3.4 defects per million opportunities (DPMO).Six Sigma’s implicit goal is to improve all methods to that much cla of quality or better.
In recent years, Six Sigma has sometimes been in addition to lean manufacturing (management) to yield a methodology named Lean Six Sigma.
What exactly is Lean?
Lean is really a philosophy and hang of management techniques devoted to continuous “eliminating waste” making sure that every process, task or work action is made “value adding” (the genuine output customer covers!!) as viewed from customer perspective. Lean “waste elimination” targets the “Eight Wastes” namely:
Overproduction – Generating than what is essential by customer / market demand
Over-processing – Doing more into a product/service (although not perceived as value by customer)
Waiting – For material, information, people, equipment, procedures, approvals plus much more
Transportation – Movement of products / items during or after production
Defects – Errors, mistakes, non-complying products, services, documents, transactions
Rework and Scrap – Products, transactions or outputs not meeting specifications and have absolutely to be fixed, redone, rectified, marked down or scrapped / unusable.
Motion – Mainly people, document movement, searching etc.
Inventory – Buffer stocks or resources (Raw, Work in process, FG, Bench staff etc.,)
Unused Creativity – People knowledge and skills which aren’t employed by the corporation
Wastes make organization slow, inefficient and uncompetitive. Lean methods assistance to remove / reduce waste and leads to driving “business agility” (velocity) through smooth work flow across the organization producing rapid fulfillment of customer needs inside an optimum manner.
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