SIX SIGMA
- Introduction:
Different scholars have presented several definitions of Six Sigma, so much discussion some time make the concept blur. Is the Six Sigma is utilized as a quality goal the in true mathematical terms the meaning of Six Sigma is to take the product close to the zero error, defect or mistake. Zero does not mean exact zero, but it represent 0.002 mistakes per million defects. This process is highly disciplined, which encourages and helps corporations to give their focus on manufacturing near-perfect services and products. Six Sigma is a statistical term through which organizations measure that how far an existing process deviate from excellence. The major concept of Six Sigma is that6 if the defects can be encountered then they can be eliminated as well. Some core concepts of Six Sigma involve critical to quality, which means the most important attributes of product or service to meet the needs of customers. Another key concept is stable operations, which means in order to improve throughput, sustain a predictable and consistent process that is perceived as related to expectations by customers; variations, again the customers recognize connected to hopes; process capability concept includes that what can be delivered by process; defects means failure in fulfilling the expectations of customers; and design for Six Sigma is a program that permits organizations to meet the needs of customers and capability of process (Kumar, 2006).
History:
The evolution of Six Sigma began from 1970s; Six Sigma was conceptualized by Motorola in the mid-1980s as quality goal. In 1987, “the Six Sigma quality program” was introduced by Galvin. In 1988, Motorola improved its quality immensely and quality award through the implementation of six sigma. In 1989, the innovative Six Sigma program of Motorola achieved the importance. The company announced that the defect rate in 5 years will not exceed more than 3.4 parts per million (Kumar, 2006). Later, Six Sigma turned into quality strategy from problem solving technique and eventually into a refined quality philosophy. In 1993, the deployment tactics of Six Sigma was refined by Harry (known as godfather of Six Sigma) at Asea Brown Boveri. These tactics include black belt, green belt, master black belt, and champion. In 1995, Six Sigma became popular when general motors’ took it as a central focus of their business strategy (Process Quality Associates Inc, 2009). In 1990s, Six Sigma has expanded into transportable “branded” organizational management methodology and initiative. In 2000, the Six Sigma includes consultancy, training, and implementation of methodologies of Six Sigma, which means the term got effective establishment as an industry. In current arena, this philosophy is growing rapidly as business management system and companies are gaining immense success through the implementation of this program. PolyOne Company transformed the company’s culture and give priority to customer's voice and got a competitive advantage through Six Sigma practices (PolyOne, 2010).
Six Sigma is currently used by several industries. These industries include automobile, health care, retailing, manufacturing, transportation, financial service, education, chemical industry and many others. Dell is one of the examples of the success of six sigma. According to Michael (CEO of Dell computers), Six Sigma is a powerful stuff. In automotive industry, Ford motors are successfully applying Six Sigma practices and company saved $300 million (Paton, 2000). In health sector, the success of Six Sigma can be Cleary seen in “Aetna”. Aetna outperformed their colleagues by 40 percent in all of the aspects of commodity through Six Sigma benchmarking approach (Anthony, 2007). In hospitality industry, star wood is an example of success of six sigma. Through the technique hotel was able to gain more than $100 million in profit (Ante, 2007).
2. Methodologies:
There are several tools that are being utilized in Six Sigma, but the two major methodologies are DMAIC and DMADV, and each has five phases. Therefore in this section the emphasis will be given on these two major methodologies.
- DMAIC:
DMAIC is an integral part of company’s quality initiative of Six Sigma. DMAIC is data driven quality strategy that is used in order to improve the processes. Each phase in DMAIC process requires assurance of the best possible result. DMAIC analyzes the existing processes and liable to fix the problems. The processes of DMAIC are more reactive. It quantifies the dollar benefits more quickly.
- Define: In this phase company analyzes the problem. Define the problem statement analyzes the benefits and goals. Company define resources, develop milestones, project plans, high-level process map, and identify team, process owner, and champions. There are different tools used in this phase. Some of these tools are SIPOC diagram, project charter, CTQ definitions, and VOC (voice of the customer gathering). Also stakeholders analysis, process flow chart, and DMAIC break down structure of work are also used in this phase.
- Measure: In this phase, quantitative metrics is developed through exploration of VOC in more detail, and this is used to determine the success of the project. In this phase, data is collected, opportunities and defects are defined, and data collection plan is developed. Tools used in this phase are process flowchart, benchmarking, process sigma calculation, VOC, cause and effect diagram, and measurement system analysis. Also some other tools used are value stream mapping, structure tree, CCR Matrix, affinity diagram, data collection plan, and quality function deployment.
- Analyze: Objective of this phase is to understand the cause of the problem, sources of variation and non-value and value added process steps are identified. In this phase, objective of performance is defined, gap between the goal and current performance is identified. Tools that are used in this phase include, cause and effect diagram, data and process analysis, project charter, regression analysis, fishbone diagram, statistical analysis tools, 5Whys, and run chart or time series. Pareto chart, hypothesis testing, non-normal data analysis, process map review & analysis, scatter plot, and histogram are also used commonly in this phase.
- Improve: The most important phase of any concept is the improvement of the concept (Kumar, 2006). The objective of the team in this phase is to provide multiple ideas as many as possible on the basis of the idea that quality comes from quantity. Analyze phase feedback allow team to improve the processes. In this phase, appropriate solutions are identified, evaluate, and selected. Failure modes of potential solutions are assessed, and operational tolerance of possible system is defined. Tools that are used in this phase include simulation software, mistake proofing, Pugh matrix, brainstorming, QFD, FMEA (failure mode and effects analysis). Some also uses PCDA (Plan do check analysis), to be maps, and design of experiment in this phase. In this phase if team is forced to choose best from confliction options the “weighted criteria matrix” is used.
- Control: this final phase put the check and control in the place. In this phase, monitoring and control system validity is defined, procedures, standards, transfer plans, and handoff to the process owner are developed. Process capabilities, documentation finalizing, and project closing are the part of this phase. Tools that are used in this phase are control plan, control chart, cost saving calculations, documentation, and process sigma calculations (Islam, 2006; & Isix sigma, 2014).
- DMADV:
DMADV or DFSS is a process that has been defined by Motorola and applied to the novel process to ensure the attainment of Six Sigma quality. It has five phases such as define measure, analyze, design and verify. This focus is on product processes and design; processes are proactive. It is difficult to quantify the dollar benefit (Bertels & Strong, 2003).
- Define: At this stage customers and their need are analyzed, and goals and customers are defined. In this phased market opportunities and business is defined in detail. Project plans have been discussed and designed in this phase. Also, change management plan is designed to address the potential roadblocks, and risk assessment and plan review is also done. Tools that are used in this phase include market analysis tools, risk management plan, process analysis tools, and project charter. Project planning software and tools are used as well such as PERT and GAINT charts; utilization of out of scope and in-scope tools made possible (Bertels & Strong, 2003; & OPIA, 2008).
- Measure: The objective of this phase is to analyze and understands the internal and external CTQs (critical to quality requirements). Voice of customer data is gathered and understanding of customer requirements is developed more clearly. Competitors’ performance is evaluated and then risk is assessed and diminished. Critical toll gates and milestones are identified and then product and production process capability is analyzed. Tools that are used in this phase involve benchmarking, voice of customers, data collection plan, QFD, and Kano model. Also customer research, platform management matrix, and customer segmentation are other tools used in this phase (Bertels & Strong, 2003; & OPIA, 2008).
- Analyze: During the analyzing phase different approaches are determined in order to meet the requirements of stakeholders. In this stage, priorities are set, and several methods are developed based on the prioritization of functions. Seven alternatives are proposed, and the best is selected to implement. Tools that are used in this stage are affinity diagram, brainstorming, prioritization matrix, quality function deployment, and FMEA.
- Design: At design phase, high level designed and detailed designed are selected for chosen alternative. Development of high-level designed is based on prioritized elements. Occurrence of error is addressed. Tools that are taken into account at this stage are QFD, crystal ball, Monte Carlo, design of experiment, design review, planning tools, and statistical tolerance. Rapid prototype, process management planning, error mode error and failure mode and error analysis, and six thinking hats are also used widely in this phase (Bertels & Strong, 2003; & OPIA, 2008).
- Verify: At this phase testing of proposed design is done, results of the pilot test are evaluated, implementation plan is produced and project is handed over to the implementation team. Tools that are used in this phase include standardization tools, project documentation, planning tools, check sheets, work instructions, standard operation procedures, PDPC and process management charts (Bertels & Strong, 2003).
- Summary of articles or the case studies.
The Six Sigma has been applied on the telecom site rollout project in order to improve the performance of project management. For the deployment of the new site to the networks “ generic project management models” have been used by the company. According to the research result it has been encountered that to improve the performance of project management BMADV methodologies can be utilized. This is possible when the Six Sigma practices, development is done in new project management model. The rigorous pathway has been adopted in this research in order to make a conclusion. The tool process mapping has been used for viewing the work process, alternative methodologies were chosen. Results disclosed the fact that DMADV is an effective method in order to improve the process and management of projects. However, for the measurement of success it is essential senior management is committed. Results disclosed that proactive planning is an effective tool to increase efficiency (Duru & Alhasweh, 2013).
Tariq and Khan (2011) examined the utilization of Six Sigma for having insight into productivity and quality enhancement, and risk identification. They examined that the Six Sigma approach in several businesses offered the methodology of project management that lead the process performance near to zero defect. It has been observed that this concept is based on the notion of “Plan-Do-Check-Act” that is helpful in achieving the improved performance in diverse businesses. The study can provide the insight of tools that are used to improve the organizational productivity and quality. Event the caparison between Six Sigma and lean manufacturing is done as well. Overall different tools have been analyzed that can help in improving the productivity and quality.
Sokivic, Pavletić and Krulcic (2006) examined the impact of Six Sigma in improving the quality of project in company that is liable to produce automotive parts. The DMAIC methodology of Six Sigma has been adopted in this case. It has been examined that DMAIC play an immense role in quality improvement and results in diverse achievement. Results explored that through Six Sigma can reduce the cost of poor quality expenses, tool expenses, and labor expenses. It has been encountered that Six Sigma improve the quality of project management through reducing production and control time. It is the best way to encounter a place where major processes are needed.
Chakrabarty and Tan (2007) examined the applications of Six Sigma in the service industry. Factors that are necessary for success; characteristic that are critical to quality; core indicators of performance; limitations and benefits of Six Sigma has been analyzed in services. It has been analyzed that Six Sigma is beneficial in introducing the pattern and practices that are essential for the success of service industry; however, the progress is slow.
Zhang et al. (2009) examined the impact of application of Six Sigma on different companies. A comprehensive research on the literature review of Six Sigma has been done, and it has been identified that Six Sigma does not have a single concept it means different to different people. It shows complete new approach towards the management of quality and improvement of process. In several organizations, Six Sigma is implemented as a program of improvement.
Conclusion:
In this paper, Six Sigma has been discussed in detail. Historical review and developments of Six Sigma have been discussed. Some success stories in different industries have been disclosed that achieved success through the implementation of Six Sigma. There are several methods bust the most prominent methods of Six Sigma (DMACme and DMADV) have been discussed in this paper. Furthermore, it has been analyzed that Six Sigma has slow but surely effective impact on productivity and quality. Therefore, if I got a chance to implement the Six Sigma then I will surely implement this approach due to its immense impact on quality and productivity.
References
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