Six Sigma actually stands for Six Standard Deviations (Sigma is a Greek letter that represents standard deviation in statistics). It is a comprehensive methodology that follows an extremely flexible system to achieve, sustain and maximise business success.
The core of sigma is based on understanding the needs of the customer, accurate and disciplined use of statistical data and factual information and constant engagement in managing, improving and reinventing the work modules. The concept of Six Sigma strives to eliminate defects to an extent of reducing the failure risk to a mere 3.4 parts per million for every transaction service or product. The principles and techniques applied in business, engineering and statistics are the key components of Six Sigma.
It involves working through a rigorous methodology that judiciously analyses data and to measure and improve the operational performance for any business undertaking or systems. Six Sigma seeks to identify and further prevent any defects by following a pre-defined sequence of steps.
The concept of Six Sigma methodology was initiated by the manufacturing division of Motorola. The company started executing the principles of this concept in all its facets. It laid strong emphasis on the performance measurement of its manufacturing units, analysed the areas of opportunity and minimized the occurrence of any wastages and errors with process redesigning. The application of this concept was used to manufacture parts that were made with repetitive processes and was eventually applied to other non-manufacturing divisions.
Lean Six Sigma
Lean Six Sigma can very well be defined as a strategically combined management approach that includes usage of waste reduction tools by eliminating non-essential steps in a process and further reduce any possible process variation by applying Six Sigma methodologies. The dual technology has been defined as DFLSS (Design for Lean Six Sigma) and is implantation has gained a lot of momentum across various industries today.
The applications of Six Sigma are largely categorised into two sections.
- DMAIC, which strives to improve any existing business model. It follows a strategy of defining the problem, emphasizing the goal. Then the data is collected for the key aspects and analyzed to investigate and establish a cause and effect relationship. This helps to determine the root cause of the defect, which is then improved by implementing new designs, mistake proofing or by creating new work processes. It also ensures ample control on the new working policies to minimize any deviations.
- DMADV, which involves creation of new process designs through five different phases. Starting from goal designing based on demand, then identifying the CTQs (Critical to quality), and risks. It further steps down to analyzing the identified policies and techniques for developing better designs. These designs are optimized via simulations to test their efficiency and finally handed to the process owner.
Another brilliant instance where the Six Sigma methodology turned tables for an IT service provider has been the implementation of result driven methods by Fujitsu. The UK-based MNC had continuous complaints of inefficient internal surveys that led to user error and unnecessary wastage of time in deriving resolutions.
Fujitsu then adopted the Lean Six Sigma concepts by redesigning the process forms for surveys and renewed its management processes. As a result, the solution delivery time was substantially reduced. The optimised usage of resources not only saved costs for the company but also enhanced the customer service for its users.
Various IT based industries, supply/demand chains and retail sectors have widely invested in Six Sigma operations to achieve better outputs by defect elimination. Industries like Insurance, ITES, Medical and other service industries have also incorporated policies and business practices based on the module.
Distinguished Features of Six Sigma:
- This methodology is aimed at achieving measurable returns from any project.
- Six Sigma has put a significant emphasis on disciplined and strong management leadership and support.
- It is the only methodology with a brilliant infrastructure that boasts of achievers in terms of "Champions," "Master Black Belts," "Black Belts," "Yellow Belts," etc.
The concept does not follow any assumptions or rule of the thumb methods; instead, it is logic and data based.
Partha Saradhi - I am an Aeronautical Engineer by profession and have been freelancing as a writer just for the fun of it. I like writing and sharing my ...
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