An Overview of six sigma

What is six sigma?

• It is a methodology and a symbol of quality.
• Six sigma is a Quality philosophy and the way of improving the performance by knowing where you are and where you can be.
• Six sigma is heavily influenced by TQM ( Total Quality Management) and Zero Defect Principle.
• It is a highly disciplined process that enables organizations to deliver nearly-perfect products and services.
• It is a precise and systematic methodology that utilizes information and statistical analysis to evaluate and improve a company's operational performance, practices, and systems by identifying and preventing 'defects' in manufacturing and service-related processes in order to anticipate and exceed expectations of all stakeholders to accomplish effectiveness.

Benefits of six sigma:-

• Six Sigma comes out as a natural evolution in business to increase profit by eliminating defects ( A defect is any incident or event which fails to meet customer expectations).
• Its main focus in quality improvement and reduction of defects, by aiming processes at six sigma, there would not be 3.4 defects per one million opportunities.

Key success factors for six sigma:-

• Committed leadership from top management.
• Process thinking
• Disciplined customer and market intelligence gathering
• A bottom-line orientation and continuous reinforcement and rewards.
• Training

Uses of six sigma:-

• If there are processes that generate a lot of negative customer feedback, whether the customer is internal or external, six sigma should be considered as a means to study and sort out the problem.
• Within any organization six sigma :

1. Generates steady success.
2. Sets performance goals for each employee.
3. Upgrades value for customers.
4. Contributes to learning across the boundaries

NOTE- The aim of six sigma is to increase profits by eliminating variability, defects, and waste that undermine customer loyalty.

Six Sigma methodology:- six sigma projects follow two project methodologies named as-

1. DMAIC
2. DMADV

DMAIC: It is a five steps iterative process, it is used for the improvement of the existing process.

1. Define: Target, goals, project, scope, opportunity
2. Measure: The existing system is measured in this phase, the team identifies the gap between actual performance and expected performance.
3. Analyze: In this phase, the system is analyzed to identify the way to eliminate the gap between actual performance and expected performance.
4. Improve: In this phase the team tries to find a solution which is cheaper, better, and faster.
5. Control: The purpose of this phase is to control the new improved system.

DMADV: It is also a five steps iterative process, it is used for the improvement of new processes.

1. Define: It refers to defining the design goals that are consistent with customer demand.
2. Measure: It refers to identifying characteristics that are critical to the quality, product capabilities, and risks.
3. Analyse: Its refers to developing and designing alternatives.
4. Design: Its refers to designing an improved alternative.
5. Verify: In this phase team verifies the design.

Six Sigma is a set of disciplined, statistical-based, data-driven management techniques intended to improve business processes by greatly reducing the probability of an error or defect in a product, process, or service. At Oodles, we are an ERP development company that utilizes techniques like six sigma for performance measurement against defects per million. Our ERP development solutions range from WFM, SCM, and HRM to eCommerce and accounting through SaaS and cloud computing. Get in touch with us to employ the latest technologies for the efficient management of your business.