Six Sigma Principles, Characteristics, and Benefits[Insights]

Six Sigma Overview

Six Sigma is a set of techniques or set of management techniques carried out to improve business processes by reducing the probability of error and defect occurring.

Six Sigma is a disciplined approach that uses data based statistics and also a continuous improvement methodology to eliminate defects in a product, process, or service.

The Six Sigma methodology was initially developed by Motorola and the company and later became popular when General Electric achieved business excellence by applying the Six Sigma Methodology in the early 1990s. There are now thousands of companies in the world that have adopted Six Sigma as a way of doing business.

Six Sigma principles:

The successful implementation of Six Sigma is based on five fundamental principles:

• Focus on customer requirements

• Using accurate measurements to perform error-free statistical analysis to understand improvement opportunities to build a solution for root cause identification of problems (variances)

• Be efficient and able to eliminate variation to continually improve the process.

• Involve workforce in cross-functional Six Sigma teams.

• Be thorough and be flexible.

What are the main concepts in Six Sigma?

1. DPMO (Defects Per Million Opportunities)

DPMO is defined as

2. Critical to quality:

Critical to quality is one of the main concepts in Six Sigma methodologies because quality can affect the entire business objective or goal.

Quality critical means the measurable characteristics of a product or service that must match the customer’s requirements for the product or service.

3.Defective:

The defect is defined as the characteristics of a product or service that are not those desired by the customer.

4. Processing capacity:

Process capability can be defined as the ability of your business process to deliver or produce a service or product that meets customer demands.

5. Variation:

The term variance is a bit different in Six Sigma methodology, here variance means that after delivering the service and the product, the control person can measure the difference between what the customer sees and what the customer actually feels after accepting. the product or service.

6. Stable operations:

Stable operations mean not just stabilizing the process, but companies need to ensure that the business process is consistent to reduce the gap between what the customer sees and feels.

Characteristics of the Six Sigma methodology:

• Six Sigma aims to avoid waste and effeminacy, thus increasing customer satisfaction by delivering what the customer really expects.

• Six Sigma is a strictly structured and disciplined framework methodology, which has very specific characteristics for particular participants.

• Six Sigma is a statistical data-based methodology that requires accurate or error-free data to perfectly analyze the process.

• Six Sigma is not just about improving quality and increasing sales, it is also about changing the results on the financial statements.

• By applying Six Sigma in your business, you are successfully achieving the following milestones, which we call business success facts:

o Improvement process

o Descent defects

or greater benefit

o Increased customer satisfaction

o Cost reduction

o Reduction of process variability

Six Sigma methodologies revolve entirely around a main cycle called DMAIC.

DMAIC

DMAIC is a data-driven quality strategy used to identify opportunities in the process to make improvements and reduce errors and defects.

D – Define – (Definition of the problem, opportunities, business objectives, customer demands)

Here you define what opportunity you are looking for or we can know what problem you are trying to solve or just what new business goal or customer demand you are trying to fulfill.

M – Measure performance

This is the crucial step for professionals looking for any opportunity to improve the service, process or product. The measurement is critical in the step and it must be accurate because you are trying to build a solution based on that measurement. In this process, the measurement team must focus on the process and what really matters to the customer.

A – Analyze opportunities

In this step, the team should analyze what is causing the problem and where there will be opportunities to improve the process, quality of service, cost, or product. In this step, the team spends their time finding the root causes of the problem and building the solution. depending on the results.

In this step, most of the experienced and certified Six Sigma Green Belt people analyze. Teams have to develop hypotheses based on the findings and results and then define and then work to prove or disprove the hypothesis.

I – Improve performance

After implementing the solution in the process, the teams must focus on the factors that are crucial to improve the process, the service or the product. In this step, the team should collect data to check if there is a measurable improvement or not, if yes, the team will follow these processes as a core process instead of a pilot process and then finally improve the baseline, which which will ultimately lead to improving the quality of the service or product. quality that ultimately meets customer satisfaction.

C – Control Performance

This is the step where the team has to control the process and sustain the changes and improvements they made to the process or service. This is one of the most important activities required by the business because keeping the process improved is very important to maintain the quality of the service or the quality of the product ultimately to retain the customer.

Six Sigma Benefits for Businesses:

1. Reduction defects:

Six Sigma revolves entirely around a single principle that reduces defects and ultimately increases the quality of the product or service. So when an organization has Six Sigma implemented into their process, the company will be totally focused on that principled, data-driven approach.

2. Cost reduction:

This is one of the final and long-term benefits that companies get when they have implemented Six Sigma in their process because the implementation of Six Sigma ultimately leads to the reduction of defects, which means saving time, resources, energy, manual efforts. labor and, ultimately, money.

3. Increased customer satisfaction:

The implementation of Six Sigma and DMAIC begins with the measurement of variation, which means measuring the gap between what the customer actually sees and feels. So the implementation has been completed successfully and if sustainable for the business, it will ultimately reduce variance in your services or products, which means higher customer satisfaction and higher customer loyalty.

Benefits of Six Sigma Certification

1. Help protect your organization from mistakes:

If you are working in an organization that needs to improve, your certification and the skills gained during certification will help your organization make a better product or provide a better service with a minimum of errors.

With Six Sigma certification and skills, you will be able to improvise the process and increase your organization’s profits, ultimately leading you to become a significant asset to the company.

2. Higher Salary:

Based on the survey on Payscale.com, you can see that Six Sigma certified people earn the highest salary and work in top multinational companies.

3. Increase your managerial and leadership capacity:

When you work as a Six Sigma professional in an organization, you have to assume all factors like finance, manpower, resources before making any decision or before implementing any change in any process, service or product.

Those who achieve the Six Sigma Black Belt Certification work as a Change Agent in their organization, they have a better understanding and knowledge about the process and how to improve it.

To work as a leader in the field of Six Sigma, you must have knowledge and understanding of financial management and risk assessment in order to get the job done without errors.

4. Broad scope for Six Sigma in all industries:

Many people think that Six Sigma is only beneficial for the manufacturing industry, but actually Six Sigma is applicable to all types of industry. The service industry like IT, healthcare and hospitality need to improve their service to provide 100% satisfaction to customers in completing their business goals, so the entire service sector needs Six Sigma professionals to improve their overall business process. and complete business goals.

5. Increase your productivity and capacity:

After completing Six Sigma certification, you are completing responsibility by putting in less effort, so the end result will be increased productivity and the ability to easily handle large projects with sustainability.