Six Sigma is a data-driven approach and methodology for eliminating defects in any process, from manufacturing to transactional and from product to service. The statistical representation of Six Sigma describes quantitatively how a process is performing. To achieve Six Sigma, a process must not produce more than 3.4 defects per million opportunities. An opportunity is defined as a chance for nonconformance, or not meeting the required specifications. This means we need to be nearly flawless in executing our key processes.
Six Sigma is a disciplined, statistical-based, data-driven approach and continuous improvement methodology for eliminating defects in a product, process or service. It was developed by Motorola and Bill Smith in the early 1980's based on quality management fundamentals, then became a popular management approach at General Electric (GE) in the early 1990's. Hundreds of companies around the world have adopted Six Sigma as a way of doing business.
History of Six Sigma
Motorola has long been recognized for their commitment to quality. Their Chief Executive Officer, Bob Galvin, started the company's focus on quality with his "Do it right the first time" policy in the 1970's. In the mid-1980's, Motorola engineers decided that the traditional quality levels weren't adequate. Their research indicated that the major issue was not in the manufacturing process, but in the design process. They found that the closer the design performance is to the limits of the product specifications, the more likely it is that the product will fail in the field. As a result, they sought to improve the design process to achieve a higher level of quality.
Bill Smith, a reliability engineer at Motorola, was the original behind the Six Sigma concept. He saw that reducing variation in the process leads to more reliable products. Six Sigma was first used by Motorola to improve their manufacturing processes and has since been adopted by many other companies and industries.
Adoption by General Electric
In the mid 1990's, Jack Welch, the CEO of General Electric (GE), adopted Six Sigma and made it central to their business strategy at GE. After successfully applying it to their manufacturing processes, they quickly realized that Six Sigma could be applied to other aspects of the business. For example, they found that Six Sigma was an effective tool in reducing errors in invoicing and shipping documents. GE has reported benefits on the order of billions of dollars and has estimated the cumulative benefits from Six Sigma at US $10 billion during the first five years of implementation.
GE's success with Six Sigma helped to popularize it and it has since been adopted by many other companies. Today, it is used in many industrial sectors, and its techniques have been applied to reduce errors, waste, and variability in many processes.
Principles of Six Sigma
The fundamental objective of the Six Sigma methodology is the implementation of a measurement-based strategy that focuses on process improvement and variation reduction through the application of Six Sigma improvement projects. This is accomplished through the use of two Six Sigma sub-methodologies: DMAIC and DMADV. Each Six Sigma project carried out within an organization follows a defined sequence of steps and has quantified value targets, for example: reduce process cycle time, reduce pollution, reduce costs, increase customer satisfaction, and increase profits.
The two methodologies, DMAIC and DMADV, consist of five phases each. DMAIC is used to improve an existing business process; DMADV is used to create new product or process designs for predictable, defect-free performance.
DMAIC
DMAIC stands for Define, Measure, Analyze, Improve, and Control. It is a data-driven quality strategy used to improve processes. The DMAIC process is a core component of the Six Sigma methodology, and it is designed to provide organizations with a systematic approach for problem-solving and process improvement.
The Define phase involves defining the problem or project goals. The Measure phase involves measuring the current process and gathering relevant data for future comparison. The Analyze phase involves analyzing the data to investigate and verify cause-and-effect relationships. The Improve phase involves identifying, testing and implementing a solution to the problem; it also involves a plan for sustaining improvements. The Control phase involves monitoring of the changes and the implementation of a control plan to ensure the problem does not recur; it also involves setting up ongoing measures to monitor process performance.
DMADV
DMADV stands for Define, Measure, Analyze, Design, and Verify. It is a data-driven quality strategy used to design or redesign a product or process. The DMADV process, like DMAIC, is a component of the Six Sigma methodology and is designed to provide organizations with a systematic approach for designing or redesigning a product or process.
The Define phase involves defining the project goals and customer deliverables. The Measure phase involves measuring and determining customer needs and specifications. The Analyze phase involves analyzing the process options to meet the customer needs. The Design phase involves designing the process to meet the customer needs. The Verify phase involves verifying the design performance and ability to meet customer needs.
Benefits of Six Sigma
The benefits of Six Sigma are many and varied, depending on the application. However, the main benefits are improved quality, reduced variation, improved process speed, reduced cost, increased customer satisfaction, and increased profits. These benefits are achieved by reducing the variability and waste in processes, which leads to more predictable and reliable outcomes.
One of the key benefits of Six Sigma is the reduction in variation. By reducing variation, processes become more predictable and less prone to errors. This leads to higher quality products and services, which in turn leads to higher customer satisfaction. Another key benefit is the reduction in waste. By identifying and eliminating non-value adding activities, companies can reduce costs and increase efficiency.
Improved Quality
One of the main benefits of Six Sigma is improved quality. By reducing the variability in processes, the quality of products and services can be improved. This leads to fewer defects, fewer reworks, and fewer returns, which in turn leads to higher customer satisfaction and increased profits.
Quality improvement is achieved through the systematic application of the Six Sigma methodology. By following the DMAIC or DMADV process, organizations can identify the root causes of quality problems and implement solutions to eliminate them. This leads to a reduction in defects and an increase in the quality of products and services.
Reduced Variation
Another key benefit of Six Sigma is the reduction in variation. Variation is the enemy of quality. It leads to unpredictability and errors. By reducing variation, processes become more predictable and less prone to errors. This leads to higher quality products and services, which in turn leads to higher customer satisfaction.
Variation reduction is achieved through the systematic application of the Six Sigma methodology. By following the DMAIC or DMADV process, organizations can identify the root causes of variation and implement solutions to eliminate them. This leads to a reduction in variation and an increase in the predictability and reliability of processes.
Role of Automation in Six Sigma
Automation plays a crucial role in the implementation and success of Six Sigma. Automation can be used in various stages of the Six Sigma process, including data collection, data analysis, process control, and process improvement. Automation can help to reduce variation, improve process speed, reduce costs, and increase efficiency.
Automation can be used in the data collection stage to collect data more accurately and efficiently. This can help to reduce variation in the data and improve the reliability of the data. Automation can also be used in the data analysis stage to analyze the data more accurately and efficiently. This can help to identify the root causes of problems more quickly and accurately.
Process Control
Automation can be used in the process control stage to control the process more accurately and efficiently. This can help to reduce variation in the process and improve the reliability of the process. Automated process control systems can monitor the process in real-time and make adjustments as needed to keep the process in control. This can help to prevent defects and improve the quality of the products or services.
Automated process control systems can also provide real-time data on the process performance. This can help to identify problems in the process more quickly and accurately. This can lead to faster problem resolution and improved process performance.
Process Improvement
Automation can be used in the process improvement stage to implement improvements more accurately and efficiently. This can help to reduce variation in the process and improve the reliability of the process. Automated process improvement systems can implement improvements in real-time and monitor the results. This can help to ensure that the improvements are effective and sustainable.
Automated process improvement systems can also provide real-time data on the results of the improvements. This can help to monitor the effectiveness of the improvements and make adjustments as needed. This can lead to continuous improvement and sustained process performance.
Conclusion
Six Sigma is a powerful methodology for improving the quality and efficiency of processes. It provides a systematic approach for identifying and eliminating defects and reducing variation in processes. The benefits of Six Sigma include improved quality, reduced variation, improved process speed, reduced cost, increased customer satisfaction, and increased profits.
Automation plays a crucial role in the implementation and success of Six Sigma. It can be used in various stages of the Six Sigma process, including data collection, data analysis, process control, and process improvement. Automation can help to reduce variation, improve process speed, reduce costs, and increase efficiency. By leveraging the power of automation, organizations can achieve operational excellence and deliver superior value to their customers.
