Six Sigma is a methodology that aims to reduce defects that occur to achieve near perfection in products and services.

Six Sigma minimizes mistakes and maximizes value, allowing breakthrough improvements to be made to processes and systems. Six Sigma is a business initiative that can help all organizations large or small become better than they are currently.

Applying the Six Sigma methodology in an organization means less variation in processes, fewer defects, higher quality, a more efficient production cycle, and faster business transactions. Six Sigma delivers very visible business benefits faster, and the effects are more lasting and far reaching than most of the other business improvement strategies.

One aspect of the Six Sigma methodology involves reducing the number of errors in a process to within acceptable limits of 3.4 defects per million opportunities and minimizing variation. When a process is repeated many times, the outcome will differ slightly with each repetition. This is called variation. With variation comes the opportunity for error. The Six Sigma methodology aims to reduce variation so that the opportunity for error is reduced, thereby increasing quality and productivity.

In statistical terms, sigma represents the variation around the mean. The mean of a process is the average outcome of a number of repetitions of that process. When depicted graphically, the mean measurement and the variation in measurements around the mean form what is known as the normal distribution, or the bell curve. Sigma is the measure of the variation around the mean, and corresponds to the number of defects in the process.

Six Sigma focuses on more than just error reduction - it is a business initiative that must be taken on by all employees throughout a company. Only when all employees adopt Six Sigma principles are its benefits realized. A large part of Six Sigma is process improvement - by improving a process, defects are reduced and quality improved, and the organization realizes the benefits of the methodology.

The Six Sigma tool for process improvement is the five-phase DMAIC methodology. When implemented correctly, DMAIC brings about great transformation in the way business is done in an organization. DMAIC is an acronym, with each letter standing for one phase in the methodology.

During the define phase, managers define the context and process objective from the customer's point of view. During the measure phase, managers measure and evaluate how a process is currently performed to determine its current status. During the analyze phase, managers analyze process problems to identify their root causes, and to understand the cause and effect relationships that result in the observed problems. During the improve phase, managers improve the process through planned process modifications and specific project solutions. During the control phase, managers control the new and improved process through monitoring.

The benefits of Six Sigma

For a company to realize the benefits of Six Sigma, the Six Sigma methodology must be applied to all processes in a unified manner. This prevents the changes made to one process from having a negative impact on another related process.

Applying Six Sigma thinking to processes benefits an organization in several ways:

generating sustained success Six Sigma is not just a one-off quick fix that is applied to solve individual problems any changes made during implementation are permanently adopted by the organization, changing its structure for the better, and ensuring that the environment of success becomes permanent. setting a performance goal for all employees Six Sigma provides a realistic performance goal that is common across all processes and systems the goal of reducing errors to just 3.4 per million opportunities. This performance goal gives employees a definite target to work toward. enhancing product and service value to customers The quality of products and services is improved and, as a result, these services and products have enhanced value to customers. Enhanced value is a great feature that allows companies to capture larger sections of the market, increasing revenue. accelerating the rate of process improvement within the organization Six Sigma facilitates rapid change and improvement in an organization, rather than gradual incremental change. This means that the rate of improvement is enormously increased in organizations applying Six Sigma methodologies, which is a great benefit.

promoting learning In a Six Sigma environment of rapid change, adapting to change is important and employers should promote learning new skills. The sharing of learned skills and knowledge between people and departments is also important in achieving the common performance goal of Six Sigma. This "cross-pollination" between different areas of an organization strengthens all departments and processes involved. executing strategic change to move the company forward When management decides that change is needed, Six Sigma is an excellent way of bringing about the necessary changes to both the actual processes and the strategic direction of the organization. Six Sigma places an organization in a position where it is poised to embark and succeed on a new strategic path.

Six Sigma is a business initiative that aims to reduce mistakes, or defects, in processes. Six Sigma aims to reduce the number of defects to 3.4 per million opportunities and also aims to reduce variation in processes, thereby reducing the chance for errors to occur. In statistical terms, sigma is a symbol representing the variation around the mean in a normal distribution.

A large part of Six Sigma focuses on process improvement through the five-phase DMAIC model. DMAIC is an acronym with each letter standing for one of the five phases in the model define, measure, analyze, improve, and control.

Applying Six Sigma in an organization has several benefits: generating sustained success, setting a performance goal for all employees, enhancing product and service value to customers, accelerating the rate of process improvement within the organization, promoting learning, and executing strategic change to move the company forward.

Course: Six Sigma and Lean in the Organization Topic: Introduction to Six Sigma