Six Sigma and Its Benefits

Six Sigma is a business improvement methodology, originally developed by Motorola to systematically improve processes by eliminating defects. Defects are defined as units that are not members of the intended population. The objective of Six Sigma is to deliver high performance, reliability, and value to the end customer. Since it was originally developed, Six Sigma has enjoyed wide popularity as an important element of many Total Quality Management (TQM) initiatives.

Methodologies:
Six Sigma has two key methodologies: DMAIC and DMADV. DMAIC is used to improve an existing business process. DMADV is used to create new product designs or process designs in such a way that it results in a more predictable, mature and defect free performance.

DMAIC:
Basic methodology consists of the following five steps:

* Define the process improvement goals that are consistent with customer demands and enterprise strategy.

* Measure the current process and collect relevant data for future comparison.

* Analyze to verify relationship and causality of factors. Determine what the relationship is, and attempt to ensure that all factors have been considered.

* Improve or optimize the process based upon the analysis using techniques like Design of Experiments.

* Control to ensure that any variances are corrected before they result in defects. Set up pilot runs to establish process capability, transition to production and thereafter continuously measure the process and institute control mechanisms.

DMADV:
Basic methodology consists of the following five steps:

* Define the goals of the design activity that are consistent with customer demands and enterprise strategy.

* Measure and identify CTQs (critical to qualities), product capabilities, production process capability, and risk assessments.

* Analyze to develop and design alternatives, create high-level design and evaluate design capability to select the best design.

* Design details, optimize the design, and plan for design verification. This phase may require simulations.

* Verify the design, set up pilot runs, implement production process and handover to process owners.

Benefits of Six Sigma:
Those organisations that implement Six Sigma correctly achieve significant benefits that contribute to competitive advantage and to changing the culture in an organisation from reactive problem solving to proactive problem prevention. Specifically the proven benefits include:

Benefits For the organization:

* Bottom line cost savings (5%-20% of turnover per annum)
* Improved quality of product or service as perceived by the customer (internal and external customers)
* Reduction in process cycle times
* Development of staff skills
* Common language throughout the organization
* World class standard

Benefits For the individual:
* Improved knowledge and skills
* Ability to use a wide range of tools and techniques
* A status that is recognised world wide

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