The Six Sigma methodology is a proven tool set for driving and
achieving transformational change within an organization. It is a
business improvement process that focuses an organization on customer
requirements, process alignment, analytical rigor, and timely execution.
Why Six Sigma?
The two major obstacles to achieving the strategic objectives of
improvement initiatives are lack of adequate data on which to base
decisions and poor communication between top executives and frontline
employees. That is where Six Sigma comes in, because it simultaneously
addresses lack of good data and poor communication.
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Six Sigma
Business Case: "We need to improve our
customer satisfaction and in parallel, save our costs. We have run
different business initiatives, but they failed to fulfil our
companies' strategic objectives. "
Overview: Six Sigma is a
measure of quality that strives for near perfection. The Six Sigma
process uses data and rigorous statistical analysis to identify
"defects" in a process or product, reduce variability, and achieve as
close to zero defects as possible. Products and business processes at
successful corporations world wide typically operate at 3-3.5 Sigma,
which implies a DPMO (defects per million opportunities) of 67,000 and
23,000 respectively. Typical Six Sigma projects have duration of 4 - 6
months compared to traditional quality improvement efforts, which take
12 - 14 months.
Benefits: Accurate data enables
to make the right decisions. Elimination of inefficient processes.
Framework, which enables constant measuring of the performance. The
DMAIC (Define, Measure, Analyse, Improve & Control) Method targets
a maximum of customer satisfaction and a minimum of costs.
Why are Six Sigma initiatives better than Total quality management (TQM) initiatives?
Six Sigma projects have executive ownership and a business strategy
execution system behind, whereas TQM consist of self-directed work
teams and focus on a quality initiative. Six Sigma projects are truly
cross functional compared to TQM projects, which are mostly within a
single function. Six Sigma projects focus on training with verifiable
return on investment (ROI), whereas TQM does not provide mass training
in statistics and quality but focuses only on ROI. And last but not
least, Six Sigma is business results orientated and not purely quality
orientated like TQM.
Outcome: Measurable Results,
such as increased customer satisfaction, quality, velocity, accuracy
and cost savings. Achieving statistically Six Sigma means 3.4 defects
per million opportunities.
Case Studies:
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