Six Sigma : Introduction

[sk_kireeti]

WHAT IS SIX SIGMA?

Six Sigma has at least three meanings, depending on the context.

First, it’s a level of quality. Sigma is a statistical measure of variation in a process. Sigma (the Greek letter s) is the symbol in statistics for standard deviation, a measure of the variation in a distribution of values. Achieving a six-sigma level of quality means that processes are producing only 3.4 defects per million opportunities (DPMO). In other words, they are working nearly perfectly.

Second, Six Sigma is a problem-solving methodology that can be applied to any process to eliminate the root causes of defects and associated costs. There is also a methodology for designing processes.

Third, Six Sigma is a management philosophy. It’s a customer-based approach that recognizes that defects decrease satisfaction and customer loyalty and increase costs. Because the organization that provides goods and/or services of the highest value for the lowest cost is the most competitive, Six Sigma is a strategy for achieving critical results.
So, in short, Six Sigma is several things:

• A statistical basis of measurement: 3.4 defects per million opportunities

• A methodology for reducing variation in processes

• A philosophy and a goal: as perfect as practically possible

A basic concept of Six Sigma is process. That’s any repetitive action—in any manufacturing, services, or transactional environment. The Six Sigma methodology collects data on variations in outputs associated with each process so that it can be improved and those variations can be reduced.
Another basic concept, is defect. At this point, we can define it as a measurable characteristic of the process or its output that is not within the acceptable and expected customer limits, i.e., not conforming to specifications.

Six Sigma is a methodology for using tools to reduce variation and defects in order to deliver products and services that meet customer specifications. As we’ll discuss later, the sigma level of a process is calculated in terms of the number of defects in ratio to the number of opportunities for defects. Many companies believe that dealing with errors is just part of the cost of doing business. But you don’t have to accept that faulty logic. The central idea of Six Sigma management is that if you can measure the variation and defects in a process, you can systematically figure out ways to reduce or even eliminate them, to approach a quality level of near zero defects, which allows you to reduce your costs and better satisfy your customers.

Now, if you want an elevator version of the explanation of Six Sigma, you could use one or more of the following:

• Six Sigma is a program that focuses on the control of a process to the point of ± six sigma (standard deviations) from a centerline, which means 3.4 defects per million items. It includes identifying factors critical to quality as determined by the customer, reducing process variation, and improving process capabilities, increasing stability, and designing systems to sustain the gains.

• Six Sigma is a methodology that provides businesses with tools to improve the capability of their processes by decreasing variation, which leads to a reduction in defects and an improvement in profits, employee morale, and quality of products and services.

• Six Sigma is a problem-solving technology that uses your human assets, data, measurements, and statistics to identify the vital few factors to decrease waste and defects while increasing customer satisfaction, profit, and shareholder value.

• Six Sigma is a disciplined, data-driven approach to process improvement aimed at the near-elimination of defects from every product, process, and transaction. The purpose of Six Sigma is to gain breakthrough knowledge on how to improve processes to do things better, faster, and at lower cost. It can be used to improve every facet of business, from production, to human resources, to order entry, to technical support. Six Sigma can be used for any activity that is concerned with cost, timeliness, and quality of results. Unlike previous quality improvement efforts, Six Sigma is designed to provide tangible business results, cost savings that are directly traceable to the bottom line. After reading this book, it’s likely that you’ll be able to develop a 30-second explanation that best suits your specific situation.

[AjayKumar.Kataram]

good one....

[das.testing]

Hi Krishna,

Good post.

Thanks

Arun

[shireendra]

Hi,

Good. If u have any more documents based on this, please keep in bobshare or send as attachment to this.

It helps all of us alot.

Thanks
Shireendra

[sk_kireeti]

Shireendra,

As of now, I don't have any consolidated document on Six Sigma. But I will post any document I go through.

Thanks,
Krishna

[Spoorthi]

Six sigma stands for Six Standard Deviations (sigma is the Greek letter used to represent standards deviation in statistics) from mean. Six sigma relies heavily on statistical techniques to reduce defects and measure quality. Six sigma inherits TQM (total quality management).
TQM (total quality management): - TQM is the concept that integrates various initiatives into a systemic quality improvement process. It is a process that recognizes the need to determine the customer’s requirements and to use that knowledge to drive the entire organization to ensure those needs are fully met. Total quality is the goal and continuous improvement is the means to achieve goal.
Six sigma methodologies provide various techniques and tools to enhance capability and reduce defects. It allows for only 3.4 defects per million opportunities for each product or service transaction. Six sigma strives for perfection by improving the process performance, decreasing variation and maintaining consistent quality of the process output. Six sigma incorporates the basic principles and techniques used in business, statistics, and engineering.
The main areas of concern in a six-sigma process are
1.customer satisfaction.
2. Defining processes, metrics and measures.
3. Team building and involving employees.

Employee involvement is a major concern. An organization must involve all employees. All team members should have well defined roles and responsibilities with measurable objectives and their talents should be well focused. Six-sigma quality has two unique characteristics:
1. Six sigma Black Belts: - Trained experts in quality, process improvement, and statistical process control are the problem - solvers of an organization. They assist in process improvement and focus on areas, which will have high impact on the base line.
2. Reduction of display to very low levels.
Six sigma uses a methodology known as DMAIC to improve existing business process by constantly reviewing and re-tuning the process.

• Define opportunities
• Measure performance
• Analyze opportunity
• Improve performance
• Control performance

The black belt training program helps six sigma practitioners to get an accurate view of the critical processes by helping them understand variation and statistics. Software tools like control charts and histograms are utilized. Root causes of variations are discovered. PDCA (plan do check action) cycle is utilized to enhance plans, work them out and verify to see if they worked properly. It also combines elements of statistical quality control, breakthrough thinking, and managing science for better performance.
Six sigma is used in a variety of fields such as services, medical and insurance procedured, call centers. It is also used in many business process management (BPM). Processes, which include call centers, customer support, supply chain management and project management.

[kiran2710]

Nice info friends.......