Six Sigma - Guidance towards achieving improved Customer satisfaction, increased profit margins, shorter cycle times and reduced costs

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Developed in the 1980's by Motorola, Six Sigma is a measure of quality that strives for near perfection and is a disciplined, data-driven approach and methodology for eliminating defects in any process from manufacturing to transactional and from product to service. Companies can achieve an incredibly high level of performance with the Six Sigma rigor and data-driven approach to problem solving and business process improvement, since the focus is on driving what is most critical to customers, resulting in increased performance and profitability.

Six Sigma Methodology
Six Sigma methodology provides businesses with the tools to improve the capability of their business processes and starts by asking fundamental questions based around customer requirements. Applying rigorous analysis to all processes in the business, Six Sigma can assess whether customer requirements are being met. Since 'Metrics' lie at the heart of Six Sigma, the basic approach is to measure performance on an existing process, compare it with a statistically valid ideal and figure out how to eliminate any variation each time the process fails to deliver and a defect is found. Six Sigma rigorously works towards uncovering the root cause of these defects and eliminating them time and again, resulting in reduced defects, declining costs and ultimately achieving a highly improved state of customer satisfaction.

The methodology provides a logical sequence for applying and repackaging existing problem solving tools and concepts. Various quality management tools are applied at each step and a project sponsor review is recommended at conclusion of each step before moving onto the next.

The five essential steps -

Define

• Mapping the process and understanding customer needs, feedback and business objectives
• Identify CTQs (critical to quality characteristics) that customers consider to have most impact on quality (the projects that will have the most impact versus those that could stand improvement but are not critical)

Measure

• Identify key internal processes that influence CTQs and measure defects currently generated relative to those processes
• Create and Stratify frequency plots and conduct Pareto analysis (80/20)
• Calculate starting sigma levels

Analyze

• Discover why defects are generated by the identification of key variables that are most likely to create process variation
• Create focused problem statement
• Explore potential causes
• Organize potential causes
• Collect Data
• Use statistical methods to qualify cause and effect relationship

Improve

• Identify the maximum acceptable ranges of the key variables
• Validate a system for measuring deviations of the variables
• Modify the process to stay within the acceptable range
• Create possible solutions for root causes
• Select solutions
• Develop and pilot plans
• Implementation
• Measure results
• Evaluate

Control

• Tools are put in place to ensure that the key variables remain within the maximum acceptable ranges over time
• Develop and document standard practices
• Train staff teams
• Monitor perform
• Create process for updating procedures
• Summarize and communicate results
• Recommend future plan

Six Sigma is used for unknown causes/situations, and for problems that are neither commonplace nor well defined. It is also used when a broad-spectrum approach is inappropriate and other problem solving methods fail, and in complex situations that have many variables.

Six Sigma Belts
The Six Sigma Belts are based on level of competence in understanding and applying related tools and actual definition. Competencies for each belt can vary by organization and training institutions -

• Green belt (GB) - Basic analytical tools and works on less complex projects
• Black belt (BB) - Emphasis on application and analysis and works projects with help from Green belts
• Master Black belt (MBB) - Understands application and statistical theory behind application, trains other belts and leads project reviews

The adoption of Six Sigma helps define the process for problem solving and works on a proven methodology to solve problems.

The results are consistent and the focus is always on the bottom line, and as with all adoptions it requires a cultural change in order to gain best results.

Six Sigma failures related to Organization/Management

• Failure to create a vision and concept related to Customer expectations
• Failure to follow up on the annual operating plan
• Lack of leadership at the executive level
• Lack of priority from Business executives who fail to show up for report-outs
• Non-goal based deployment of Six Sigma
• Lacking an effective plan to deploy Six Sigma
• Lack of a detailed change process
• Lack of metrics in place for management participation
• Lack of metrics for Champions
• Failure on part of Champions not showing up for report-outs
• Failure to provide feedback even with metrics in place
• Lack of multiple projects selected and queued for each MBB, BB or GB
• Failure to communicate deployment plans effectively through the organization
• Lack of a rewards or recognition program
• Lack of programs to retain trained personnel
• Failure of project selection process to identify projects related to business objectives
• Lack of accountability with Middle management providing little support
• Failure to buy-in at the Process Owner level
• Failure to hold suppliers accountable for sending bad material due to price considerations
• Failure to implement across the organization functions/departments such as design and marketing after the launch of the operation
• Buying cheap software to save money on the deployment

Steps towards Six Sigma success

Assembling your team
Top management must have an expanded role and demonstrate leadership in directing and supporting the Six Sigma initiative through a variety of methods from establishing and monitoring achievement of programs to communicating customer requirements to the work force. Top management must be involved during the implementation driving from the top and at the same time empowering a multidisciplinary team of individuals from within the organization who understand the critical processes involved, and take ownership of solutions, controls and procedures. Many of the most successful corporations today have CEOs and presidents who are trained and certified in Six Sigma. Top management should also choose the right people for implementing the projects, by matching skills sets to projects and select the best and brightest to participate in the Six Sigma program.

Corporate Goals and Objectives
It is absolutely critical that all Six Sigma activities contribute to corporate goals and objectives and are aligned with the organizations mission, responsibilities and policies - covering each element of the business, purpose and scope of activity the organization performs.

Training, Certification and Infrastructure
To ensure effective Six Sigma implementation, it is essential that employees are trained and certified in various roles - Champion, Black Belt and Master Black Belt. They must be trained to identify potential problems and initiate appropriate countermeasures and most importantly have a Six Sigma deployment strategy.

Continual Improvement
Identifying opportunities for continuous improvement by constantly tracking critical customer complaints and feedback, finding areas that can be detrimental to improvement and removing blocks towards achieving the goals and objectives towards overall corporate and organizational improvement. Applying and monitoring these activities will go a long way toward driving continual improvement.

Execution and Accountability
Meticulous execution and complete accountability is critical to Six Sigma success and can be achieved by communicating the process across the organization. Six Sigma deliverables need to be incorporated into every employee's performance objectives and training/certification must be prerequisites foradvancement in the organization. Project status reports must be sent out regularly and at frequent intervals across various levels of the business to ensure buy-in and tracking at all times.

The Business Focus
Six Sigma is good for business, delivering business results that can accelerate growth, reduce costs and ultimately deliver extraordinary profits to stakeholders. Manufacturing industries, health care and many more sectors have adopted Six Sigma processes to improve performance and deliver customers with unparalleled quality and excellence in products, services and delivery.

MetricStream’s quality and compliance management solutions help Enterprises benefit significantly through the use of software solutions that enable regulatory compliance and increased operations efficiency. MetricStream provides a scaleable and extensible Web based solution for closed-loop control and continuous improvement of quality related processes. Our Quality Management software, Quality*Stream is built on MetricStream's flagship patent pending EPM Platform technology. MetricStream's suite of products includes Corrective Action and Preventive Action (CAPA), Nonconformance Management, Inspection, Document Management, Complaints Management, Equipment Management, Training and Audits. Through our enterpriseclass quality management solutions (QMS) we can help power organizations by reducing administrative and operating costs, achieve business objectives, competitive advantage and increased market share. For more information on implementing solutions for your enterprise, please contact us at 1-650-620-2955, or by email at info@metricstream.com