SIX SIGMA

Definition of Six Sigma
Six Sigma stands for Six Standard Deviations (Sigma is the Greek letter used to represent standard deviation in statistics) from mean. Six Sigma methodology provides the techniques and tools to improve the capability and reduce the defects in any process.

It was started in Motorola, in its manufacturing division, where millions of parts are made using the same process repeatedly. Eventually Six Sigma evolved and applied to other non manufacturing processes. Today you can apply Six Sigma to many fields such as Services, Medical and Insurance Procedures, Call Centers.

Six Sigma methodologies improve any existing business process by constantly reviewing and re-tuning the process. To achieve this, Six Sigma uses a methodology known as DMAIC (Define opportunities, Measure performance, Analyze opportunity, Improve performance, Control performance).

Six Sigma methodology can also be used to create a brand new business process from ground up using DFSS (Design For Six Sigma) principles. Six Sigma Strives for perfection. It allows for only 3.4 defects per million opportunities for each product or service transaction. Six Sigma relies heavily on statistical techniques to reduce defects and measure quality.

Six Sigma experts (Green Belts and Black Belts) evaluate a business process and determine ways to improve upon the existing process. Six Sigma experts can also design a brand new business process using DFSS (Design For Six Sigma) principles. Typically its easier to define a new process with DFSS principles than refining an existing process to reduce the defects.

Six Sigma methodology is also used in many Business Process Management initiatives these days. These Business Process Management initiatives are not necessarily related to manufacturing. Many of the BPM's that use Six Sigma in today's world include call centers, customer support, supply chain management and project management.

Six Sigma is a business management strategy originally developed by Motorola, USA in 1981. As of 2010, it enjoys widespread application in many sectors of industry, although its application is not without controversy.
Process Improvement Made Easy: The Six Sigma Process Improvement Method Explained

What is Six Sigma process improvement? Something to do with eliminating defects? Right so far. Is it a continuous process improvement methodology? Yes, it’s a disciplined approach to problem solving and continuous process improvement. Or is it just a load of really hard statistics? Well, there is some statistics involved but it’s not that bad! Here is the Six Sigma Process Improvement Method explained.

Stage 1– Define
What’s the problem, why is it important, who’s going to solve it? All of these questions need answered up front, using a host of tools and templates such as “project charters” and “critical to quality” diagrams. The more work done defining the problem, the more likely the problem will be successfully resolved.

Stage 2 – Measure
If you don’t know the process or how it’s currently performing, how will you know you’ve fixed it? The measure phase is about understanding and quantifying the current reality, by using tools such as process mapping, collecting and validating data. If it moves, measure it!

Stage 3 – Analyze
Now we get serious about flushing out the root cause of the problem. All sorts of statistical tests are done to determine which is the rotten apple spoiling the barrel. This is the point at which a highly trained Six Sigma “Black Belt” gets busy, as they perform the complicated number crunching. Mere mortals on the project team get involved in identifying non value adding steps in the process and making sure analysis paralysis does not creep in.

Stage 4 – Improve
You’ve found the rotten apples, now it’s time to throw them out. The improve phase is about eliminating the root cause of the problem and/or implementing a solution that will flag early if the process is on a slippery slope to defect land.

Stage 5 – Control
The control phase is about getting the process back to business as usual. The project team hands over responsibility to the people in charge of the everyday process, with the added benefit of having prevented the problem from occurring again, or giving them the tools to monitor the process and nip problems in the bud before they grow. The project charter is reviewed, to ensure all project charter objectives have been met, such as cost reductions and quality improvements. And then it’s time to party, and let the business know about the successful project.

Criticism of Six Sigma:
Lack of originality
Noted quality expert Joseph M. Juran has described Six Sigma as "a basic version of quality improvement", stating that "[t]here is nothing new there. It includes what we used to call facilitators. They've adopted more flamboyant terms, like belts with different colors. I think that concept has merit to set apart, to create specialists who can be very helpful. Again, that's not a new idea. The American Society for Quality long ago established certificates, such as for reliability engineers."[19]
Role of consultants
The use of "Black Belts" as itinerant change agents has (controversially) fostered a cottage industry of training and certification. Critics argue there is overselling of Six Sigma by too great a number of consulting firms, many of which claim expertise in Six Sigma when they only have a rudimentary understanding of the tools and techniques involved.[2]
Potential negative effects
A Fortune article stated that "of 58 large companies that have announced Six Sigma programs, 91 percent have trailed the S&P 500 since". The statement is attributed to "an analysis by Charles Holland of consulting firm Qualpro (which espouses a competing quality-improvement process)."[20] The summary of the article is that Six Sigma is effective at what it is intended to do, but that it is "narrowly designed to fix an existing process" and does not help in "coming up with new products or disruptive technologies." Advocates of Six Sigma have argued that many of these claims are in error or ill-informed.[21][22]
A BusinessWeek article says that James McNerney's introduction of Six Sigma at 3M may have had the effect of stifling creativity. It cites two Wharton School professors who say that Six Sigma leads to incremental innovation at the expense of blue-sky work.[23] This phenomenon is further explored in the book, Going Lean, which provides data to show that Ford's "6 Sigma" program did little to change its fortunes.[24]
Based on arbitrary standards
While defects per million opportunities might work well for certain products/processes, it might not operate optimally or cost effectively for others. A pacemaker process might need higher standards, for example, whereas a direct mail advertising campaign might need lower standards. The basis and justification for choosing 6 (as opposed to 5 or 7, for example) as the number of standard deviations is not clearly explained. In addition, the Six Sigma model assumes that the process data always conform to the normal distribution. The calculation of defect rates for situations where the normal distribution model does not apply is not properly addressed in the current Six Sigma literature.

Criticism of the sigma shift
The statistician Donald J. Wheeler has dismissed the 1.5 sigma shift as "goofy" because of its arbitrary nature.[25] Its universal applicability is seen as doubtful.
• Business process
• Design for Six Sigma
Six Sigma in Popular Culture
Six Sigma methodology is referred to extensively in "Retreat to Move Forward," an episode of the hit NBC comedy TV show 30 Rock. In this episode Alec Baldwin as Jack Donaghy points out the "Six pillars of the Six Sigma business philosophy - Teamwork, Insight, Brutality, Male-Enhancement, Handshakefulness and Play-Hard." Six Sigma is a recurring theme in 30 Rock.