Six Sigma is a process improvement methodology that seeks to achieve near-perfect output by employing data analysis and statistical methods to detect issues within processes, improve them accordingly, and ensure their sustainability.
DMAIC allows businesses to understand their natural workflow and make data-based decisions through its Define, Measure, Analyze, Improve and Control process.
Define the aEURoequality"
Step one in improving any process involves identifying it for improvement, using either 5 Whys or more formal analysis using a fishbone diagram.
Data is then analyzed, with problem areas identified and an improvement plan developed using Six Sigma Define, Measure, Analyze, Improve and Control (DMAIC) methodology.
Six Sigma is an effective process that can be utilized by businesses of any kind to boost performance and foster leadership development. While Six Sigma might seem like a quick fix solution, implementation will take time and effort - getting assistance from outside experts may prove helpful in managing the process successfully.
Measure the aEURoequality"
Data-driven decision making enables Six Sigma to identify and eliminate waste to improve efficiency, quality and profits for businesses. It allows them to achieve consistent, predictable results that satisfy customer demands while making more efficient use of resources.
Six Sigma was developed by Motorola in the 1980s as a set of quality management tools to reduce defects and variability in manufacturing and business processes, including those employed by General Electric to save money and increase productivity. Today it remains one of the leading methods used for process improvement.
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Analyze the aEURoequality"
Six Sigma is an approach to business improvement that emphasizes minimizing process variability for predictable results, with companies crediting Six Sigma with helping them improve quality while cutting costs. Critics contend that its goal of 3.4 DPMOD may not be realistic for all businesses.
Six Sigma helps businesses identify unnecessary actions within their processes that slow down productivity or increase error risk, such as standardizing checklists to reduce employee forgetfulness in topping off windshield wiper fluid tanks for customers. Six Sigma also helps minimize wasteful practices such as transportation, inventory storage, motion and waiting, helping companies save money and enhance their bottom lines.
Improve the aEURoequality"
Though zero defects - or infinity sigma or six sigmas for one million opportunities - cannot be reached, process results can still be made near perfect using Six Sigma methodologies. A sigma rating indicates how well-controlled a process is, with lower ratings closer to centerline of control chart while higher ones closer tolerance limit.
To meet Six Sigma standards, business processes must first be defined, measured, analyzed, improved, and controlled. Each phase requires using proven qualitative and quantitative tools such as process mapping, failure mode analysis (FMEA), TIMWOOD diagrams, affinity diagrams and the 5 whys (see diagram above).
Successful Six Sigma projects depend on employees accepting and adopting new procedures, which requires effective, ongoing communication and training.
Control the aEURoequality"
Six Sigma principles strive to reduce defects in processes by taking a data-driven approach, including identifying errors or defects and measuring them to eliminate their causes and increase quality and efficiency.
Statiscally, three Sigma from the mean is generally accepted as being the threshold threshold for process improvement; however, Six Sigma emphasizes collecting and analyzing more granular data to reduce error rates closer to six Sigma levels.
Six Sigma is an effective management tool used in any business process, from manufacturing and healthcare to finance and service industries. Large companies such as Motorola and GE credit Six Sigma with significant cost-cutting, while experts often believe that small businesses may require significant adaptation prior to adopting it and may incur higher certification costs as a result of formal certification requirements.