Six Sigma started at Motorola Inc. as a defect reduction effort in manufacturing and was then applied to other business processes for the same purpose. The term "Sigma" is often used as a scale for levels of "goodness" or quality. Using this scale, "Six Sigma" equates to 3.4 defects per one million opportunities (DPMO). A Six Sigma defect is defined as anything that falls outside customer specifications. A Six Sigma opportunity is therefore the total quantity of chances for a defect.

As Six Sigma has evolved, there has been less emphasis on the literal definition of 3.4 DPMO, or in other words, counting defects in products and processes. Six Sigma is a business improvement methodology that focuses on the following points:

• Understanding and managing customer requirements;
• Aligning key business processes to achieve those requirements;
• Using rigorous data analysis to minimize variation in processes;
• Promoting fast and sustainable business process improvement.

At the heart of the methodology is the DMAIC (define, measure, analyze, improve, and control) model for existing processes that fall below specifications and seek incremental improvement. The Six Sigma DMADV process (define, measure, analyze, design, and verify) is an improvement system used to develop new processes or products at Six Sigma quality levels. It can also be used if a current process requires more than just incremental improvement. Both Six Sigma processes are executed by Six Sigma Green Belts and Six Sigma Black Belts, and are overseen by Six Sigma Master Black Belts.

 

 

Define
Build Projects from Nonconformance, Feedback & Audits.

Measure
Collect Measurements.

Analyze
Analyze Processes Online (OLAP).

Improve/Design
Correct, Design, Train & Document

Control/Verify
Monitor Live Dashboard.

 

Therefore, the Six Sigma methodology starts with a preliminary problem definition analysis and then uses statistics and quality tools to transform the information acquired into the knowledge required for effective problem solving. Statistical tools and technical knowledge must always be combined with a problem solving methodology to improve its efficiency.

When used as a management system, Six Sigma represents a high performance system for executing business strategies. Process metrics and structured methodology are applied to improvement opportunities that are directly linked to the organization’s strategy.

Six Sigma is a top-down solution to help organizations:

• Align their business strategy with critical improvement efforts;
• Mobilize teams to effectively manage high impact projects;
• Accelerate improved business results;
• Govern efforts to ensure that such improvements are maintained.

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One of the biggest problems with Six Sigma is the fact that many organizations have no understanding of the methodology so that the concepts involved are transmitted erratically, causing harm to the organization. However, the main benefits of implementing Six Sigma are:

• Reduced organizational costs;
• Significant increase in productivity and quality of products and service;
• Increase and retention of customers
• Elimination of activities that do not add value;
• Beneficial change in organizational culture.

As it involves changing the organizational culture of the company in which it is implemented, there is usually strong initial resistance to its implementation among employees and teams. This aspect should not be overlooked in its implementation, as doing so could result in a serious risk of failure.

The issue of organizational culture is important when it comes to Six Sigma. Proof of this is the fact that companies that have implemented the program are the ones with the greatest tradition of quality, i.e. they have already adopted other quality programs in the past.

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The aim of implementing Six Sigma in organizations is to enhance quality, through continuous improvement of the processes involved in production, in a structured way, considering all aspects that are important for the business. This methodology also prioritizes increasing profitability, as many efforts are focused on reducing the costs of quality and improving the efficiency and effectiveness of all the operations that cater for customers’ needs.

The main challenges in the implementation of Six Sigma are:

• Involvement and commitment of upper management;
• Project management skills;
• Project prioritization and selection;
• Documentation reviews;
• Customer Focus;
• The limited availability of staff to carry out studies and receive training, among other activities;
• The complexity of the operations carried out;
• Internal training, since the training for Six Sigma is much more complex than for most other quality programs;
• Mastering the use of the quality tools.

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