What is Six Sigma?
Six Sigma encompasses a collection of clearly defined statistical methodologies, tools, and techniques employed for the analysis and enhancement of business processes, aiming to assess their divergence from the norm. In essence, Six Sigma tools enable the identification of variations within existing business processes. A business process that operates at Six Sigma has a failure rate of 0.00034%, which means that operating at Six Sigma virtually produces no error. This has greatly increased the demand for Six Sigma green belt certification for both job seekers and employers.
Using Six Sigma tools and techniques not only helps identify shortcomings but also helps eliminate them by boosting quality and efficiency and reducing variation defects and errors. Such minimal error and enhanced efficiency are achieved by using a structured approach called DMAIC (Define, Measure, Analyze, Improve, Control) that identifies and eliminates causes of variation to improve processes.
Six Sigma methodologies were first developed in the 1980s and have since found widespread application in numerous sectors, including manufacturing, healthcare, finance, and service industries, among others. These methodologies are widely used in project management in a project lifecycle to minimize defects and improve business processes. Six Sigma methodologies provide efficient techniques, which help reduce operational costs, increase business profits, and enhance customer satisfaction.
Overview of Six Sigma Tools and Techniques
The Six Sigma methodologies employ a combination of statistical and data analysis tools to attain the intended results. Utilizing the DMAIC approach (Define, Measure, Analyze, Improve, and Control), these tools are applied to various business processes. Six Sigma incorporates statistical tools, like process mapping and design, along with established qualitative and quantitative techniques to realize the desired outcomes.
Statistical Tools in Six Sigma
The main statistical tools used in Six Sigma analysis include:
· Control Chart
· Scatter Plot
· Check Sheet
· Histogram
· Pareto Chart
· Flow Chart
· Cause and Effect Analysis
Process Mapping and Flowcharting
Flowcharting is an instrument of Six Sigma that employs a visual representation to delineate the necessary information and materials for enhancing processes. Each flowchart comprises three fundamental components: a process roadmap, data, and a timeline. This tool allows project managers to visualize critical details, such as delays and error rates, enabling them to streamline the process flow. In essence, this tool uses the Six Sigma principle to facilitate the elimination of waste and inefficiencies within the business process, fostering leaner and more efficient operations.
Quality Function Deployment (QFD) in Six Sigma
Quality function deployment (QFD) in Six Sigma is a process for planning products and services. QFD serves as a tool to convert customer requirements (Voice of the Customer, VOC) into quantifiable design objectives and guide their implementation across various stages of production. QFD methodologies provide a defined set of matrices utilized to facilitate this progression. Thus, the QFD tools help to effectively define customer requirements and convert them into detailed engineering specifications and plans to produce the product that fulfills those requirements.
Failure Mode and Effects Analysis (FMEA)
Failure modes and effects analysis is a Six Sigma tool with the principles of proactiveness. According to this tool, incorporating the Six Sigma principle, potential error points in a business process can proactively be found, and corrective measures can be implemented before the failure of a project. Failure modes are how a project or process can fail, while effects are the ways in which these failures can lead to waste, defects, or lowered customer satisfaction. Failure modes and effects analysis have been designed to identify, prioritize, and limit these failure modes.
There are two categories for FMEA:
1. Design FMEA: Design FMEA explores the possibilities of product malfunctioning, reduced product life, and safety as well as regulatory concerns derived from various factors, like shape and size of the product, materials used, interaction with other components, etc.
2. Process FMEA: Process FMEA discovers failures that affect product quality, leading to reduced reliability of the process and customer satisfaction, along with safety or environmental hazards derived from different factors like materials used, machines utilized, measurement systems impact on acceptance, methods followed while processing, and human and environmental factors on process performance.
It is one of the cost-efficient Six Sigma tools that allows corrective measures to be taken before the processes are implemented. FMEA is one of the tools used to discover failure at its earliest possible point in the product or process design. Discovering the potential of failure in a process development using FMEA has the following benefits:
· Many choices for mitigating risks
· Higher capabilities of validation and verification of changes
· Improved designs for manufacturing and assembly
· Lower cost solutions
Control Charts and Statistical Process Control (SPC)
Statistical Process Control (SPC) is a Six Sigma tool utilized for constructing control charts, enabling project managers to monitor the efficacy of process enhancements. By employing control charts, project managers gain a visual representation of a business process's advancement about benchmark values.
Essentially, these control charts chart the trajectory of processes over time, facilitating the pinpointing of specific locations and magnitudes of variations. This information aids project managers in applying appropriate corrective actions, particularly for particular cause variations. Furthermore, it is crucial to determine the root causes of these variations and implement corrective measures accordingly.
Root Cause Analysis Techniques
In the simplest terms, root cause analysis helps to discover the root causes of problems in order to look for appropriate solutions. This involves using definite principles, techniques, and methodologies. The different root cause analysis methods include the following:
· 5 Whys: This approach involves understanding the question "why" to uncover the fundamental source of a problem. This method aids in developing a comprehensive understanding and pinpointing the issue's origin.
· Failure mode and effects analysis: It is also one of the effective root cause analysis techniques used to determine failure within a particular system.
· Fault tree analysis: This process uses Boolean logic to determine the cause of an undesirable situation. It involves creating a diagram that looks like a tree.
· Fishbone diagram: Similar to fault tree analysis, it is also a useful tool in conducting root cause analysis.
· Pareto charts: They are graphical representations of trivial and significant aspects of a process. This helps to understand the aspects of a problem so that the team members can direct their efforts accordingly.
· Scatter plot diagram: It is also a chart used to represent numeric values using dots with respect to a certain vertical and horizontal axis. This can also help to understand faulty areas by analyzing the chart obtained with an ideal one.
Design of Experiments (DOE) in Six Sigma
Design of experiments (DOE) is a Six Sigma tool that helps project managers and project teams determine the effects that the inputs into a business process have on the final product. DOE helps to understand critical relations between variables in a process that are often hidden under all of the data and identifies the most important inputs that need to be modified in order to ensure optimal process performance.
The DOE process has its own set of terms that define how the technique works. These include:
· Factors: These are independent variables which you will have control over. In the DOE process, the factors are modified in order to determine the point of optimal performance.
· Level: This is a measurement of how much a factor has been modified. Levels can be numeric or discrete.
· Run: A run or an experimental run constitutes an experiment performed at two or three levels for every factor in order to find the optimal point of performance.
· Response: This is the outcome of a run.
· Replication: This is the process of running various related experiments to understand the outcome. Replication helps obtain even more data, which helps to evaluate the results of the experimental runs in a better manner.
Lean Principles and Six Sigma Integration
Lean Six Sigma incorporates both lean and Six Sigma methodologies, harnessing their combined power for effective project management. The application of lean principles centers on minimizing or eliminating waste while enhancing efficiency. This involves identifying and eliminating non-value-added activities in project development, streamlining processes, reducing defects, and optimizing resources to achieve greater value with reduced effort.
On the other hand, Six Sigma employs a statistical approach to enhance business processes by minimizing variation and defects through data-driven decision-making. The methodology follows the DMAIC cycle, which encompasses defining, measuring, analyzing, improving, and controlling processes. By adhering to this cycle, Lean Six Sigma aims to enhance product outcomes, ensuring consistency and predictability in results.
By combining these two methodologies, Lean Six Sigma offers a comprehensive approach towards process improvement that can be applied to any industry. An improvement roadmap using a Lean Six Sigma integrated approach needs to consider the differences and apply them with enhanced effectiveness. Here are a few points to remember:
· Projects incorporating lean methodologies can be completed in very less time than six sigma. Six Sigma projects, on the other hand, may need more than two or three months. Thus, a Lean Six Sigma approach should put more importance on lean methodology at the beginning of the development process of a project and deployment to increase process momentum.
· Lean principles emphasize broad principles added to practical suggestions for achieving improvements. To emphasize this, lean principles suggest a technique to analyze and reduce changeover time that doesn't require sophisticated analysis and tools. However, lean methodologies may sometimes be insufficient for solving more complicated problems requiring advanced analysis. This is where Six Sigma requires introduction during the first phase of deployment so as to ensure that the plan of improvement incorporates a generic approach centered around problem solving.
· An integrated improvement program needs to have a vision of the future state and a pipeline of specific projects that will help to bridge the gap between the current and future states of the projects. Lean principles introduced value stream mapping or process mapping as the central tool to identify such gaps by developing a list of projects that can be tackled using Lean or Six Sigma methodology.
· Six Sigma processes and tools can be used for any industry and business process, but lean methodologies have a more specific approach, which allows the content to be adjusted according to the needs of the industry. Thus, processes using lean methodologies are adjusted to meet the specific requirements of the industry.
For improvement in the process of a project, an integrated Lean Six Sigma approach can be taken. This approach may have the following work process:
· Begin by imparting Lean principles initially to build momentum, and subsequently introduce Six Sigma to address more complex challenges.
· Employ process mapping or flowcharting to construct a project pipeline, identifying projects suitable for tools of either Lean or Six Sigma .
Software Tools for Six Sigma Implementation
Six Sigma methodologies follow project management and business intelligence tools for implementing the process of DMAIC, measuring results, and maintaining any changes to the process of production. Here are some of the top business intelligence and project management tools under Six Sigma.
Project Management Tools:-
Tools in project management (PM) can be used to facilitate every step within the workflow of the DMAIC process. Based on the approach followed, the PM tools can be utilized to outline every step of the DMAIC cycle as singular steps or a collection of steps within each process. Here are some of the software tools for Six Sigma implementation under project management:
· Trello: Trello is a solution for organizations implementing the project management process for manufacturing processes free of cost. Trello utilizes Kanban and is available free of cost, so while it won't have as many features for advanced project management processes, its simple designs make it an excellent Six Sigma tool for new users. Users can also access Trello using a mobile application, which in turn allows users to collaborate and work from remote locations anywhere. This can be a great option for anyone who wishes to keep the systems updated even when they are not in their offices.
· Kanbery: Kanbery is yet another online Kanban-based solution that works on the Lean methodologies. They have a number of pricing options available according to the needs of the individual organization. This is a great option for an organization that helps them determine how every part of the DMAIC workflow would be by allowing customization in the system. Apart from workflow processes, it also comprises reporting tools that provide an idea of how the various areas of DMAIC develop.
Business Intelligence Tools:-
Business intelligence tools are crucial for accurate measurements through aggregate and appropriate analysis of data, and accessing data in an easily comprehensible manner is important for analyzing operational efficiency further ahead in the processes. Solutions in business intelligence are essential for the successful implementation of processes involving Six Sigma for two main reasons:
1. Most business intelligence solutions involve tools for data visualization, which provide important insights into the effectiveness and efficiency of operations based on the analysis of data.
2. Some of the systems include solutions involving warehouses, which are important for organizations that do not have an effective system to record and store data.
Here are examples of software tools using business intelligence solutions for companies that don't have a data storage system.
· Tableau: It is an effective and highly trusted data visualization application available for use. It has a simple design and functions that make it quite easy to use for almost every kind of user, ranging from business owners to IT professionals. Tableau has Pareto charts to measure errors and histograms to provide a measure of deviation. These two tools are important Six Sigma tools for data visualization.
· SAS: SAS is one of the most well-known business solutions that offers numerous solutions that can be applied together or individually. Data and performance management software are among the most effective Six Sigma solutions provided by SAS. By using both these systems, manufacturers can obtain data analysis and insights into every phase of the lifecycle of DMAIC.
Case Studies: Successful Applications of Six Sigma Tools
Having heard of so many inner working processes of Six Sigma, it is crucial to know how it is implemented in different industries that could lead to the elimination of waste and minimization of defects within an organization. Here are some famous examples of how Six Sigma has helped some of the well-known brands:
Starbucks
What started as a single coffee shop in Seattle is now a well-known coffee shop brand with over 30,000 stores across 80 countries. Starbucks took just 40 years to achieve this feat, going from a calm coffeehouse in one city in the US to more of a fast-food-style operation with drive-through options available in many locations. For this, the Starbucks outlets and their customers have adopted two practices: speed and accuracy. People want their coffee freshly made within minutes.
Coffee shops are known to have a certain personalized human touch in their operations, but Starbucks sought to find a way to offer the speed of fast food chains without sacrificing the human element in delivery. After Six Sigma integration, the company management came up with two ways in which their customers order coffee and how their in-store experience plays out.
The first change could be implemented by training Starbucks baristas to take a more proactive role in both taking orders and managing the cash register, significantly speeding up the wait time. Additionally, Starbucks introduced a mobile app allowing customers to pre-order and pay for their drinks and accompaniments before arriving at an outlet, enabling them to take the order as a takeaway. This reduction in rush and hustle has significantly improved speed for customers and allowed baristas to serve in-store customers more efficiently.
Keeping the human element in mind, Starbucks management encouraged baristas to engage with the customers and make transactions personal. Additionally, Starbucks also offered different rewards for customers using the app regularly.
Ford Motor Company
Ford Motors is one of the most widely known automobile and commercial vehicle makers in the world, with their earliest operations dating back to the 1900s. However, Ford Motors implemented Six Sigma in the 2000s, making it one of the first automakers to put it into practice. Ford Motors wanted to implement Six Sigma based on improving four factors: cost, quality, customer satisfaction rates, and environmental impact. It aimed to achieve these individual factors in the following manner:
· Cost reduction: Ford aimed to reduce the use of resources that were not necessary for the production process.
· Quality improvement: Although Ford held a quality level of 99%, it still delivered around 20,000 defective products. By adopting Six Sigma principles, Ford aimed at a 99.9996% level of quality, which allowed them to have minimal defects, leading to around seven defects out of a million products.
· Customer satisfaction: Low customer satisfaction stems from product quality. By implementing Six Sigma methodologies, Ford has tackled low customer satisfaction ratings by streamlining processes and improving production issues.
· Lowering environmental impacts: Ford aimed to lower the environmental impact of its productions through the Six Sigma methodologies. Six Sigma, by design, is a green philosophy. Through Six Sigma implementation, Ford committed to a green work culture by reducing costs associated with the consumption of vital resources and reducing the consumption of unnecessary resources.
Through these techniques, Ford has been able to minimize more than $2.2 billion in waste to date since the time it was implemented. Additionally, Ford has successfully increased customer satisfaction ratings by five points. However, the success of Six Sigma implementation in Ford was not without hurdles in the way. Ford experienced a lack of employee commitment from different levels of its company. High-level management, along with other important personnel in the company, were not always willing to go through weeks of training. Along with a lack of commitment, Ford also faced issues with time and money during the training of employees.
Additionally, Ford was not fully equipped to manage the amount of data needed to implement a Six Sigma initiative. Due to this, they were forced to implement new measurement systems to collect enough data for a proper picture of the current value stream. However, working through these constraints, eventually, everyone was on board with the training in the Six Sigma principles. This led to significant benefits for Ford.
Conclusion
Six Sigma methodologies, when utilized well for reducing defects through a disciplined, data-driven approach, have been shown to lead to huge savings and increased efficiency. By closely adhering to the DMAIC cycle of defining, measuring, analyzing, improving, and controlling, one can systematically implement operational changes and test them for results. An organization that wants to implement Six Sigma in its manufacturing operations should recognize the immense oversight and discipline required. Having and implementing the proper Six Sigma tools can help your organization significantly follow the DMAIC process and obtain the required outcome.
If you wish to upscale your business processes and utilize Six Sigma principles, taking courses individually can help contribute to organizational success by learning how to use, implement, perform, understand, and apply Lean Six Sigma. KnowledgeHut offers Six Sigma green belt certification for managers and upper-level management personnel. Although there are no prerequisites for attending the Six Sigma Green Belt certification course, managers can benefit from this certification course to be able to lead improvement projects or serve as valuable team members of a process improvement team.
FAQs
1. Why use Six Sigma tools?
Six Sigma tools help improve the capability of the business processes by reducing defects, improving profits, and enhancing employee morale as well as the quality of products or services.
2. How do I choose the right tools for a specific Six Sigma project?
Whenever you need to decide which Six Sigma tools are right for your projects, consider the following:
· Learn about the tools and what they're used for in Six Sigma projects.
· Pick a tool that suits the unique environment of your project.
· Train your employees at all levels in the methodologies of Lean Six Sigma.
· Be aware of supporting resources like software, graphs, charts, and more, which can be required later in Six Sigma activities.
3. What are the different levels of Six Sigma certification?
The different levels of the Six Sigma certification conform to specific training requirements, education criteria, job standards, and quality. These include:
· White Belt
· Yellow Belt
· Green Level
· Black Level
· Master Black Belt