| Six Sigma is not just any other program; it is a way of | | | | data-driven facts that are aligned to the business' |
| running a business. It is a way of carrying out the | | | | objectives. |
| activities at near perfect levels, and focuses on | | | | The Three Methodologies |
| elimination of defects and tackling variations. | | | | Six Sigma encompasses three methodologies, process |
| It aims at achieving customer satisfaction leading to | | | | management, DMAIC and Design for Six Sigma |
| customer delight. Process or product improvement and | | | | (DFSS). Process management involves control of |
| development of new products - if needed - are a few | | | | processes to meet the business' goals. This |
| ways improving businesses. | | | | necessitates having proper systems for data collection, |
| Six Sigma can be considered to be a measure, a | | | | decision-making and bringing about improvement |
| philosophy, and a target. | | | | initiatives. DMAIC, which stands for "Define - Measure- |
| Implementing Methodologies | | | | Analyze-Improve-Control", is the roadmap for achieving |
| Six Sigma is a management philosophy that is based | | | | the target of defect-free processes and improved |
| on the theory that reduction in defects is a better | | | | products. |
| approach to lowering costs and customer loyalty. It | | | | Six Sigma teams follow the process of identifying and |
| realizes the fact that defects are expensive. To gain a | | | | defining defects, analyzing the defects using various |
| competitive edge, developing a high quality product at | | | | measures, suggesting improvements and having |
| the right cost is essential for customer satisfaction and | | | | metrics or controls in place to achieve the goals of the |
| profitability. Variations limit process performance. | | | | business. By implementing the usage of standard |
| Though variations cannot be eliminated entirely, efforts | | | | operating procedures throughout the business, fewer |
| to reduce them can be made. The target of Six Sigma | | | | defects can be ensured along with the integrations of |
| is to have 3.4 defects per million opportunities. The | | | | products, services and distribution. |
| cost of poor quality represents 20 to 30 percent of | | | | Another methodology that is useful to understand is |
| total company revenues. The Six Sigma approach is | | | | the DFSS methodology. This methodology is useful |
| to implement methodologies that aim at reaching | | | | when there is a need to design an entirely new |
| world-class quality by improvement of 50 percent or | | | | product or process that will meet customer |
| more. | | | | requirements. |
| While some traditional methods rely on measuring | | | | Thus, the Six Sigma philosophy aims to bring about |
| output and establishing controls, Six Sigma focuses on | | | | improvements in profitability and productivity. It can be |
| eliminating them. It involves listening to voice of | | | | applied to any organization, big or small and focuses on |
| customers to bring about this change. By listening to | | | | bringing about a reduced cycle time, reducing waste |
| customers, importance is given to understanding the | | | | and developing better time management with a |
| value expectations of customers, which help eliminate | | | | systematic approach to problem solving. |
| the root cause of dissatisfaction. | | | | Business leaders have to decide what is necessary |
| The Six Sigma philosophy is that of continuous | | | | for their particular organization, and focus on improving |
| improvement; it is also in making decisions based on | | | | and sustaining the gains. |