ABSTRACT

Six Sigma is a business methodology focused on improving the standard of products or services a company produces by reducing variance within the production process.

This increases performance and reduces process variation helps result in defect reduction and improvement in profits, employee morale and quality of products or services.

FACT : Six Sigma performance produces a defect-free product 99.99966% of the time; allowing only 3.4 errors per one million opportunities.

SUMMARY

Basically Six Sigma is used to find and reduce errors and increase the efficiency of business process.

The main objective of Six Sigma is customer satisfaction, and to get the objective, various methods are used to improve the performance of the business.

Main methodologies of Six Sigma are DMAIC and DMADV.

INTRODUCTION

Six Sigma leaders know that when a production process lacks the steadiness to make high-quality output consistently, it'll continue producing defective products until someone intervenes and improves the method.

Reducing variation requires constant monitoring and measurement as systems tend to erode if not kept in restraint. Over the years, Six Sigma practitioners have developed a collection of tools and methods that address control, problem-solving, and improvement to eliminate defects and waste.

OBJECTIVE OF SIX SIGMA

Eliminate defects
Improve customer satisfaction
Reduce error
Improve quality
Reduce cycle time

HISTORY

Six Sigma as a measurement standard in product variation will be go back to the 1920’s when Walter Shewhart showed everyone that three sigma from the mean is that the point where a process requires correction.

Many measurement standards like CPK, Zero Defects, etc. later came into the scene but credit for coining the term “Six Sigma” goes to a Motorola engineer named Bill Smith.

METHEDOLOGIES

Six Sigma consists of two main methodologies: DMAIC and DMADV.

1) DMAIC: This method accustomed improve existing business processes.
The letters stand for:

● Define ‐ It defines the matter and therefore the project goals
● Measure ‐ It measures the varied aspects of this process
● Analyze ‐ It analyzes the info to seek out the basis defects in an exceedingly process
● Improve ‐ It helps to boost the method
● Control- It controls how the method to be wiped out future

2) DMADV: This method is usually accustomed create new processes and new products or services.

● Define ‐ To define the project goals
● Measure ‐ to live the method critical components and therefore the product capabilities
● Analyze ‐ Analyze the information and develop various designs for the method, eventually picking the simplest one
● Design ‐ to style and test the method details
● Verify ‐ Verifying the planning by running simulations and a pilot program, so returning the method to the client.

FEW OTHER METHEDOLOGIES ARE:-

PDSA
PDSA is another improvement cycle that stands for Plan, Do, Study, Act. it's a simplified version of DMAIC that works best for improvement projects that aren't heavy on statistics.

Kanban
Kanban could be a visualizing principle supported maximizing the flow of products and work without unnecessary inventory or transportation. While initially used with physical cards at Toyota, Kanban has now moved to the cloud, and lots of organizations use digital Kanban boards to trace the flow of labour.

Gemba Walks
The Japanese word “Gemba” means the 000 place. During a Gemba walk, the manager goes to the place where work is finished to point out respect for the staff, ask questions, and potentially identify opportunities for improvement.

Let's take real world example of Six Sigma:

In this example we will talk about Boeing. It's Six Sigma team in Everett, WA. They discovered that root cause analysis is mainly like finding needle in grass specially for the maker of the world's largest commercial twin-engine airplane with millions of parts and components. So in case Boeing discovered that recircuiting air fans were being rejected at the time of production, costing Boeing money in waste, and cost replacing the component.

Boeing appointed a a cross-functional detective squad that included employees from Engineering, Manufacturing, supply management and their supplier Hamilton Sundstrand who being the problem solving using the DMAIC process with the use of data from the fans and beginning root-cause analysis.

SIX SIGMA HAS ITS FOUNDATION IN THIS BELOW MENTIONED PRINCIPLES

Their are 5 main principle of Six Sigma:

1. Customer Value
This is supported the favored belief that the "customer is the king." the most goal here is to bring atmost benefit to customer. For this, it's important to a business to understand its customers, their needs, and what dominates sales or loyalty. This needs establishing the quality of quality as defined by what the customer or market demands.

2. Measure the worth Stream and Find Your Problem
This includes marking the steps in an exceedingly given process to seek out areas of waste, collect data to get the precise problem area that's to be addressed or transformed. Have precisely defined goals for data collection, including defining the info to be collected, the explanation for the information gathering, insights expected, ensuring the accuracy of measurements, and establishing an identical data collection system.

As certain if the information helps to realize the goals, whether or not the information has to be refined, or additional information collected. Identify the matter. Ask questions and find the foundation cause.

3. Get obviate the Junk
Once the matter is identified, make changes to the method to eliminate variation, thus removing defects. Remove the activities within the process that don't increase the customer value. If the worth stream doesn't identify where the matter lies, various different tools are accustomed help discover the matter areas. Streamline functions to realize internal control and efficiency is that the key..

4. Keep the Ball Rolling
Adopt a well-pre-defined process where team contributes and collaborates their varied expertise and skills for problem-solving.

Six Sigma processes can have a good impact on a corporation, therefore the team needs to be proficient within the principles and methodologies used. Hence, specialized training and knowledge are required to scale back the danger of project or re-design failures and make sure that the method performs optimally.

5. Involve Stakeholder

A combined structured should be used where all the stakeholder collaborate and contribute in finding solution of complex issues. The team need to have proficiency in the methodologies and applied principles. Hence, a specialized training and knowledge is required to lower the risk of failure and ensure optimal performance of the processes.

The Six Sigma Tools

1. Cause and Effect Analysis
2. Flow Chart
3. Pareto Chart
4. Histogram
5. Check Sheet
6. Scatter Plot
7. Control Chart

SIX SIGMA APPLICATIONS

• Management
1) Managing time.
2) Improving client loyalty.
3) Long-term strategic planning.
4) Improving employee motivation.

• Health care
1)Shorten wait times in hospitals and personal practices.
2) Prevent falls and injuries in hospitals and nursing homes.
3) Reduce medication errors when prescribing and administering drugs or filling prescriptions.
4) Increase turnaround for lab results.

• Engineering
1) Enhance supplier quality.
2) Improving safety and reliability of finished vehicles.
3) Reducing manufacturing defects at each stage.
4) Reducing time to manufacture.
5) Reducing Design defects.

Other applications include finance, military, food services, etc..

ADVANTAGES OF SIX SIGMA

It aims to achieve maximum customer satisfaction and minimizing the defects in its services.
With help of Six Sigma on can Leads to rise of profitability and reduction in costs.
Ensures that every good thing is capitalized and every bad thing is removed on time.

DISADVANTAGES OF SIX SIGMA

Costly for many small businesses to implement (because it is a quality improvement process at its root, adoption of protocols often leads to an increase in costs.
People tend to resist new changes in workflow and tend to follow convectional practices.
Six Sigma gives emphasis on the rigidity of the process which are basically contradicts the innovation and kills the creativity in services.
Six Sigma implementation constantly require skilled man force.

CONCLUSION

The beauty of Six Sigma is business transformation and change.

When a faulty or inefficient process is removed, it calls for a change in the work model and employee approach. A robust culture of flexibility and responsiveness to changes in procedures can ensure streamlined project implementation.

The people and departments involved in this procedure should be able to adapt to change with ease, so to facilitate this, processes should be designed for quick adoption. Ultimately, the company that has an eye fixed on the data examines the bottom line periodically and adjusts its processes where necessary, can gain a competitive edge in market and help the company raise their standards and have an edge over other competitors.

I believe future of six sigma involves growth in 3 areas:

Building 6 sigma capability into product development process.
Improving and enhancing methodology.
Adding concepts associated with eco-effective design.

Case Studies: Read the case study of Multi Billionaire company WALMART

Business strategies of Walmart Walmart has kept in mind very well 4p’s of marketing mix; Price Place Product Promotion Pricing Strategy Wal-Mart does not offer overpriced products. They believe in offering lowest prices to attract customers and focus selling in bulk. Wal-Mart’s procurement strategies allow keeping their prices low. Use of universal barcoding creates an efficient supply chain and helps to the lower prices.product Place Walmart utilizes intensive distribution strategy; Door-to-door deliveries Walmart has a powerful e-commerce platform. An organized distribution centers High-end IT systems Product Walmart offers wide range of products from furniture, groceries, appliances, hardware, health goods, beauty products, wellness, sports to entertainment. Promotion It is composed of sales promotions, advertisements, public relations, and personal selling.

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