What is Six Sigma: A Complete Overview

Introduction

Amidst the volatile landscape of the business world, organizations strive for enduring stability and growth. However, the reality is far from static with market dynamics in constant flux. Six Sigma, a set of tried-and-tested methodologies, becomes the lighthouse for organizations to weather uncertainty and excel and flourish within it. 

It equips organizations with the agility needed to enhance business processes and improve outcomes. That is why around 53% of the Fortune 500 companies, including Sony, ABB, and Ford, already use Six Sigma. This usage also implies a growing demand for individuals skilled in the same.

Let us begin the blog with a brief overview of what Six Sigma is.

What is Six Sigma?

Six Sigma refers to a set of business methodologies for quality improvement and management. It measures the number of defects in current processes and seeks to eliminate them significantly. The origin of the term "Six Sigma" is rooted in the Greek symbol "sigma" or "σ," which is a statistical measure indicating the deviation of a process from its mean or target. The concept is derived from the statistical bell curve, where one Sigma represents a single standard deviation from the mean. When a process achieves six Sigmas, three above and three below the mean, it is deemed to have an "extremely low" defect rate.

The accompanying normal distribution graph emphasizes the statistical principles behind the Six Sigma model. A higher standard deviation corresponds to a wider range of encountered values. Therefore, processes targeting Six Sigma aim for a mean that is at least 6σ away from the nearest specification limit. Moreover, the methodology corresponds to around one-in-a-million chance that the findings are the result of random variations. 

Bill Smith, a Motorola engineer, developed the Six Sigma management system in 1984. He wanted to reduce the variations related to Motorola's electronic manufacturing processes that often caused product defects. Hence, the Six Sigma strategies, tools, and cultural norms that support the management system have become integral to business management and project teams across industries to increase operational excellence.

Six Sigma provides organizations with tools to improve their respective capabilities. Such an increase in performance with a decrease in process variation leads to defect reduction and improvement in employee morale, profits, and quality of products or services. 

Objectives of Six Sigma

Any business seeking to implement Six Sigma should understand what it expects the action plan to achieve. Here are the objectives associated with this methodology:

• Reduce defects in business problems
• Assist in quality management
• Help understand business statistics
• Provide career enhancement
• Improve productivity and corporate culture

Key Principles of Six Sigma

The Six Sigma Technique achieves these objectives by materializing five main principles. They are as follows: 

• Maintaining focus on the customer
• Assessing the value chain and accurately identifying critical issues
• Eliminating identified defects
• Encouraging stakeholder collaboration and contribution in problem resolution
• Developing an adaptable, responsive and unified system

The Six Sigma Process

The Six Sigma process entails the execution of the above principles in order to achieve the aforementioned objectives. It is a data-driven procedure that follows a structured approach and methodology. Practitioners of Six Sigma are equipped with various tools and techniques that help them through the process improvement procedure. 

The ultimate objective is to achieve a level of process performance where defects occur at a rate of less than 3.4 per million opportunities. This metric is commonly referred to as a Six Sigma level of quality. Industries of varying shapes and sizes can adopt the Six Sigma Process to enhance operational efficiency and customer satisfaction. 

Let us delve into the techniques and tools that make up the core of the Six Sigma process. 

Six Sigma Techniques

The Six Sigma method uses multiple techniques and tools to execute its objectives. One of the most important structured approaches called DMAIC (define, measure, analyze, improve, and control) or DMADV focuses on developing new products, services, or processes. It helps implement new strategies through earlier analysis of data.  

You can solve most problems by following these five steps as a Six Sigma expert:

Define

The Six Sigma expert leads a group of people to choose a process for identifying and defining the business problem it wishes to solve.

Measure

The team measures the initial performance of the specific process. It enables it to create a benchmark. The method also pinpoints a list of inputs that may hinder the business' performance.

Analyze

Next, the team analyzes the process through the isolation of every input. It also checks the potential reasons for failures and tests them as the possible root of the particular business problem.

Improve

The team works together to implement changes across the business process that will help improve system performance and reduce errors. 

Control

The group eventually adds controls to the business process. It helps ensure that the business strategies or objectives do not regress and become ineffective again. 

The DMADV technique can be used synonymously with the DMAIC but it has some subtle differences. Expanding the abbreviation makes it clear. DMADV involves the following steps:

• Define your project goals
• Measure important project components 
• Analyze data and develop various prototypes, subsequently picking the best-suited one
• Design and test the process details
• Verify the design through multiple simulations and a pilot run

Six Sigma has a lot more aspects to it that you need to know. One is Lean Six Sigma, an important part of the primary methodology. Scroll below to know more!

Six Sigma Tools

Apart from the above technique, other tools can be implemented to execute the process. Here are some of the prominent Six Sigma Tools that you can leverage for your needs: 

• 5S: Sort, Set, Shine, Standardize, Sustain - these are the philosophies surrounding 5S. It focuses on creating a workplace that is clean, uncluttered, safe, and organized. This reduces waste and optimizes productivity. The work environment produced through this tool allows for well-maintained physical and mental health.
• Seven Wastes: The seven wastes defined by this tool involve overproduction ahead of demand; waiting for the next process, worker, material, or equipment; unnecessary transport of materials; over-processing of parts due to poor tool and product design; inventories of more than the absolute minimum; unnecessary movement by employees during their work; and production of defective parts. This philosophy focuses on eliminating or minimizing these wastes. 
• Value Stream Mapping: VSM can be a pencil and paper or digital tool that is used to visualize the production process of any item. It involves drawing out the part of the process that has already been completed and planning till the end of the operation cycle. 
• Flow: Flow involves the continuous accomplishment of tasks along the value stream, allowing a product to seamlessly transition from design to launch, order to delivery, and raw to finished materials in the customer's hands, free from interruptions, waste, or reverse movements.
• Visual Workplace: A visual workplace is characterized by tools created to visually communicate information about organizational operations, enhancing the safety, precision, repeatability, and reliability of both human and machine performance.
• Five Whys: This is a simple method that uses five questions to get to the root cause of the problem. We take an issue and ask “WHY?” until we can identify the main issue.

Now that we understand the basics of the process, let us take a look at a popular derivative variant of the same. 

What is Lean Six Sigma?

Lean Six Sigma is a managerial approach that seeks to improve performance by eliminating defects. It does so while trying to boost the standardization of work. Lean combines Six Sigma methods and tools with enterprise philosophy to reduce the waste of physical resources, talent, time, and effort. The process helps assure quality in production and organizational processes across industries. Hence, if you use Six Sigma, you must eliminate a resource that does not create value for the end customer. 

So, how do you differentiate Six Sigma from Lean? Let’s delve deeper to know.

Lean Six Sigma Vs. Six Sigma

Six Sigma and Lean Six Sigma, both provide customers with the best possible cost, delivery, quality, and attributes. There is also some overlap between the two disciplines since they belong to the same field. Yet, both methodologies approach their common purpose from different angles:

• Lean Six Sigma focuses on waste reduction of resources. At the same time, Six Sigma emphasizes variation reduction across business objectives and strategies. 

• Lean uses less technical tools such as workplace organization, kaizen, and other visual controls. Six Sigma tends to be more particular because it uses more technical aspects, such as statistical data analysis and

• Most successful implementations begin with the lean Six Sigma approach. It helps make the workplace efficient and effective in reducing waste. This methodology also uses value stream maps to improve throughput and understanding. However, businesses may apply more technical Six Sigma statistical tools if business process problems remain the primary concern. 

Six Sigma Levels

You know what Six Sigma is. You even know about LSS. Now it's time to implement it. But to excel at this you need to pursue certifications associated with either methodology. These certifications act as a professional credential to validate your expertise in the Six Sigma principles, methodologies and tools. They are divided into six different belts that imply various levels.

White Belt

The basic certification level that teaches you the basic Six Sigma concepts. The white belt supports change management across organizations. It also teaches you how to engage with local problem-solving teams who assist with different projects. 

Yellow Belt

You understand the specifics of Six Sigma methodologies and how and where to apply them at this level. You will support different project teams on problem-solving tasks after winning the yellow belt. 

The Yellow Belt Certification Training can help you gain foundational knowledge of data gathering and problem-solving excellence. 

Green Belt

It is a crucial level where you understand advanced problem analysis. These analytical abilities will enable you to resolve business problems that affect quality. Green belts often lead projects and assist individuals with black belts in collecting and analysing data.

Black Belt

You become an expert and agent of change after acquiring a black belt certification. It also lets you provide training to other professionals and lead projects across business organizations. The Lean Six Sigma Black Belt Training can be a good option if you wish to be an expert in the methodology.

Master Black Belt

The Master Black Belt is the highest level of achievement for Six Sigma professionals. At this level, you shape strategy and develop key metrics. You may also work as a consultant for businesses and coach individuals with black and green belts.

Champion

Champions, high-level managers at the helm of Lean Six Sigma (LSS) strategy and deployment, play a pivotal role in harmonizing initiatives aimed at reducing waste and eliminating defects. They actively ensure that all endeavours align with the company's growth objectives as set by executive leadership. Assisted by Master Black Belts, these managers guide leaders involved in LSS implementation, closely monitoring and fostering their progress.

Lastly!

Six Sigma has become a popular quality-improvement methodology among the private and public sectors. You can take certification courses from SimpliAxis to learn more about this methodology. 

SimpliAxis provides the perfect platform to learn from certified professionals who know Six Sigma inside out. The eligibility criteria for these certifications are flexible. Make sure to check SimpiAxis to know which course suits you the best. 

Whether you are a professional in management, quality control, process improvement, or any leadership role, obtaining a Six Sigma certification can empower you to drive process excellence and deliver value to your organization.