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Explain Six Sigma

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Introduction to Six Sigma
In today’s competitive world – there is no room for any type of error, everyone wants quick and efficient access to information, products and services – so it has become very important and mandatory to bring some critical changes, in the ways by which a company conducts or carries its various business activities. The company should make it a point to delight their customers by fulfilling their expectations. To help this cause, six sigma plays a very critical role as it lays a lot of emphasis on “Quality must become a part of the culture”

Theory behind six sigma
Six sigma was pioneered by Bill Smith at Motorola in 1986 – in the beginning six sigma was just considered as “a metric for measuring defects and improving the quality”, but now six sigma has spread its wings in all the directions and has grown beyond just controlling the defects. Six sigma is now a registered service mark and a trademark of Motorola, Inc.

The word ‘sigma’ is a statistical term which helps us in knowing, how far a given process deviates from perfection. Six sigma helps in the control of process variations, which are responsible for causing defects.

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Objectives of six sigma –
1. To give good performance and reliability.
2. To provide value to the end customer.
3. Reducing or minimizing defects in any type of process (reducing defects to less than 3.4 million operations).
4. To eliminate wasteful practices i.e. the practices which do not provide any value to the process, should be eliminated.
5. Providing after sales service quality.
6. Improving the quality of the product.
7. Satisfying both internal and external customers.

Benefits of Six sigma –
1. Transaction involving six sigma provides services and products, free from defects.
2. Lower production, inspection and warranty costs, with tension free conditions for working.
3. Greater satisfaction of the customer, resulting in better place and better reputation in the market.
4. Moving from % defect AQL PPM (parts per million) to PPB (parts per billion) to zero defect (Zero variation), which automatically results in achievement of excellence in the process.

Principles of six sigma –
1. The use of pro active thinking to achieve perfection.
2. Top priority should always be service towards customer, stress towards understanding their needs and expectations and trying to fulfill them.
3. Boundary less collaboration, supported by data and fact driven management.
4. Failure is allowed but through risk management techniques.

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Steps to calculate process sigma –
1. Defining one’s opportunities.
2. Defining the possible defects.
3. Measuring opportunities and defects, this step is very important as an opportunity tells the minimum defect that is noticeable by a customer.
4. Calculating the yield.
5. This is the last step which involves looking up one’s sigma on a sigma conversion table.

The main function of the six sigma methodology involves, following the measurement based strategy for checking process improvement and variation reduction. This is done by using six sigma sub methodologies: DMAIC (define, measure, analyze, improve, control) and DMADV (define, measure, analyze, design, verify).

Six sigma organizational architecture
Six sigma, if worked out properly can result in producing good amount of profits and benefits to the business, as it acts as a great quality methodology. The roles and responsibilities for a successful six sigma quality program can be given a better understanding by knowing the roles and responsibilities of the following –

1. Quality leader or quality manager (QL/QM) – The main responsibilities of a quality manager/leader are :-
• Representing the needs of the customers.
• Aiming to improve the operational working of the organization.
• Maintaining high quality standards.

2. Process Owner (PO) – As the name suggests, process owners are the individuals who are responsible for the working of a certain specific process.

3. Master Black Belt (MBB)
• Work with the owners of the process and are assigned to a specific area or a function of a business or an organization.
• Responsible for setting up quality objectives and targets, determining plans, tracking progress and providing education.
• In good six sigma organizations, process owners and the master black belts work in combination with each other, sharing information daily.

4. Black Belt (BB) –
• Are referred to as the back – bone of a good six sigma organization.
• Play a key role in six sigma quality initiative.
• Lead quality projects.
• Work full time until the project is completed.
• Capable of completing about four to six projects per year.
• Also coach green belts.

5. Green Belt (GB) –
• Employees trained in six sigma, spend some time completing projects.
• Can spend 10% to 15% of their time anywhere on their projects – depending on the work load.

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This article has been written by KJ Singh a MBA Graduate from a prestigious Business School In India
Article Published:July 23, 2010

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