WHAT IS SIX SIGMA?

All businesses exist and operate through a series of transactions, tasks and interactions, collectively termed ‘business processes’. These processes are the very backbone of business operation and yet often the processes have been poorly defined, are over complicated and inefficient in their actual purpose. Whilst there are some businesses (large and small) that exhibit very good business process management, far more often than not, many businesses fail to clearly define their processes, don’t train on or communicate their processes to team members and rarely challenge or look for improvements within their business processes. This is where Six Sigma enters into the fold.

Six Sigma (6σ) is a methodology that is applied to reduce defects in a given process. In other words, the principles and associated tools of Six Sigma can be applied to improve quality, increase efficiency, reduce losses and drive performance excellence in a business. The methodology can be applied across any industry including Manufacturing, Finance, IT, Communications, Healthcare, Pharmaceutical and Defence. It has fast become a widely desired management tool in growing businesses. Sigma(σ) is used to measure the variance (standard deviation) within a given process. If a business process is performing at a Six Sigma level, it is demonstrating that there are fewer than 3.4 defects per million opportunities or the another way of looking at this is the process has an accuracy rate of 99.9997%.

Benchmarking is an effective technique applied in Six Sigma. It involves comparison of business metrics and implementation or alignment to best practices in the existing or similar industries that your business operates in. Benchmarking metrics can include: process, financial, product, performance, strategic, collaborative, competitive or functional standards.

Six Sigma should always be applied in a live business environment. The comprehension of theory should be closely followed by practical implementation. This helps to reinforce your understanding of the methodology, whilst also demonstrating to your stakeholders that you are actively driving real changes and results within the business. Don't forget, Six Sigma is a continuous process. Once improvements have been made, further opportunities can always be identified in the future.

WHAT IS A PROCESS?

A process consists of various steps that result in an end product or service for the customer. Processes have an input (x) and an output (y). The process itself is described as f(x). The output is always dependent on the input. This is why feedback is important so that adjustments can be made to inputs to improve future outputs.

Businesses systems should include feedback so data can be collected & analysed to drive improvements in future process design. Methodical removal of defective process elements drives momentum high process yields.

BENEFITS OF SIX SIGMA?

An individual who has been trained in Six Sigma demonstrates confidence in management and delivery of continuous improvement projects, analysis of key business data, strong problem solving and critical analysis thinking, process improvement development, good communication skills and good team leadership. These are all skills which are desired in top managers of a business.

The business benefits include improved quality, reduction in defects, higher customer satisfaction, reduced waste, greater efficiency, point of difference versus competitors and high staff empowerment and loyalty.

BRIEF HISTORY OF SIX SIGMA

The term Six Sigma and the methodology itself was coined by Motorola in 1988. Michael Harry, Bill Smith and Bob Galvin have been credited with its conception after applying statistical process control techniques to improve existing business processes within Motorola. Leading up to the launch of the Six Sigma methodology were some very important people who should not be overlooked. Carl Frederick Gauss founded the normal curve which was a breakthrough tool in statistics. In the 1920s, Walter Shewart showed that corrections were required in statistical models when standard deviations from the mean had been observed. Edward Deming, affectionately known to some as the “Godfather” of quality, introduced the concept of statistical process control to improving quality in the 1950s. It is thanks to the collective intelligence and continuous development of ideas and principles founded by these pioneers that we today can apply methodologies like Six Sigma to drive performance excellence and continuous improvement.

ROLE OF THE GREEN BELT

Green Belts are the project leaders in Six Sigma, acting as the driving force from project kick-off to project closure. Green Belts act as the primary executioners of the Six Sigma methodology. However, Green Belts should not feel they are in it alone, there is a whole project team that is assigned to a Six Sigma project. Ideally there is also a Black Belt or Master Black Belt assigned to the project. Their role is to help guide the Green Belt and ensure the integrity of the data analysis and hypothesis testing, and that the conclusions being drawn are sound throughout the project duration. In short, the Green Belt is an active doer that will help identify and implement improvements for the business as well as developing people and their skill sets.

For Six Sigma to work it requires good change management, training and development of people & support of top management (pillars for six sigma).

Now that we know a little more about what Six Sigma is, it is time to take a look at a look at the setup of the Project Team and what they do.