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The technique for measuring and improving product quality

Sigma is a term that is used to show how much something deviates from the norm (or target). Six Sigma uses statistical analysis and benchmarking to identify these deviations in order to improve quality and efficiency. Originally developed by Motorola to deal with manufacturing issues, it is now used in many other business contexts.

 

Six Sigma is disciplined, data-led approach to measuring and evaluating costs. By measuring costs how much costs add value for customers, Six Sigma is useful for managing costs effectively and improving operations and strategy. By exposing costs that do not add value, companies can eliminate them and divert resources accordingly. Advantages include:

•         Improved performance and the elimination of waste

•        Efficient operations and greater control over quality issues

•        Reduced costs and increased profitability

•        Decisions and strategy informed by actual data

•        Focus on adding value for customers

•       Increased employee engagement and commitment

•       Setting targets, and focusing people on achieving them                               

Using Six Sigma

Six Sigma involves identifying problems and non-value-adding costs and then improving processes and reducing as much as possible. The aim is to get a system to operate with Six Sigma quality – a state where defects are minimal. The process in question is measured against benchmarks 1-6 to judge efficiency, where level 6 is the best. For example, a manufacturing process that operates with only 3.4 defects per million outputs would equate to level 6.

A key aspect of the technique is to appoint senior people to champion Six Sigma and for them to create teams of experts to plan and execute the project. The process involves five main steps (known by the acronym DMAIC) with an optional sixth step (T):

 

 

Defining the opportunity. The project’s exact purpose and parameters should be clearly stated and should factor in customer requirements.

Measuring performance. Relevant and revealing data should be collected.

Analyzing the opportunity. Identify problems and where the causes lie.

Improving performance. Design new methods and test them through analysis, simulations or pilot tests.

Controlling performance. Set up procedures that continually monitor performance so that any problem can be immediately highlighted and dealt with.

Transferring best practice. Improvements, information and ideas should be spread throughout the company.

DMAIC is used to evaluate existing processes. A variation on this, known as DMADV (the last two letters standing for Design and alternative and verify the new design), is used for projects aiming to create a new process.