Why Six Sigma

All businesses are under tremendous pressure to remain competitive.  Six Sigma helps customers achieve this goal by delivering services better, faster and at a lower cost, whilst increasing levels of customer satisfaction.  Six Sigma can be applicable to all industrial sectors making it attractive to both private and government.  Due to extremely high cost savings and efficiency gains, Six Sigma is now seen as mandatory in many organisations. Six Sigma is designed to provide tangible business results and cost savings that are fully accountable, e.g.: Consistently delivering services quicker, cheaper, with less variation, less waste or increased reliability as dictated by the marketplace.  It provides reduced; defects, failure costs, complaints, fault calls, higher process productivity, lower process costs, better response to process changes or requirements. e.g. order process, invoice and delivery. However, the success of the Six Sigma concept is significantly governed by the client.

The Six Sigma Story

Six Sigma - What is it? How does it work? Is it a technique or a culture change programme?  The answer to these questions and further information regarding Six Sigma is provided below.

Six Sigma is the name given to a management concept originated by Motorola in the late 1980’s with stunning results. It enabled them to become one of the first winners of the prestigious ‘Baldrige Award for Quality’ and is claimed to be responsible for very impressive improvements in all aspects of business performance.   Other star performers such as GE, Allied Signal, Navistar, Polaroid, Bombardier, etc., also developed Six Sigma programmes.

During 1998, a number of British subsidiaries and suppliers to these large companies found themselves being introduced to the concept by their American customers with the result that now Six Sigma has become an important new approach to business performance improvement.

Sigma is the mathematical symbol for standard deviation and Six Sigma can simply mean predicting a particular level of quality achieved by a "process". For example ±6 sigma or six standard deviations would mean the process would be unlikely to produce more than 4 defects in a million. Mostly this would be considered an impressive performance.   The "process" being referred to is often thought to be a manufacturing process, possibly mass producing cars, but this would be extremely short sighted. In fact, it is a popular misconception that Six Sigma is only applicable to the volume manufacturing processes - it is not.

The Six Sigma concept has developed into a methodology that focuses on process improvement and variation reduction, through the use of a measurement-based strategy. This strategy is realised through the application of a Six Sigma improvement project. This Six Sigma methodology is often accomplished through the use of two sub-methodologies: Define, Measure, Analysis, Improve, Control. (DMAIC) and Define, Measure, Analyse, Design, Verify ((DMADV), but more usually DMAIC.  In the main the originator of this Six Sigma strategy is generally considered to be Motorola and more specifically Bob Galvin who successfully used the approach as part of their Malcom Baldridge 1988 Award. GE and Allied Signal are also often credited with developing the Six Sigma methodology.

  1. Define: The customer, their problem and the processes or services involved. The scope and project objectives, determine the exact project problem and goal. For example, why is there such a large variation of salesmen's performance?
  2. Measure:  The performance of the process or service involved, the process variables (Xs) and outputs (Ys). Determine what, when and how frequently to measure, establishing the baseline performance of the process to demonstrate (eventually) what has improved (without measurement you cannot improve). For example; The top ten percent of the salesmen provide eighty percent of the sales volume. The bottom ten  percent of salesmen are failing to meet sales targets - A Sales Non-conformance - a defective unit.
  3. Analyse: The collected data, evidence and information is analysed to determine dominant source of variation (possibly the root cause of the problem) and the opportunity for improvement. For example; product and sales skills, experience, and training, sales areas, salesmen profiles (age, time in the job, etc.)
    4. .
  4. Improve: Develop (including alternatives), generate, implement, test and verify the agreed action plan designed to improve or resolve the identified issues. For example; Salesmen's profiles would indicate the skill set required for the job. Then focus the salesmen's training against the required skill set.
  5. Control: Communicate the project's success inspiring others to replicate. Identifying where these process improvements can be repeated. Monitor the success of the enhanced process performance. Providing means to measure, control and maintain the process at the new enhanced performance levels. For example; Monitoring of the salesmen's performance and use the salesmen's profile when selecting people for this function.

There is a very clear and defined hierarchy associated with Six Sigma which is based on the original structure defined by Motorola. Six Sigma is normally structured within an organisation with Green belts (part-time), Black Belts (full time), Master Black Belts (full-time coaches) and Champions or Sponsors.

Champions or Sponsors

The role of the Champions and Sponsors is to promote and maintain the Six Sigma principles and strategy within the organisation. Ensuring that all the stakeholders are adequately supported, resourced and funded. Actively participating in project coordination, so that projects are established and monitored appropriately for success. With correctly assigned and highly motivated personnel (Green belts, Black belts, etc.) associated with the project. Champions would be expected to be trained and understand the approach, application and implementation of the Six Sigma improvement methodology.