Benefits of Six Sigma implementation

Reduced defects and throughput time of processes in processes of all nature (Transactional and manufacturing) Reduction of cost of quality Minimizes cycle time Wastage reduction projects can reduce wastage Reduces non-value adding activities Improves customer focus and builds long term customers relations Decision making is fact based Added knowledge to the employees

Introduction :
Six Sigma is a disciplined approach to solving problem. It is a data driven methodology which analyses data to identify the cause of problems and generated solutions, which include performances of processes.

It is a in-depth approach to addressing a problem. The science of statistics is used to understand the data and derive inference. At the same time it focuses on project management to guide the entire process of problem solving.

The term “Six -Sigma” refers to the status of the performance of a process at its very best.

Achieving a level of six sigma means the process contains 3.4 defects per million opportunities

Sigma Rating	PPM
2	308537
3	66807
4	6210
5	233
6	3.4
Process Capability	Defects per Million Opportunities

Thus striving to bring the defect level to near zero level.

The objective is to optimize the process, and improve the effectiveness and efficiency of the process and thus improve customer satisfaction.

An approach then is to address the problem in a very discipline manner which is called the” DMAIC” cycle and achieve the desired sigma level.

Who should use?
As it is a business improvement concept, it is applicable for all type of businesses, Profit making to Non profit making, Service sector to Manufacturing, Construction to Oil and Gas, Agriculture to Telecom.

To all sizes of organizations from small scale to multinational organizations.

What is six sigma methodology?
The six sigma philosophy in actual is a series of steps called DMAIC methodology of solving problems.

DMAIC stands for - Define , Measure Analyse, Improve, Control

Define Phase

• Why this Project ? – Business Case .
  
• Project Charter.
  
• SIPOC – To find process scope and inputs.
  
• CTQ identification.
  
• Create CTQ specification table.
  
• Review and Finalize Your Project Charter.

Measure Phase

• Identify critical inputs / process variables for data collection through Prioritization Matrix or FMEA.
  
• Data collection plan.
  
• Gauge R & R for the Measurement System measuring a characteristic with an instrument or through visual inspection.
  
• Test for normality.
  
• Calculate present sigma rating.
  
• For discrete data calculate defects per million opportunities.

Analyze

• Process analysis – activity flow chart – identify value added and non–value added activities.
  
• Deployment flow chart for interdepartmental flow.
  
• Root cause analysis for each CTC/CTB/NVA .
  
• Validation of the causes.
  
• Mostly for manufacturing cases conduct design of experiments.

Improvement

• How to generate the solutions for validated root causes – solution prioritization matrix – cost benefit analysis
  
• Piloting
  
• FMEA for the improved process
  
• Risk analysis of the suggested solutions to ensure that negative side effects do not impact the results
  
• Implementation planning – resource, time and involvement of stakeholders

Control

• How to ensure the improved process is maintained? How to establish controls for the same?
  
• Development of Control Plans/ Quality Plan/ Procedures. Standardization of the improved Process
  
• Evaluate benefits/ results
  
• Check before and after through various statistical tools
  
• Evaluation of sigma levels before and after
  
• Explain what else needs to be done, take it up as a next project or give it to someone else
  
• The entire project effectiveness can be validated by calculating the financial benefits

While Six Sigma follows the DMAIC methodology at the project level, it follows a well established deployment methodology at the business level. Companies like GE and DuPont have paved the way for making Six Sigma deployable through large networks of Champions, Black Belts, Green Belts, Yellow Belts and Process

What are the benefits?
The journey of an organization through a six-sigma deployment program elevates it to a completely different and higher maturity level. The culture of the organization is transformed. To be more specific the organization turns more disciplined, decisions are data driven and less intuitive, which makes them more impartial and accurate. The knowledge quotient of the organization is elevated. As knowledge is the only entity which brings individual human change, the deployment process injects pure knowledge in the organization thus bring a remarkable change in individual thinking.

The organizations problem solving culture is transformed into a data driven process.

Some of the tangible benefits are

Ultimately higher revenues
Six sigma is now around 20 years old, and has still not faded away, as it is a phenomenally effective improvement methodology. The fact that it has sustained its dominance, make us understand its usefulness.

Sooner or later organizations who have hesitated to adopt six sigma will have to accept it, as the competitive pressure to reduce cost, improve customer satisfaction and improve quality will rise.

CQM approach
We consider every organization unique in the form of processes, knowledge quotient, culture, size and resource mobility as a result a straight jacket approach of deployment does not work for all organizations.

It is our belief that independent trainings and implementations as two different projects.

While trainings are individual based Implementation involves a cultural shift which is a deep rooted process and needs in depth understanding of the organization’s people, processes and customers.

We start with a cultural assessment which further provides input for developing a deployment plan.

CQM has a team of experts from a wide range of discipline viz management, sociology, statistics and engineering with a rich experience in implementing these domains to process management.

We have helped numerous organizations in the SME and large scale sector to achieve remarkable progress in terms of saving revenue in millions.