Motorola in 1980 presented Six Sigma first time in the world and was made famous by its use and outcomes at General Electric during the 1990s. Jack Welch was its most fervent promoter, who made it possible to increase the company’s value by an astonishing 4,000%.
It emphases on enlightening customer satisfaction and business results by reducing process changeability. All work is a process, and all processes have variability. Variability is part of nature, it’s everywhere.
DNA makes us unique human beings. Even with a background in the same environment, with the same family and knowledge at the same schools, brothers and sisters differ importantly in their character. And much the same occurs with organizations. Employee motivations differ, and employees may reply otherwise to the same salary increase or the same set of orders from a larger. Products fluctuate from one another even though being manufactured using the same set of machinery, and service mileage differ even with a similar employee. Thorough knowledge of variation will demonstrate, however, that problems need to be attributed to system issues, not to people being unwilling to do their jobs.
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If we want to remove the sources of difference so that we can offer our customers constantly high product quality, we must decrease the noise in the system. To complete this, we need to base our choices on hard data, as opposed to instant feeling. That way, we will be able to include the changes that will influence our outcomes, improve the competence of our resources, decrease non-value added costs, and increase team confidence.
Why Six Sigma?
Where does the term ‘Six Sigma’ invent from? In principle, Six Sigma denotes to a statistical concept that refers to six standard deviations between the process mean and the nearby specification edge on either side. The first quality management normal is 1 sigma, which has a wider error lenience threshold, while the finest quality management standard is 6 sigma, with which you will only have 3.4 errors or faults per million opportunities (DPMO). The standard deviation is stately in sigma units and signified by the Greek letter σ (sigma).
If your progression is 5 sigma, it means that you have 233 DPMO and if it is 3 sigma, you have 66,811 DPMO. Visualize if a hospital has a 3 sigma level -there would be more than 60,000 improper drug prescriptions every year! Inappropriately, this is the quality level that is presently the standard in the industry.
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For a characteristic company operating at a 3 sigma level, the unavoidable costs of countering and deciding errors could be as much as 25 to 40% of its sales, though, with a 6 sigma standard, this could be cut down to under 5%.
Fortunately, the airline industry is on the right track. The sigma level of landings is around 6. Companies like Delta and Southwest use the Six Sigma method to continually progress performance. However, no airline is presently using 6-Sigma for Customer/Passenger Satisfaction
A Cultural Issue
Six Sigma trails a step-by-step method to problem resolving known as DMAIC: define, measure, analyze, improve and control. As Juran -one of the innovators of quality management once put it, “all improvement occurs project by project, and in no other way”. The awareness is that if you get your employees to progress improvement projects every time they have a problematic, they will start to get complicated in the quality culture. Their method towards problem-solving will finally change and they will start acceptance incessant improvement. The power of projects is that everybody involved:
- Applies theory to applied situations and practices the use of quality tools
- Understands how they influence their processes
- Feels more allowed as they help to design an improved process
- Improves the quality of their daily work and gives to increased efficiency
- Learns to work in teams, occasionally even in cross-functional ones
- Motivates others to improve
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To appearance off, another great plus with the project-by-project method is that it’s cost-effective, as you don’t need an enormous investment, to begin with. All you want to do is train your team, and projects bringing quality results will trail. Sounds easy, don’t you think?