Group 10: Six Sigma
Introduction
Six Sigma is a data-driven methodology aimed at improving quality
and reducing process variation. Its ultimate goal is to achieve near-
perfect processes with only 3.4 defects per million opportunities
(DPMO). This approach is widely applied across both manufacturing
and service industries, focusing on measurable results and customer
satisfaction.
Why do companies use Six Sigma?
Modern organizations need consistency and efficiency to remain
competitive. Real-world processes often suffer from variation and
defects, leading to increased costs, delays, and customer
dissatisfaction. Six Sigma tackles these challenges by identifying and
addressing root causes, rather than just treating symptoms.
Defects in Six Sigma
A defect is any output that does not meet customer requirements.
Common sources of defects include :
1. poor process design - The steps in the process are not optimized
or lack proper controls.
2. human error- Mistakes made by employees during production or
service delivery.
3. Machine or system failure - Equipment breakdowns, software
glitches, or inaccuratenmeasurements.
Six Sigma uses root cause analysis to implement long-term solutions.
Different meanings of Six Sigma
As a Measure: Six Sigma refers to the sigma level of a process, which
indicates its capability to meet customer requirements.
As a Benchmark or Goal: A six sigma level, compared to 4 or 5
sigma, is considered a benchmark of process excellence adopted by
leading organizations.
As a Philosophy: Six Sigma represents a vision of near defect-free
performance, focusing on reducing variation and consistently
delivering high-quality results.
As a Method: It provides a structured toolkit and framework for
product and service design, quality control, quality improvement, and
strategic planning.
Six Sigma uses a structured problem-solving framework called DMAIC, which
stands for:
Define – Identify the problem and customer requirements.
Measure – Collect data and understand the current process
performance.
Analyze – Determine root causes of defects or variation.
Improve – Implement solutions to address the root causes.
Control – Maintain improvements through monitoring and control
systems.
This approach ensures that improvements are data-driven, not based on
guesswork.
Origin of Six Sigma
Six Sigma was developed by Motorola in 1986 to enhance product
quality and operational efficiency.
It was introduced by Bill Smith, saving Motorola billions of dollars.
In the 1990s, General Electric (GE) under Jack Welch popularized Six
Sigma and reported $12 billion in savings over five years.
Six Sigma is recognized globally as a proven business strategy, widely
adopted across industries such as manufacturing, healthcare, and IT for its
measurable impact on performance and customer satisfaction.
——-second reporter——————
I. Essence of Six Sigma
- a type of quality management and process improvement
methodology
- A data-driven approach because it utilizes data and statistical
analysis
- Its main objective is to reduce the time, defects and variability
experienced by processes in an organization. Its ultimate goal is to
achieve a near-zero defects (99.99966% defect-free rate) because
for every million opportunities, it only produces 3.4 defects (this is a
key indicator of six sigma process).
Six Essential Themes:
1. great emphasis for customer satisfaction
2. data and fact-driven
3. Process focus: Y = f (x)
4. proactive
5. boundary-less collaboration (include customers, suppliers, supply chain
parties)
6. drive for perfection but with a tolerance for failure
Companies using Six Sigma: Dell, Microsoft, Amazon, Volkswagen, Ford
Motor Company
Six sigma is not only applied in the business industry but also in other
industry areas: Healthcare, Banking (finance) , Government, Human
Resource (US Army, US Marine Corps), Software (IT), Engineering, and many
other fields.
II. Design for Six Sigma (DfSS)
Difference between DMAIC and DMADV:
DMAIC focuses on identifying and eliminating defects in current processes,
while DMADV focuses on preventing defects from occurring in the first place
by designing them out.
DMAIC - a quality improvement methodology; is for improving existing
processes
DMADV - for creating new processes
DMADV Methodology - stands for Define, Measure, Analyse, Design and
Verify
Design for Six Sigma - is a philosophy for designing new products, services
and processes often with high customer involvement from the outset. It is a
proactive approach, aiming to prevent defects and ensure high quality
before a product or process is implemented.
DMADV PHASES:
Define – “defining what needs designing”. This phase is about scoping,
organizing, and planning the journey for your project.
Measure – this phase focuses on defining the framework around which
the design can be built, and the basis for the design decisions needed in
further phases.
Analyse – this phase identifies the key functions. In carrying out the
functional features, one needs to have an analysis to understand their
performance capability and ensure they are fit for purpose.
Design – develops the key function
Verify – “verifying that the design works” through prototyping, testing
and validation. In here, we want to make sure that no black holes exist in
the handover for this design before it is being implemented.
III. Six Sigma Implementation
Seven-step Six Sigma Introduction Implementation
1. Appoint an implementation team leader
2. Use a multifunctional team to lead roll-out
3. Work with Executives and Champions (top managers executives e.g.,
CEO, CFO) to develop a Six Sigma Roadmap
4. Establish quantifiable goals
5. Formulate an implementation plan
6. Develop a mechanism to coach black belts (project
leader/manager/team facilitator) and teams
7. Implement project review and metrics tracking mechanism
Seven-step Roadmap for Six Sigma Improvement Implementation
Step 1: Set up the long-term vision of Six Sigma
Step 2: Identify core processes and key customers
Step 3: Define customer requirements and key process variables
Step 4: Measure current process performance
Step 5: Improve process performance
Step 6: Design/redesign process if necessary
Step 7: Expand and integrate the Six Sigma system
IV. Lean, Kaizen, and TQM (other methodologies other than Six
Sigma)
● Lean – evaluates the entire operation of a process and restructures
the processing method to reduce wasteful activities like waiting,
transportation, material hand-offs (exchange), inventory, and over-
production.
- is a methodology that aims to remove any part of the process that
does not bring value to the customer; means “doing more with less
while doing it better”.
- from the previous reporter, lean was highly developed from the
Japanese manufacturing industry – Toyota Company.
● Lean Six Sigma (best of both worlds) - a combination of:
Eliminating Problems + Removing inefficiencies and waste +
Improving working conditions + customers’ needs are satisfied.
- Basically, It aims to stream revenue by enabling the organization to do
more with less - sell, manufacture and provide more products or
services using fewer resources.
● Kaizen - a japanese philosophy which means “change for better”; it is
a model of “continuous improvement”.
- adopts Deming Cycle known as PDCA Cycle or Plan, Do, Check, Act
- like Six Sigma, it focuses on reducing waste and increase efficiency
- its way of improvement is rather slow and gradual that leads to long-
term results.
- “small changes can lead huge impact in the future”
● Total Quality Management (TQM) - A philosophy that involves
everyone in an organization in a continual effort to improve quality and
achieve customer satisfaction. (its other key elements are Quality at
the Source, Teamwork Approach and Employee Empowerment).
- seeks to improve the products and services through ongoing
refinements in response to continuous feedback. it could be defined
separately for a particular organization or may be in adherence to
established standards such as ISO 9000 series (a set of international
standards on quality management and quality assurance).
- a combination of enhancing efficiency + reducing waste + improving
quality and performance.
