Tuesday, 16 January 2018

What is Six Sigma?

Six sigma system is also call comprehensive-the meaning is strategies, disciplines, and tools to reach and support business success. The strategy of focusing on improving customer satisfaction, call discipline because it follows the formal model. That is DMAIC:  Define, Measure, Analyze, Improve, Control.

What is Six Sigma?  Six sigma system
Where did that come from "Six Sigma"? With the US in 1986. In the Motorola work an engineer Bill Smith, who study the different statistical correlations. He suggest an approach that is improving profitability by reducing all kinds of defects in the creative process.


From the point of view of statistics, the point is that if the production has many stages, even with little chance of committing errors at each stage, a total chance of defective product growing considerably. So every step of the way to reduce errors, which will give a significant effect.

Objective methods of 6 Sigma is to improve the quality of the result of the process by identifying and getting rid of the causes of errors. We want to minimize any volatility in the level of business processes and production. Use for this purpose various methods of quality management, statistical methods.

All are responsible, high-quality professionals, who know these methods. Each Sigma project has define steps and correct the objectives to which it is commit. This is for example. reduction of production time, reduce pollution, reduce costs, increase customer satisfaction or increase revenue.

These advantages belonging to 6 Sigma than any other method are:

A 6 Sigma is much more detail than the analysis method base on statistics. Six Sigma can be apply in any field of endeavor ranging from strategy to operational planning to customer services and maximization of existing top attempt at motivation.

The 6 Sigma potential apply to the field or non-technical environment in addition to manufacturing, such as the fields of management, finance, customer service, marketing, logistics, information technology and so on.

With the 6 Sigma system can be understood and which variables can be monitor and respond back quickly.

Six Sigma to its not static. When a customer needs change, sigma performance will change.

Why Six Sigma?

Why talking about "Six Sigma" and not, for example, five or seven? Where this value? Let's start with the translation from shortcut DPMO. It comes from English: Defects Per Million Opportunities. Is that we count, how many errors will be commit, in fact, in a situation where we had a million possibilities. That is, the lower the value of this indicator, the less is the likelihood of such an error.

For example, if the value of the chocolate factory DPMO will be very high, then we have a great chance of that in our favorite product runs out of peanuts, raisins or caramel. If you will it, DPMO can we expect a perfect product every time exactly the same.

6 Sigma method assumes that DPMO will be 3.4. That is, per million opportunities, only so many times you will see defect. This is the value that the method developers seem satisfactory.

Thus a particular value 6 for sigma determine empirically. Even for very complex processes is achieve a great chance of releasing good products for the first time. The chocolate will have the right amount of groceries, beer will be properly cap and hair shampoo will ideally be churned out.

Statistical basis

Also add here that the entire statistical basis for this method takes into account the still moving average over a longer period of time of one and a half standard deviation of up or down. This means that if we examine some process at any given time, we have to be aware of that. a year later, there may be conditions that affect change in the mean. Six Sigma method takes account of this in their assumptions.

If anyone is curious about the details, I encourage you to look for articles that describe 6 Sigma. You can be interest in the foundations of statistics (and discussions, whether they are valid or not), you can explore the method from the point of view of quality management. Certainly it's good to know that such a method exists and is a very concrete example of the use of statistical methods in business.

The methodology of 6 Sigma

The strategy of applying six sigma was create by Dr. Mikel Harry and Richard Schroeder is refer to as The 6 Sigma Breakthrough Strategy. This strategy is the systematic method that uses data collection and statistical analysis to determine the sources of variation and ways to eliminate it.

Six sigma project has an impact on consumer satisfaction and significant impact on the bottom-line. Top management has an important role during the selection of projects and as a leader. The project clearly define in terms of expect key deliverables, namely DPMO level or sigma quality levels, RTY, Quality Cost etc. In the overall approach, the real issues behind the problem into statistic.

This is done by mapping the process, i.e. defines variable-variable input processes (key process input variables KPIVs or ' x's) and variable-key variables output processes (key process output variables KPOVs or ' y's). the power of statistical tools use to determine statistical solution.

There are five stages or steps in implementing the basic strategy of 6 Sigma is to Define – Measure – Analyze – Improve – Control (DMAIC), which stages the stages is repetitive or form a cycle of quality improvement with 6  Sigma.

Six sigma as a measurement system

The 6 sigma in accordance with the meaning of sigma, i.e., distribution or dissemination (variation) than the average (mean) of a process or procedure. 6 sigma apply to minimize variations (sigma).

6 sigma as a measurement system using Defects per Million Opportunities (DPMO) as the unit of measurement. DPMO is a good measure for the quality of a product or process, for correlated directly with the disable, the cost and time waste.

Six Sigma TQM Excellence

The 6 Sigma is consider a gauge of the new management as a substitute for Total Quality Management (TQM). The concept of Total Quality Control, in 1950. Indicating that the product quality. it can be improve by extending the reach of quality standards toward upstream. That are in the area of engineering and purchasing. But there are some shortcomings that emerge in the implementation of Total Quality Control, namely:

  • Too focus on quality and not paying attention to other critical business issues.

  • The implementation of Total Quality Control to create the understanding. That quality issues is the problem of the Department of Quality Control. Quality problem usually stems from the inability of other departments within the same company.

  • The emphasis is generally on a minimum standard of quality of the product. Not on how to improve the performance of the product.

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