Six Sigma
Six Sigma is a management approach that aims to solve problems by analyzing and improving processes, products and services by reducing defects. This methodology was developed by Motorola and was then distributed among global corporations and became a well-known systematical approach to sustain competitive advantage (Kwak & Anbari, 2004)
The goal is to reduce errors on 3.4 defects per million opportunity. This is also known of the sixth sigma of quality levels. It explains is measured by the sigma, which stands for standard deviation in statistics. In the sixth level, the output only deviates from the mean in a very low volume.
It can be applied in various fields of business e.g. marketing, service, production, engineering, purchasing and many others. One of the reasons why six sigma achieved its current status is that it can be measured and monitored in financial numbers and cost savings.
However, it is important to see errors through the eyes of a customer rather than from the corporation side. It is an approach for quality management and pushes the aim for zero defects or total perfection. Only by understanding the issue, it can be used to improve customer experience and hence customer satisfaction.
DMAIC Roadmap
In order to structure the process of operational improvements, the concept of six sigma delivers a certain methodology to do so. It consists of five phases, which are Define, Measure, Analyze, Improve and Control. “It is a closed loop process that eliminates unproductive stapes, often focuses on new measurements, and applies technology for continuous improvements”, (Kwak & Anbari, 2004). DMAIC identifies the most significant variables that are essential for the customer contact. Additionally, it also should ensure the problem to be eliminated forever.
Within the first phase, objectives, timelines, and organizational topics are discussed and clearly written down. Once this is done, the organization starts to collect information on every variable that possibly interferes with a positive outcome to the customer. Requirements and expectations of the customers, possible obstacles within the project, and the project roadmap are defined in detail.
In the second phase, a plan is developed which and how data is collected that show the customer satisfaction process. Data is then prepared to be investigates closer. Qualitative as well as quantitative tools can be used to identify major or simple issues in a value chain.
As soon as data is collected, it has to be analyzed and interpreted correctly. That happens within the analyzing phase. The causes for unsatisfied needs are analyzed and sources of defects are revealed. As soon as processes are found to be improved, one has to concentrate on the ones with the greatest output of improvement since it is too time-intense to cover each defective process.
The fourth phase, improving, consists of changing the process to the best possible output. Performance is driver of success and this is measured by the amount of errors. It is them to be reduced at a minimum.
However, process improvements are not valuable when they are not integrated sustainably. Employees and stakeholders have to internalize changes on a long term. Therefore, control is absolutely necessary to ensure solutions are delivered properly. Monitoring of key performance indicators are as important as monitoring the development of customer feedback and financial digits.
Business Integration
Six Sigma requires the management to be fully committed to the project. Financial as well as human resources in terms of training capabilities are necessary to fulfill the set goals. With improvements often comes along cultural change. The management as well as the workforce has to be aware of the challenges due to the implementation of six sigma. A communication plan can prevent inconsistencies of information flow and clarifications of the topic discussed. Continuous training and creating of awareness to operational processes in the various fields are fundamental to ensure the success of a six sigma project.
To sum up, the method of Six Sigma is likely to remain as one of most influential optimization methods in many technology and project-driven organizations. Justifiably.
Sources:
Young Hoon Kwak, Frank T. Anbari (2004); Benefits, obstacles, and future of six sigma approach
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