Key Concepts of Six Sigma (Page 2 of 2)

The basic Six Sigma methodology uses statistical tools to identify the vital few factors - the factors that matter most for improving the quality of processes and generating bottom-line results. It consists of four or five phases:

• Define the projects, the goals, and the deliverables to customers.
• Measure the current performance of the process
• Analyze and determine the root cause(s) of the defects.
• Improve the process to eliminate defects.
• Control the performance of the process.

There are two main Six Sigma methodologies used:

• DMAIC (define, measure, analyze, improve, and control) is used to improve existing processes that are falling below specification and looking for incremental improvement

• DMADV (define, measure, analyze, design, and verify) is used to create new products or process designs at Six Sigma quality levels.

The advantage of using Six Sigma is that it is not rigid, it's a flexible methodology. Approaches to Six Sigma vary from organization to organization. One of the variations is in phases. Some approaches use all five of the phases listed above while others do not include the Define phase.

Six Sigma should be used as a road map for improvement. The point is that this is a set of tools aimed at helping managers and employees understand and improve critical processes.

There are key players in the Six Sigma methodology that act as agents to facilitate the process. Six Sigma borrows martial arts ranking terminology to help define the vital roles in the methodology. They are:

• Champion: Serves as a coach, mentor, and leader and is generally selected from ranks of upper management,. The champion supports the project teams and allocates necessary resources.
• Master Black Belt: Serves as a coach and mentor or consultant to Black Belts working on a variety of projects. In most cases a MBB is a real expert in Six Sigma analytical tools, with a background in engineering or science, or an advanced business degree.
• Black Belt: Operates under Master Black Belts and works full-time on selected projects. They are the team leaders who move theory into action.
• Green Belt: Assists black belts in their functional areas. They work on projects part-time, usually in a limited, specific area.

• Six Sigma is not another quality program. Six Sigma uses your resources to fix identifiable, chronic problems. It proves its value by connecting outcomes to your bottom line.
• Six Sigma is not theory. It's a practice of discovering the vital few processes that matter most. It defines, measures, analyzes, improves, and controls them to tie quality improvement directly to bottom-line results.
• Six Sigma is not a training program. Of course, practitioners are trained in the methodology to ensure correct implementation and results.

Research suggests that when they experience the negative results of faulty products or processes, customers don't just sit around and feel depressed; they act. Here are some facts about the ripple effects of low-sigma performance:

• A dissatisfied customer will tell nine people about an unhappy experience.
• The same customer will only tell five people if a problem is handled satisfactorily.
• Thirty-one percent of customers who experience service problems never register complaints, because it is "too much trouble."
• Of that 31 percent, as few as 9 percent will do additional business with the company.

In short, defects can lead to lost customers, and turned-off customers tell others about their experiences, making it that much more difficult to recover from defects. Keeping customers happy is good and profitable for business. Six Sigma provides a goal that applies to both products and services- that sets attainable short-term goals while striving for long-range business objectives.