Everything You Need to know About What

is Six Sigma
By Pankaj KumarLast updated on Mar 4, 2021111371

Digital transformation has become the hottest buzzword of this decade. New
technologies and tools are supporting the transformation journey of companies big and
small as they compete to get a bigger slice of business in a fast-paced competitive
environment. Yet, is it enough to smooth a company's transformative process? Can a
standalone technology implementation remove a bottleneck in the production process or
support troubleshooting a service design flaw? Although digital transformation fast-
tracks a company's growth, it has to be equally supported by management methods of
quality control and business transformation.

Keeping in tune with emerging markets and processes, the American

company Motorola developed a new concept of quality management process in 1986.
Over the years, it has been refined and polished into a sound theory of principles and
methods, aimed at business transformation through a clearly defined process. This
finished product is Six Sigma.

What is Six Sigma?

Six Sigma is a set of management tools and techniques designed to improve business
by reducing the likelihood of error. It is a data-driven approach that uses a statistical
methodology for eliminating defects.

The etymology is based on the Greek symbol "sigma" or "σ," a statistical term for
measuring process deviation from the process mean or target. "Six Sigma" comes from
the bell curve used in statistics, where one Sigma symbolizes a single standard
deviation from the mean. If the process has six Sigmas, three above and three below
the mean, the defect rate is classified as "extremely low."

The graph of the normal distribution below underscores the statistical assumptions of
the Six Sigma model. The higher the standard deviation, the higher is the spread of
values encountered. So, processes, where the mean is minimum 6σ away from the
closest specification limit, are aimed at Six Sigma.

Credit: Cmglee, via Wiki Creative Commons CC BY-SA 3.0

The 5 Key Principles of Six Sigma

The concept of Six Sigma has a simple goal – delivering near-perfect goods and
services for business transformation for optimal customer satisfaction (CX).

Goals are achieved through a two-pronged approach:

Six Sigma has its foundations in five key principles:

1. Focus on the Customer

This is based on the popular belief that the "customer is the king." The primary goal
is to bring maximum benefit to the customer. For this, a business needs to
understand its customers, their needs, and what drives sales or loyalty. This requires
establishing the standard of quality as defined by what the customer or market
demands.

2. Measure the Value Stream and Find Your Problem

Map the steps in a given process to determine areas of waste. Gather data to
discover the specific problem area that is to be addressed or transformed. Have
clearly defined goals for data collection, including defining the data to be collected,
the reason for the data gathering, insights expected, ensuring the accuracy of
measurements, and establishing a standardized data collection system. Ascertain if
the data is helping to achieve the goals, whether or not the data needs to be refined,
or additional information collected. Identify the problem. Ask questions and find the
root cause.

3. Get Rid of the Junk

Once the problem is identified, make changes to the process to eliminate variation,
thus removing defects. Remove the activities in the process that do not add to the
customer value. If the value stream doesn't reveal where the problem lies, tools are
used to help discover the outliers and problem areas. Streamline functions to achieve
quality control and efficiency. In the end, by taking out the above-mentioned junk,
bottlenecks in the process are removed.

4. Keep the Ball Rolling

Involve all stakeholders. Adopt a structured process where your team contributes and
collaborates their varied expertise for problem-solving.

Six Sigma processes can have a great impact on an organization, so the team has to
be proficient in the principles and methodologies used. Hence, specialized training
and knowledge are required to reduce the risk of project or re-design failures and
ensure that the process performs optimally.

5. Ensure a Flexible and Responsive Ecosystem

 The essence of Six Sigma is business transformation and change. When a faulty or
inefficient process is removed, it calls for a change in the work practice and
employee approach. A robust culture of flexibility and responsiveness to changes in
procedures can ensure streamlined project implementation. The people and
departments involved should be able to adapt to change with ease, so to facilitate
this, processes should be designed for quick and seamless adoption. Ultimately, the
company that has an eye fixed on the data examines the bottom line periodically and
adjusts its processes where necessary, can gain a competitive edge.

The Six Sigma Methodology

The two main Six Sigma methodologies are DMAIC and DMADV. Each has its own set
of recommended procedures to be implemented for business transformation.

DMAIC is a data-driven method used to improve existing products or services for better
customer satisfaction. It is the acronym for the five phases: D – Define, M – Measure, A
– Analyse, I – Improve, C – Control. DMAIC is applied in the manufacturing of a product
or delivery of a service.

DMADV is a part of the Design for Six Sigma (DFSS) process used to design or re-
design different processes of product manufacturing or service delivery. The five phases
of DMADV are: D – Define, M – Measure, A – Analyse, D – Design, V – Validate.
DMADV is employed when existing processes do not meet customer conditions, even
after optimization, or when it is required to develop new methods. It is executed by Six
Sigma Green Belts and Six Sigma Black Belts and under the supervision of Six Sigma
Master Black Belts. We'll get to the belts later.

The two methodologies are used in different business settings, and professionals
seeking to master these methods and application scenarios would do well to take an
online certificate program taught by industry experts.

Learn for free! Subscribe to our YouTube Channel & Be a Part of 400k+ Happy
Learners Community.
The Six Sigma Process of Business Transformation

Although what is Six Sigma uses various methods to discover deviations and solve
problems, the DMAIC is the standard methodology used by Six Sigma practitioners. Six
Sigma uses a data-driven management process used for optimizing and improving
business processes. The underlying framework is a strong customer focus and robust
use of data and statistics to conclude.

The Six Sigma Process of the DMAIC method has five phases:

Each of the above phases of business transformation has several steps:

1. DEFINE

The Six Sigma process begins with a customer-centric approach.

Step 1: The business problem is defined from the customer perspective.

Step 2: Goals are set. What do you want to achieve? What are the resources you will
use to achieve the goals?
Step 3: Map the process. Verify with the stakeholders that you are on the right track.

2. MEASURE

The second phase is focused on the metrics of the project and the tools used in the
measurement. How can you improve? How can you quantify this?

Step 1: Measure your problem in numbers or with supporting data.

Step 2: Define performance yardstick. Fix the limits for "Y."
Step 3: Evaluate the measurement system to be used. Can it help you achieve your
outcome?
3. ANALYZE

The third phase analyzes the process to discover the influencing variables.

Step 1: Determine if your process is efficient and effective. Does the process help
achieve what you need?
Step 2: Quantify your goals in numbers. For instance, reduce defective goods by
20%.
Step 3: Identify variations using historical data.

4. IMPROVE

This process investigates how the changes in "X" impact "Y." This phase is where
you identify how you can improve the process implementation.

Step 1: Identify possible reasons. Test to identify which of the "X" variables identified
in Process III influence "Y."
Step 2: Discover relationships between the variables.
Step 3: Establish process tolerance, defined as the precise values that certain
variables can have, and still fall within acceptable boundaries, for instance, the
quality of any given product. Which boundaries need X to hold Y within
specifications? What operating conditions can impact the outcome? Process
tolerances can be achieved by using tools like robust optimization and validation set.

5. CONTROL

In this final phase, you determine that the performance objective identified in the
previous phase is well implemented and that the designed improvements are
sustainable.

Step 1: Validate the measurement system to be used.

Step 2: Establish process capability. Is the goal being met? For instance, will the goal
of reducing defective goods by 20 percent be achieved?
Step 3: Once the previous step is satisfied, implement the process.
Interested in learning Lean Six Sigma and it’s importance? Check out the Lean Six
Sigma Green Belt Certification course preview!
Six Sigma Techniques

The Six Sigma methodology also uses a mix of statistical and data analysis tools such
as process mapping and design and proven qualitative and quantitative techniques, to
achieve the desired outcome.

Fig: Key Six Sigma Techniques in use

Brainstorming

Brainstorming is the key process of any problem-solving method and is often utilized in
the "improve" phase of the DMAIC methodology. It is a necessary process before
anyone starts using any tools. Brainstorming involves bouncing ideas and generating
creative ways to approach a problem through intensive freewheeling group discussions.
A facilitator, who is typically the lead Black Belt or Green Belt, moderates the open
session among a group of participants.

Root Cause Analysis/The 5 Whys

This technique helps to get to the root cause of the problems under consideration and is
used in the "analyze" phase of the DMAIC cycle.

In the 5 Whys technique, the question "why" is asked, again and again, finally leading
up to the core issue. Although "five" is a rule of thumb, the actual number of questions
can be greater or fewer, whatever it takes to gain clarity.

Voice of the Customer

This is the process used to capture the "voice of the customer" or customer feedback by
either internal or external means. The technique is aimed at giving the customer the
best products and services. It captures the changing needs of the customer through
direct and indirect methods. The voice of the customer technique is used in the "define'
phase of the DMAIC method, usually to further define the problem to be addressed.

The 5S System

This technique has its roots in the Japanese principle of workplace energies. The 5S
System is aimed at removing waste and eliminating bottlenecks from inefficient tools,
equipment, or resources in the workplace. The five steps used are Seiri (Sort),
Seiton (Set In Order), Seiso (Shine), Seiketsu (Standardize), and Shitsuke (Sustain).

Kaizen (Continuous Improvement)

The Kaizen technique is a powerful strategy that powers a continuous engine for
business improvement. It is the practice continuously monitoring, identifying, and
executing improvements. This is a particularly useful practice for the manufacturing
sector. Collective and ongoing improvements ensure a reduction in waste, as well as
immediate change whenever the smallest inefficiency is observed.

Benchmarking

Benchmarking is the technique that employs a set standard of measurement. It involves

making comparisons with other businesses to gain an independent appraisal of the
given situation. Benchmarking may involve comparing important processes or
departments within a business (internal benchmarking), comparing similar work areas or
functions with industry leaders (functional benchmarking), or comparing similar products
and services with that of competitors (competitive benchmarking).

Poka-yoke (Mistake Proofing)

This technique's name comes from the Japanese phrase meaning "to avoid errors," and
entails preventing the chance of mistakes from occurring. In the poka-yoke technique,
employees spot and remove inefficiencies and human errors during the manufacturing
process.

Value Stream Mapping

The value stream mapping technique charts the current flow of materials and
information to design a future project. The objective is to remove waste and
inefficiencies in the value stream and create leaner operations. It identifies seven
different types of waste and three types of waste removal operations.

The Six Sigma Tools

1. Cause and Effect Analysis

2. Flow Chart

3. Pareto Chart

4. Histogram

5. Check Sheet

6. Scatter Plot

7. Control Chart

Six Sigma Levels

The Six Sigma training levels conform to specified training requirements, education
criteria, job standards, and eligibility.

White Belt

This is the simplest stage, where:

 Any newcomer can join.

 People work with teams on problem-solving projects.

 The participant is required to understand the basic Six Sigma concepts.

Yellow Belt

Here, the participant:

 Takes part as a project team member.

 Reviews process improvements.

 Gains understanding of the various methodologies, and DMAIC.

Green level

This level of expertise requires the following criteria:

 Minimum of three years of full-time employment.

 Understand the tools and methodologies used for problem-solving.

 Hands-on experience on projects involving some level of business transformation.

 Guidance for Black Belt projects in data collection and analysis.

 Lead Green Belt projects or teams.

Black Level

This level includes the following:

 Minimum of three years of full-time employment

 Work experience in a core knowledge area

 Proof of completion of a minimum of two Six Sigma projects

 Demonstration of expertise at applying multivariate metrics to diverse business

change settings

 Leading diverse teams in problem-solving projects.

 Training and coaching project teams.

Master Black Belt

To reach this level, a candidate must:

 Be in possession of a Black Belt certification

 Have a minimum of five years of full-time employment, or Proof of completion of a

minimum of 10 Six Sigma projects

 A proven work portfolio, with individual specific requirements, as given here, for
instance.

 Have coached and trained Green Belts and Black Belts.

 Develop key metrics and strategies.

 Have worked as an organization's Six Sigma technologist and internal business

transformation advisor.

Develop an in-depth understanding of the Six Sigma phases define, measure, analyze,
improve and control (DMAIC) with the Lean Six Sigma Green Belt Certification.

The Six Sigma Certification Levels

Six Sigma certification is much like the certification system followed in martial arts,
where a wannabe Six Sigma professional begins with the White Belt and upskills his
way up to become the master of the pack with the Master Black Belt; or take an
integrated certification offered by some institutes.

Fig: The five-tiered levels of Six Sigma Certification