Dear seniors, please explain about the six sigma theory with an example. Thanks.
From India, Calcutta
2From India, Calcutta
I have sumnmary of the basic concep you have to expand this theory depends on your knowledge depth and interpretation as well as understanding of the business model of your organization.
This requires lot of experience and working knowledge of different processes to achieve perfection level and zero defect system.
SIX SIGMA
Six Sigma is a statistical concept that measures a process in terms of defects. Achieving Six Sigma means your process is delivering only 3.4 defects per million opportunities.
Sigma [the Greek letter ] is a term in statistics that measures something called standard deviation. In its business use, it indicates defects in the out put of a process and helps to understand how for the process deviates form perfection.
KEY TERMS-
PROCESS - Any repetitive action- be it in a transactional, manufacturing or services
environment. The six sigma methodology collects data on variations in
out puts associated with each process. So that it can be improved and
those variations reduced.
SIGMA - A term used in statistics to represent standard deviation, an indicator of
the degree of variation in a set of measurements or a process.
SIX SIGMA - A statistical concept that measures a process in terms of defects- at the
six sigma level, there are only 3.4 defects per million opportunities. Six
Sigma is also a philosophy of managing that focuses on eliminating
defects through practices that emphasize understanding, measuring and
improving process.
DEFECTS - A measurable characteristics of the process or its output that is not
within the acceptable customer limit i.e. not conforming to specification.
So in short, six sigma is several things:
Sigma Level
Defects per Million
(Process Capabilities)
Opportunities
2
308537
3
66807
4
6210
5
233
6
3.4
Probability of defects of different Sigma levels.
CHAMPION - A senior level manager who promotes the six sigma methodology
throughout the company and especially in specific functional groups.
The champion understands the discipline and tools of six sigma,
selects projects, establishes measurable objectives, serves as coach
and mentor, removes barriers and dedicates resources in support of
black belts. A champion “Own” the process-monitoring projects and
measuring the savings realized.
GREEN BELT - Green belt assist black belts in their functional areas. They work on
project part time, usually in a limited specific area.
BLACK BELT - A full time change agent trained in the methodology to solve product
and process defects project by project with financially beneficial
results. A black belt does Six Sigma analyses and work with others
(Often teams) to put improvement in place.
BREAKTHROUGH GOALS- A dramatic, near immediate and significant
improvement, in measurement terms, reaching a breakthrough goal
represents an improvement of 60% to 80%.
MEETING STREACH TARGETS- is concept of looking beyond meeting basic
requirements and exceeding your own expectation, when you
understand that your defined goals are within reach, you need to shift
your mind set to go further, to reach highest, to stretch your
capabilities.
CRITICAL TO QUALITY-[CTQ] Element of process that significantly affects the out
put of that process. Identifying these elements is vital to figuring out
how to make the improvements that can dramatically reduce costs
and enhance quality.
Six Sigma five phase sequence of DMAIC {Define, Measure, Analyze,
Improve and Control}
BENCHMARKING- A method for comparing a process, using standard or best
practices as a basis, and then identifying ways to improve the
process.
BUSINESS METRIC- A unit of measurement that provides a ways to objectively
quantify a process. Any measurement that helps management
understand its operations might be a business metric:
- Number of products completed per hour.
- Percent of defects from a process.
- Hours required to deliver a certain number of out puts or provide a service, and so on. Business metrics provides data that Six Sigma managers can use to better understand their processes and identify target areas for improvement.
Means- Average[ More specifically called the arithmetic mean] the sum of series of
values divided by the number of values.
Median- Mid point in a series of values.
Mode- Value that occurs most often in a series of values.
Range-Difference between the highest value and the lowest value in a series, the
spread between maximum and minimum.
STANDARD DAVIATION- Average difference between any value in a series of values
and the means of all the values in that series.
Badlu
From Saudi Arabia
This requires lot of experience and working knowledge of different processes to achieve perfection level and zero defect system.
SIX SIGMA
Six Sigma is a statistical concept that measures a process in terms of defects. Achieving Six Sigma means your process is delivering only 3.4 defects per million opportunities.
Sigma [the Greek letter ] is a term in statistics that measures something called standard deviation. In its business use, it indicates defects in the out put of a process and helps to understand how for the process deviates form perfection.
KEY TERMS-
PROCESS - Any repetitive action- be it in a transactional, manufacturing or services
environment. The six sigma methodology collects data on variations in
out puts associated with each process. So that it can be improved and
those variations reduced.
SIGMA - A term used in statistics to represent standard deviation, an indicator of
the degree of variation in a set of measurements or a process.
SIX SIGMA - A statistical concept that measures a process in terms of defects- at the
six sigma level, there are only 3.4 defects per million opportunities. Six
Sigma is also a philosophy of managing that focuses on eliminating
defects through practices that emphasize understanding, measuring and
improving process.
DEFECTS - A measurable characteristics of the process or its output that is not
within the acceptable customer limit i.e. not conforming to specification.
So in short, six sigma is several things:
- A statistical basis of measurement: 3.4 defects per million opportunities.
- A philosophy and goal: as perfect as practically possible.
- A methodology.
- A symbol of quality.
Sigma Level
Defects per Million
(Process Capabilities)
Opportunities
2
308537
3
66807
4
6210
5
233
6
3.4
Probability of defects of different Sigma levels.
CHAMPION - A senior level manager who promotes the six sigma methodology
throughout the company and especially in specific functional groups.
The champion understands the discipline and tools of six sigma,
selects projects, establishes measurable objectives, serves as coach
and mentor, removes barriers and dedicates resources in support of
black belts. A champion “Own” the process-monitoring projects and
measuring the savings realized.
GREEN BELT - Green belt assist black belts in their functional areas. They work on
project part time, usually in a limited specific area.
BLACK BELT - A full time change agent trained in the methodology to solve product
and process defects project by project with financially beneficial
results. A black belt does Six Sigma analyses and work with others
(Often teams) to put improvement in place.
BREAKTHROUGH GOALS- A dramatic, near immediate and significant
improvement, in measurement terms, reaching a breakthrough goal
represents an improvement of 60% to 80%.
MEETING STREACH TARGETS- is concept of looking beyond meeting basic
requirements and exceeding your own expectation, when you
understand that your defined goals are within reach, you need to shift
your mind set to go further, to reach highest, to stretch your
capabilities.
CRITICAL TO QUALITY-[CTQ] Element of process that significantly affects the out
put of that process. Identifying these elements is vital to figuring out
how to make the improvements that can dramatically reduce costs
and enhance quality.
Six Sigma five phase sequence of DMAIC {Define, Measure, Analyze,
Improve and Control}
BENCHMARKING- A method for comparing a process, using standard or best
practices as a basis, and then identifying ways to improve the
process.
BUSINESS METRIC- A unit of measurement that provides a ways to objectively
quantify a process. Any measurement that helps management
understand its operations might be a business metric:
- Number of products completed per hour.
- Percent of defects from a process.
- Hours required to deliver a certain number of out puts or provide a service, and so on. Business metrics provides data that Six Sigma managers can use to better understand their processes and identify target areas for improvement.
Means- Average[ More specifically called the arithmetic mean] the sum of series of
values divided by the number of values.
Median- Mid point in a series of values.
Mode- Value that occurs most often in a series of values.
Range-Difference between the highest value and the lowest value in a series, the
spread between maximum and minimum.
STANDARD DAVIATION- Average difference between any value in a series of values
and the means of all the values in that series.
Badlu
From Saudi Arabia
I have sumnmary of the basic concep you have to expand this theory depends on your knowledge depth and interpretation as well as understanding of the business model of your organization.
This requires lot of experience and working knowledge of different processes to achieve perfection level and zero defect system.
SIX SIGMA
Six Sigma is a statistical concept that measures a process in terms of defects. Achieving Six Sigma means your process is delivering only 3.4 defects per million opportunities.
Sigma [the Greek letter ] is a term in statistics that measures something called standard deviation. In its business use, it indicates defects in the out put of a process and helps to understand how for the process deviates form perfection.
KEY TERMS-
PROCESS - Any repetitive action- be it in a transactional, manufacturing or services environment. The six sigma methodology collects data on variations in
out puts associated with each process. So that it can be improved and
those variations reduced.
SIGMA - A term used in statistics to represent standard deviation, an indicator of
the degree of variation in a set of measurements or a process.
SIX SIGMA - A statistical concept that measures a process in terms of defects- at the six sigma level, there are only 3.4 defects per million opportunities. Six
Sigma is also a philosophy of managing that focuses on eliminating defects through practices that emphasize understanding, measuring and improving process.
DEFECTS - A measurable characteristics of the process or its output that is not
within the acceptable customer limit i.e. not conforming to specification.
So in short, six sigma is several things:
2 308537
3 66807
4 6210
5 233
6 3.4
Probability of defects of different Sigma levels.
CHAMPION - A senior level manager who promotes the six sigma methodology
throughout the company and especially in specific functional groups. The champion understands the discipline and tools of six sigma, selects projects, establishes measurable objectives, serves as coach and mentor, removes barriers and dedicates resources in support of black belts. A champion “Own” the process-monitoring projects and measuring the savings realized.
GREEN BELT - Green belt assist black belts in their functional areas. They work on project part time, usually in a limited specific area.
BLACK BELT - A full time change agent trained in the methodology to solve product and process defects project by project with financially beneficial results. A black belt does Six Sigma analyses and work with others (Often teams) to put improvement in place.
BREAKTHROUGH GOALS- A dramatic, near immediate and significant
improvement, in measurement terms, reaching a breakthrough goal represents an improvement of 60% to 80%.
MEETING STREACH TARGETS- is concept of looking beyond meeting basic requirements and exceeding your own expectation, when you understand that your defined goals are within reach, you need to shift your mind set to go further, to reach highest, to stretch your capabilities.
CRITICAL TO QUALITY-[CTQ] Element of process that significantly affects the out put of that process. Identifying these elements is vital to figuring out how to make the improvements that can dramatically reduce costsand enhance quality.
Six Sigma five phase sequence of DMAIC {Define, Measure, Analyze,
Improve and Control}
BENCHMARKING- A method for comparing a process, using standard or best
practices as a basis, and then identifying ways to improve the process.
BUSINESS METRIC- A unit of measurement that provides a ways to objectively quantify a process. Any measurement that helps management
understand its operations might be a business metric:
- Number of products completed per hour.
- Percent of defects from a process.
- Hours required to deliver a certain number of out puts or provide a service, and so on.
Business metrics provides data that Six Sigma managers can use to better understand their processes and identify target areas for improvement.
Means- Average[ More specifically called the arithmetic mean] the sum of series ofvalues divided by the number of values.
Median- Mid point in a series of values.
Mode- Value that occurs most often in a series of values.
Range-Difference between the highest value and the lowest value in a series, the
spread between maximum and minimum.
STANDARD DAVIATION- Average difference between any value in a series of values and the means of all the values in that series.
Badlu
From Saudi Arabia
This requires lot of experience and working knowledge of different processes to achieve perfection level and zero defect system.
SIX SIGMA
Six Sigma is a statistical concept that measures a process in terms of defects. Achieving Six Sigma means your process is delivering only 3.4 defects per million opportunities.
Sigma [the Greek letter ] is a term in statistics that measures something called standard deviation. In its business use, it indicates defects in the out put of a process and helps to understand how for the process deviates form perfection.
KEY TERMS-
PROCESS - Any repetitive action- be it in a transactional, manufacturing or services environment. The six sigma methodology collects data on variations in
out puts associated with each process. So that it can be improved and
those variations reduced.
SIGMA - A term used in statistics to represent standard deviation, an indicator of
the degree of variation in a set of measurements or a process.
SIX SIGMA - A statistical concept that measures a process in terms of defects- at the six sigma level, there are only 3.4 defects per million opportunities. Six
Sigma is also a philosophy of managing that focuses on eliminating defects through practices that emphasize understanding, measuring and improving process.
DEFECTS - A measurable characteristics of the process or its output that is not
within the acceptable customer limit i.e. not conforming to specification.
So in short, six sigma is several things:
- A statistical basis of measurement: 3.4 defects per million opportunities.
- A philosophy and goal: as perfect as practically possible.
- A methodology.
- A symbol of quality.
2 308537
3 66807
4 6210
5 233
6 3.4
Probability of defects of different Sigma levels.
CHAMPION - A senior level manager who promotes the six sigma methodology
throughout the company and especially in specific functional groups. The champion understands the discipline and tools of six sigma, selects projects, establishes measurable objectives, serves as coach and mentor, removes barriers and dedicates resources in support of black belts. A champion “Own” the process-monitoring projects and measuring the savings realized.
GREEN BELT - Green belt assist black belts in their functional areas. They work on project part time, usually in a limited specific area.
BLACK BELT - A full time change agent trained in the methodology to solve product and process defects project by project with financially beneficial results. A black belt does Six Sigma analyses and work with others (Often teams) to put improvement in place.
BREAKTHROUGH GOALS- A dramatic, near immediate and significant
improvement, in measurement terms, reaching a breakthrough goal represents an improvement of 60% to 80%.
MEETING STREACH TARGETS- is concept of looking beyond meeting basic requirements and exceeding your own expectation, when you understand that your defined goals are within reach, you need to shift your mind set to go further, to reach highest, to stretch your capabilities.
CRITICAL TO QUALITY-[CTQ] Element of process that significantly affects the out put of that process. Identifying these elements is vital to figuring out how to make the improvements that can dramatically reduce costsand enhance quality.
Six Sigma five phase sequence of DMAIC {Define, Measure, Analyze,
Improve and Control}
BENCHMARKING- A method for comparing a process, using standard or best
practices as a basis, and then identifying ways to improve the process.
BUSINESS METRIC- A unit of measurement that provides a ways to objectively quantify a process. Any measurement that helps management
understand its operations might be a business metric:
- Number of products completed per hour.
- Percent of defects from a process.
- Hours required to deliver a certain number of out puts or provide a service, and so on.
Business metrics provides data that Six Sigma managers can use to better understand their processes and identify target areas for improvement.
Means- Average[ More specifically called the arithmetic mean] the sum of series ofvalues divided by the number of values.
Median- Mid point in a series of values.
Mode- Value that occurs most often in a series of values.
Range-Difference between the highest value and the lowest value in a series, the
spread between maximum and minimum.
STANDARD DAVIATION- Average difference between any value in a series of values and the means of all the values in that series.
Badlu
From Saudi Arabia
Just to add to this -
Six Sigma has two methodologies:
1. DMAIC (Define, Measure, Analyse, Improve and Control) - most of the times used - it is used when a product or process is in existence at the company but is not meeting customer specification or is not performing adequately.
2. DFSS (Design for Six Sigma) - used to design or re-design a product or process for service from ground up - approach used to design a new product.
Regards,
Nikita
From India, Pune
Six Sigma has two methodologies:
1. DMAIC (Define, Measure, Analyse, Improve and Control) - most of the times used - it is used when a product or process is in existence at the company but is not meeting customer specification or is not performing adequately.
2. DFSS (Design for Six Sigma) - used to design or re-design a product or process for service from ground up - approach used to design a new product.
Regards,
Nikita
From India, Pune
I would just add little to SIX SIGMS -
This term is used in process indistries instrumentations, where failure may cause huge loss or even a catestrophy, thus in the process industry the redundency is maintained. Now the manufacturers produce the instruments which they call "SIX SIGMA INSTRUMENTS" to measure the process (like Level, Pressure, Temp, Flow etc) and control the required value or the Set Points and manage them ..... :confused:
Regards -:icon1:.
From United States, Saint Peters
This term is used in process indistries instrumentations, where failure may cause huge loss or even a catestrophy, thus in the process industry the redundency is maintained. Now the manufacturers produce the instruments which they call "SIX SIGMA INSTRUMENTS" to measure the process (like Level, Pressure, Temp, Flow etc) and control the required value or the Set Points and manage them ..... :confused:
Regards -:icon1:.
From United States, Saint Peters
Dear Sjijit,
Six sigma is an improvement process and can be applied to any process which requires improvement, be it production of transactions. Many of the IT companies, Insurance and banking sectors use the DMAIC methodology to improve their results. Many HR processes like payroll , cost reductions, Appraisal systems and Employee tetension proceeses have been applied with Six sigma. In short, wherever there is a process, you can use six sigma.
Regards,
JAyaram.
From India, Madras
Six sigma is an improvement process and can be applied to any process which requires improvement, be it production of transactions. Many of the IT companies, Insurance and banking sectors use the DMAIC methodology to improve their results. Many HR processes like payroll , cost reductions, Appraisal systems and Employee tetension proceeses have been applied with Six sigma. In short, wherever there is a process, you can use six sigma.
Regards,
JAyaram.
From India, Madras
Six Sigma can be applied to HR as well. Let me give you an example - one of the six sigma project could be to reduce the lead time of recruitment, improve the quality of shortlistings, etc. These are just a few examples. It can very well be applied to performance management, competencies, etc. as well.
Regards,
Nikita
From India, Pune
Regards,
Nikita
From India, Pune
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