Updated May 8, 2023
What is Six Sigma?
Six Sigma is a set of techniques driven by quality-control methodology and has its main focus on identifying and eliminating errors. Its goals for six standard deviations between mean and it is nearest detailing limit. It is used for detection, control, and management of the variation. Organizations are adopting the Six Sigma approach because of the excessive competition to increase their efficiency and have continuous improvement in the performance. This unique principle uses numerical as well as statistical methods to analyze the data. Six Sigma has a connection between the number of defects per million opportunities and the number of standard deviations found in a process specification. In this topic, we are going to learn about Examples of Six Sigma.
The main advantage that lies here is that the system is totally customer-driven, therefore any product, process or service not accepted by the end customer is considered a defect in terms of quality. Along with this, it enhances the supply chain management system ensuring proper planning and reduction in the operation cycle time.
It also has a few drawbacks; since the program is applied to the entire system of the organization, from production to the manufacturing unit and as well as the overall planning concern, the approach may create sternness and rigidity causing a delay. The overall process is slowed down as each and every department is checked and then the evaluation is done. On the other hand, to execute this in a systematic and efficient manner, a significant amount of training of the employees needs to be done which might be costly and time-consuming at the same time.
Examples of Six Sigma
Six Sigma has the power to transform an organization and make it much more efficient in many ways. It focuses on various aspects and helps in achieving a proper management system, minimizing inventory levels, reducing lead time, and attaining the highest level of labor efficiency, etc.
- Successful implementation of this can only be achieved if all team members of the organization work together with proper communication, delegation as well as feedback. This would enhance the overall management and administration. Training is also an essential part of it which can be customized according to the needs of different departments and cultures of the group.
- The human resource comes to play when they sit together to analyze if the employees are in the right position with good quality of work with the application of this quality control methodology. Six Sigma allows the top-level managers to discuss the progress of the staff and allocate the right work to the person for the right output.
- An important question is whether the organization has any amount of extra inventory or has buffer stock. This will, therefore, put the concerned party at work and reduce the excess inventory levels at the warehouse with proper management and accounts of it. The team will then plan ways to cut down on the stock by communicating within the department.
- Another example of Six Sigma is that it encourages the executives to brainstorm for new and innovative ideas for the growth of the company to ensure improvement. The main aim is not to repeat any mistakes keeping in mind the previous progress as well as suggestions.
- An approach to reduce the time taken for the product to reach the customer since the order has been placed can be reduced to fulfill customer needs is done by this methodology. This would make the process much faster and increase brand value by making the customers happy.
- A lot of different types of charts and graphs are developed for the implementation of Six Sigma. Some of them are; the affinity diagram, histogram, Pareto charts, regression analysis, etc.
- Affinity diagram- The affinity diagram tools help the six sigma process in such a way that it picks and chooses the best alternative out of all the techniques and ideas. These are submitted by the people of the organization. It then groups the most viable ideas and issues together after gathering a large amount of data from all the sources
- Histogram- This is another very important tool that collects, organizes, and then accurately distributes the allotted data in the form of bars, lines, and graphs. The histogram is used for the representation of only one variable, unlike any other graph. It helps in the selection process as to which part of the structure is causing delay and thus, its rectification is done in the most accurate way possible
- Regression Analysis- It is a statistical tool that estimates and hence understands the relationship between the variable and finally draws a pattern from the input. This pattern helps in analyzing the flow and hence plans the work accordingly for smooth functioning
- Pareto Chart– This is another very important example of Six Sigma and is used for the detailed report of the causes of various errors that occurred in the system. Once the problem is short-listed, the solution can easily be solved. It will also help in reducing the efforts in finding the most appropriate solution.
There are various reasons why a company should follow the Six Sigma project. With increasing costs, competition as well as complex processes, efficiency has to also increase at the same pace. It has also been observed that a full-time solution is what is needed nowadays. The best way to resolve is by continuous training and minimizing the variations. There are many examples of this, using inexpensive and handy day-to-day materials, recycling of the materials, increasing the speed of each cycle, reducing and then eliminating of factory defects.
Six Sigma will overall increase customer satisfaction and customer service as the product quality will enhance drastically. It will directly profit the organization in all positive ways. These tools improve the entire working of the organization and also have a very strong impact on each department, be it manufacturing units, service units, accounting or human resources. The most frequently used method with this technique is DMAIC, namely, define, measure, analysis, improve and control. To accomplish this which will result in efficient working, the process will require measurable and defined data.
This has been a guide to Examples of Six Sigma. Here we have discussed some Examples of Six sigma Which can enhance the overall management and administration. You may also look at the following article to learn more –