In: Operations Management
Six Sigma was a statistical process control technique championed by Motorola; explain the fundamental concept behind the term Six Sigma, as it relates to a standard distribution and standard deviations. Then explain the Six Sigma framework: DMAIC
The term Six Sigma itself came from terminology that was associated with statistical modeling of manufacturing processes. This was done to gauge the maturity of a manufacturing process with sigma rating indicating the percent of defectless products being created. The term itself is something that originated from statistics and has been used heavily in statistical quality control which is used to evaluate process capability. The goal at the end is to improve processes. All the processes that are within six sigma gambit, operate with a level of below 3.4 defects per million opportunities.
DMAIC is one of the methodologies used mostly to improve and existing business process. I have explained each phases within DMAIC below:
Define: This is the very first phase of projects under the DMAIC methodology. This phase is where the business problem is identified, goals of the project are pronounced, needs of resources identified, the project scope is created along with a high-level project timeline. This phase also includes tasks like noting down known issues in the process and forming a project team.
Measure: This phase includes steps like data collection and establishing current process performance baselines so that the improvement can be measured at the end of the project. This step is important as this is where the "What" and "How" of data measurement is finalized by the project team.
Analyze: As the name itself suggests, this phase includes analysis of the data that has been collected in the previous phase. The project team identifies, validates, and selects the root cause of the problem for elimination. Various root cause analysis tools are used in this phase to come up with potential root causes.
Improve: Once the root cause has been identified, the project team looks at identifying a solution to the issues. This phase includes testing and implementing the chosen solution. The project team comes up with various solutions and the best solution is chosen through brainstorming or any other techniques.
Control: This is the final phase of DMAIC methodology and is used for embedding the changes into the process and put controls in place so that changes are sustained even after the project is closed. This is the phase where the benefits of projects are quantified and signed off, improvements are tracked, resources working on projects are released and finally, the project is closed.