Question

Discuss the DMAIC methodology of six sigma. provide relevant examples of each phase

Answer 1

DMAIC Methodology of Six Sigma consists of 5 phases.

1. Define: In this phase, we define the problem statement.

Eg:

a) What we want to do?

b) Who are our customers?

c) What are our businesses?

d) Who are our partners?

2. Measure:  In this phase, we measure the data that is relevant to our problem statements. In this phase, we establish what to measure and how to measure the data. Draft any measurement metric or plan if needed.

Eg: In order to know the customers, we collect customers purchase, transaction data

3. Analyze: In this phase, we analyze the data that is collected in measure phase. We find key insights from the data that we collected and the impacts or reasons for the problems in the process flow. Any gaps exist between the expectation and reality will be closely analyzed and drafted.

Eg: From customer data, we know the churn rate and maximum churn rate segment of customers.

4. Improve: This phase is very critical as we are trying to improve the process flow, by finding or suggesting solutions/improvements over the existing system. Any innovation or new ideas will be taken care and thoroughly discussed about the feasibility of the implementation.

Eg: Loyalty program introduction in customer segment where the churn rate is high.

5. Control: The suggestions/solutions will be closely monitored and the effectiveness of the proposed solutions are measured on continuous basis. If any external or internal disturbances arise, the actions will be taken in due course in order to keep the control of the process flow.

Eg: Checks and balances to verify the effectiveness of the loyalty program introduced.

This cycle repeats continuously till we reach the highly satisfied process flow.