![]() Six Sigma, then, is all about monitoring the supply chain for defects, identifying issues, and solving them as effectively as possible. The Verify phase then focuses on ensuring that the new solution does, in fact, continue to solve the problem. The first phases of the project are the same, but the Design phase allows for the creation of an entirely new tool to solve the problem. That’s where DMADV (Define, Measure, Analyze, Design, Verify) comes in. This is perfectly suited for supply chain performance issues or when only adjustments to the process are needed, not an entirely new function. This process involves identifying the problem you’re trying to solve, taking stock of your current processes, identifying and implementing a solution, and maintaining that solution in the future. DMAIC stands for Define, Measure, Analyze, Improve, and Control. To do this, Six Sigma uses one of two, 5-step approaches – either the DMAIC or the DMADV method.īoth methods have their distinct uses. Six Sigma was developed with a very specific goal: reduce variation and defect rates in production processes through statistical analysis. ![]() The difference is seen in the way they go about reaching that goal. Both approaches aim to achieve the same thing: more effective processes that yield a bigger bottom line. This is Lean Six Sigma, a combination of management methods that builds on the principles of Six Sigma with a focus on efficiency. In one case, two different schools of thought have merged into a single, cohesive methodology that can address multiple goals. ![]() Six Sigma is no exception, with multiple branches, disciplines, and schools of thought having grown from the original concept over the years to fit new needs. Control (C) – Develop a control plan and establish revised standard measures to maintain performanceĪ process that is in Six Sigma control is said to produce no more than 3.4 defects per million opportunities (DPMO) i.e no more than 3.Even the most proven business tools and approaches must adapt as time goes on, morphing to suit the state of the market and today’s companies.Improve (I) – Identifying and implementing alternatives for improvement and removing the causes of defects.Analyze (A) – Develop a set of tools for analysis and identify possible sources of variation and defects.Measure(M) – Identify the variables to be measured and collect relevant data.Define(D) -Define the problem, requirements and identify the characteristics that the customer feels have the most impact on quality.It is widely believed that the key to profitability is achieving what a customer wants. Subsequently, Jack Welch, former CEO of GE made it the focal point of his business strategy for GE back in 1995Ī standard approach to Six Sigma projects is the DMAIC methodology, whose focus is on understanding and achieving what the customer wants. It was introduced by American engineer Bill Smith while we was working at Motorola in 1986. Six Sigma refers to a set of techniques and tools that were developed to measure and reduce the number of defects in any process. I found it interesting and thought of sharing it with everybody. ![]() Though the concept of Six-Sigma was not new to me, the math behind it was recently explained by my professor in the Operations Management Class in my MBA. In this post, I will explain what is meant by 6-sigma, the holy grail that almost all companies strive to achieve in their operations and production processes and what is the significance of the “6”.
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