Six Sigma - Measure Phase

During Measure Phase the overall performance of the Core Business Process is measured.
There are three important part of Measure Phase.

(1) Data Collection Plan and Data Collection

A data collection plan is prepared to collect required data. This plan includes what type of data needs to be collected, what are the sources of data etc., The reason to collect data is to identify areas where current processes need to be improved.
You collect data from three primary sources: input, process, and output.

• The input source is where the process is generated.
• Process data refers to tests of efficiency: the time requirements, cost, value, defects or errors, and labor spent on the process.
• Output is a measurement of efficiency.

(2) Data evaluation:

At this stage, collected data is evaluated and sigma is calculated. This gives approximate number of defects.

• A Six Sigma defect is defined as anything outside of customer specifications.
• A Six Sigma opportunity is the total quantity of chances for a defect.

First we calculate Defects Per Million Opportunities (DPMO) and based on that a Sigma is decided from a predefined table:

                   Number of defects 
DPMO =   ------------------------------------------- x 1,000,000
           Number of Units x Number of opportunities

As stated above, here Number for defects is total number of defects found, Number of Units is the number of units produced and number of opportunities means the number of ways to generate defects.
For example: The food ordering delivery project team examines 50 deliveries and finds out the following:

• Delivery is not on time (13)
• Ordered food is not according to the order (3)
• Food is not fresh (0)

So now DPMO will be as follows:

         13 + 3
DPMO = ----------- x 1,000,000 = 106,666.7
         50 x 3

According to the Yield to Sigma Conversion Table given below 106,666.7 defects per million opportunities is equivalent to a sigma performance of between 2.7 and 2.8.
This is the method used for measuring results as we proceed through a project. This beginning point enables us to locate the cause and effect of those processes and to seek defect point so that the procedure can be improved.

Six Sigma - Define Phase

There are five high-level steps in the application of Six Sigma to improve the quality of output. The first step is Define. During define phase following four major tasks are undertaken.

(1) Project team is Formed:

Perform two activities:

• Determine who needs to be on the team.
• What roles each person will perform

Picking the right team members can be a difficult decision, especially if a project involves a large number of departments. In such projects, it could be wise to break them down into smaller pieces and work toward completion of a series of phased projects

(2) Document customers Core Business Processes:

Every project has customers. A customer is the recipient of the product or service of the process targeted for improvement. Every customer has one or multiple needs from his or her supplier. For each need provided for, there are requirements for the need. The requirements are the characteristics of the need that determine whether the customer is happy with the product or service provided. So document customer needs and related requirements.
A set of business processes is documented. These processes will be executed to meet customer's requirements and to resolve their Critical to Quality issues.

(3) Develop a project charter:

This is a document that names the project, summarizes the project by explaining the business case in a brief statement, and lists the project scope and goals. A project charter can have following components

• Project Name
• Business Case
• Project Scope
• Project Goals
• Milestones
• Special Requirements
  

Six Sigma Methodology

Six Sigma has following two key methodologies:

• DMAIC: refers to a data-driven quality strategy for improving processes. This methodology is used to improve an existing business process.
• DMADV: refers to a data-driven quality strategy for designing products & processes. This methodology is used to create new product designs or process designs in such a way that it results in a more predictable, mature and defect free performance.

There is one more methodology called DFSS - Design For Six Sigma. DFSS is a data-driven quality strategy for designing design or re-design a product or service from the ground up.
Sometimes a DMAIC project may turn into a DFSS project because the process in question requires complete redesign to bring about the desired degree of improvement.

DMAIC Methodology:

This methodology consists of following five steps.
Define --> Measure --> Analyze --> Improve -->Control

• Define : Define the Problem or Project Goals that needs to be addressed.
• Measure: Measure the problem and process from which it was produced.
• Analyze: Analyze data & process to determine root causes of defects and opportunities.
• Improve: Improve the process by finding solutions to fix, diminish, and prevent future problems.
• Control: Implement, Control, and Sustain the improvements solutions to keep the process on the new course.

In the subsequent session we will give complete detail of DMAIC Methodology.

DMADV Methodology:

This methodology consists of following five steps.
Define --> Measure --> Analyze --> Design -->Verify

• Define : Define the Problem or Project Goals that needs to be addressed.
• Measure: Measure and determine customers needs and specifications.
• Analyze: Analyze the process for meet the customer needs.
• Design: Design a process that will meet customers needs.
• Verify: Verify the design performance and ability to meet customer needs.
  

Getting Started Six Sigma within an Organization

Is Six Sigma Right for you ?

The starting point in gearing up for a Six Sigma is to verify that you are ready to embrace a change that says "There is a better way to run your Organization".
There are number of essential questions and facts you will have to consider in making a readiness assessment:

• Is the strategic course clear for the company ?
• Is the business healthy enough to meet the expectations of analysts and investors ?
• Is there a strong theme or vision for the future of the organization that is well understood and consistently communicated ?
• If the organization good at responding effectively and efficiently to new circumstances ?
• Evaluating current overall business results.
• Evaluating how effectively do we focus on and meet customers requirements ?
• Evaluating how effectively are we operating ?
• How effective are your current improvement and change management systems ?
• How well are your cross functional processes managed ?
• What other change efforts or activities might conflict with or support Six Sigma initiative ?
• Six Sigma demands investments. If you can not make a solid case for future or current return then it may be better to stay away.
• If you already have in place a strong, effective, performance and process improvement offer then why do you need Six Sigma ?

There could be many questions to be answered to have an extensive assessment before deciding if you should go for Six Sigma or not. This may need time and a thorough consultation with Six Sigma Experts to take a better decision.

The Cost of Six Sigma Implementation:

Some of the most important Six Sigma budget items can include the followings:

• Direct Payroll for the individuals dedicated to the effort full time.
• Indirect Payroll for the time devoted by executives, team members, process owners and others involved in activities like data gathering and measurement.
• Training and Consultation fee to teach people Six Sigma Skills and getting advice on how to make effort successful.
• Improvement Implementation Cost
  

Six Sigma Organization

Under a Six Sigma program, members of an organization are assigned specific roles to play, each with a title. This highly structured format is necessary in order to implement Six Sigma throughout the organization.
There are seven specific responsibilities or "role areas" in the Six Sigma program. These are:

Leadership:

A leadership team or council defines the goals and objectives in the Six Sigma process. Just as a corporate leader sets a tone and course to achieve an objective, the Six Sigma council sets out the goals to be met by the team. Here is the list of leadership Council Responsibilities,

• Define the purpose the Six Sigma Program.
• Explain how the result is going to benefit the customer.
• Set a schedule for work and interim deadlines.
• Develop a means for review and oversight.
• Support team members and defend established positions.

Sponsor:

Six Sigma sponsor are high-level individuals who understand Six Sigma and are committed to its success. The individual in the sponsor role acts as a problem solver for the ongoing Six Sigma project. Six Sigma will be lead by a full-time, high-level champion, such as an Executive Vice President.
Sponsors are owners of processes and systems who help initiate and coordinate Six Sigma improvement activities in their areas of responsibilities.