Question

Question A.2 Six Sigma can help organisations achieve, sustain and maximize business success. Six Sigma is uniquely driven by a close understanding of customer needs, disciplined use of facts, data and statistical analysis, and diligent attention to managing, improving and re-inventing business processes (a) Describe how a business can use three different interpretations or definitions of "six sigma" explain as part of your answer if these different interpretations can be used together? [6 marks] (b) What are the essential themes of "Six Sigma" and describe using examples how these themes can be implemented? [8 marks] (C) Identify typical roles involved in Six Sigma, describe the types of responsibilities these roles would have [6 marks] (d) What is the Six Sigma DMAIC methodology? Describe each step of the methodology using examples. [5 marks]

Answer 1

(a) Describe how a business can use three different interpretations or definitions of "six sigma" as part of your answer if these different interpretations can be used together.?

Answer:

Six Sigma is a disciplined, statistical-based, data-driven approach and continuous improvement methodology for eliminating defects in a product, process or service.Six Sigma can also be thought of as a measure of process performance, with Six Sigma being the goal, based on the defects per million.Six Sigma is a quality management methodology used to help businesses improve current processes, products or services by discovering and eliminating defects. The goal is to streamline quality control in manufacturing or business processes so there is little to no variance throughout.The name Six Sigma is derived from the bell curve used in statistics where one Sigma represents one standard deviation away from the mean. The defect rate is said to be extremely low when the process exhibits Six Sigma's, where three are above the mean and three below.

Six Sigma is a disciplined and quantitative approach involving setting up a system and process for the improvement of defined metrics in manufacturing, service, or financial processes. Improvement projects follow a disciplined process defined by a system of four macro phases: measure, analyze, improve, control (MAIC).'Six Sigma' follows a rigid Organization structure or role definition apart from the existing Organization structure. They are Project Champion, Master Black belt, Black Belt and Green belt. The roles of these designations and their contribution towards six sigma projects are predefined.The goal of Six Sigma is to increase profits by eliminating variability, defects and waste that undermine customer loyalty. Six Sigma can be understood/perceived at three levels: Metric: 3.4 Defects Per Million Opportunities. DPMO allows you to take complexity of product/process into account.The Six Sigma DMAIC method is usually used for the advancement of an existing process. Potential DMAIC examples include the development of a manufacturing shop floor yield process or improving evidence-based care objectives for a hospital. The DMADV approach is used when designing a new process.Six Sigma: Recognize, Define, Measure, Analyze, Improve, Control, Standardize, and Integrate. It should be used when there is a need to define an unknown cause or situation. – When issues are not well defined. Six Sigma in layman's term is a scientific approach to problem solving as it uses data in dealing with all sorts of problem. It is a quantifiable approach in addressing problems.

So,Six Sigma Helps Me Continuously Improve a disciplined, statistically-based and data-driven approach to eliminating defects in my product, process or service, as well as Six Sigma's goal of measuring process performance.

(b) What are the essential themes of "Six Sigma" and using examples of these themes?

Answer:

Theme 2 – Data and fact-driven Management: Six Sigma is based on the concept of 'management by fact' as well as takes it to a higher level. Theme 3 – Processes are where the action is: Six Sigma is a process-oriented technique, wherein the processes are seen as the major vehicle for the organization's success.

Genuine focus on customer Drive for perfection, tolerate failure Data and fact-driven management Six Sigma Themes Boundary less collaboration Processes are where action Proactive Management

Six Sigma is a highly effective approach which creates improvement in business processes by advancing each sector of an enterprise. It uses both statistical and analytical methods to reduce variation in the end products. Six Sigma examples are great ways of helping one understand the characteristics and benefits of techniques used during its implementation. There are several Six Sigma project modules which use these examples to help the learner understand the manner the system operates.Typically, Six Sigma successes are based on five primary principles. The first focuses on customer requirements. Six Sigma strategy first pays attention to the needs of the client before suggesting a course of action. The second principle is the use of extensive measurement and statistical evaluation, so the client becomes aware of the cause of the problem and then know how the work will be accomplished. The third principle of Six Sigma is to be proactive. It concerns the elimination of characteristically error-prone processes to improve the overall process continually.

The fourth principle is to involve individuals within Six Sigma cross-functional teams, and finally, Six Sigma endorses diligence and flexibility as a tenet in businesses. Six Sigma can be divided into two approaches. These include the Define, Measure, Analyze, Improve and Control (DMAIC) method, and the Define, Measure, Analyze Design and Verify (DMADV) mode.

The Six Sigma DMAIC method is usually used for the advancement of an existing process. Potential DMAIC examples include the development of a manufacturing shop floor yield process or improving evidence-based care objectives for a hospital. The DMADV approach is used when designing a new process.

• Six Sigma Tools

Six Sigma tools are problem-solving avenues used to support Six Sigma and other improvement initiatives. They include:

• 5S System:

This is a means of organizing the materials in the workplace, leading to quicker access and more effective maintenance. The 5S system is excellent for waste management and disposal within the work environment.

• Value Stream Mapping:

Value stream maps illustrate the flow of materials and information in one of the processes. It helps with optimizing flow within companies.

• Pareto Chart:

The Pareto chart illustrates the differences between particular data groups allowing the Six Sigma teams to point out the most significant threats against the process.

• Regression Analysis:

Regression analysis is a statistical approach, used to ascertain the negative or positive relationships among several variables.

• Kaizen:

This is a practice of continual observation, identification, and implementing particular improvements to the production process.

• Six Sigma Examples

Some high profile six sigma examples include the following.

General Electric:

Despite hiring the best specialized personnel available and using the latest technology, GE has had issues with product quality and overall service. It employed Six Sigma on a trial basis, and streamlined its product assurance process, resulting in increased revenue.

• Wipro:

As a leader in the software development industry, consumer goods production and customer service were lacking. Its defects were soon neutralized with the help of Six Sigma implementation.

• Microsoft:

The secret behind their stellar service record and product line is Six Sigma. The software and products leader is now considered a poster child for Six Sigma implementation.

• Motorola:

As one of the first large companies to use Six Sigma, it implemented it on a trial basis to streamline product quality and services to increase revenues. The results were very encouraging, and improved the overall performance of the company

(C) Identify typical roles involved in Six Sigma, describing the types of responsibilities these roles would have.?

Answer:

Six Sigma Roles and Responsibilities

Six Sigma roles are primarily divided into two segments:

1. Initiative Leadership
2. Project Leadership

Apart from the above two segments, the overall Six Sigma methodology require the following roles:

1. Six Sigma Deployment Leader
2. Six Sigma Champion
3. Six Sigma Master Black Belt (MBB)
4. Six Sigma Black Belt (BB)
5. Six Sigma Green Belt (GB)
6. Six Sigma Yellow Belt (YB)

Let’s look at how Six Sigma roles are bifurcated into the required segments:

Initiative Leadership Project Leadership X (within specified area) x (within specified area) Six Sigma Deployment Leader Six Sigma Champion Six Sigma Master Black Belt (MBB) Six Sigma Black Belt (BB) Six Sigma Green Belt (GB) Six Sigma Yellow Belt (YB) Six Sigma Project Roles

SIX SIGMA DEPLOYMENT LEADER:
As a group, business leaders must own and drive Six Sigma by doing the following:

• Establish business objectives and the role of Six Sigma to achieve those goals.
• Create an environment which enables success including goals, measures, coaching, and communication, among others.
• Actively participate in Six Sigma activities and projects.

Success of the effort is very highly correlated to the interest and time invested by business leaders.

Deliverables of a Six Sigma Deployment Leader:

• Six sigma strategy and roll-out plan for the overall organization
• Hire team of Master Black Belt, Black Belts, among others
• Work with MBB to identify organization vision and mission
• Provide a goal for the organization to drive Six Sigma at all levels

Benefits of being a Six Sigma Deployment Leader for Organization and for self-career:

• Six Sigma Deployment Leader helps the organization to develop the Six Sigma culture and helps nurture a culture of continuous process improvement.
• Driving Six Sigma in the organization allows the deployment leader to run the company to its full potential, thus, leveraging him/her the additional budget for taking more initiatives.

SIX SIGMA CHAMPION:

Project Champions (Sponsors) are the managers of the business, function, or value stream which has been identified as high priority for a Six Sigma team. They play a pivotal role in that they own the processes of the business and, therefore, must ensure process improvements are captured and sustained.

They typically also manage Six Sigma Green Belts (GB’s) and must understand the challenges faced by GB associates (for example, removing roadblocks). They also must work with BB’s and MBB’s to ensure that their business area has developed, and is implementing, a long-term vision of a Six Sigma operating environment across the entire operative base.

Some more details and associated deliverables on the role of Six Sigma Champion :

• Training: Sponsors must participate in available Six Sigma trainings.
• Support: Provide visible support for Six Sigma MBB, BB and GB’s and provide access to resources needed to conduct the project.
• Scope: Set very clear scope for all Six Sigma projects. Ensure that the project is clearly defined, has a scope which can be managed within 4-6 months, and which has high likelihood of success. Watch the project as it progresses to ensure that the scope stays strictly within the bounds originally set.
• Expectations: Set high expectations on the value of the results. Ensure the goals are not sub-optimized. The Six Sigma process has proven in many cases to deliver value far beyond initial estimates. Less-than-aggressive goals will yield less-than-aggressive results.
• Facts: Challenge Experts on their Knowledge of facts and the basis of their conclusions.
• Involvement: Sponsors are expected to interact with project teams on a regular basis to participate in problem solving, make decisions, and allocate resources. Plan to spend at least 2 hours every other week with the project team.
• Hand-over: Sponsors will be responsible for ensuring that the business takes ownership of the implementation and delivers the value indicated in the Control phase. This requires a specific individual who will own the delivery of the project metrics.
• Results: Sponsors, as well as 6sigma mentors and business controllers, are responsible for ensuring that project results hit the bottom line of the organization.

Benefits of being a Six Sigma Champion (Sponsor) for Organization and for self-career:

• Champions set the direction of process improvements in the organization. They link the benefits of the project to organizational priorities.
• Champions can create a portfolio of projects which could range from projects in Customer Satisfaction, Service, Cost and Quality. It provides the Champions the visibility in the process and also showcases his abilities to top-management to manage varied portfolio of projects.

Master Black Belt Green Belts Project Champion (Sponsor) Yellow Belt Black Belt Six Sigma Interacting Roles

(d) What is the Six Sigma DMAIC methodology? Describe examples using the methodology of each step.?

Answer:

Professionals seeking leadership opportunities in business may be interested in developing a more in-depth understanding of Six Sigma’s DMAIC methodology. Used to improve the effectiveness and efficiency of organizational processes across industry, “DMAIC” is an acronym indicating Six Sigma business performance guidelines used to Define, Measure, Analyze, Improve, and Control business performance. Collectively, the process becomes a powerful tool to lead an organization to stronger performance standards and can be skillfully used to streamline resources and clarify business goals.

The DMAIC Methodology Approach

Define

The main objective of this stage is to outline the borders of the project.

• Stakeholders agree on the parameters that will define the project
• Scope and budgetary items, as well as customer needs, are aligned with project goals
• Team development takes place as the project begins to take shape

Measure

The main objective is to collect data pertinent to the scope of the project.

• Leaders collect reliable baseline data to compare against future results
• Teams create a detailed map of all interrelated business processes to elucidate areas of possible performance enhancement

Analyze

The main objective is to reveal the root cause of business inefficiencies.

• Analysis of data reveals areas where the implementation of change can provide the most effective results
• Groups discuss ways that the data underscores areas ripe for improvement

Improve

The main objective at the end of this stage is to complete a test run of a change that is to be widely implemented.

• Teams and stakeholders devise methods to address the process deficiencies uncovered during the data analysis process
• Groups finalize and test a change that is aimed at mitigating the ineffective process
• Improvements are ongoing and include feedback analysis and stakeholder participation

Control

The objective of the last stage of the methodology is to develop metrics that help leaders monitor and document continued success.

• Six Sigma strategies are adaptive and on-going.
• Adjustments can be made and new changes may be implemented as a result of the completion of this first cycle of the process.

At the end of the cycle, additional processes are either addressed or the initial project is completed.

Six Sigma methodologies can be rolled out in a matter of months or over the course of years. From large international companies to mid-size firms, many high-profile companies have implemented Six Sigma strategies as a way of saving corporate dollars, increasing quality and leveraging the competitive edge.

The dynamic strategies of Six Sigma continue to evolve and are shaped by industry leaders who actively participate in professional organizations and other career development activities, such as continuing education. Professionals looking to pursue Six Sigma certification through the standard Green Belt and Black Belt progression can do so online.