Achieve Total Quality with Six Sigma

The journey towards operational efficiency begins with controlling costs, optimizing value chains, refining cost accounting, eliminating waste, and uncovering new profitability sources. Once these foundational steps are in place, the organization becomes more efficient, customer-centric, and embraces a culture of continuous improvement.

The next phase focuses on elevating customer satisfaction by minimizing process variability and reducing error risks — both of which can significantly impact customer experience and the company’s financial health. Using statistical tools and the “voice of the customer” methodology, Six Sigma helps businesses achieve “total quality” by striving for near-perfection.

What Are the 3 Key Benefits of a Six Sigma Initiative?

1. Root Cause Analysis: A diagnostic approach that addresses root causes, reducing process variability and the number of errors.
2. Customer-Centric Organization: Aligns the entire organization around customer needs, optimizing products and services to meet them.
3. Industrial-Level Operation: Implements quality-focused processes, continuously measuring performance and driving continuous improvement.

What is Six Sigma?

Six Sigma is a statistical methodology that measures the variation of a process in relation to customer requirements. Mathematically, Six Sigma represents a process so refined that its defect rate is just 0.0003%.

However, Six Sigma is more than a statistical tool; it’s a management philosophy grounded in:

• Continuous improvement in meeting customer needs.
• Ongoing analysis of process efficiency.
• Implementation of performance measurement tools to ensure quality.

In essence, Six Sigma is a systemic, scientific, and pragmatic approach to solving problems by eliminating their root causes and achieving a quality level of 99.9997%.

Why Strive for 99.9997% Quality and Not Just 99%?

A quality level of 99% may seem impressive, but from a statistical perspective, it’s insufficient in many contexts. For instance, at 99% quality:

• There would be one hour of undrinkable water per month in the U.S.
• One airplane landing per day would be missed at major airports.
• 500 surgical errors would occur each week.
• 22,000 bank accounts would see erroneous charges each week.

In contrast, a process operating at Six Sigma (99.9997%) quality generates just 3.4 defects per million opportunities, significantly improving reliability and performance.

What is the Six Sigma Methodology Based On?

The Six Sigma methodology revolves around three key concepts: the customer, the process, and measurement. The objectives of a Six Sigma project are:

1. Define Customer Expectations: Identify Critical to Quality (CTQ) factors that reflect measurable customer needs.
2. Measure Process Performance: Establish reliable metrics to evaluate process efficiency against CTQs.
3. Analyze Process Variability: Use statistical tools to isolate the causes of poor performance.
4. Implement Solutions: Develop and implement solutions to eliminate these causes.
5. Control Results: Implement ongoing monitoring tools to maintain improvements and increase the sigma level of the process.

This methodology is known as DMAIC (Define, Measure, Analyze, Improve, Control) and follows a structured approach to problem-solving and quality improvement.

Six Sigma also involves professional certifications that validate expertise:

• Green Belts (GB): Practitioners familiar with the DMAIC approach, capable of using some tools within their expertise areas.
• Black Belts (BB): Experts who can manage large-scale projects and use all Six Sigma tools.
• Master Black Belts (MBB): Coaches and mentors proficient in the methodology, able to oversee enterprise-level projects.

Why Are Lean and Six Sigma Often Combined?

While Six Sigma is highly effective, it is complex to implement and can be disruptive. Therefore, it is often viewed as the culmination of a mature operational excellence initiative, built on a foundation of continuous improvement.

Given that Six Sigma projects are typically lengthy (about six months on average), they are often complemented by Lean methodology, which focuses on quick wins. Lean targets the elimination of wasteful tasks (e.g., waiting, duplicate work, non-value-added activities) through short workshops that yield fast results. Lean prepares the organization for deeper transformation initiatives, making it an ideal precursor to Six Sigma.

Can Six Sigma Be Applied to Service Industries?

Yes, Six Sigma has been successfully implemented in service sectors like finance, banking, consulting, research and development, and IT. Although it was initially developed in the manufacturing industry by companies such as Motorola and General Electric, many support processes in service industries (e.g., Back Office, Middle Office, IT, finance, procurement, digital marketing) can benefit from the same rigorous approach to quality.

Six Sigma is also valuable in supporting Straight-Through Processing (STP) and outsourcing or offshoring initiatives. Its core principles, especially the “voice of the customer,” ensure that service organizations can enhance their processes just as effectively as industrial companies.

How Does a Six Sigma Project Work?

A Six Sigma project follows the DMAIC methodology, with each phase driving the project toward higher quality:

1. Define: Identify the problem, objectives, and customer needs (CTQs).

• Tools: Business Case, Problem Statement, Project Team, SIPOC (Suppliers, Inputs, Process, Outputs, Customers), Quick Wins.

2. Measure: Assess current process performance.

• Tools: Process Mapping, Value Stream Analysis, Descriptive Statistics, Sigma Measurement, Quick Wins.

3. Analyze: Identify and validate root causes of non-quality.

• Tools: Cause Identification, Variation Analysis, Hypothesis Testing, Problem Modeling (y = f(x) + sigma), Quick Wins.

4. Improve: Implement solutions and measure potential gains (ROI).

• Tools: Idea Generation, Solution Prototyping, Risk Analysis (FMEA), Quick Wins.

5. Control: Ensure the new process stays under control.

• Tools: KPI Implementation, Sigma Measurement, ROI Validation, Continuous Improvement.

Six Sigma is a powerful approach for achieving near-perfection in process quality. By reducing variability and focusing on customer needs, Six Sigma not only improves operational performance but also enhances customer satisfaction. Combined with Lean methodology for rapid results, Six Sigma provides a comprehensive framework for long-term business excellence, applicable across industries — from manufacturing to services.