Six Sigma is a rigorous and disciplined process improvement methodology that uses data and statistical analysis to measure and improve the operational performance of any organization. The Six Sigma methodology was developed by Motorola in 1986. General Electric (GE), under the leadership of Jack Welch, adopted Six Sigma in 1995 and reported $12 billion in savings in its first 5 years. After seeing GE’s many successes with Six Sigma, other organizations have adopted the Six Sigma methodology for process improvement.

By using this management methodology, companies could eliminate defects in any process. A process is said to have achieved six sigma if it produces 3.4 defects per million opportunities. For a process, everything that is outside the customer’s specifications is considered a defect.

Six Sigma methodologies
Mainly two methodologies used in Six Sigma are DMAIC and DMADV. DMAIC stands for Define, Measure, Analyze, Improve and Control and is used for existing processes. DMADV is used for new processes and stands for Define, Measure, Analyze, Design and Verify. Each phase of DMAIC and DMADV has several outcomes that must be achieved by executing a process improvement project. The DMAIC methodology helps reduce variations in a process by identifying the root causes of any problems and resolving them by implementing the best solution. The DMADV methodology helps design a new process after analyzing customer requirements.

Six Sigma in an organization
An organization usually makes a roadmap for Six Sigma implementation. The roadmap involves building infrastructure, Six Sigma project identification, project group selection and Six Sigma training, project execution, and Six Sigma implementation. Different people in an organization, when involved in Six Sigma implementation, take on roles and responsibilities such as champions/sponsors, process owners, Master Black Belts, Black Belts, Green Belts, and Yellow Belts. Black belts, green belts, and yellow belts would form project teams and execute Six Sigma projects.

For the organization, Six Sigma would benefit by reducing Defects (50-90%), Scrap (10-60%), Rework, Process cycle times (20-50%) and improvements in Quality, Production Efficiency, Productivity ( 10-20%), Customer Satisfaction, Capacity, Profitability and Competitive Advantage.

Six Sigma has proven to be a successful process improvement methodology in industries such as manufacturing, telecommunications, banking, finance, insurance, IT, ITES, BPO, KPO, healthcare, pharmaceutical, logistics, shipping, and supply chain.

Conclusion:

A company or organization can take full advantage of the Six Sigma methodology by providing the right training and skills to its employees. Employees who are equipped with the experience and knowledge of Six Sigma can solve problems in the best way to improve productivity and spontaneously, this will lead an organization towards growth and success.