Six Sigma – Is It Still Relevant In This Day?

Table of Content:

Definition of Six Sigma

Six Sigma is a method of improving the quality of a business. The American Society of Quality argues that this method is a way for companies to perform the capacity building of their business processes. In addition, the goal is to improve performance for the better and minimize the occurrence of errors that will cause losses in the business.

Six Sigma is considered to help the company in improving the quality of products for the better, increasing the profits that the company will get, and also increasing the motivation of employees in the company.

Six Sigma is a methodology that emerged from the bell curve in statistical science. In statistics, sigma represents the standard deviation from the mean. Then, the meaning of six is six. Thus, the existing process has six sigma, namely: three-sigma above, and the other three are below and the failure rate is still relatively low. In short, the higher the sigma value obtained, the less likely there is to be a failure in an ongoing process.

Therefore, it is very important for a business that runs to have management in creating a new product and making innovations in the previous product to be better in terms of quality and functionality. It is also a demand for companies if they want to win the business competition with existing competitors.

Principles in Six Sigma

Before executing this method, you need to know the principles that apply in Six Sigma. These principles will help you to make it easier to achieve the goal, which is to improve the quality of the business. Here are the principles found in Six Sigma:

1. Focus on customer

The term ‘consumer is king’ is no stranger to society, especially business people. To maximize the goal, which is to improve the quality of business development, companies need to take a good approach to customers in their business. That way, you can understand the customer and know what their expectations are from the product you produce.

2. Measure the value stream and identify the problem

By calculating the value stream, then you can find out the possibility of things that will potentially become a problem. By doing a value stream, you will also easily collect data and identify the problems you have to solve.

3. Remove processes that are deemed unnecessary

Once you know what problems you are facing, then it is time for you to change the running process and reduce the process that is not too important or not important at all to save time. That way, your business runs more efficiently and you can focus on improving quality.

4. Invite all stakeholders to participate

So that the strategies you arrange are successful, then invite all parties in your company to solve problems and identify them to the maximum. 

You need to remember that Six Sigma Green Belt certification is also very important for the company. So, stakeholder involvement will be very useful in this method. Also, make sure that they understand the concept and implementation in business to minimize failure and the process runs smoothly.

5. Create a flexible and responsive ecosystem

To maximize this method, make sure that your environment is already efficient and responsive. Any form of anything that is likely to be inefficient and only wasteful should be eliminated. Then, you can make changes faster.

Position in Six Sigma

If you are in a war, then you need to create layers to support every strategy that has been made before. Similarly, in business, you need to make sure the right people are in their positions to support in carrying out existing strategies. Therefore, you could use the Competency Management System to help you on choosing the right people for the positions by monitoring and improving their performance to meet the standards desired by the company. Here are the positions or positions in the Six Sigma methodology:

1. Champion/sponsor

Champion or sponsor is the highest infrastructure or top management in Six Sigma. Its job is to coordinate the business roadmap that runs, choose the project plan that will run, conduct supervision, and make efforts to minimize obstacles and risks in the project.

2. Master Black Belt

The next position is the master black belt. As the name suggests, as a master you will serve as a mentor. The goal is to bring the company to be more successful and achieve the competencies they have set before. Therefore, this position must be filled by people who are technically proficient and have the ability in leadership.

3. Black Belt

As reported on sixsigmastudy, the black belt occupies the third position in this infrastructure. The people in this position are the leaders who apply the business methodology in their projects. Another task is, a black belt will provide teaching or introduce tools and resources that the company will use for each team.

4. Green Belt

Green belt job holders are workers who have responsibility for every work process and achieve productivity in a department. The green belt will complete each KPI set by the black belt.

5. White & Yellow Belt

Next is the team member. This position is the lowest hierarchy in Six Sigma. His job is to complete each job at a relatively small level and still receive training from mentors.

Six Sigma Method

There are two main methods in Six Sigma: DMAIC and DMADV. For the following explanation:

1. DMAIC

DMAIC or Define, Measure, Analyze, Improve, Control is a data-driven method. The purpose of this method is to develop existing products and increase customer satisfaction. In general, this method is widely used by the manufacturing industry and shipping services.

In the DMAIC method, there are five processes in it, namely:

• Define: The process for determining problems, objectives, and processes
• Measure: The process of measuring the problem at hand, evaluating the strengthening system, and yardstick performance.
• Analyze: Performs analysis of the system to facilitate the identification of system performance in achieving a goal.
• Improve: Making development or improvements in an existing product
• Control: Take measurements on each implementation performance in the previous various strategies.

2. DMADV

DMADV or Define, Measure, Analyze, Design, Validate is a method of creating or updating a new product manufacturing process. This method is perfect if you use it to increase customer satisfaction.

Techniques for Six Sigma Implementation

As is the case in general, Six Sigma also has techniques that will help companies to achieve the results they want. This technique also uses a mixture of basic statistics and data analysis. Here is the Six Sigma technique:

1. Brainstorming

The first technique you need to do is brainstorming. This stage is to create an idea in the most creative and efficient way possible to solve a problem.

2. Root-cause Analysis

At this stage, you need to do an analysis of the root of the problem. You can use the 5W technique (why, who, when, what, where) in finding and finding the root of the problem.

3. Customer criticism and advice

As the principal explained earlier. You need to put customers first. Therefore, it is important that you listen to the criticism and advice that your customers give. From their voice, you can find out what things need to be done development, and improvement.

4. Quality System

In a quality system, you can get rid of various things or processes that are not necessary and minimize the arrival of obstacles in the implementation of an ongoing process. A system can be said to be quality if in it there are things that are diligent, concise, and neat.

5. Kaizen

This technique is a way to increase the business continuously. However, you still identify and monitor its progress on an ongoing basis.

6. Benchmarking

This technique is a useful process for determining measurement standards. Through benchmarking, you can make a comparison between the business you run with the competitor’s business. You will also be able to find out the advantages and disadvantages that exist in the business of these competitors.

7. Poka-yoke

Maybe you’re still not familiar with this technique. Poka-yoke is a strategy that is used to avoid human error and strategize in developing a business.

8. Value stream Mapping

Value stream mapping is a useful technique for measuring the flow of material and information in planning things in the future for business purposes.

Conclusion

Six Sigma is a very useful methodology for companies. If the implementation is done well, then the results will be very maximal. To facilitate business development in your company, use ERP software that simplifies every business process that runs with an integrated and centralized system right now!

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