...Six Sigma is a revolutionary business process geared toward dramatically reducing organizational inefficiencies that trans- lates into bottom-line profitability. It started in the 1980s at Motorola; then, organizations such as GE, Allied Signal, and Seagate worked with the initiative during the 1990s and made it the most successful business initiative of the era. Key to the Six Sigma methodology of the 1990s is a five- step process—Define, Measure, Analyze, Improve, and Control (DMAIC). By systematically applying these steps (with the appropriate tools), practitioners of this approach have been able to save substantial dollars. The basis of Six Sigma is measuring a process in terms of defects. The statistical concept of six sigma means our processes are working nearly perfectly, delivering only 3.4 defects per million opportunities (DPMO). Sigma (the Greek letter σ) is a statistical term that measures standard deviation. In the context of management, it’s used to measure defects in the outputs of a process and show how far the process deviates from perfection. A one-sigma process produces 691462.5 defects per million opportunities, which translates to a percentage of satisfactory outputs of only 30.854%. That’s obviously really poor perform- ance. If we have processes functioning at a three sigma level, this means we’re producing 66807.2 errors per million. Figure 1-1. DPMO at sigma levels nities, delivering 93.319% satisfactory outputs...
Words: 3021 - Pages: 13
...archive of this journal is available at www.emeraldinsight.com/0954-478X.htm TQM 19,1 6 Dynamics of organizational learning and continuous improvement in six sigma implementation Taina Savolainen Department of Business and Economics, University of Joensuu, Joensuu, Finland, and Arto Haikonen Genworth Financial, Helsinki, Finland Abstract Purpose – The purpose of this paper is to examine the dynamics of organizational learning and continuous improvement (CI) in the context six sigma implementation in business organizations operating in multicultural environments. Design/methodology/approach – A specific research question is: does learning mechanisms and continuous improvement practices support each other and how, and what type of learning can be identified in the improvement of business processes. The question is linked to one of the fundamental issues currently discussed in the field of organizational learning; how do organizations get “from here to there”, in other words, what is the dynamics of the processes of learning and how progressive learning is achieved. A case study of a few Finnish companies is made and a procedural implementation model is applied. Findings – The findings suggest that the learning process is characterized by measurement, detection and correction of errors, and cost reduction. In six sigma implementation, learning is a single-loop type of learning. It is an incremental change process which reminds a technical variant of the learning organization...
Words: 5954 - Pages: 24
...The DMAIC is a core component of the Six Sigma methodology and is a structured problem solving process which provides all employees with a common language and a set of tools to communicate with each other, particularly as members of cross-functional teams, and is considered a roadmap for conducting a Six Sigma project. It is used when making improvements to an existing process. 1. Define – Define is the first step in the process. In this step, it is important to clearly define the problem. One must describe the problem in operational terms that facilitate further analysis. 2. Measure – The Measures stage (which is the most time-consuming part of the DMAIC methodology) focuses on how to measure the internal processes that affect CTQs. It requires an understanding of the casual relationships between process performance and customer value. 3. Analyze – Collecting data is simply not enough. The Analyze phase focuses on why defects, errors, or excessive variation occur. After potential variables are identified, experiments are conducted to verify them. Analysis reveals whether or not a problem is real or just a random event. 4. Improve – The improve stage focuses on idea generation, evaluation, and selection. Once the root cause of a problem is understood, the analyst or team needs to generate ideas for removing or resolving the problem and improve the performance measures and CTQs. 5. Control – The Control stage focuses on how to maintain the improvements, which includes...
Words: 413 - Pages: 2
...Six Sigma and TQM/CQI Impact on U.S. Healthcare Regla Perez Keiser University Dr. Mary Granoff HSM691-G3 August 23, 2014 Introduction The concept of Six Sigma can be traced as far back as the late 1700’s when Carl Frederick Gauss introduced the normal curve. It wasn’t until the 1920’s when Walter Schewart was able to pinpoint the distance from the mean where a process which shows evidence of a defect or negative result, can be changed or corrected. However, it was Motorola’s Chairman Bob Galvin in the early 1980’s who after trying the traditional ways to measure defects realized they did not provide sufficient details that would identify the true effects of the defects within the manufacturer’s organization. It was at this at this time he introduced the concept of Six Sigma and helped the company’s bottom line which had not been a profitable one. Once the application of the Six Sigma concept became public, and the positive impact it had on Motorola’s bottom line, many other businesses wanted to learn about this concept. The impact of this concept was such that many of the executives of some of the largest companies have applied Six Sigma’s methodology to refocus their business on the road to profitability. What is Six Sigma? The concept of Six Sigma can be defined as an efficient methodology to problem solving which contributes to the improvement of performance of an organization or business. Six...
Words: 1441 - Pages: 6
...TABLE OF CONTENTS History of Six Sigma………….……………………………….…………...3 What is Six Sigma………..……..………………………………………….4 DMAIC……………………..……………………………………………...4 Importance of Six Sigma..…..……………………………………………...6 Roles and Responsibilities of Six Sigma.…………………………………..6 Six Sigma Structure……..………………………………………………….8 Conclusion……………………………………………………………….…9 References…………………………………………………………………10 History of Six Sigma The roots of Six Sigma can be traced back to the early industrial era, during the eighteenth century in Europe. Carl Frederick Gauss introduced it as a conceptual normal curve metric. The evolution of Six Sigma took one step ahead with Walter Shewhart showing how three sigma deviations from the mean required a process correction. Later in 1980, it got a definitive form when a Motorola engineer coined the term Six Sigma for this quality management process. Motorola not only implemented this system in their organization, but they copyrighted it as well (Jocowski, 2009). This powerful process improvement technique has changed the way companies all over the world set objectives, and prepare for long term growth and stability. Motorola realized that they were losing a large portion of their business and productivity through the cost of non-quality. Motorola was having 2,600 parts per million losses in manufacturing and also were losing business due to defective parts and support of systems in the field that were not reliable. Motorola,...
Words: 1633 - Pages: 7
...this essay I am going to critically analyse Six Sigma concepts in relation to contemporary software development projects. To do this I am going to research different topics of the Six Sigma focused on software development project. To begin with I am going to give an overview of the history of Six Sigma focusing on explaining aspects of its methodological development and give a detailed description of contemporary Six Sigma methodology. Finally I am going to analyse the central concepts of contemporary Six Sigma methodology and then conclude all of my work together and discuss the principal arguments. Six sigma is a methodology used to focus an organization on reducing variations and errors in processes and driving quality improvement. Developed by Motorola Inc in the USA in 1986, it became well known in the 90’s, when GE CEO Jack Welch evangelized it. Six sigma is now according to many business development and quality improvement experts, the most popular management methodology in history. Six sigma aims to maximise customer satisfaction and minimise defects. In statistical terms, the purpose of six sigma is to reduce the process variation so that virtually all the products or services provided meet exceeded customer expectations. The standard metric for Six Sigma is 3.4 defects per million opportunities. For example for every 1 million transactions that go through a system, there will be 3.4 errors and still achieve six sigmas. Therefore this process has so few defects that...
Words: 3886 - Pages: 16
...Six Sigma Desmond Studstill Keller University Six Sigma Six Sigma is a strategy that measures the degree that a business process deviates from its goal (Harry, 1998). Six Sigma is a rigorous and systematic methodology that uses information gathered from all company departments and statistical analysis to measure and improve operational performance, practices and systems of the organization by identifying and preventing defects in the manufacturing or service providing processes. Six Sigma provides a yield (return) on investment. Companies like General Electric have achieved profit growth of 2 billion U.S. dollars in 1999 in comparison to 1998 growth and profits of 2.4 billion U.S. dollars in 2000 compared to 1999. Statistical representation of Six Sigma approach describes quantitatively how a process works. To perform Six Sigma in the company means to achieve such progress in all parts of the process of creation or product / service, which means that the process and product are realized without any defects. To achieve Six Sigma, a process must produce less than 3.4 defects per million opportunities (DPMO). Six Sigma is focused on the client, the sigma improvement process is an important quality improvement standard as a five-stage model: Define, Measure, Analyze, Improve, Control, which is called the DMAIC process (Kwak & Anbari, 2006; Jones, Parast, & Adams, 2010). The main goal here is to allow the users to focus on applying the data to resolve the problems...
Words: 668 - Pages: 3
...The methodology of Six Sigma can be traced all the way back to the eighteenth century in Industrial Europe. Carl Frederick Gauss introduced a conceptual normal curve metric which was later built on when Walther Stewhart showed how three deviations from the mean required some type of process solution. Finally in the late 1980s Six Sigma became closer to what we know it as today. A Motorola Engineer, Bill Smith, developed Six Sigma as a process for quality management. They came up with the idea or simply pointed out that the lesser number of mishaps at each stage of production would result in less defects. While this seems logical it had not been addressed before this point. At that time Six Sigma in its basic form was born, it included four stages; Measure, Analyze, Improve and Control. What is Six Sigma? Six Sigma is a methodology used by engineers and statisticians to limit the number of defects or errors in a process. However, today this method is being applied across all fields and it is no longer just for engineers and statisticians. Most people know the term as the process to achieve near-perfect results as far as customer requirements and efficiency are concerned. This is true because if a company truly achieves Six Sigma they have fewer than 3.4 defects per million potential defects or 99.997% precision. Motorola defines it as a “management drive, scientific methodology for product and process improvement which creates breakthroughs in financial performance and...
Words: 526 - Pages: 3
...Six Sigma Six Sigma Introduction Six Sigma is a quality improvement method that is being used more frequently in healthcare. This tool was developed and used in industry since around 1980 and began to be used in healthcare in the 1990's (Powell, Rushmer, & Davies, 2009). According to Lighter (2011) "This lean process management system provides quality improvement professionals with the ability to remove non-value added work and improve process efficiency" (p. 287). The healthcare industry needs to find a way to get rid of errors. Today's society demands a lot from the healthcare providers and will not tolerate unnecessary errors, no matter how small they may seem. Six Sigma works to recognize errors as soon as they occur so they will be corrected before the error is carried out. If the process is fully reliable, appropriate healthcare will be delivered in the same way to all patients every time. If the care is evidence-based, then every patient receives optimal care regardless of who actually delivers the care, when it is delivered or where it is delivered (Powell, Rushmer, & Davies, 2009). Six Sigma uses the DMAIC (Define, Measure, Analyze, Improve, Control) approach. This approach first defines the problem, measures the defects, analyzes the cause of the defects, improves the process to remove the defects, and controls the process to ensure that the defects do not recur (Powell, Rushmer, & Davies, 2009). These steps need to take place to avoid variations...
Words: 1858 - Pages: 8
...for many companies. The implementation of programs such as Total Quality Management (TQM) and Six Sigma help companies increase production and quality control, evaluate employee performance, and receive customer feedback. The Internet is also a magnificent tool that allows businesses and customers to communicate and help improve the performance of the company. The goal of most companies is to provide products and services that meet the quality expectations of their customers. Programs such as Six Sigma and TQM are essential for companies to compete with one another. Meeting the standards of customers is critical for businesses to succeed, and companies must continually improve on their products and services to meet the increasing demand of consumers. “Quality is the most important aspect of products and services, and the basis for the purchase of consumers. It has been reported that the quality movement has one core idea, and that is, goods and services must achieve the highest attainable quality, or nothing else will do. Thus, the past decade or so has seen the rise of a philosophy aimed at maximizing organizational quality and understanding it” (Connor, 1997). While there are other considerations, such as price, delivery, and flexibility, quality is still of utmost importance. This paper will discuss the advantages and disadvantages of implementing such practices as Six Sigma and Total Quality Management. Is one more beneficial than the other is, or is it best to combine...
Words: 4343 - Pages: 18
...Six Sigma -takes what has worked from TQM and improves on what has not. - Quality management has it’s roots in Shewhart’s work at Bell Labs and Western Electric. He was first to use statistical methods to reduce variation in Manufacturing process and improve product quality. - TQM approach emphasizes on involving those closest to the process as the key to improving the process. It has it’s roots in Japan’s Total Quality Control. Differences between TQM and Six Sigma Main differences are between specific goals of these techniques and the execution of the technique. TQM was developed by a technical personnel where as Six sigma is developed by CEOs. This difference is also visible in the strategy. TQM sets unclear/vague goals of customer satisfaction and highest quality at low price, where , Six sigma sets a specific goal of 3.4 defects per million. Six sigma also focuses on bottom line expense reductions with measurable as well as documented results. To stress on it further, TQM is for incremental and continual change where as Six sigma represents rapid, and radical change via innovation. Regarding execution, TQM is owned by quality department, thus making it difficult to integrate throughout the business, where as, Six sigma is a business strategy supported by a quality management strategy( an integrated approach). Effectively making it as a functional speciality. Furthermore, Six sigma is a business strategy, supported by a quality improvement strategy...
Words: 343 - Pages: 2
...Vol. 3, No. 1, 2011 19 Implementation of Six Sigma in Indian industries – a Delphi study R.K. Padhy and S. Sahu* Department of Industrial Engg. & Mgmt., Indian Institute of Technology, Kharagpur-721302, India E-mail: rkpadhy@iem.iitkgp.ernet.in E-mail: sahus@mech.iitkgp.ernet.in *Corresponding author R.K. Das Department of Mechanical Engg., College of Engg. & Technology, Bhubaneswar-751003, India E-mail: ranjitdas@gmail.com Abstract: A Delphi study was carried out to review and analyse the critical issues that affect Six Sigma initiatives in Indian context. This research is aimed at assisting Six Sigma management professionals, researchers and organisations to gain a better understanding of the critical factors that affect the successful implementation of the programme in India, and its future evolution. Consensus among experts has been arrived upon various issues related to implementation of Six Sigma. The expert opinions invited on various issues have been discussed in the context of present scenario. The main consensual issues as prioritised by the experts are top management commitment, developing an effective system for project selection, monitoring and selection of right people, with strong emphasis on training. The experts’ priorities also focus on effective resource management and communication system. Based on the conclusion drawn from the study and literature reviewed, the effective implementation of Six Sigma also warrants the identification of the risk associated...
Words: 5129 - Pages: 21
...UNLV Theses/Dissertations/Professional Papers/Capstones 10-1-2011 Lean and Six Sigma in Hospitality Organizations: Benefits, Challenges, and Implementation Justin M. Lancaster University of Nevada, Las Vegas Follow this and additional works at: http://digitalscholarship.unlv.edu/thesesdissertations Part of the Business Administration, Management, and Operations Commons, Hospitality Administration and Management Commons, and the Strategic Management Policy Commons Repository Citation Lancaster, Justin M., "Lean and Six Sigma in Hospitality Organizations: Benefits, Challenges, and Implementation" (2011). UNLV Theses/Dissertations/Professional Papers/Capstones. Paper 1150. This Professional Paper is brought to you for free and open access by Digital Scholarship@UNLV. It has been accepted for inclusion in UNLV Theses/ Dissertations/Professional Papers/Capstones by an authorized administrator of Digital Scholarship@UNLV. For more information, please contact marianne.buehler@unlv.edu. 1 Lean and Six Sigma in Hospitality Organizations: Benefits, Challenges, and Implementation. By Justin M. Lancaster Masters of Science University of Nevada Las Vegas 2011 A professional paper submitted in partial fulfillment of the requirements for the Master of Science Hotel Administration William F. Harrah College of Hotel Administration Graduate College University of Nevada, Las Vegas December 2011 Chair: Dr. Robert Woods 2 PART ONE Introduction The hospitality...
Words: 7223 - Pages: 29
...BASICS OF SIX SIGMA TÜV SÜD South Asia 1 9/14/2007 INTRODUCTION Participants • Names • Roles • Expectations from this training TÜV SÜD South Asia 2 9/14/2007 What is Six Sigma TÜV SÜD South Asia 3 9/14/2007 What is Six Sigma? • Sigma is a measurement that indicates how a process is performing Six Sigma stands for Six Standard Deviations (Sigma is the Greek letter used to represent standard deviation in statistics) from mean. Six Sigma methodology provides the techniques and tools to improve the capability and reduce the defects in any process. Six sigma is a fact-based, data-driven philosophy of improvement that values defect prevention over defect detection. • • TÜV SÜD South Asia 4 9/14/2007 What is Six Sigma? • Philosophy: The philosophical perspective views all works as a processes that can be defined, measured, analyzed, improved & controlled (DMAIC). Processes require inputs & produce outputs. If you control the inputs, you will control the outputs. This is generally expressed as the y= f (x) concept. • Set of Tools: Six Sigma as a set of tools includes all the qualitative and quantitative techniques used by the six sigma expert to drive process improvement. A few such tools include statistical process control (SPC), Control charts, failure mode & effects analysis, process mapping etc. TÜV SÜD South Asia 5 9/14/2007 What is Six Sigma? • Methodology: This view of Six Sigma recognizes the underlying ...
Words: 1074 - Pages: 5
...Can any organization achieve six sigma levels of quality if there is strong leadership from the top, an aligned reward system, and a well trained workforce? In 1995, Jack Welch, the chairman of General Electric, proclaimed that Six Sigma1 was the most important initiative GE had ever undertaken. Six Sigma places special emphasis on the tangible cost savings achieved by minimizing waste and use of resources, while increasing customer satisfaction through the improvement of quality2. A leadership from the top, an aligned reward system and a well trained workforce are indispensable factors for achieving six sigma of quality, but there should be more aspects to be considered, such as considering all stakeholders interests, finding the “True North”3 and sparing no effort to quality improvement. Six Sigma places emphasis on the customer satisfaction, while inputs contributing to customer satisfaction are not necessarily contributing to shareholder’s interests. This inherent conflict will lead managers confused about the “True North”, which is, whether implementing six sigma levels of quality is doing the right job. The concept of enterprise can explain something about “True North”. It is just as important to serve the shareholder, the workforce, suppliers and partners4. In this case, designing the whole work process concerning about process and product management and human resource management become extensively crucial before the production implementation. Designing the work should...
Words: 619 - Pages: 3
