in better profits and greater competitive edge.
Problem solvers and team leaders
The Six-Sigma methodology requires the appointing of highly skilled workers as team leaders. It gets the executivechampion, deployment and project champions, master black belt, black and green belts to directly work towards betterperformance.
Intensive training
Six-Sigma employs rigorous training techniques. The training deals extensively in statistical, project management, andproblem solving methods. Costs per black belt are estimated to be around $15,000. However, these costs are soon realisedthrough savings per project.
Utilisation of team strengths
Teams involving employees across various functions drive Six-Sigma quality projects. These employees are empowered todo whatever is needed for making improvements. The Six-Sigma implementation includes training the black belts inmanaging teams for optimum results.
Healthy competition
Since performance of processes and projects are quantified, Six-Sigma helps teams across various processes to comparewith each other. This creates a healthy competition within the organisation. It also brings in a culture of ongoingimprovement.
How Does Six-Sigma Work?
Six-Sigma is implemented through projects. A project is defined as a structured and systematic approach to achieving Six-Sigma levels of improvement. Projects are categorised as
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Traditional Quality Improvement Projects that solve chronic problems and improve existing processes.
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Design For Six-Sigma projects, aimed at incorporating excellence into the design phase of new products orprocesses.To attain Six-Sigma levels of quality within any organisation, the following need to be identified in every improvementproject:
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The customers (internal and external) and what they value.
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The product or service provided to the customer.
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What attributes in the product or service can satisfy the customer.
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The process for performing the work. Make the process error free and eliminate wasted effort. To do this: identifythe potential errors that may occur at each level and lower their probability rate- by simplifying tasks, designingexperiments, standardising procedures, and training to eliminate specific errors. Also avoid duplication toeliminate wasted efforts.
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Benefits that come only from innovation.
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Ways to ensure continuous improvement. This is possible by measuring and analysing the improved process,formulating and publicising actual performance against defects targets and linking them to the reward structure.Six-Sigma is a disciplined approach to achieving excellence in quality. It is a challenging goal that motivates anorganisation to continuously strive for perfection.
Techniques and Methods > How to Calculate Six Sigma
Most companies are in awe of the idea of Six-Sigma and the perfection it stands for. They have always been inquisitiveabout the sigma levels their processes operate upon. The following is a simple illustration for calculating sigma levels of aprocess in a power company.
1.
Define what a process opportunity means:
Many processes and activities in a power company combined together help bring power to the customer. Hence,there are bound to be various kinds of defects and opportunities. However, for ease of understanding let usconsider an opportunity for the power company as
One Minute Of Continuous Power Supplied.
2.
Define what a process defect means:
Ideally a defect is something that a customer notices as influencing the process performance. Companies canidentify such defects through expert group surveys, operators' surveys, and Voice Of the Customer. For a powercompany a defect is assumed as
Every one minute for which power was down.
3.
Quantify The Process:
The next step is to measure and quantify the number of opportunities in the process within a stipulated time.Quantifying opportunities and defects may require standard statistical data collection methods. In the case of thepower company in the year 2002:
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