The Cost of Poorly Performing Processes – Need for Six Sigma
February 12, 2025
In modern times, the Business Rules are changing every day. Every Business, be it a Product or a Service, changing its way of doing business to suit the customer expectations has become the rule of the day. Technology has become the enabler for the businesses to reinvent their offerings as well as their operations. Businesses […]
Embracing Business Process Improvement program is the ideal way for Organizations to make that leap to the next level and build competitive edge. Implementing a BPI program gives the Organization several direct and indirect benefits and advantages. It helps the Organization get rid of the redundancies, reduce dependence upon people and eliminate wastage as well […]
During the 19th century, the robber barons were dominating the American economy. A handful of people had more wealth and power than the entire nation. It is for this reason that they would collude with each other to keep everyone else at bay. These robber barons were depriving everybody else of fair opportunity as a […]
When it comes to good decision making, relying too heavily on automatic decisions stemming from perception or depending too much on conventions when information is bombarded on to us from all sides can be dangerous. Sometimes, you fail to either notice or seek out crucial information that supports decision making. This may be because of […]
Imagine one fine evening your nation’s top leader suddenly appeared on television to make an address. In this speech, he stated that the money which currently accounts for over 80% by value and 20% by volume of the entire money supply are suddenly going to be invalid i.e. worthless. They would cease to be legal […]
Six Sigma is a process oriented methodology designed to improve business performance by improving specific areas of strategic business processes. There are 2 different methodologies available for carrying out improvements in processes or operations.
Improvements can be of two types: improving the existing process or designing a new process altogether. When we have an existing process and we want to improve the process we deploy the DMAIC methodology. While designing a new process or completely revamping the existing process the Design for Six Sigma or IDOV methodology is deployed.
DMAIC | DFSS |
Structured and iterative process improvement methodology | Rigorous approach to designing processes that will exceed customer expectations |
Focus on defect reduction | Focus on defect prevention |
Define | Define the problem. Define the customer(s) and the requirements. Define the current capability. Define the key processes that will have the greatest impact on customer. |
Measure | Identify the statistical measures to monitor the key process. Set up the data collection plan. Measure the process |
Analyse | Determine the analysis tools and methods to be used. Summarize the data measured. Run the analysis and determine the root causes, effects, etc. |
Improve | Improve and Implement. Focus on developing process/technology to improve the root cause. Test the method on sample process and validate the improvement. |
Control | Standardize and document the process and implement the plan. Monitor the process and feedback the results back to the process for continuous improvement. |
Identify | Develop a team. Create team charter. Gather VOC. Perform competitive analysis. Develop CTQs and formally tie design to VOC. |
Design | Identify functional requirements. Develop alternative concepts. Evaluate alternatives and select a best-fit concept. Deploy CTQs and predict sigma capability. |
Optimize | Determine process capability. Develop detailed design elements. Predict performance. Optimize design. |
Verify | Test and validate the design. Share feedback with manufacturing and sourcing to improve future manufacturing and designs. |
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