The Cost of Poorly Performing Processes – Need for Six Sigma
February 12, 2025
Converting Data to Information: The goal of a six sigma project is not to produce an overwhelming amount of data that ends up intimidating the concerned people. The goal is to find out as much data as possible and convert it into meaningful information that can be used by the concerned personnel to make meaningful […]
It has been more than 20 years since the World Trade Organization (WTO) came into existence. However, there is still considerable debate as to whether it has been a success or a failure. The objective of the World Trade Organization (WTO) was to foster efficient economic activity across the globe. This was to be done […]
Air India is a government-owned airline. Since airlines are a very competitive business, any airline which is even slightly mismanaged makes losses. Since Air India is heavily mismanaged, it is making a lot of losses. The Indian government has been mulling the divestment of this firm for a very long time. This is, in fact, […]
The Perils of 24/7 Interconnectedness We live in a world that is not only integrated and interconnected largely but which also depends on complex supply chains across the world to deliver the goods and services that we need as part of our everyday existence. With globalization, the movement of goods, services, and people has reached […]
AT&T is one of the biggest phone companies in the world. In fact, this was the company that first started building telephones. On the other hand, Time Warner is a giant in the media space. It owns major media channels like HBO and CNN. Each of these companies is gigantic in their own right. This […]
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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