6 Sigma in detail

Originally Six Sigma (Six Sigma) was evolved by GE in the mid-1990s from a total quality management methodology into a highly effective technique for designing, improving, and optimizing corporate processes, and providing a range of new product development tools equally applicable to design, production, and service. It then went hand in hand with GE's strategies of globalization, servitization, and e-commerce to become the most important strategic initiative for companies seeking management excellence around the world. Six Sigma has gradually developed into a customer-oriented to determine the enterprise's strategic objectives and product development and design criteria, the pursuit of continuous progress of a management philosophy.

6σ Quality Management Methodology The 6σ management method is a statistical assessment method centered on the pursuit of zero-defect production, the prevention of product liability risks, cost reduction, increased productivity and market share, and increased customer satisfaction and loyalty. 6σ management focuses on both product and service quality and process improvement. "σ" is a Greek letter used statistically to denote a standard deviation value to describe the degree to which individuals in a population deviate from the mean, and the measured σ characterizes the probability of, for example, unit defects, millions of defects, or errors, with the greater the value of σ, the fewer the defects or errors. 6σ is a goal, and this level of quality means that This level of quality means that 99.99966% of all processes and results are defect-free, i.e., only 3.4 out of 1 million things done are defective, which is almost as close as human beings can get to perfection. 6σ management focuses on processes, especially the core processes by which an organization delivers value to its markets and customers. Because after the process capability is measured by σ, the larger the σ, the smaller the fluctuation of the process, and the stronger the ability of the process to satisfy the customer's requirements with the lowest cost loss and the shortest time period. 6σ theory holds that most enterprises operate between 3σ and 4σ, that is to say, between 6,210 and 66,800 per million operational errors, and that these defects require operators to make up or correct them after the fact with 15% to 30% of the sales. These defects require operators to spend 15% to 30% of sales to make up for or correct them after the fact, whereas if 6σ is achieved, the amount of money spent on making up for them after the fact will be reduced to about 5% of sales.  In order to achieve 6σ, the first step is to set up standards, track and evaluate the deviation between operation and standards at any time in the management, and make continuous improvement to finally achieve 6σ. A set of simple process models has been formed to make continuous improvement in each link: define, measure, analyze, improve, and control.  ★ Definition: to determine the objectives and progress of the need to improve the enterprise's senior leadership is to determine the strategic objectives of the enterprise, the middle level of operations may be the goal of improving the production of the manufacturing sector, the project level may be the goal of reducing defective products and improve efficiency. Before defining, the process needs to be discerned and mapped out.  ★Measure: Measure and weigh existing systems and data with flexible and effective metrics to understand the current level of quality.  ★Analyze: Use statistical tools to analyze the entire system and find the few key factors that affect quality.  ★Improve: Use project management and other management tools to establish the best improvement program for the key factors.  ★Control: Monitor the new system processes and take steps to maintain the improved results so that the entire process is fully effective.

Characteristics of 6σ management As a continuous quality improvement method, 6σ management has the following characteristics: A high degree of attention to customer needs 6σ management takes a broader view, focusing on all aspects that affect customer satisfaction. 6σ management performance evaluation begins with the customer, and the degree of improvement is measured in terms of the impact on customer satisfaction and value. 6σ quality represents a combination of very high compliance with customer requirements and very low quality. customer requirements and a very low defect rate. It sets customer expectations as its goal and continually exceeds them. Companies start with 3σ, then 4σ, 5σ, and eventually 6σ. high reliance on statistics [3] Statistics are an important tool for implementing 6σ management, where numbers say it all, and all production performance, execution capabilities, etc., are quantified into specific data, and the results can be seen at a glance. Decision makers and managers can find out where the problems are from various statistical reports, get a true picture of product non-conformity and customer complaints, etc., and the results of improvement, such as cost savings and profit increase, are also based on statistics and financial data. Emphasis on improving business processes Traditional quality management theories and methods tend to focus on results, through the end of production to strengthen inspection and after-sales service to ensure product quality. However, the scrap produced during the production process is already a loss to the company, and after-sales repairs cost the company additional money. Worse still, because it is commonplace to allow a certain percentage of rejects, there is a gradual loss of awareness of the need for proactive improvement.  6σ management puts the focus on the root causes of defects, arguing that quality is achieved by process optimization, not by rigorous inspection of the final product. Companies should focus their resources on recognizing, improving and controlling the causes rather than on activities such as quality inspections and after-sales service. Quality is not the business of one department or one person within the enterprise, but the work of each department and each person, and the pursuit of perfection becomes the behavior of every member of the enterprise. 6σ management has a set of rigorous tools and methods to help enterprises promote the implementation of process optimization, identify and eliminate cost waste that does not bring value to the customer, eliminate non-value-added activities, and shorten the cycle of the production and operation cycle. Active Improvement Management Mastering the 6σ management methodology is like finding a magnifying glass to re-view the enterprise. People are surprised to find that defects are like dust, existing in all corners of the enterprise. This makes managers and employees feel uneasy. It is necessary to change passivity into initiative and try to do something for the enterprise. Employees will constantly ask themselves: how many σ have been reached now, where is the problem? What level can be achieved? Have they improved through their efforts? In this way, the enterprise is always in a process of continuous improvement. Advocating Boundless Cooperation and Diligent Learning Corporate Culture 6σ management expands the opportunities for cooperation. When people do realize the importance of process improvement for improving product quality, they will realize the interdependence of various departments and links in the workflow, and strengthen the cooperation and coordination between departments and between upper and lower links. Since the quality improvement pursued by 6σ management is a never-ending process, and this continuous improvement must be conditioned by the continuous improvement of staff quality, it helps to form an enterprise atmosphere of diligent learning. As a matter of fact, the process of introducing 6σ management is itself a process of continuous training and learning. Through the formation of a backbone team for the implementation of 6σ management and the hierarchical training of the whole staff, all of them can understand and master the key points of 6σ management, give full play to the enthusiasm and creativity of the staff, and make continuous progress in practice.

Benefits of 6σ management The benefits of implementing 6σ management are obvious, and in a nutshell, they are mainly manifested in the following aspects: Enhance the ability of enterprise management 6σ management is driven by data and facts. In the past, the enterprise's understanding of management and knowledge of management theory stayed more in the oral and written, while 6σ transformed all this into practical and effective actions. 6σ management method has become synonymous with the pursuit of a flawless management style.  As Welch pointed out in GE's 2000 annual report, "The high quality created by 6σ management has miraculously reduced the waste, streamlined management processes, and lowered material costs that GE had experienced in the past with its complex management processes.The implementation of 6σ management has become one of the necessary strategies and hallmarks of the introduction of, and commitment to, high-quality, innovative products. "  6σ management gave Motorola more motivation to pursue the goal that seemed almost impossible to achieve at that time. the company's quality goal in the early 1980s was to improve 10 times every 5 years, which was changed to 10 times every 2 years after the implementation of 6σ management, creating a miracle of 100 times improvement in 4 years.  The statistics of successful experience in foreign countries show that: if the enterprise fully implements 6σ innovation, it can improve one σ level every year until it reaches 4.7σ without big capital investment. During this period, the profitability improvement is very significant. And when 4.8σ is reached, it is then raised again. After reaching this level, the process needs to be redesigned and the capital investment increases, but at this time the competitiveness of products and services increases, and the market share also increases accordingly. Saving enterprise operating costs For enterprises, all the defective crystals are either discarded, or need to be reworked, or need to be repaired and replaced at the customer's site, all of which cost the enterprise. U.S. statistics show that a company implementing 3σ management standards directly related to quality issues cost 10% to 15% of its sales revenue. From the implementation of 6σ management in 1987 to 1997, 10 years, Motorola due to the implementation of 6σ management cost savings has amounted to 14 billion U.S. dollars. 6σ management implementation, so that the Honeywell company in 1999 a year on the cost savings of 600 million U.S. dollars. Increase customer value The implementation of 6σ management can enable companies to realize a virtuous cycle from understanding and satisfying customer needs to realizing maximum profits: companies first understand and master customer needs, and then reduce arbitrariness and lower the error rate through the adoption of 6σ management principles, thus increasing customer satisfaction.  General Electric's medical equipment division created a new technology after the introduction of 6σ management, bringing about a revolution in medical testing technology. Whereas it used to take three minutes for a patient to undergo a full body checkup, it now takes only one minute. As a result, the hospital has increased equipment utilization and reduced examination costs. As a result, the company, the hospital, and the patient are all satisfied. Improvement of service level Since 6σ management can be used to improve not only the quality of products, but also the service process, the level of customer service can also be greatly improved.  A 6σ management team in General Electric's lighting division successfully improved payment relationships with its largest customer, Wal-Mart, reducing billing errors and disputes by 98%, speeding up payments and fostering a mutually beneficial relationship. Forming a positive corporate culture Under traditional management, people often feel overwhelmed, do not know their goals, and work in a passive state. Through the implementation of 6σ management, everyone knows what they should do and how they should do it, and the whole enterprise is full of enthusiasm and efficiency. Employees attach great importance to quality and customer requirements, and strive to do their best, and through participation in training, master standardized and standardized problem solving methods, work efficiency has been significantly improved. With strong management support, employees are able to focus on their work, reducing and eliminating fire-fighting activities at work.

6σ management of the personnel organizational structure 6σ management requires a set of reasonable and efficient personnel organizational structure to ensure that the improvement activities can be successfully achieved. In the past, 80% of Total Quality Management (TQM) implementers failed, the biggest reason is the lack of such a personnel organizational structure. 6σ Management Committee The 6σ Management Committee is the highest leading body for the implementation of 6σ management. The main members of the committee are members of the company's leadership, and its main responsibilities are: to set up various positions for the initial stage of 6σ management; to determine specific improvement projects and the order of improvement, and to allocate resources; to assess the progress of each project on a regular basis and to provide guidance to them; and to help the project teams to solve their problems when they encounter difficulties or obstacles, and so on.  Successful 6σ management is characterized by the full support of business leaders, and the success of 6σ management lies in its unwavering implementation from top to bottom. Business leaders must have an in-depth understanding of the benefits of 6σ management to the organization and the goals to be achieved by implementing the program, so that they can have confidence in the change and promote a climate of change within the organization aimed at continuous improvement. Executive Leader The executive leader of 6σ Management is a senior leader at the level of vice president or above. This is a critical position that requires strong general coordination skills. Specific responsibilities include: setting goals, direction and scope for the project; coordinating the resources needed for the project; handling overlaps and disputes between project teams; and enhancing communication between project teams. Black Belt Black Belt (Black Belt) is derived from military terminology and refers to those who have superb skills and abilities. Black Belts are the backbone of 6σ change. Black Belt certification is usually done by an external consulting firm in conjunction with an in-house department. Black Belts are selected from within the organization to implement 6σ management on a full-time basis, and after receiving training and certification, they are awarded the title of Black Belt, serve as the project team leader, lead the project team to implement process change, and are also responsible for training Green Belts. Candidates for Black Belt should have a university knowledge base in math and quantitative analysis and need to have more extensive work experience. They must complete 160 hours of theoretical training, with one-on-one project training and mentoring by Master Black Belts. Trained Black Belts should be able to operate a computer with proficiency in at least one advanced statistical software. Companies that have successfully implemented 6σ management have only about 1% of their employees trained as Black Belts. Master Black Belt This is the highest level of 6σ management specialist, who is generally an expert in statistics and is responsible for providing technical guidance in 6σ management. They must be familiar with the knowledge acquired by all Black Belts, have a deep understanding of management theories and mathematical calculations that are based on statistical methods, and be able to ensure that the Black Belts are correct in their implementation and application. Training in statistics must be conducted by Master Black Belts. The number of Master Black Belts is very small, only l/10 of the number of Black Belts.Green Belt Green Belts (Green Belt) work on a part-time basis, and after training, they will be responsible for some of the less difficult project teams, or become a member of other project teams. Green Belt training is generally combined with 6σ specific projects for about 5 days of classroom professional learning, including project management, quality management tools, quality control tools, problem solving methods and information data analysis. Typically, the Black Belt is responsible for determining the content of the Green Belt training and assisting and supervising during and after the training.