1 Sigma = 690,000 errors/million operations
2 Sigma = 308,000 errors/million operations
3 Sigma = 66,800 errors/million operations
4 Sigma = 6,210 errors/million operations
5 Sigma = 230 errors
6 Sigma = 3.4 errors/million operations
7 Sigma = 0 errors/million operations
What is 6 Sigma
"σ" is the Greek letter for "σ", a statistical unit used to measure the standard error in a total number. The average company has a defect rate of about 3 to 4 sigma, which, in 4 sigma terms, equates to 6,210 errors per million opportunities. If a company continually pursues quality improvement to the point of 6 sigma, performance will be nearly perfect in meeting customer requirements, with only 3.4 defective items found in a million opportunities.
6 Sigma began to evolve in the mid-1990s from a total quality management approach to a highly effective technology for designing, improving, and optimizing business processes and providing a range of new product development tools equally applicable to design, production, and service. Following the globalization, product service, e-commerce and other strategies go hand in hand, become the world's pursuit of management excellence in the enterprise's most important strategic initiatives. 6 sigma gradually developed into the customer as the main body to determine the enterprise's strategic objectives and product development and design of the ruler, the pursuit of continuous progress of a quality management philosophy.
6 Sigma's main principles (a)
In the promotion of 6 Sigma, the enterprise to really be able to get great results, must be 6 Sigma as a management philosophy. There are six key principles in this philosophy, each of which is supported by a number of tools and methods.
Key Principles of 6 Sigma (II)
Sincere concern for the customer.6 Sigma puts the customer first. When measuring departmental or employee performance, for example, it is important to think in terms of the customer. First understand what the customer's needs are, then set corporate goals and measure performance against those needs.
Key Principles of 6 Sigma (III)
Management based on information and facts.In recent years, although knowledge management has been gaining traction, most companies are still making decisions based on opinions and assumptions.
The first rule of 6 sigma is to clarify what measurements should be made in order to assess performance, and then to use information and analysis to understand how far the company's performance falls short of its goals.
The main principles of 6 sigma (four)
process-oriented.Whether it's designing a product or improving customer satisfaction, 6 Sigma treats processes as a vehicle to success, a way to deliver customer value and competitive advantage.
Key Principles of 6 Sigma (v)
Proactive management.Businesses must be proactive from time to time in doing things that are often overlooked by the average company, such as setting ambitious goals and constantly reviewing them; setting clear priorities; emphasizing prevention rather than fire-fighting; and always questioning "why we do it this way" rather than always saying, "We all do it this way."
Key Principles of 6 Sigma (VI)
Collaboration knows no boundaries.Improving collaboration between departments within a company, between a company and its suppliers, and between a company and its customers can lead to great business opportunities for a company.6 Sigma emphasizes collaboration without boundaries, allowing employees to understand how they should work with the general direction of the organization and to measure the correlation between the activities of the various departments in the company's processes, what is the correlation between the activities of the various departments,
This is the key principle of 6 Sigma.
The key principles of 6 Sigma (vii)
Strive for perfection, but at the same time tolerate failure.In a 6 Sigma organization, employees continually seek a way to provide better service while reducing costs. The organization continually strives for greater perfection, but also accepts or deals with occasional setbacks and learns from its mistakes.
What is 6 Sigma Quality
The quality of a company's products is the result of the company's entire operation, which is affected by many intricate factors.Motorola has labeled its goals with the 6 Sigma Quality, which makes the complexity of the problem easy to understand. At Motorola, the significance of the 6 sigma quality level is as follows:
1. 3.4 PPM (3.4 parts per million of defects or shortcomings)2. 99.99966% of the products are defect-free.
3. Provides a benchmark to compare with competitors and a measurement for TQM.
4. Allows to know how far away from being defect free.
Why 6 Sigma Quality Appeals to Us
6 Sigma Quality has appealed to many companies for the following reasons:
1. 6 Sigma Quality provides a benchmark for a more complex product or service.
2. Using 6 Sigma quality allows you to measure the quality gap between your own company and your competitors.
3. Demonstrate progress toward defect-free performance.
4. Provide a clear goal for each department.
What is 6 Sigma Management (I)
It is an integrated management system and development strategy for obtaining and maintaining business success and maximizing its business performance. It is a business approach that enables companies to achieve rapid growth.Improvements in business performance include:
Increase in market share Increase in customer repeat business Cost reductions Cycle time reductions Defect rate reductions Accelerated development of products/services Changes in corporate cultureWhat is 6 Sigma Management(2)
It is a process innovation methodology that is led and driven by the highest level of management in the organization from the top down. It is a top-down approach to process innovation led and driven by the top management of an organization. Top management sets the goals for improvement/innovation (which are closely linked to the strategy and vision of the organization), resources and timeframe. This approach to innovation is centered on a structured improvement process called Define, Measure, Analyze, Improve, Control (DMAIC).DMAIC is used for three basic improvement processes:
6 Sigma Product/Service Realization Process Improvement
6 Sigma Business Process Improvement
6 Sigma Design SSDP
Implemented by the four levels of "Warrior Champion", "Big Black Belt MBB", "Black Belt BB", and "Green Belt GB". Trained personnel with clear responsibilities as an organizational guarantee.
This innovative approach emphasizes the use of quantitative methods/tools, the detailed definition of customer needs/satisfaction in quantitative terms, with clear objectives at each stage and assisted by corresponding tools or methods.
Why 6 Sigma Management (I)
To Survive:
"Why 6 Sigma Management?" Motorola's answer: to survive.
From the 1970s through the 1980s, Motorola lost the market for radios and televisions in competition with Japan, and later for beepers and semiconductors. in 1985, the company faced closure.
A Japanese company acquired Motorola's TV manufacturing company in the 1970s. After the Japanese revamped the company, it was quickly put into production and had a defect rate of 1/20th of what it had been under Motorola's management. they used the same people, technology, and design. Obviously the problem was Motorola's management.
The harsh realities of survival in a competitive marketplace led Motorola's executives to accept the conclusion that "our quality stinks." Under the leadership of its CEO, Motorola began the road to 6 Sigma quality. Today, "Motorola" is a world-famous brand, and in 1998, Motorola won the Baldrige National Quality Management Award. The secret of their success is the 6 sigma quality path. It was 6 sigma that enabled Motorola to grow from the brink of closure to a world-renowned quality and profit leader.
Why 6 Sigma Management (II)
To enable companies to gain core competencies:
. The survival and success of a business depends on the value it delivers to the market/customer. According to the theory of economics:
.... .Q Quality
V Value = --------
.... .P Price
. .6 Sigma Core Competencies: Improve Quality, Reduce Costs, Maximize Value, Customer Satisfaction/Market Competitiveness.
How to Drive 6 Sigma
There are many methods and tools in the pursuit of 6 Sigma in business. One important approach is a five-phase improvement process called DMAIC (pronounced Deh-maik): define, measure, analyze, improve, and control. Through these steps, a company's ROI will naturally increase.
DefineDefine the core processes and key customers, and put yourself in the customers' shoes to find out what is most important to them, the Critical to Quality (CTQ). Clarify team charters, and core business processes.
MeasurementIdentifying the Critical to Quality is about establishing the basic steps of measurement for process artifacts. People must be trained in basic chance and statistics, as well as in statistical analysis software and measurement analysis. In order not to overburden the staff, it may be useful to have someone with experience in implementing six standard deviations take the novice through the training to help them overcome the difficulties. For complex algorithms, automated calculation tools can be provided to reduce the time required for complex calculations.
AnalyzeExplore the root causes of errors. Statistical analysis is used to detect potential variables that affect results and identify the most important root causes of defective items. The tools used include many statistical analysis tools.
ImprovementIdentify the best solution, then develop a plan of action to actually implement it. This step involves constant testing to see if the improvement program really works and reduces errors.
ControlMake sure that the improvements you make are sustainable. Measurement cannot be interrupted to prevent errors from recurring. In many process improvement programs in the past, the concept of control was often overlooked; and of the six standard deviations, control is the key to its ability to improve quality and cost over time.
If successfully promoted, 6 Sigma will bring, will be to change the inertia of the enterprise, so that employees can continue to ask questions and seek better solutions, so that the enterprise is often in the upward climb on the slope.
6 Sigma implementers
It has been said that Mr. Welch, president of GE, is an expert in manufacturing talent. It is he in GE's 6 Sigma management to develop thousands of people who create wealth for the enterprise. They are the people known as Warriors, Big Black Belts, Black Belts and Green Belts. These people come from all positions in the enterprise, after 6 Sigma special training for 6 Sigma management to provide organizational security. The big black belts and black belts who are dedicated to the 6 Sigma program have become even more of an asset to the company, and many of the black belts have gone on to leadership positions in the company after completing their two-year term in the 6 Sigma program.Warrior: The manager responsible for 6 Sigma implementation in the top management of the enterprise. Responsible for deploying sigma implementation and full support. Responsible for identifying or selecting 6 Sigma projects. Tracks or monitors the progress of 6 Sigma.
Big Black Belt: 6 Sigma implementation technical chief. Assists the Warrior in selecting projects, develops implementation plans and timeframes, provides support to the Black Belt on 6 Sigma advanced technical tools, and is responsible for mobilization, coordination, and communication.
Black Belts: come from all departments of the organization, are fully trained in the 6 Sigma innovation process and tools, are familiar with the 6 Sigma innovation process, and are responsible for directing or leading improvement projects. Provides training and mentoring to Green Belts. A Black Belt is dedicated for a term of 2 years. 1 Black Belt completes 5-7 projects per year at a cost savings of approximately 1 million.
Green Belt: a person who has been trained to participate in a 6 sigma program in his or her own position.
Personnel ratio: per 1000 employees
. Grand Black Belt: 1
. Black Belts: 10
. Green Belts: 50-70
6 Sigma Supporting Techniques
Metrics Techniques: DPMO Calculation Methods Process Capability Analysis Techniques (including Long/Short Term Process Capability Analysis) Basic Techniques:New and Old Seven Tools
Advanced Techniques: SPC Measuring, Analyzing, Improving, and Monitoring Process Fluctuations DOE/Taguchi Methods Optimization design techniques to improve process design and optimize process capability through DOE FMEA Risk analysis techniques to assist in identifying improvement projects and setting improvement goals QFD Customer needs analysis techniques to assist in correctly translating customer needs into internal work requirements Error prevention Methods to prevent errors from occurring at the root cause Soft techniques: Leadership Improving Team Productivity Employee Empowerment and Delegation Communication and FeedbackThe Impact of 6 Sigma Management on Corporate Culture
Talking about corporate culture may seem to make people feel abstract. However, a closer look at the people around you in dealing with even the simplest and smallest issues on the concepts, values and behavioral guidelines, you will not be difficult to feel its existence. Simply put, corporate culture is "the way we do things around here". When you are trying to improve quality, especially by improving work processes (including processing, service, administration, management, etc.) in order to obtain the best quality of products and services, culture shows great resistance.
Thus, Mr. Holdergates points out:
(1) when strategy and culture clash, culture wins;
(2) when corporate culture is incompatible with the spirit of change, the effort to change will fail.
Mr. Holdergates summarized 20 lessons learned from the Baldrige Award-winning companies in the United States. Analyzing the lessons learned by these successful companies, especially in the area of building corporate culture, which is at the top of the hierarchy, it is easy to see that successful companies go one step further than others in implementing a quality strategy. That is, while they are committed to product and service quality improvement, they are willing to spend a lot of effort to transform their corporate culture that is not compatible with 6 Sigma quality, in order to keep the beliefs, attitudes, values and expectations of all employees in sync with 6 Sigma quality. This creates a good corporate quality culture and ensures the success of the 6 Sigma quality strategy.
Success Story (I)
Jack Welch, GE
6 Sigma is the most important development strategy that GE has never experienced.
The implementation of 6 Sigma began in late 1995;
The implementation of Sigma cost savings of 300 million U.S. dollars/1997, 750 million U.S. dollars/1998, 1.5 billion U.S. dollars/1999;
Profit margins from 13.6%/1995 to 16.7%/1998
Market capitalization exceeded 30,000 million dollars
Jack Welch, GE Corporation
The most important development strategy that GE has never experienced. >
The three major development strategies of Mr. Jack Welch for GE: 6 Sigma, product services, and globalization, have enabled GE to rapidly develop into the world's largest and most successful multinational conglomerate with diversified operations.
Success Story (II)
Larry Bossidy, Surekam Corporation
Since 1994, the company has been implementing 6 Sigma
The cumulative benefit of implementing 6 Sigma is more than $2 billion
Profit margins are more than 14%/1999
The fastest-growing company in terms of market capitalization
The company is also the fastest-growing company in the world in terms of market capitalization.