What Is Six Sigma and How Does It Help Your Business?
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06 Nov 2023 04:22:19 pm.
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Introduction
Different processes keep your business working, whether you own a successful manufacturing company or a small enterprise. These processes sometimes go smoothly, but errors can occur, resulting in product or service defects. You aim to avoid these errors as much as possible to increase performance and quality. However, optimizing processes without the necessary knowledge and expertise can be complicated. Sometimes, you don’t get the desired results.
This is where Six Sigma can help your business, whether you or some of your employees get the certification. The acquired knowledge can be applied in all industries, from healthcare to accounting, human resources, operations, or sales. But what is Six Sigma? Keep reading if you want to know more about it.
Definition – What Is Six Sigma in Simple Terms?
Six Sigma is a data-driven approach used in project management to improve processes and reduce mistakes. According to Wikipedia.com, this approach was introduced by an American engineer named Bill Smith, who worked at Motorola in 1986. In 1993, Motorola registered Six Sigma as a trademark, and in 2005, the company allegedly made $17 billion worth of savings. Other noted companies like Honeywell, Toyota, General Electric, and Amazon also adopted Six Sigma and increased savings significantly thanks to the program. These cost savings were pivotal in spreading the new approach among other companies.
What is Six Sigma, the term itself? The etymology is based on the Greek letter “sigma,†which represents standard deviations from the process target. Six Sigma aims to achieve the best results and ensure perfect quality with minimized defects. Improved quality leads to higher customer satisfaction, which means more clients and sales.
Principles of Six Sigma
Six Sigma has five main principles, as follows. The first principle is understanding customers’ needs. A business needs to know its customers and the actual market demands to meet the expectations and provide products or services that are successful among clients. The second principle is analyzing processes and gathering information to find the problem. To find the root cause, it is essential to define the type of information and the reason for data collection to ensure the accuracy of measurements. Once the problem is discovered, it needs to be eliminated or changed in a way that contributes to process streamlining. The fourth principle includes constant communication with the team to share ideas and suggestions for improvement. Special training is required for the team to be proficient in the applied tools and methodologies to avoid project failure risks. The fifth principle is creating a flexible and responsive environment to ease adaptation to changes and ensure implementation control through regular feedback.
DMAIC and DMADV Methodologies
Six Sigma uses two methods to achieve the set goals in different business environments. DMAIC approach is the acronym for define (the purpose of the project), measure (several aspects of the project), analyze (information to find the problem), improve (processes), and control (implementation in the future). It is an effective method to improve existing processes through modification.
DMADV method is used when optimization of existing projects does not bring the desired results. It focuses on developing a new process, product, or service that meets or exceeds customers’ expectations. The first three methods are similar to the DMAIC approach, but after analyzing and selecting the possible design alternatives, the next step is developing and testing. In the fifth phase, the “V†stands for verifying the effectiveness of the new design through simulations.
Benefits of Six Sigma Certification for Individuals and Organizations
What is Six Sigma giving you as an individual or your organization? Six Sigma Certification is becoming a standard precondition for management positions in several industries. It helps organizations to improve productivity, reduce costs, and increase profits. This approach incites businesses to continuously improve products, services, and operations, leading to customer confidence and loyalty.
Six Sigma-certified professionals can implement their knowledge and experience in various fields. When a business owner selects employees who will get the opportunity to complete training, it empowers individuals to advance in their careers and gain an increased value to their employer. This results in successful and happier employees, decreasing employee turnover and training costs. Applying Six Sigma methodologies can benefit the culture of communication and collaboration within the company, as it involves teamwork to find the best solutions.
Six Sigma Certification can also help if you are an individual who wants to start a business of your own. By completing training, you gain valuable knowledge on how to run a successful business and develop your problem-solving and data-analysis skills. Six Sigma methods are not limited to a single industry; you can try yourself in different fields and have better career and salary prospects. With this certification on your resume, you can stand out from the crowd and gain an advantage in hiring.
Six Sigma Applied in Different Industries
While Six Sigma was initially developed for manufacturing, it has been adapted for various industry fields, such as sales, operations, healthcare, information technology, accounting, marketing, and human resources. Six Sigma methods applied in healthcare helped optimize the process of creating a proper schedule for healthcare workers, avoiding overwork, and maximizing performance. It helped hospitals respect the strict regulations and provide staff and patient safety.
Information technology companies apply the principle of constantly improving software and hardware, assuring users a pleasant experience while meeting fast-changing requirements. It has become essential in every industry to keep products and services up-to-date to satisfy customers and respect quality regulations.
In human resources, Six Sigma can help reduce advertising costs and optimize the hiring process, starting with scheduling interviews and continuing with training and integration. A successful business should strive to keep its employees motivated and appreciated, thus reducing employee turnover and saving costs.
Conclusion
In conclusion, applying Six Sigma methods and tools can help any business or individual who wants to improve and achieve better results. Many training providers offer discount prices for comprehensive training programs created for employees within an organization, making it a good investment. Getting Six Sigma certified can also benefit individuals by improving their problem-solving and data-analysis skills, advancing their careers, and empowering them to start their businesses.
So, what is Six Sigma? It is a win-win for everybody because investing in development always pays off. It needs time, effort, and dedication to complete training and apply this knowledge, but you will be amazed by the results.
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