Basics of Six Sigma – Meanings of Six Sigma

Harry (2000) proposes that the entire six sigma breakthrough strategy should consist of the following
eight elements:

• R Recognize the true states of your business.

• D Define what plans must be in place to realize improvement of each state.

• M Measure the business systems that support the plans.

• A Analyze the gaps in system performance benchmarks.

• l Improve system elements to achieve performance goals.

• C Control system-level characteristics those are critical to value.

• S Standardize the systems that prove to be best-in-class.

• l Integrate best-in-class systems into the strategic planning framework.

If you make a comparison between DMAIC and RDMAICSI (given by Harry), you will observe that under
DMAIC, Recognize is combined with Define and Standardize (S) and Integrate (I) is combined with
Control (C).

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Basics of Six Sigma – Meanings of Six Sigma
Because of the integration of a number of tools, such as lean manufacturing, DOE (design of experiments) and
DFSS (design for six sigma), six sigma has been referred to as TQM (total quality management) on steroids.

The business successes that result from a six sigma initiative include:

• Cost reductions: Reduction of cost is a critical topics taught in MBA and is also critical for running a company
successfully.

• Productivity improvements: Productivity improvement implies maximizing performance of resources to give

optimum result.

• Market - share growth: In this fast growing world, competition is becoming stiffer at every moment. Market-
share growth can be achieve through going beyond boundaries of our location and globalizing our
organization.

• Customer relations improvements: If customer’s are not happy, the organization is destined to doom. Hence,
customer relations is the most critical aspect.

• Defect reductions: Defects is rework and each reworked transaction is additional cost.

• Product and service improvements: Products or service need to change with time to acclimatize to the recent
changes in the world. A classic example is that of i-Phones, we have seen several improved versions of I-
phones in last few years.

• Culture changes: Culture changes need to be accommodate in order to thrive in the current fierce and
competitive world.

• Cycle - time reductions: From order delivery to receipt of cash, if the time taken to process all of this is high,
we are not in a great position in the organization. Hence, cycle-time reduction is a critical aspect.

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Basics of Six Sigma – Meanings of Six Sigma

Some more Six Sigma benefits:

• Motorola® credits the six sigma initiative for savings of $940 million over three years.

• AlliedSignal® (now Honeywell®) reported an estimated $1.5 billion in savings in 1997.

• GE® has invested a billion dollars with a return of $1.75 billion in 1998 and an accumulated
savings of.$2.5 billion for 1999.

We can see many such examples across the globe, where Six Sigma has changed the way
organizations are working. Six Sigma is not only a process improvement methodology, but also
a tool to have bottom line savings.

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Basics of Six Sigma – Meanings of Six Sigma
Some reasons why Six Sigma works:

• Bottom line results: Bottom line results is reduction in cost, eliminating revenue leakage, etc.

• Senior management is involved: Six Sigma is both a top down and a bottom’s up approach where support of
senior management is also a must.

• A disciplined approach is used (DMAIC): Six Sigma is the only methodology available which is a documented
step-by-step methodology for resolving business problems.

• Short project completion times (3 to 6 months): Due to the rigor in the approach of Six Sigma, it takes
approximately 3 to 6 months to complete the six sigma project.

• Clearly defined measures of success: Measures of success need to be defined in the measure phase, and need
to be articulated very well in order to process to later phases of Six Sigma.

• Infrastructure of trained individuals (black belts, green belts): Six Sigma also focuses on building the team’s
skills and competencies by providing an infrastructure to train individuals as green belts, black belts, master
black belts, champions, etc.

• Customers and processes are the focus: Six Sigma always starts with the customer and focuses on creating
robust processes.

• A sound statistical approach is used: Statistics helps in taking data based decisions which are mostly correct.
Six Sigma focuses on creating a sound statistical approach.

Organizations that follow a six sigma improvement process for several years find that some operations achieve
greater than six sigma quality. When operations reach six sigma quality, defects become so rare that when they
do occur, they receive the full attention necessary to determine and correct the root cause. As a result, key
operations frequently end up realizing better than six sigma quality.

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Basics of Six Sigma – Meanings of Six Sigma
Companies that have embraced Six Sigma includes:

• Motorola
• AlliedSignal
• General Electric
• Black & Decker
• DuPont
• Dow Chemical
• Polaroid
• Federal Express
• Kodak
• Boeing
• Sony
• Johnson & Johnson
• Toshiba
• Navistar
• Infosys

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GENERAL HISTORY OF SIX SIGMA AND CONTINUOUS IMPROVEMENTS

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Basics of Six Sigma – History of Six Sigma

Evolutions of Six Sigma:

• 1979 – 1986: Period of Evolution: During the period of evolution, Six Sigma had gone through
several versions from RDMAICSI to DMAIC. Mikel Harry and Bill Smith played a critical role in this
period to evolve six sigma methodology.

• 1986 – 1992: Period of Design: When Six Sigma was picked up by other organizations after Motorola
won it’s Malcolm Baldridge National Quality Award, they designed the Six Sigma methodology to
suit different industries (other than manufacturing).

• 1993 – 1994: Period of Refinement: Six Sigma went through yet another phase of refinement and
steps such as Design of Experiments were taken to advanced levels by individuals such as Taguchi,
etc.

• 1994 – 1996: Period of Results: Most manufacturing organizations started gaining the results and
reflecting them in their quarterly financial statements.

• 1996 – 1997: Period of Awareness: In this period, the world started to know the power of Six Sigma.
It was no longer a methodology known to a few organizations.

• 1997 – 1998: Period of Adaptation: Organizations learnt Six Sigma techniques and implemented it in
their day-to-day processes. Eventually, they started gaining benefits.

• 1999 – till date: Period of Enlightenment: Six Sigma has now become the basic hygiene requirement
of most of the organizations. Individuals with Six Sigma expertise are given preference over other
individuals.

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Basics of Six Sigma – History of Continuous Improvements

History of Continuous Improvements:

1800’s: Management encouraged employee-driven improvements, and incentive programs were set in
place to reward employees that brought about positive changes in the organization.

In 1894: National Cash Register’s program included reward schemes, employee development
opportunities, and improving labour-management relationships.

Early 1900’s: Much attention was given to scientific management.

1930’s: Continuous Improvement programs introduced in Japan by management experts like Deming,
Juran, and Gilbreth.

1970’s: Japanese developed their own ideas, and quality control.

1980’s: Evolution of Six Sigma.

1990’s: Introduction of Balance Scorecards.

2000’s: Evolution of Hybrid Methodologies such as Lean Six Sigma, Agile, among others.

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Basics of Six Sigma – History of Continuous Improvements
Listed below are some well-known gurus, and what they have contributed to the business and technical
foundations of six sigma. This list is far from inclusive.

Philip B. Crosby
• Senior management involvement
• 4 absolutes of quality management
• Quality cost measurements

W. Edwards Deming
• Plan-do-study-act (wide usage)
• Top management involvement
• Concentration on system improvement
• Constancy of purpose

Armand V. Feigenbaum
• Total quality control/ management
• Top management involvement

Kaoru lshikawa
• 4M (5M) or cause-and-effect diagram
• Companywide quality control (CWQC)
• Next operation as customer

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Basics of Six Sigma – History of Continuous Improvements
Listed below are some well-known gurus, and what they have contributed to the business and technical
foundations of six sigma. This list is far from inclusive.

Philip B. Crosby
• Senior management involvement
• 4 absolutes of quality management
• Quality cost measurements

W. Edwards Deming
• Plan-do-study-act (wide usage)
• Top management involvement
• Concentration on system improvement
• Constancy of purpose

Armand V. Feigenbaum
• Total quality control/ management
• Top management involvement

Kaoru lshikawa
• 4M (5M) or cause-and-effect diagram
• Companywide quality control (CWQC)
• Next operation as customer

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Basics of Six Sigma – History of Continuous Improvements
Joseph M. Juran
• Top management involvement
• Quality trilogy (project improvement)
• Quality cost measurement
• Pareto analysis

Walter A. Shewhart
• Assignable cause vs. chance cause
• Control charts
• Plan-do-check-act (as a design approach)
• Use of statistics for improvement

Genichi Taguchi
• Loss function concepts
• Signal to noise ratio
• Experimental design methods
• Concept of design robustness

Bill Smith
• First introduced the term “six sigma”

Mikel Harry
• The main architect of six sigma

Forrest Breyfogle lll

• Author of Implementing Six Sigma

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Basics of Six Sigma – History of Continuous Improvements
Joseph M. Juran
• Top management involvement
• Quality trilogy (project improvement)
• Quality cost measurement
• Pareto analysis

Walter A. Shewhart
• Assignable cause vs. chance cause
• Control charts
• Plan-do-check-act (as a design approach)
• Use of statistics for improvement

Genichi Taguchi
• Loss function concepts
• Signal to noise ratio
• Experimental design methods
• Concept of design robustness

Bill Smith
• First introduced the term “six sigma”

Mikel Harry
• The main architect of six sigma

Forrest Breyfogle lll

• Author of Implementing Six Sigma

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