Six Sigma has been recognized as one of the best ways to improve the manufacturing processes within the connectors, kiosk fabricating, and monitor enclosure industries . It began within the manufacturing industry, but Six Sigma has been applied to other industries with success too. It was developed to help with quality control at companies that did manufacturing on a large scale. It made improvements to the manufacturing process in addition to reducing the number of defects found in the products. Irrespective of company size, Six Sigma can be applied to improve the way businesses operate, and it is used all around the world. Here is an introduction to Six Sigma.
The Beginnings of Six Sigma
Six Sigma was conceived in 1986 by Motorola. It was originally thought of as a set of techniques and tools that would improve the efficiency of business processes. It became even more popular in 1995 when Jack Welch touted it as the main method he used to improve business operations at General Electric. Since its original surge in popularity, it has remained a steady facet of business education.
Six Sigma actively seeks out defects in the manufacturing process and removes the root cause of them. Within this system, a set of quality management guidelines is established for the organization. Managers within the organization are then trained to use these guidelines on an expert level. A clear set of steps is defined which setting a target value for the entire project being worked on. Organization can apply this method with the goal of reducing production cost, reducing the time cycle for building the product, reducing the output of pollution, or even increasing customer satisfaction.
How Six Sigma Works
Within the Six Sigma system, a sigma rating can be applied to different aspects of the manufacturing process. This rating is typically a reflection of the number of the percentage of products produced that are defect free. At the highest sigma rating, nearly 100% of the products created are expected to be free of defects. This system was instituted by Motorola in order to reduce customer complaints and financial cost to the business as a result of faulty products. They recognized that reductions in production cost would often times correspond to an increase in the quality of the products. Manufacturing philosophy used to teach that higher quality would always increase production costs, but this turned out to not be the case.
According to Six Sigma, the success of a company is dependent upon its ability to make continuous improvements within the manufacturing process. In order to do this, it is necessary to measure these improvements statistically. Without statistics, results cannot be analyzed. Results are then shared with the entire management team. Everyone who makes decisions in the organization must be educated in the methodology of Six Sigma. It is a tool that depends on teamwork.
Six Sigma’s Features
One of Six Sigma’s most important features is a focus on measuring and quantifying the financial yield of projects. Six Sigma also needs the managers who apply it to be passionate and committed to the methodology. Each manager has clearly defined responsibilities so hey can contribute maximally to the team effort. Minimizing defects is crucial to Six Sigma too. The highest sigma rating can only be achieved when defects are reduced to 3.4 per million products produced. This sounds like a lofty goal, but numerous companies have achieved this result through applying Six Sigma to their production process.
Results of Using Six Sigma
Companies report that applying Six Sigma has produced incredible results for them. Motorola reported that a total of $17 billion was saved through applying Six Sigma to its quality improvement process. Half of the companies in the Fortune 500 adopted Six Sigma at the end of the last millennium. Many of them noticed the percentage of defects within their manufacturing process plummet to undetectable levels. Six Sigma has been shown to be most effective at transforming large organizations It has clear communication channels and extensive training for managers and executives Six Sigma training is organized into levels. The higher your level within Six Sigma the more respected you are. A higher level means that you have mastered more of the Six Sigma principles and can teach them to others. Students of Six Sigma receive official certification so their organization knows they can be relied upon to apply the principles.
Applying Six Sigma has saved billions of dollars to companies who have adopted it. It is one of the best-known methods for reducing defects in the manufacturing process. It is seen as a transformative set of tools that invigorates an entire organization around key objectives like reducing costs, improving cycle time, increasing overall profits, and even improving customer satisfaction. Companies that train their employees in Six Sigma and integrate it into their organization outperform those who do not.