Six Sigma: A method to help improve the quality and performance of businesses

Six Sigma is a methodology that provides organizations with tools to improve their business processes. This method helps businesses increase efficiency, reduce variability thereby reducing error rates, improving profits and increasing customer loyalty. This article will give

You will learn the most basic knowledge about Six Sigma as well as examples of large businesses that have successfully applied this method.

1.Six Sigma: Basic concepts

1.1. What is Six Sigma?

Six Sigma is a set of methods and tools used to improve business processes by minimizing errors and improving quality and efficiency. The ultimate goal of Six Sigma is to achieve near-perfect quality, with only 3.4 defects per million opportunities. To achieve this, use an approach called DMAIC (Define, Measure, Analyze, Improve, Control) or DMADV (Define, Measure, Analyze, Design, Validate) to eliminate and identify the causes. process change and improvement.

Six Sigma is a data-driven approach widely used in project management to achieve process improvement and reduce errors. It provides a model system for identifying and eliminating variations that affect project performance.

1.2 Six Sigma's DMAIC process

DMAIC is a data-driven approach to improving products and services to deliver greater customer satisfaction. It stands for the 5 stages of Define, Measure, Analyze, Improve, Control. DMAIC is commonly applied in product manufacturing and service provision.

• D - Define: Need to clearly define the specific goals of the project and factors related to quality.
• M - Measure: This includes identifying indicators related to quality, measuring important parameters and building performance statistics charts to find the cause of errors.
• A- Analyze: After receiving measurement results, the Sigma team will determine the root causes of errors and provide solutions. Solutions must have high accuracy and have backup plans
• I - Improve: Improvement measures often include changes in production processes, work processes or product design improvements.
• C - Control: Control measures are necessary to ensure that the new process is stable and does not repeat errors in the old process.

Besides DMAIC, DMADV is part of the Six Sigma design process used when existing processes do not meet customer needs even after optimization or when new methods need to be developed. new. The five stages of DMADV include Define, Measure, Analyze, Design, Validate. This process is also used to redesign production processes or provide different services. In fact, the DMAIC process is more commonly known and widely used.

2. Benefits of Six Sigma

2.1. Improve productivity and improve product and service quality

Using Six Sigma helps companies maximize their manufacturing processes, allowing them to produce higher quality products in less time. This technique helps organizations improve productivity, product and service quality and reduce labor time and resources.

2.2 Eliminate waste in the process

The Six Sigma system aims to help companies and businesses reduce the possibility of error/defect rates. When this ratio decreases, businesses can minimize unnecessary waste such as raw materials, labor, and time. Thanks to that, businesses can save time, money and resources.

2.3 Increase customer satisfaction and loyalty

Six Sigma tends to increase customer satisfaction through data analysis, products are guaranteed to meet the needs and desires of users. From there, customers will be satisfied and trust the brand more.

2.4 Increase investor reputation and confidence

Experts have assessed that Six Sigma helps businesses increase profits and limit redundant business processes. From there, investors can see the company's potential and increase their confidence when investing in that business.

3. 5 main principles of Six Sigma

Experts recommend focusing on these five principles to ensure the success of your project.

3.1 Focus on customers

The ultimate goal of every change is to bring maximum benefits to customers. To do this, businesses need to understand customer needs, what motivates them to make purchasing decisions and what leads to customer loyalty.

3.2 Measure and find problems

Based on Six Sigma, businesses can map the steps in a given process to identify wasteful areas and stages; collect data to find specific problems that need to be solved or transformed; Identify clear goals for data collection including determining the data to be collected, the reason for collecting the data, ensuring the accuracy of measurements, and establishing a standardized data collection system chemistry; determine whether the data helps achieve goals, whether the data needs to be refined or additional information collected; identify the problem; Ask questions and find the root cause.

3.3 Eliminate errors/defects

Once the problem is identified, make changes in the process to eliminate defects, errors, and activities that do not add value to the customer along the way.

3.4 Collaboration without barriers

The Six Sigma system requires the participation of all stakeholders to apply a systematic process with experts who will help solve the problem. Six Sigma processes can have a major impact on an organization, so those involved must be well versed in the principles and methods used. Therefore, specialist knowledge and training are required to reduce the risk of project failure and ensure that the process operates optimally.

3.5 Ensuring a flexible and adaptive ecosystem

The essence of Six Sigma is transformation and change in business. When a faulty or inefficient process is eliminated, it requires a rapid change in the way work is done and in the approach of employees. A business with flexibility and the ability to respond to changes in processes can ensure smooth project implementation. Companies also need to pay attention to data and periodically check business results and adjust their processes when necessary to ensure a competitive advantage.

4.Success stories of Amazon and Motorola

4.1. Amazon

Amazon uses Six Sigma to optimize shipping, lagering, and inventory management processes. This helps them speed up deliveries, reduce shipping costs and optimize inventory, while enhancing the customer shopping experience. Thanks to Six Sigma, Amazon has reduced order processing and delivery times with Six Sigma, improving their customers' shopping experience. They estimate that Six Sigma has saved them hundreds of millions of dollars annually.

Apply Amazon's Sig Sixma

4.2 Motorola

Motorola is a pioneer in developing Six Sigma. They used Six Sigma to improve product quality and manufacturing processes. This helps them reduce waste, increase efficiency and improve competitiveness in the mobile phone market. Motorola estimates that Six Sigma saved them $17 billion in the early stages of implementation. Motorola products have had defect rates 10 times less than their competitors.

Motorola pioneered the application of Six Sigma

Thus, we have partly grasped the information about Six Sigma . However, businesses cannot successfully apply this method overnight, but need a thorough research process, plan development and backup plans. Don't forget to follow the articles on 1C Vietnam 's website to update other useful information!