The 6 Sigma concept was developed by Motorola in the eighties with the aim of reducing deviations in production processes electronic components. In general, the whole idea of 6 Sigma is aimed at maximizing the quality of an organization’s work. The basis was based on statistical methods of process control and the work of the Japanese quality specialist Genichi Taguchi.
In the modern understanding, 6 Sigma is viewed from three sides: as a philosophy, as a management methodology and as a set of tools for improving work. It is used in organizations in various fields of activity - from industrial enterprises to banks. However, the main area for 6 Sigma is still manufacturing.
The term 6 Sigma, which is used in the name of the concept, means standard deviation random variable from the average value. This term is used in mathematical statistics. A random variable can be characterized by two parameters - the mean value (denoted by the symbol mu) and the standard deviation, or another name - the standard deviation (denoted by the symbol sigma).
If a process quality parameter is considered as a random variable, then using the average value and standard deviation one can estimate the likely proportion of process defects. To do this, you first need to set the upper and lower limits of the quality parameter tolerance field. The larger the tolerance margin, the greater the proportion of suitable products from this process. The higher the sigma value, the lower the proportion of suitable products.
In order to increase the share of suitable products, it is necessary for a given tolerance range to strive to reduce the sigma value, thereby increasing their number that fits into the tolerance range.
In the case where six sigma values fit from the average value to the nearest limit of the tolerance field, the number of defective products of the process can be 3.4 per million. In the option where three sigma values fit, the possible number of defective products of the process is 66.807 per million.
The essence of the Six Sigma concept is to use various methods and process management tools to achieve a reduction in the standard deviation value within a given tolerance range.
Philosophy 6 sigma
The Six Sigma philosophy is based on the approach of continuous process improvement and defect reduction. The organization must adopt an approach of continuous improvement and performance improvement.
Improvement can be achieved through radical changes (process reengineering approach) or through minor continuous improvements (kaizen approach). The purpose of improvements may be to improve product safety, improve quality, shorten production cycles, improve jobs, reduce costs, etc.
The key elements of the 6 Sigma philosophy are:
- customer satisfaction. Consumers determine the level of quality of work. They expect high quality products, reliability, reasonable prices, on-time delivery, good service, etc. Every element of consumer expectations contains quality requirements. The organization must identify and satisfy all of these requirements.
- process definition, their indicators and process management methods. To improve the quality of work, it is necessary to look at processes from the consumer's point of view. All process elements that do not provide value to the customer must be eliminated.
- teamwork and staff involvement. The results of an organization's work are the work of its employees. To achieve high quality, each employee must be interested in work and interested in achieving high results. Engaged employees lead to increased customer satisfaction.
Application of 6 Sigma
To carry out improvements, improvement, and process management, 6 Sigma uses a set of various quality tools. Process management can be carried out on the basis of qualitative and quantitative indicators. Each organization may have its own set of tools. Examples of such tools are statistical process control based on control charts, FMEA analysis, Pareto chart, Ishikawa chart, Tree diagram, etc.
Today, Six Sigma tools have expanded to include the application of this concept in many areas of activity. The 6 Sigma toolkit includes the entire set of quality tools. Some of them can be viewed in the Quality Tools section.
Methodology 6 Sigma
Six Sigma is a process-oriented methodology aimed at improving operations. It allows you to improve all areas of activity.
The 6 Sigma methodology is based on three interrelated elements:
- improvement of existing processes;
- design of new processes;
- process management.
An incremental improvement approach is used to improve existing processes. The focus is on reducing defect rates. The goal of improvement in the Six Sigma concept is to eliminate deficiencies in the organization and execution of processes.
Improvement is achieved through the application of five sequential steps. These steps are called the DMAIC method (the first letters of English words– Define, Measure, Analyze, Improve, Control):
- Define– at this step, the main problems of the process are identified, a Six Sigma project team is formed to improve the process. The team is endowed with the necessary powers and resources to work. Its area of responsibility is established.
- Measure– at this stage, data on the execution of the process is collected. The team analyzes the collected data and makes preliminary assumptions about the causes of deviations in the process being improved.
- Analyze– during this step, the team checks preliminary ideas about the causes of deviations in processes, identifies all the causes of inconsistencies and proposes methods to eliminate the identified causes.
- Improve– at this stage, measures to improve the process are developed and tested. Activities are introduced into the organization's work practices.
- Control– This step involves documenting and standardizing the improved process. To check the effectiveness of activities, the Six Sigma project team controls and monitors the execution of the process. During monitoring, special attention is paid to checking that the causes of nonconformities have been eliminated.
For newly created processes, an approach is taken to anticipate customer expectations. The focus is on preventing defects from occurring in processes.
Designing a new process (or redesigning an existing one) also occurs in five steps. The design (redesign) method in the 6 Sigma concept is called the DMADV method (the first letters of the words are Define, Match, Analyze, Design, Verify):
- Define– at this step, the goals of the new process are determined taking into account customer requirements. A Six Sigma project team is created to design (redesign) the process.
- Match– the team develops and defines the set technical characteristics, on the basis of which it is possible to determine the achievement of process goals.
- Analyze– an analysis of the characteristics of the designed process is carried out and preliminary versions of the process are developed.
- Design– during this step, detailed specifications of the new process are created and its implementation into the work of the organization is carried out.
- Verify– At this stage, the Six Sigma project team for process design checks the process to ensure that the set goals are achieved, taking into account the specified characteristics.
One of the important elements of the 6 Sigma methodology is process management, because... Very often, an organization simultaneously improves existing processes and designs new ones. Managing constantly changing processes becomes quite a challenging task.
In general, the Six Sigma process management methodology is not very different from the accepted process management methodology.
The main elements of process management according to the 6 Sigma methodology include:
- process definition, key requirements of consumers and process owners;
- measurement of indicators, characterizing the fulfillment of customer requirements and key performance indicators of processes;
- analysis of results obtained measurements and improvement of process control mechanisms;
- process execution control based on monitoring the “inputs” of processes, the progress of operations, and the “outputs” of processes and taking measures to eliminate problems or deviations from established requirements.
Implementation of 6 Sigma in the company
The implementation of the 6 Sigma concept in any organization is based on the constant work of project teams. Teams are formed according to management levels. As a rule, there are only three such levels - the highest level of management, the level of process management and the level of management of individual tasks. The teams include specialists with varying degrees of proficiency in the Six Sigma concept.
There are seven degrees of mastery of this concept:
- Management- These are the top management of the organization and business owners. The management's task is to create conditions for the implementation of the 6 Sigma concept.
- Champion– as a rule, this is a representative of the organization’s senior management. Its task is to identify the necessary projects to improve processes, organize them and monitor the progress of execution.
- Master Black Belt– the task of this specialist is to develop the concept of each specific process improvement project. He defines key process characteristics and trains black and green belts. The Master Black Belt is a Six Sigma Technologist and internal consultant.
- Black belt– leads a project team to improve a separate process. May provide training to project team members.
- Green belt– works under the direction of a black belt. He analyzes and solves assigned problems, takes part in quality improvement projects.
- Yellow belt– in the project, deals with solving specific problems, is responsible for the implementation of small projects to improve processes.
- White belt– is responsible for solving individual, special tasks of the 6 Sigma project.
At the present stage of development, the Six Sigma concept has become a widely known and popular brand. The promotion of this brand is facilitated by training specialists at various levels of “proficiency” in the 6 Sigma methodology and their certification. For each of the above degrees according to the Six Sigma concept, certain training programs and requirements for the composition of knowledge, experience and qualifications have been developed.
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The nature of the job market today is such that some types of job openings require some level of Six Sigma certification as a minimum for employer consideration. Although having certification does not guarantee that a person is truly competent or suitable to achieve the goals of the organization, having certification is the starting point for many companies. Even if you already have a job, some organizations consider 6 Sigma certifications a plus for considering you for a higher position.
Unlike many other certifications, such as project management certification (PMI), there is not a single authorized institution that lists the body of knowledge (EQA) and a number of requirements necessary for Six Sigma certification. Although the American Society for Quality (ASQ) body of knowledge (EQA) is quite universal, there are still many variations regarding the required body of knowledge for 6 Sigma, which are very similar but have different meanings - adding to or subtracting from the required body of knowledge of the ASQ . Certification requirements vary widely. This results in a huge number of certification methods and opportunities with many attributes that can be confusing and therefore need to be reviewed and compared before pursuing certification.
We hope this article will provide general information regarding 6 Sigma Certification and look at some of the programs that are commonly recommended by members of their respective LinkedIn communities. Certification methods are classified as first party certification, second party certification, and third party certification. While first party certifications are simply self-declarations, second party certifications are where the organization providing the training sets its own criteria for certification. Third-party certification is confirmation by an impartial party that a product, process, or service meets specified, manufacturing-independent criteria or standards. Most 6 Sigma certifications are second-party certifications, as the company provides the training and certification.
What belts are there?
The generally recognized 6 Sigma belts are Green, Black and Master Black Belts (although some organizations also have White or Yellow Belts). A Green Belt is not required to obtain a Black Belt unless internal policy requires it. There is a wide range of job responsibilities regarding different belts. In general, Green Belts work on 6 Sigma projects as part of their work. Black Belts are project managers and can only work on 6 Sigma projects. A Master Black Belt is the highest level of Six Sigma, these individuals mentor and train others, consult on projects and may be involved in strategic level work. Black Belts and Master Black Belts can move into different industries and develop more flexible skills and change management styles, in addition to using deeper technical skills.
Coursework with a specific industry focus may be offered to obtain Six Sigma belts. The most popular industries are manufacturing, manufacturing, services and healthcare. The examples and cases used during the course have been taken from a specific industry, although the curriculum is industry independent and therefore broadly applicable. Testing and certification are not industry specific. For example, there is no separate Six Sigma test in healthcare.
Lean Six Sigma (LSS) contains the fundamentals of Six Sigma and is complemented by a set of industry philosophies, methodologies and tools for managing cultural transformation that aims to reduce and eliminate waste. External third party experts, Lean Senseis, can provide companies with impartial advice and guidance regarding lean manufacturing. Industry Lean 6 Sigma certification courses are provided.
Some programs provide only 6 Sigma certification, others only provide Lean 6 Sigma certification, and others provide certification for both. ASQ provides coursework for LSS, but does not have any Lean exams or certifications. ASQ focuses your attention on the Lean Manufacturing certification, which is offered separately by the Society of Manufacturing Engineers (SME). SME has grants at bronze, silver and gold levels. The International Association for Six Sigma Certification (IASSC) only provides LSS certification. And as one example, Villanova University provides certification for Six Sigma as well as Lean Sensei.
Requirements for belts
There is no standard for the amount of knowledge, nor a standard for the requirements that are required to obtain these belts. Depending on the organization, certification can be achieved through training and project implementation, or through exam alone, or training only, or both training and exam and project implementation. If a project is still required, then at least one project for a green belt and two projects for a black belt must be completed. Some certifying bodies require that a black belt's project generate significant monetary value or have a significant impact on the organization. Requirements for green belt projects are generally more lenient, ranging from working on a project as a volunteer to a managed online project. ASQ certification requires three years of work experience (full-time and paid) in one or more areas of the required Green Belt knowledge, and admission to the exam is subject to completion of an application.
To characterize the difference between the requirements of organizations, let's give a specific example: the Ministry of the Navy (MVMF) requires more for a green belt than many organizations for a black one! The IWMF requirements for an LSS Green Belt candidate are as follows – 40-hour courses with a certified LSS instructor; be a team member of at least one real project; lead at least two real projects; create a portfolio of projects and occasionally present personally to the Certification Board. Having presented these strict requirements, it becomes clear that not all LSS belts are created equally. Experienced employers will know this, so it's important to choose a program where your certification will make sense.
Belt suppliers
There are four main providers of Six Sigma certification: employers, professional associations, colleges and universities, and institutes that provide certification services.
Many companies provide training to their employees and provide second-party certification that is based on company-defined standards. The company pays for your training, and it is designed to help you succeed in your job. The downside is that the program may not be as thorough as most independent programs. No one other than company employees will know what training you have completed. Coursework may have a very narrow focus on your skills. Therefore, some people may complete corporate training but become certified by the American Society for Quality (ASQ), due to its reputation and deeper coverage of material.
The American Society for Quality (ASQ) is a professional third-party certification society that requires candidates to submit a package of documents that demonstrate the level of qualification required to pass the exam. You don't need to do their coursework to pass the exam, you can study on your own. Although ASQ provides training, they do not guarantee that it covers the material needed to pass the exam. ASQ also has requirements for your work history and projects.
The International Six Sigma Certification Organization (IASSC) is a third party certification body for LSS that requires passing their exam, but does not require a project. Their website very clearly describes the philosophy and reasoning behind their requirements. The IASSC certifies not only individuals, but also training programs for other entities regarding the IASSC body of knowledge.
Some universities and colleges offer Six Sigma training as part of their continuing education or certification program. There are no entry requirements or degrees awarded by the school. The advantage is that you are face to face with the professor and students and have excellent networking opportunities to connect with your classmates from different industries and perspectives. The duration and costs of training may vary significantly and may sometimes be insufficient. Some universities also offer self-paced online learning.
The final path to certification is certification through certification service providers, which are often companies that are owned or operated by Six Sigma gurus or high-level consultants. These companies provide both group and individual training. Some of them conduct trainings in different cities and give intensive training within a few days or weeks. Others provide online training according to a syllabus that is self-paced and usually limited to 365 days to complete the course. These companies provide a package consisting of course work, exam, project manual, and sometimes software and textbooks. Some of these programs advertise IASSC certification, but it should be noted that the IASSC scope of knowledge is Lean 6 Sigma, not 6 Sigma. It is important to compare carefully training programs before making a choice.
Upon request, they will send you Excel tables with the information shown in the video. They do a great job of emphasizing what to look for in content, materials, and teaching style. They also warn that this information is difficult to find - it is not available on the suppliers' websites.
Final Analysis
The following table provides comparative information for some of the programs:
Online 6 Sigma Green Belt and Lean 6 Sigma Certification Options
| CERTIFICATION BODY | ASQ (American Society for Quality) | IASSC (International Six Sigma Certification Organization) | BMGI Company | PEX Institute | Paizdek Institute | Paizdek Institute | Smarter Solutions Company | Villanova University | Villanova University |
| 6 Sigma | Lean 6 Sigma | Lean 6 Sigma Green Belt | Lean 6 Sigma | 6 Sigma | Lean 6 Sigma | Lean 6 Sigma | 6 Sigma | Lean 6 Sigma Sensei is not a green belt | |
| PRICE | |||||||||
| Course fee | No training requirements | No | $695+$650 for mentoring from a Master Black Belt | $2,750 | $1,395 | $1,795 | $3,995 | $1,980 | $2,180 |
| Course Description | Tests, exams, tools and templates | 13 weeks, blended online learning, self-paced online modules, student guidance and instructor-led virtual sessions focused on execution. Each course contains a strictly team-oriented simulation of the thesis project, showing practical use of the tool, data analysis, simulation and review | 45 online modules. Each module contains reading assignments, scenarios, lessons created by T. Paizdek, assignments and quizzes. Assignments are checked and returned back by the Master Black Belt | 50 online modules. Each module contains reading assignments, scenarios, lessons created by T. Paizdek, assignments and quizzes. Assignments are checked and returned back by the Master Black Belt | Blended online learning and live training that combines the same reference materials used by the instructor with extensive one-on-one training regarding the course and certification | Blended live and online learning, live online lectures, instant messaging, shared whiteboard during live classes | 8 weeks, 6 modules, mixed live lectures online, with option to watch later | ||
| Exam Preparation Materials | $695 pre- and post-tests, progress checks, course activity, and a PDF download that provides a printable version of the modules that cover the five core body of knowledge areas for the 6 Sigma Green Belt certification. In addition to your online training, you will have a printed certificate to take with you to your certification exam. Additional $99 access to bank of 3 full practice tests/questions | Recommends materials from www.opensourcesixsigma.com, $170 including manual and one practice test with 80 questions and answers | included | included | included | included | Tutorial | Tutorial | |
| Exam | $209 for ASQ members, $359 for everyone else | $295 | included | included | included | included | Included – Periodic exams to test your knowledge, including an oral exam. Test without answer options. You must demonstrate the use of statistical support | $220 | $220 |
| Mini account | Not required for the exam | No | Not included, $1250 to purchase or $550 to lease for 12 months. Tip: You can get a free trial of the Mini Account for 30 days | Required, not included | License for 1 year $300. Some tasks require a Mini Account. Tip: You can get a free trial of the Mini Account for 30 days | Infinite $500 for $1395 for 1 year | Not required | Not required | |
| Additional software | No | No | No | Not required | Software for quality support of project management – 1 year license | Not required | Not required | ||
| Textbook | Provides a list of suggested books | No | No | Does not provide a list of suggested books | Includes the book "The 6 Sigma Handbook" by Thomas Pyzdek | Book included: "The Six Sigma Handbook" by Thomas Pyzdek | Integrated Enterprise Improvement, Integrated Enterprise Improvement Volume 1: Fundamentals, Integrated Enterprise Improvement Volume 3: Implementing an Improvement Project, Lean 6 Sigma Project Guide | Tutorials | Tutorials |
| Additional books | No | No | Copy of Lean 6 Sigma Guide for Dummies, BMGI Lean 6 Sigma Roadmap Poster. After the 12-month period of access to the program has expired, links and program modules, as well as templates, can be reproduced through open access on our website www.BMGI.org | No | The Meaning of Data: A Course in Understanding Statistics on DVD | No | No | ||
| Online sources | No | No | Templates, tutorials, forms, video programs. Creative management technology course | Articles and webinars on the site | Additional materials | Additional materials | |||
| Discounts | No | No | No | A Green Belt can be upgraded to a Black Belt at any time by paying the difference in price and completing additional modules. You also need to pass an exam to become certified as a Black Belt. | military | Not applicable | |||
| Total | $1,153.00 | $465.00 | $695 - $1345 | $2750 | $1395 | $1795 | $3995 | $2200 | $2400 |
| Total, if a mini-account is required | $1245-$1895 | 3250 | 1695 | 2095 | 4495 | No mini account required | No mini account required | ||
| PROJECT | |||||||||
| a) online or real? | Real - strict requirements for Black Belt, but not for Green Belt | No requirements | A real or volunteer project for an organization, can be submitted at any time - not limited to 1 year. Reviewed by BMGI Master Black Belt | Each course includes a team simulation thesis showing practical use of the tool, data analysis and simulation | A real project, not limited in time, should not be work related, should be used by a certain number of people | May be a volunteer organization | Simulated | Simulated | |
| TRAINING TIME | |||||||||
| a) self-study | 30 hours for material | 100 hours of training, 1 year to complete | yes - 23.4 hours, | 80 hours online and offline, 1 year to complete | 100 hours online and offline, 1 year to complete | 84 hours for self-paced learning modules | Yes | Yes | |
| b) regular classes | No | No | Yes – live classes in addition to self-study - 22 hours - 13 weeks | No | No | Yes – 8 weeks of live training | Yes, but you can return to self-study | ||
| EXAM | |||||||||
| a) planned? Can I use the book? | Scheduled 2 times/year, must be submitted in the application before the schedule, you can use the book. A few tricky questions | At any time online or in a test center, you cannot open the book, but the help document can | You can use the book at any time | At any time | At any time | At any time | At any time | ||
| ACCREDITATION | |||||||||
| Institute of Credentieling Excellence (ICE) | Regional accreditation by the Middle States Association | ||||||||
| SUPPORT | |||||||||
| a) access to experts | No | No | $650 access to BMGI Master Black Belt training | Students receive answers to their questions via email or telephone consultation if they need it | During training, submitting questions through the student forum. Answers from Thomas Pyzdek or Master Black Belt within one business day. | During training, submitting questions through the student forum. Answers from Thomas Pyzdek or Master Black Belt within one business day | Scheduled one-on-one training with a Master Black Belt, you can contact him at any time | Access to email and messages 24 hours a day every day | |
| b) access to training materials | No | Not applicable | After the expiration of the 12-month period of access to the program, links and program modules, templates can be reproduced through open access on our website www.BMGI.org | 1 year of access to online materials, maximum 3 hours per module | Access to the site and training materials for 365 days | Access to the site and training materials for 366 days | Access to the site and training materials for 367 days | Access to the site and training materials for 368 days | |
| c) online support/features | No | Not applicable | Online forum for communication with fellow students and teachers | Business contact with a registration expert is available during business hours | |||||
| SCOPE OF KNOWLEDGE | |||||||||
| ASQ Scope of Knowledge | IASSC Scope of Knowledge | Course content and instructors are provided by the Training Quality Group (TQG) | The scope of knowledge for the 6 Sigma Green Belt is defined by the International Six Sigma Certification Association | ASQ uses his books to build their body of knowledge | |||||
| GURU | |||||||||
| ASQ Committee | In particular, no one | In particular, no one | Thomas Pyzdek | Thomas Pyzdek | Forrest Breyfogle | George Eckes | George Eckes | ||
| NETWORKS | |||||||||
| When joining ASQ, there are local networking events | Passing the exam and certification are recorded in a public online database | Chats and forums for discussion with students and teachers | |||||||
| IS THERE A FOCUS ON INDUSTRY? | |||||||||
| No | Various fields represented, including healthcare | Healthcare, financial services, IT | No healthcare version | ||||||
| WEBSITE | |||||||||
| www.asq.org | www.iassc.org | www.bmgi.com/training/lean-six-sigma-green-belt | http://www.processexcellencenetwork.com/institute | www.sixsigmatraining.org | www.sixsigmatraining.org | www.smartersolutions.com/ble nded-green-belt-training.php | http://www.universityalliance.c om/info1/UA_PDFs/Villanova/T 2-Disciplines/Villanova_6Sigma_T | ||
| https://www.opensourcesixsigma.com/Green-Belt-Bundle-p/bndl-gb-v11.htm | |||||||||
The table compares various features, including price, second- or third-party certification representative for self-paced or online 6 Sigma Green Belt or Lean 6 Sigma Green Belt training. This article does not cover comparisons of the scope of knowledge and course details that these certification bodies offer. Although presenting some difference in reputation would be very useful, this has not been studied and is therefore not included in the article. Also, information about the “success” of certification recipients was not researched or found. The analysis regarding program selection is left to the reader, since their backgrounds, finances, circumstances, opportunities and motivations are as different as their options.
Based on the amount of information considered, the following are important:
If you want to study on your own (i.e., not pay for a course), take an exam, and use work experience or a project outside of work to qualify for certification, your options are very limited. To achieve the 6 Sigma Green Belt, ASQ is the only route. There is no requirement for project completion, but you must have three years' experience in one or more areas of the Green Belt 6 Sigma body of knowledge. While some companies will allow projects outside of the work situation, their requirements for admission to the exam are primarily payment and acceptance of their coursework. There is no option for 6 Sigma Black Belt that meets these criteria. For Lean 6 Sigma Green and Black Belts, the International Organization for Certification (IASSC) provides such a course since you do not have to submit a project and as part of their charter they do not offer or require coursework.
This block purports to be an initial guide to gathering a more comprehensive view on the path to 6 Sigma or Lean 6 Sigma certification. I hope that 6 Sigma or Lean 6 Sigma practitioners, as well as those who offer certification programs and those who seek them, will add objective and subjective information to this post to help everyone who is hungry for 6 Sigma or Lean 6 Sigma certification .
Authors: Michelle Gabriel was one of the first at Motorola to teach statistical process control in the early 1980s, before the invention of the Belt System. As an operations manager, using Lean and Six Sigma tools with her team and her suppliers, she was able to achieve significant cost savings and engineered improvements in a variety of industries from semiconductor capital equipment manufacturing to DSL delivery services. On at the moment Michelle is working toward certification to prepare herself to participate in improvement projects. He currently holds a BS and MS in materials science and engineering from the Massachusetts Institute of Technology and an MBA from the University of California, Berkeley Haas School of Business.
© Material prepared by Anna Dzhezhik
based on materials from foreign publications
http://www.site/
In I-space they exclaimed: “These Six Sigma again! And what do they have to do with it? It's about processes and quality! I don’t understand anything.” Indeed, let's figure out how Six Sigma interfaces with project management. Is this system part of project management or is the implementation of this doctrine one of the company’s modernization projects? The interesting topic raised will occupy our minds for a few minutes and allow us to slightly shift the perspective of the management school.
Initial basis of the methodology
Indeed, upon a superficial examination of Six Sigma, the connections “optimization of business processes” and “establishment of a quality system” automatically pop up in the mind. And this is a completely justified logical model of perception subject area concepts. This technique in the English-speaking environment is called “Six Sigma” or abbreviated “6σ”. Among the many definitions, the following seems to be the most adequate. “Six Sigma” is a multifaceted system for setting up business processes, providing a significant reduction in losses, costs and product defects in the following areas:
- economical use of resources;
- reducing unproductive expenses;
- quality management of main and auxiliary power supplies;
- optimization of business cycle time.
Agree that this is a very comprehensive definition. It covers entire layers of management science and practice, while claiming the significance of “tectonic shifts” in the internal structure of a company at a strategic level. In our conversation, it is important to understand and focus on the place 6σ occupy in modern reality.
In anticipation of the conclusions, I will immediately note that Six Sigma is far from just a method, although it is called that way. Much more accurately and completely, this concept should be considered from the point of view of belonging to an integral management system.
We know from theory that a business process is a set of interrelated works that have input, output, control and a basis in the form of resources and mechanisms. This is a classic technique that we will not hesitate to use. During the implementation of processes, many factors are constantly discovered that influence the transformation of given “inputs” into the resulting “outputs”. These factors work both at the moment of entering the process from the outside and during internal procedures. Examples of sources of such influence:
- raw materials;
- external environment;
- technology;
- adjustment and technical level of equipment;
- mood and qualifications of performers, etc.
It is an axiom that the quality of the process and the quality of its result are always determined by quantitative parameters. Let's call the target values of the result as Y1, Y2,... Yn, there are always several of them. Accordingly, we define the quantitative parameters of the internal events of the process as X1, X2,... Xm. These parameters are just that: raw materials, equipment, technologies, other resources and mechanisms. The Y criterion is described as a function of various Xi. The logic of reasoning is based on a visual model diagram of the process from a parametric point of view, which is presented below.
Process model as a function Y=f(X)
The variability of the Xi indicators in relation to their optimal values harms the resulting Yj, and the instability of each of the input factors and factors of the current process procedures leads to a scattering of the results at the output of the process. Parameters Yj almost always have a defined range of acceptable values, which allows one to judge that the result is of high quality. If the deviation is significant and Yj does not correspond to the level of acceptable values, then the BP result is considered defective. It follows that deviations in processes lead to losses of time, resources, and costs due to product defects.
Why six sigma?
The Six Sigma methodology is based on the postulates of mathematical statistics, which are increasingly making their way into business pragmatics. There are only two ideas at work here: that the spread of Y values obeys the rules of the standard deviation (σ), and that the spread of the characteristics of the result should be small. The magnitude of the spread is insignificant compared to the tolerance limits, and the influence of external and internal factors turns out to be leveled. In this case, the safety margin (the length of the distance between the peak of the deviation histogram and the nearest tolerance limit) significantly exceeds the parameter σ.
The concept assumes that the entire process adjustment occurs in the direction of reducing the spread of indicators and bringing the median value of the deviation histogram closer to the center of the tolerance range. The goal is to remove all destructive factors affecting the process, and therefore its result. Note the target quality diagram in the Six Sigma model.
Six Sigma model quality target diagram
Standard deviation (σ) demonstrates the degree of variability in the level of a process output parameter. The developers calculated that the optimal level of standard deviation is when it is six times less than the distance from the median value to the nearest control limit. And it is precisely this achievable state that ensures a quality level equal to 99.9997% of the given plan. This is the concept of methodology that dictates the content of a fairly strict system.
The technique offers effective management of process quality and product manufacturing costs. This guides management towards truly efficient business processes and moves towards zero-defect production. The 6σ method, in contrast to the traditional idea of quality, requires increased activity to eliminate process defects even before the tolerance limit is reached. This position is expressed in the loss function model of G. Taguchi. The concept of the model is presented below in graphical form.
Approach to responding to deviations according to G. Taguchi’s model
Paradoxically, the traditional approach assumes that defects occur abruptly at the moment the tolerance limit for the quality of a parameter is crossed. At the same time, it turns out that within the range it is quite possible to “rest on your laurels” and not make efforts to improve, conditionally believing that everything is fine. The innovative concept of the loss function, on the contrary, put forward a number of requirements, and quite stringent ones at that.
- There are only one process outcome parameters – target ones.
- Any, even the slightest deviation from the target values creates a threat and initiates a response.
- The size of the threat of losses increases with the growth of deviations and requires an adequate increase in response.
Thus, the Six Sigma concept involves the introduction into the management paradigm of revolutionary ideas related to the elimination of the causes of defects. If you implement them, then marriage will cease to occur. There will be no need for cumbersome quality control.
The relationship between Six Sigma and project management
The concept presented to your attention involves a systematic approach to implementation and progressive development of the methodology. The system as a set of interrelated elements, based on the main method, uses almost all management components for its implementation, branching into many functional management areas. The strength of the method is such that by incorporating the required changes, it acts with a synergistic effect, filling the complex solution with energy greater than its component parts. Let's take a figurative look at the composition of the Six Sigma system.
Six Sigma System Components
The components of the system are in a “Rubik’s Cube” state: each of them is part of the whole and includes elements of other components. When considering a system from the point of view of the main business objectives, one cannot take into account the fundamental rule of management: “Before any significant transformation, examine the key problem!” This corresponds to two components responsible for research and statistical control of processes in terms of losses, defects and costs.
The sequence of steps to establish a system involves actions from researching the problem to transferring corporate and technological cultures to a new state of quality and costs. In a certain perspective, the costs of increasing quality with this approach become many times lower than the increase in effects.
Any management system is divided into two large parts: personnel and means of operation. The latter consist of a material part (equipment, technology, communications, etc.) and an intangible part (communications, educational institutions, information and software, etc.). In this regard, there is no way to ignore the issue of debugging the implementation infrastructure and personnel training system.
The 6σ methodology is untenable without the use of a project approach. Project implementation here is based on the researched problems and the importance of selected areas for improving quality and costs. Compliance with the principles and methods of PM is in demand in the Six Sigma doctrine more than anywhere else. It is recommended to start an implementation project in those areas that will give the maximum effect in the shortest possible time. This obviously follows from the Pareto 20/80 rule. A typical project for the implementation of the Six Sigma system must comply with certain conditions, which at the same time are strict criteria for selecting project tasks for implementation:
- solves problems that are significant for the company, he is supported by the decision-maker;
- provides the company with additional income corresponding to its scale;
- relies on the resources actually present in the company;
- the success of the possible implementation is obvious to the management and project team;
- does not require long periods of time and is implemented within 3-6 months;
- the ratio “obtained effect/implementation costs” in the first year is at least 5.
Concluding this reflection, I would like to emphasize the main conclusion of the article: the Six Sigma concept is a modern (especially for countries such as Russia) system of management changes in the project paradigm of business management. At the same time, the scale of this system allows it to be placed at a fairly high level in the hierarchy of management school tools. This is a whole philosophy that has serious prospects for development. As an integral and structured doctrine, Six Sigma is harmoniously integrated into the project and process sections of management.
The synthesis of two proven and popular methods of management and optimal adjustment of the production process, which complement each other, is called Lean Six Sigma.
The goal of integrating the concepts was to create a system with a synergistic effect that could be used in any enterprise, regardless of field of activity and size.
The Six Sigma concept made up for some of the shortcomings of the Lean Manufacturing concept and vice versa.
The experience of using a complex synthesized process was first described in 2001, and 2 years later several books were published with a detailed discussion of the theory and practice of Lean Six Sigma. As a result, it became clear that the concepts conditionally “divided” the entire procedural diversity among themselves: “Lean” showed what needs to be done, and Six Sigma showed how to organize activities for this.
In what ways do the concepts complement each other?
The concept of “Lean Manufacturing”, having changed the production culture, over time expanded the tools, included the ideas of the value stream, a method of protecting against errors, and was transformed into “Lean Management” (Lean).
By the end of the 20th century, both of these concepts (Lean and Six Sigma) were the most popular areas of business consulting in quality management, since the number of successful implementations in relation to the total number of implementations was higher than that of other quality management methods. Together they demonstrated even greater efficiency.
How Six Sigma Complements Lean:
- Lean does not set requirements for the infrastructure needed to implement the concept. The solution to this issue depends on the initiative of managers and their organizational abilities, and when the composition of managers changes, difficulties arise with the transition. Six Sigma helps to formalize the commitments of the top management of an enterprise, formulate a plan for allocating resources and monitoring the success of their development.
- The Lean concept is not as strict as Six Sigma, but focuses on consumer needs. Satisfaction of requests from the elimination of production costs and non-production losses depends indirectly, while in Six Sigma the description of the principles of the DMAIC concept begins with the definition of consumer requirements: Define, Measure, Analyze, Improve, Control (Russian: Determine. Measure. Analyze. Improve. Manage).
- Defects, within the Lean concept, are identified as the main sources of production losses, but statistical control methods for eliminating them are prescribed in Six Sigma.
How Lean complements Six Sigma:
- Six Sigma describes methods for eliminating defects, but in addition to defects, Lean Management also names the factors of waiting, transportation, overproduction, inventory, movement of people, and non-value-adding activities. Sometimes practitioners also highlight the use of low-quality raw materials (“false economy”) and diversity, as a consequence of non-unified components of the process.
- Six Sigma does not explain the relationship between customer satisfaction (quality) and process time. Thanks to the Lean system, the concept of “time” is introduced as a key one.
- Lean expands the range of tasks that Six Sigma describes by adding the elimination of unproductive activities, optimization of the workplace, reduction of inventories, reduction of transportation costs, etc.
At the same time, both basic systems are characterized by an orientation towards a single process (in contrast to the concepts that precede them, which try to achieve universal coverage). The synthesized concept also retained this originality.
Application of Lean Six Sigma in Industries
Both basic systems that created the synergistic concept of Lean Six Sigma are “living” systems. Having undergone repeated “testing” in production and non-production areas, the concepts have become universal - applicable with equal success in various industries. Using the example of logistics, we can show the application of the Lean Manufacturing + Six Sigma complex in the service sector.
Order lead time, according to Little's formula, is equal to the volume of work in progress divided by the average speed of work (the amount of work performed by one employee per period of time). To reduce order fulfillment time, the synthesis of Lean Manufacturing and 6 Sigma systems in logistics is focused on optimization in 3 main areas:
- The logistics process is a slow process, which makes it costly. (More than 50% of slow processes are associated with non-value-added losses).
- The speed of logistics services is reduced due to a significant share of work in progress. As a result, about 90% of the time the work is considered unfinished, which reduces consumer satisfaction.
- The direction is based on the Pareto principle, characteristic of slow processes: 80% of costs result from 20% of actions. By identifying and reducing this 20%, on-time performance increases to 99%.
Another specificity of logistics is that it accounts for about a third of sales volume. Calculations show that 10% of defects in logistics increase order fulfillment time by 38% and the volume of work in progress by 53%. A significant portion of the costs relates to return logistics. Depending on the initiator of the return, the reason may be:
- dissatisfaction of end consumers implementing the money-back guarantee,
- problems with installation and use (with subsequent return of defects),
- repair work associated with multiple shipments of goods in both directions,
- expiration date and environmental safety, etc.
For example, in the US online trade, the return of electronics and high-tech products, according to various estimates, reaches 50-80%. This increases the number of problems for the industry, which was initially created and configured for direct movement, without large-scale reverse flow, and which was not ready for return bookkeeping, disposal of goods, etc.
From the above, it follows that the return flow should be configured as carefully as the forward flow, while simultaneously reducing the number of non-value-added operations. This could be helped, for example, by computer programs that would be compatible with the information systems of all departments and would allow the creation of group orders, sorting them by delivery dates, types of products, priorities, etc. The general tasks remain the same, as well as in product production - reducing input variability, reducing the number of switching between tasks, standardizing the platform within the cycle while maintaining an assortment that meets the customer’s needs, etc.
Logistics represents a common application of Lean and Six Sigma concepts in the service industry, but illustrates the general application of the system.
Lean Six Sigma effectiveness in numbers
The implementation of Lean Six Sigma is reflected both in economic growth and in improving the atmosphere within the team, which ultimately also affects the economy - a culture of well-coordinated teamwork, rapid exchange of information and specific knowledge arises. As a result, the implementation of the integrated concept:
- speeds up processes by 20-70%;
- improves the quality of services and products by 20-40%;
- increases overall efficiency by 10-30% (compared to the separate implementation of one of the basic systems).
Often the implementation of a concept encounters greater difficulties than expected. The “human factor” comes into play, internal contradictions arise in the requirements, the statistical process becomes an end in itself, and not a method for detecting defects.
Among the common mistakes they mention is being overloaded with the tasks assigned to oneself, when, for example, there are 100 technical transformations for 100 identified customer needs. But this, at first glance, “lifting” volume involves planning and regulating about 10 thousand relationships, which significantly complicates implementation. In such cases, it is advised not to transform everything at once, but to focus on the needs that are critical for the client, selected using a list of priorities.
From the point of view of adherents of the Six Sigma management concept, the majority of Russian business operates at a level no higher than two Sigma - and the competitive situation so far forgives this. Three or four sigmas are among the best in their industry. Five is a dream. Six is an unattainable ideal because it means only 3.4 defects per million production operations.
In fact, Six Sigma was originally an internal development of the American corporation Motorola. In the early 1980s, this American manufacturer of networking and telecommunications equipment, as well as the developer of the world's first cell phone approved for commercial use, began to suffer serious reputational losses due to a sharp decline in the quality of its products, especially noticeable against the background of the success of its Japanese competitors. To cope with the situation, Motorola's top management developed and implemented in 1986 at its enterprises new system quality management, “assembled” from methods and tools that were mostly known in the corporate world before (it’s not for nothing that critics of the Six Sigma concept call it nothing more than a successful compilation). Nevertheless, the implementation gave a good economic effect and allowed the corporation to solve its problems: over time, it rose in its production processes to an impressive level corresponding to 5.7 sigma (about 16 defects per million).
255 of the world's largest Fortune 500 companies use Six Sigma. This is one of the most widely implemented management concepts in the world.
Six Sigma soon found influential adherents. In the 1990s, it was successfully used at General Electric enterprises by then-CEO Jack Welch, who volunteered to popularize the concept. Some time later, “Six Sigma” was raised to its banner by various business consultants, the concept turned into a full-fledged management brand and became perhaps the most widespread among the systems being implemented. Suffice it to say that it is used by 53% of Fortune 500 companies, including Amazon, Boeing, Ford, GlaxoSmithKline and Samsung. It is noteworthy that the concept was able to be adapted to non-production processes. For example, in the USA it is used by some government departments to ensure the quality of government services, and even by the Ministry of Defense to maintain and maintain equipment and weapons.
"Sigmatics" of the process
In short, the Six Sigma concept prescribes the path to “zero defects.” Firstly, keep everything in line with the end consumer of the product or service, because he should be the final “beneficiary” of all improvements in production processes. Secondly, break down business processes into separate stages and highlight among them the critical ones that have the greatest impact on the final result - and concentrate the main efforts on them. Thirdly, make widespread use of production statistics methods in order to record the results that result from changes in process “settings” at each stage of the production chain, and control quality. The ultimate goal is to increase the reproducibility index of operations and keep all processes within specified deviation limits from the norm.Measurements are generally the main point of the concept, which is reflected in its name. In statistics and probability theory, the Greek letter “sigma” σ denotes standard deviation. The larger the number used in combination with sigma, the smaller the deviation - and therefore, the less defective in production processes. The 6 sigma indicator is 99.99966% of outputs without defects, the standard “accuracy” of the result that can only be achieved in modern production conditions.
The founders of Six Sigma “packed” the work methodology into the English abbreviation DMAIC, which describes the entire cycle of actions in their sequence: define (“define”) — measure (“measure”) — analyze (“analyze”) — improve (“improve”) ) - control (“check”). It all starts with setting project goals and identifying customer needs, then the specific process is measured, defect data is collected and analyzed to determine the causes. This is followed by the implementation of solutions to improve the process and monitoring the results obtained.
The “militantness” of the concept is also given by the names that are assigned to the “agents” of Six Sigma implementation at the enterprise: “champions”, “sponsors”, “master black belts”, “black belts”, “green belts”, “yellow belts” - similar to martial arts. The “Champion” is selected from among top managers interested in the project. “Sponsors” are process owners who, within their area of responsibility, coordinate the implementation of Six Sigma principles. Master Black Belts provide technical support to the program, understand statistical methods, and mentor Black Belts—team leaders responsible for measuring, analyzing, improving, and managing key processes. Green Belts are also project leaders, but unlike Black Belts, they devote only part of their working time to Six Sigma projects. Finally, Yellow Belts are temporary employees who have the necessary knowledge of the system to work effectively.
In Russia, the Six Sigma concept has taken root mainly only in large export-oriented corporations. For them, this is a “code word” that opens access to major contracts and international projects
The human factor plays a key role in the implementation process. “Many companies, including Western ones, turn to the Six Sigma system because “it’s the way it’s supposed to be,” says Alexander Kazintsev, advisor to the operations department at Citibank. - But training is one thing, and application and achieving a significant practical result is another. Many people try to work according to this system, but not everyone succeeds. However, the companies that use Six Sigma today are progressive ones, interested in using effective methods to develop and improve results.” The principle of continuous process improvement and defect elimination can be applied to any area of business. In essence, Kazintsev assures, this is a technique for solving companies’ problems, and in which area to eliminate a defect is not so important: “As soon as we identify defects and focus on them, the technique works - and we begin to develop ways to eliminate defects: organizational, technical , technological, based on statistics and proper research of the process. This applies to all processes, even secondary ones. In production, for example, there are a huge number of “supporting” processes - say, accounting. And in a bank, in addition to operational processes, there is a personnel selection process. In each of them, you can collect and analyze statistics and develop measures to eliminate existing defects.”
Pay for sigma!
On Russian soil, the Six Sigma concept began to take root in the early 2000s. The first were Russian subsidiaries and divisions of Western companies - Schlumberger, Boeing, Deer & Co, etc. Following them, large export-oriented domestic players began to take a closer look at this management technology. Among the first was aluminum producer RUSAL. True, since then this concept has been developed and supplemented at the enterprise, and today it is rather a synthesized production system with elements of Japanese and American methods - Kaizen, Six Sigma, 5S, etc. “In specialized literature, this approach that we use is accepted call it Lean Six Sigma,” explains the RUSAL press service. “Over the past five years, this has allowed the company to accept 23.8 thousand proposals for improvement for implementation. In 2012, the efficiency of the implementation of 304 projects amounted to more than 1.5 billion rubles.”Some Russian companies adopted Six Sigma at the insistence of a foreign partner to make it easier to “link” production processes. This is what NPO Saturn did, for example, in the early 2000s, when the machine-building enterprise became the official supplier of GE - Aircraft Engines. “The customer required us to use statistical methods for process control,” recalls Oleg Lisin, chief specialist in quality management, certification, and standardization at Saturn. “In order not to miss out on a profitable order, the company trained about twenty people in this methodology.” Optimization of processes was beneficial: the company received competitive advantages, fame in the aerospace business and the opportunity to participate in large international projects.
Alexander Kazintsev, as a business consultant, has been implementing Six Sigma methods at Russian enterprises since 2003. Moreover, in recent years more and more in banks - Alfa-Bank, Citibank, VTB24, etc. For them, he prepares methods for an adapted, simplified version of Six Sigma in combination with the principles of lean production - Lean Six Sigma Banking. Financial companies, following manufacturing companies, have recently also begun to pay attention to process optimization. “Today people from different banks, with good performance and extensive systems, often speak at conferences,” the expert assures. “In terms of achieving results, we are no longer lagging behind the West.” But there is another distinctive feature - the educational basis. Compared to foreigners, our engineers master complex statistical tools without difficulty. Therefore, when adapting the system on Russian soil, we have to shift the emphasis from statistical tools to issues that are more difficult for our specialists - the ability to organize projects and set tasks.
The number of Russian companies using Six Sigma includes VSMPO-AVISMA, Krasnoyarsk Aluminum Plant, Alfa-Bank, Citibank, RUSAL, Dzerzhinskoye Plexiglas, Instrum-Rand, etc.
Among small Russian companies, the Six Sigma system remains in little demand. “Most often, the organization of business processes and their control in small enterprises is such that they do not necessarily need to dive into deep theory and use complex tools to identify problems and find growth points,” says Valery Kazarin, lean consultant, based on his experience. production. — Almost always the problem there can be understood immediately. After all, deviations are a regular process that allows you to collect statistics and use them to judge where and what is happening. When processes are set up in such a way that a company has only 300-500 orders per month, it is usually obvious to the naked eye which groups of orders are being handled ineffectively.”
The popularization of Six Sigma principles in Russia is carried out not only by individual consultants, but also by organizations, in particular the non-profit association of the same name, which has been operating since 2004. In addition, last year the Six Sigma company came to Moscow, promoting the American company SixSigma.us on the Russian market and adapting its programs for the Russian-speaking public. There are also online projects to promote the methodology - for example, SixSigmaOnline.ru. But so far all these initiatives have not fully compensated for the information deficiency.
Calculation rules
The implementation of Six Sigma, of course, is not an end in itself and does not automatically produce results. “If you implement it simply for the sake of implementation, the system will quickly become bureaucratic,” Alexander Kazintsev is sure. “It’s a tool to achieve specific goals.”In the history of Six Sigma, there have also been cases of implementations that the companies themselves later recognized as unsuccessful. In the book “Kill Your Company,” American business consultant Lisa Bodell cites the American retail chain Home Depot as an example. Profitability there began to grow after the introduction of Six Sigma methods, but employee morale and customer loyalty began to fall. In 2005, the US Consumer Satisfaction Index showed that Home Depot lags far behind other major retailers. Experts, having analyzed the situation, stated that Six Sigma is not suitable for companies operating in the retail sector, since it chronically suffers from high staff turnover, which is why “implementation agents” with their “belts” simply do not keep up successfully implement your projects.
3M also paid dearly for its passion for statistics. When former General Electric CEO James McNerney took over the company in 2001, his first move was to implement Six Sigma principles. A course was taken to reduce costs, thousands of employees were trained to become experts in the methodology, and staff were required to submit reports on new products. To investors looking at the numbers, everything seemed to be running smoothly: by 2005, the company's operating margin had risen from 17% to 23%. But at the same time as the numbers grew, the dissatisfaction of corporate researchers working in the laboratories increased. 3M, which has had the image of an innovative company for a century, has noticeably reduced scientific research and development, inventors did not have enough time to work on products and bring them to successful commercialization. One of the key indicators innovation activity A company is the percentage of revenue it generates from products introduced over the past five years. After the introduction of Six Sigma, this figure in 3M decreased from the traditional “about 30%” to 21%. Once James McNerney moved to Boeing, 3M reconsidered its approach to Six Sigma. She did not refuse to use the concept in production activities, but she simplified it for corporate researchers involved in R&D. And in 2010, as a result of the adjustments made, income from introducing new products to the market again reached 30%.
General Electric is still doing well: at the end of 2012, the company took 16th place on the Fortune Global 500 list. But Motorola Corporation, the progenitor of Six Sigma, has regularly suffered losses since the early 2000s and has experienced several restructuring, getting rid of unprofitable divisions, and even split into two independent companies - Motorola Solutions and Motorola Mobility, the latter of which was absorbed by Google in 2011. It is hardly possible to discern a pattern in these stories; they only once again prove that there is no magic solution for business growth: Six Sigma, which often helps companies save billions of dollars, does not at all guarantee market success.
