Six Sigma

According to the ACCA study guide, in part F regarding the Quality issues, the syllabus emphasise on Quality Initiatives : Six Sigma. I believe that this topic would be important and also quite challenging to those whom are still didnt heard of this Six Sigma. So, for this time around,I will focus on The Six Sigma, but only the surfaces and general source and not to go deeper into black,green belt,or lean six sigma,but at least you know what Six sigma is all about. Well, i've done an extensive reading on materials regarding this Six Sigma, and it took me 2 books for me to understand the reason, application and significance importance of applying Six Sigma to organisation namely Motorola,General Electric (GE).

What is Six Sigma??

Is a statistical measures of variation to improve processes by eliminating defects to represents the latest incarnation of the quality movement. A full Six Sigma equals to 99.9997% accuracy. It also acts as a business philosophy focusing on business improvement and a "tool box" of quality and management tools for problem resolution. Six Sigma's goal is to improve all processes to that level of quality or better.

Every process can be characterised by

• Average performance
• Variation

A little bit of history, the Six Sigma methodology was developed by Motorola in the mid 1980's as a result of recognising that products with high pass yield rarely failed in use.Hence,
Six Sigma asserts the following:

• Continuous efforts to reduce variation in process outputs is key to business success
• Manufacturing and business processes can be measured, analyzed, improved and controlled
• Succeeding at achieving sustained quality improvement requires commitment from the entire organization, particularly from top-level management

Based on the ACCA P3 syllabus, the study guide mentioned Six Sigma solving process relates to DMAIC, however there is methodology relates to DMADV which concerns on create new products or process design. thus to stay within the guide,let look into DMAIC.

DMAIC.
- Provides a logical sequences for applying exisiting problem solving tools and concepts.
- Repacking of exisiting tools and concepts.
-Various quality/ management tools applied at each steps.
-Improves exisiting business process.

Define
-develop a mission and assess business strategy.
-Understand customer needs and demands.
-Map the process or create goals in order to achieve such aim.
-Appropriate tools such as Gantt chart, cross functional flowcharts.

Measures
-Collect baseline data on defects and possible cause.
-Plot defect data over time & analyse for special causes.
-Create and stratify frequency plots and do Pareto analysis (80/20) (please refer)
-Calculate starting sigma level.
-Appropriate diagrams such as Basic flowchart

Analyse
-Create focused problem statement.
-Explore potential causes.
-Verify relationship of the causes and make sure that all factors have been considered.This can be applied by statistical methods to quantify cause and relationship.

Improve
-Create possible solution for root causes.
-Optimize the process based upon the analysis by using techniques Design of experiments.
-Implementation of such plan or processes.
-Measure the results and evaluate.
-identifies what will happen if needed improvements are not made and what will happen if the improvements take too long.

Control
-Develop and document standard practices.
-Possible, train staff teams, and tools are put in place to ensure that the key variables remain within the acceptable ranges over time so that process improvement gains are maintained.
-Team develops a project hand off process, reaction plans, to guarantee performance and long-term project savings.
-Recommend future plans and confirm, communicate,create process for updating procedures.

When to use Six Sigma????

• Unknown causes/situations
• When broad spectrum approach is inappropriate.
• When other problem solving method fails.
• In Complex situations with many variables

but of course in exam, question will relate to applying Six Sigma.

Why adopt Six Sigma??

• Defined process for problem solving
• Proven methodology to solve problem
• Focus on "bottom line" which encourages credibilty/supports from top management.

Probabilty of failing Six Sigma:

• Resisstance
• Fear of change
• Lack of understandings
• Internal sabotage
• CAVE people (Citizen Against Virtually Everything)

Even J.Juran criticised Six Sigma in his book ' J.Juran : A lifetime of Quality 'as "a basic version of quality improvement", stating that "there is nothing new there."

Reference:
1)Wikipedia
2)Six Sigma: The breakthrough byHarry,Schroeder.

3)What is Six Sigma? : by Pande and Holpp (Secondary texts for ACCA P3) (I recommend it)

3) A little bit of Idiots : Six Sigma.( but It doesnt have much information that I desired)