SIX SIGMA

UNIT-1 Six Sigma Basics

Learning Outcomes
By the end of this unit the learner will be able to:

 Understand the Basics of Six Sigma.

 Describe the seven quality tools to solve process problems.

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Unit 1
Six Sigma Basics

In this session, you will discuss the levels of practitioners of Six Sigma be introduced to the two
frameworks used for Six Sigma projects (DMAIC and DMADV).

Introduction

Six Sigma is a set of qualitative and quantitative quality tools that can help a business improve their
processes. The efficiency built into the business processes brings about improved profits, confidence and
quality.
The term Six Sigma comes from statistics to indicate that the process outputs fall within three standard
deviations from the center (expected value) giving a range of six standard deviations (or six sigma- 6 σ).
As a result in terms of individual outputs it means you would have 3.4 defects per million items.

Six Sigma implementation has a number of levels of practitioners that work on Six Sigma projects. The
industry (and certifying bodies) use the theme of Karate and use Yellow Belt, Green Belt, and Black Belt.

Using a Belt Handout (Yellow, Green or Black). List below the knowledge that is necessary for that belt.

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DMAIC and DMADV?

Six Sigma initiatives are used by organizations to provide a structured approach to improving and
developing process excellence. A number of tools to accomplish this will be discussed in subsequent
sessions. The Six Sigma tools are used within a specific organizational framework. The two most used
frameworks are the DMAIC (Define, Measure, Analyze, Improve, Control) and DMADV (Define, Measure,
Analyze, Design, Verify) approaches to problem solving. These data-driven process approaches to
improving processes are also used in Lean and other quality initiatives.

The following table shows the characteristics of each approach.

DMAIC DMADV
Used when an existing process or product does Used to develop a new process or product or,
not meet customer expectations or is not when after using DMAIC, the process still does not
performing adequately. meet the customer’s expectation or Six Sigma.

Define the problem in the current process, the Define the new process project goals and internal
improvement project goals, and internal and and external customer deliverables.
external customer expectations/ requirements.

Measure the current performance of the process.Determine and Measure customer requirements
and specifications.
Analyze the process data to determine root Analyze the process requirements and
causes of the poor performance of the process. alternatives to meet the customer requirements
and specifications.
Improve the performance of the process by Design the new process to meet the customer
eliminating the root causes of the problems. requirements and specifications.
Control the improved process. Verify the design performance and ability to meet
customer requirements and specifications.

How Does Typical Project Management Differ from Six Sigma Project Management?
Established and introduced by the Project Management Institute, the Project Management Body of
Knowledge (PMBOK) was quickly adopted as an international standard in key markets worldwide. Even
today, PMBOK remains the project management framework of choice for many businesses worldwide.
In terms of the fundamentals, Six Sigma and PMBOK share a great many similarities. For example, both
methodologies are implemented to formulate plans, identify stakeholders, maintain strong

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communication standards, conduct regular reviews, carefully manage costs/resources, meet deadlines
effectively and so on.
Nevertheless, Six Sigma isn’t just another generic initiative for enhanced project management or process
improvement. Nor is it a reintroduction of the same concepts and standards under a different name.
Instead, it is a standalone continuous improvement strategy with its own unique statistical and cultural
methodologies.
Six Sigma can be applied in conjunction with other project management initiatives and standards as a
complementary framework. Most project management initiatives seek to reduce the risk of failure,
control costs, avoid defects, minimise risk and keep important deadlines. In most organisational
settings, project management seeks to accomplish these objectives by identifying and following best
practices on a project-by-project basis. It is typically the responsibility of the project office to create and
implement a policy, offer advice and support for contributors, make available the required resources and
perhaps carry out periodic reviews.
An Imperfect Approach to Project Management
The problem being that project management initiatives regularly fail for the simple reason that the
effectiveness of the methodology couldn’t be accurately measured. Nor could any potential value be
added by way of process changes. This is where the unique effectiveness of Six Sigma comes into the
equation.
Six Sigma provides project managers and stakeholders with a much more structured, data-driven project
management methodology. A framework that provides the tools and techniques needed to accurately
gauge performance before, during and after the project. Implementation of Six Sigma enables project
managers to establish the baseline performance of activities and processes, in order to identify
opportunities for improvement and optimise every aspect of their performance.
Essentially, therefore, Six Sigma provides the opportunity to inject a higher level of discipline and control
into any project. For projects of little importance, approaching things ad-hoc and learning as you go is an
option. But you can’t implement Six Sigma in a half-hearted manner. If you intend to put Six Sigma to
practical use, you need to accept the time, effort and commitment required to make it work. Which is a
good thing, given the importance of ensuring everyone involved and the project is equally committed
and determined to achieve the best possible results.
Project Management: A Challenging Field
The field of project management is uniquely challenging, incorporating a variety of responsibilities that
demand equal priority. Collection and analysis of data, problem solving, the evaluation of current
processes, creating and tracking measurements, making quantitative evaluations and so on. The tools
and techniques provided by Six Sigma enable project managers to succeed in all of these areas and more.
Six Sigma is not to be viewed as a slightly tweaked or modified alternative to the current management
methods followed by the organisation. Instead, it is a radically different management methodology that
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replaces existing standards for determining, evaluating and avoiding/resolving problems. All while
ensuring the business meet its financial and operational objectives in a methodical manner. Six Sigma
comprises various tools and features that can be applied across a much broader and more dynamic area
of operations than those common to more traditional project management.
In a nutshell, Six Sigma seeks to tackle problems at their root cause and proactively prevent them from
occurring or reoccurring, as opposed to controlling possible causes of failure on a project-by-project
basis.
Six Sigma is also significantly more precise and deeper than more conventional project management.
The methodology used uses a defined project charter to detail the project scope, financial targets,
benefits anticipated, key milestones along the way and so on. The Six Sigma framework is based on hard
data and measurements. Traditionally, projects have typically been entered into with no concrete
knowledge as to its potential for delivering of financial gains. The control phase of Six Sigma (DMAIC:
Define-Measure-Analyse-Improve-Control) uses more defined and robust measurements, helps identify
potential problems and allows for the creation of measurable solutions.
Apply effectively, Six Sigma can drive an organisation towards improved performance and profitability.
Nevertheless, it is important to acknowledge Six Sigma is more than just a set of tools. Instead, Six Sigma
is about the systematic and strategic application of the tools in the right places and at the right time, in
order to build towards positive business-wide change.
Integrating Project Management Into a Six Sigma System
Most businesses share the desire to reduce operational costs, improve process efficiencies and drive
higher profits through an increased market share in a competitive environment. On the opposite side of
the spectrum, consumers share the desire for affordable products that are easily accessible and
consistently satisfy their expectations.
Various philosophies and frameworks - including total quality control (TCM), total quality management
(TQM) and Six Sigma - have been adopted by businesses worldwide to assist with the development of
new products, minimisation of production costs, enhancement of manufacturing operations, entering
new markets and so on. Within such systems, teams are tasked with identifying and measuring demand
within a target audience and considering the company’s competencies. A continuous portfolio of
projects is also required, focusing on cost reduction or revenue enhancement.
Not every business implements these systems true to their original forms, but may nonetheless work in
accordance with their core frameworks or methodologies. It’s not uncommon for an organisation to
implement one or more systems at the same time. One example of an amalgamation of systems that
has shown remarkable capacity to drive improve performance is the integration of Six Sigma with the
processes and tools of project management.

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The Six Sigma DMAIC Methodology

The Six Sigma DMAIC methodology (Define, Measure, Analyze, Improve, Control) provides managers
with a structured and disciplined framework for identifying and addressing a variety of issues. Six Sigma
can help project managers effectively identify the causes of defects or inefficiencies in processes which
may be preventing the company from delivering on its customers’ expectations, or meeting its own
financial or operational goals. Six Sigma is typically performed by cross-function teams who oversee the
project. Yet Six Sigma does not take control of the project itself, rather providing invaluable insights for
its improvement.
Within the Six Sigma DMAIC framework, problems are first identified, defined and quantified. The
collection of measurement data enables the problem to be clarified, after which a series of analytical
tools and processes allow managers to trace the issue back to its cause. This then allows for a solution to
the cause of the problem to be created and implemented. The activity or process that has been
improved is then continuously monitored, in order to prevent recurrence of the same issue.
Six Sigma comprises a variety of tools and techniques, which include design of experiments (DOE), failure
mode and effects analysis (FMEA), cause-and-effect diagrams, process flow diagrams and gage
repeatability and reproducibility (R&R) Studies.
Six Sigma Challenges
Implemented effectively, Six Sigma has the potential to outperform almost any other process
improvement or troubleshooting framework. Nevertheless, the Six Sigma DMAIC approach is not
without its challenges. If an organisation relies exclusively on Six Sigma for each project management
requirements, it may encounter issues controlling the project process. Relying solely on Six Sigma could
prompt issues regarding resource availability, lack of management support of the inability to fully
understand the voice of consumer (VOC).
Once again, it’s important to acknowledge that while Six Sigma DMAIC can identify issues and drive
improved performance, it does not control the project management process itself.
As stated by the risk management institute: “Project management is the application of knowledge, skills,
tools, and techniques to project activities to meet project requirements.” Project management is a
complex and dynamic field, incorporating tasks such as risk analysis, schedule development, work
breakdown analysis, cost budgeting, status reporting, scope definition and so on. All of which are used
by project managers to plan, implement, optimise and control projects. This list of processes is far from
exhaustive, but gives good idea of the processes and tools required to successfully complete a project.
The Integration of the Two Approaches
In essence, you could argue that while traditional project management focuses on the physical planning
and implementation of the project, Six Sigma is the more data-driven troubleshooting process operated
in the background. By combining Six Sigma with traditional project management, the organisation can

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benefit from a controlled, consistent and predictable project from start to finish. All of which begins
with the development of a project life cycle.
A detailed example of a project life cycle you’ll find in the table below, in which Six Sigma DMAIC
activities have been assigned to the various phases of project management:

Working with Six Sigma tools and resources at various stages of the project life cycle allows for effective
troubleshooting and the avoidance of issues. Typical examples of issues that may occur in the absence
of such controls include new products with a high defect rate, insufficient demand in a specific market or
elevated material costs affecting the profitability of the proposed product.
In a working example, a business operates a website that is generating a steady stream of complaints
regarding its accessibility and general functionality. As a result, fewer the visitors are converting and the
organisation’s reputation is taking a hit. To address the issue, Six Sigma tools such as Pareto analysis,
fishbone diagrams and FMEA can be implemented to find the cause of the problem. After which,
potential solutions can be identified and their respective costs considered. The development of a project
management scope, charter and breakdown of work required follows, after which the project can be
implemented. The necessary corrective measures are executed and control measures eliminate the risk
of recurrence of the same issue.
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A Refined Approach to Project Management

Ultimately, Six Sigma addresses the growing requirement among organisations for continuous
improvement of project management systems, minimization of costs and the elimination of waste. Six
Sigma is a uniquely wide-reaching project management framework that can drive the improvement of
processes and activities in almost any organisational setting.

Further Reading:

 Fundamentals of Six Sigma, David M. Levine, (2006)

 Essentials of Lean Six Sigma, 1st edition, Salman Taghizadegan

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