MBA Resources: A Guide to Six Sigma
If you're interested in becoming an MBA student or are one already, chances are you are going to encounter the Six Sigma theory somewhere along the way. This theory is especially relevant in MBA programs with concentrations in business management, operations management, project management, or quality management. Some MBA degree programs even offer a concentration in six sigma or the option to earn a certification in a six sigma role. Many of these types of degree and certification programs are available online for the student who is looking for academic flexibility. Being educated in this theory can enhance your credentials, advance your business knowledge, and open up career opportunities. If these are the type of job benefits you are looking for, read on to learn about one of the most important strategies in business today.
This is a guide by Online MBA.
Originally developed in 1981 for Motorola USA, the management strategy for businesses known as Six Sigma is now used to improve quality in the for-profit, not-for-profit, and government sectors. Drawing from several quality control processes, total quality management, and more, Six Sigma was first created in order to help eliminate all defects from Motorola’s manufacturing division. Defects cost companies billions of dollars a year in wasted time, costs to exchange quality products for defective ones, and the defection of customers who begin to look to other companies for the same product. Six Sigma was developed to ensure that 99.99966 percent of a company’s product are free of defects. Motorola and other companies have both improved their manufacturing quality and lowered their costs through using the Six Sigma program to aim for near one-hundred-percent production of defect-free products.
Six Sigma is based on the principle that business success depends upon the ability of a company or organization to created predictable and stable process results. This must be done with business processes that can be measured, improved, analyzed, and controlled; otherwise, there is no way to measure progress. For these efforts to work, everyone in the business or organization must be committed to the processes, especially those who serve on the management level. If a company’s CEO and management team are not fully behind the efforts to improve an organization’s quality, then the efforts are useless.
There are two main ways to improve quality in Six Sigma. One is the DMAIC project method that is designed to improve a business process that is already exists in the company or organization. First, the problem, goals of the project, and customer voice must be defined (D). In this scheme, the customer is not necessarily the person who buys the product but may be the population a non-profit serves or even fellow employees. Next, it is important to measure the existing process and record the data (I). The data is then analyzed (A). In this stage, Six Sigma is looking for any cause-and-effect relationship that is contributing to poor quality and inefficiency. After discovering these relationships, the goal is to improve, optimize, and refine (I) the process based on data analysis and the testing of the process’ capability to do what it is supposed to do. Finally, the goal is to control (C) the process so that any problems with reaching the targeted level of quality are corrected before an actual defect occurs.
If Six Sigma is being used to create a brand-new process, the DMADV process method is used. In this process the demands of customers, whether they are buying something or not, are taken into account to define some goals consistent both with these demands and with the overall strategy of the business (D). It is then important to consider and measure those critical-to-quality characteristics, risks, and other important metrics (M). Analysis follows suit as the company or organization seeks to develop alternative processes, create new processes, and select the best process design (A). Next, the design is optimized and details for it are laid out (D). After testing the design process, the processes are verified (V) —, the processes are implemented, tested in pilot programs, and then given to those who will be “owning” them in the company.
After Six Sigma was in use for many years, others began combining some of its principles with the production practice known as lean manufacturing to create a program called Lean Six Sigma. In this program, participants are taught how to refine and develop new processes with a focus on eliminating any use of resources that do not make the product or service more valuable to the final customers who avail themselves of the it. Lean Six Sigma can be used to reduce labor costs, develop efficient production capabilities, use natural resources more wisely, and much more.
Six Sigma Implementation
At any company or organization that has adopted it, the Six Sigma program is implemented via several key roles. From the highest level to the lowest, these are the roles used in Six Sigma implementation:
- Executive Leadership — Including the CEO and other top managers, the executive leadership must get fully behind the Six Sigma processes and establish a vision for putting the quality control program into place. In many ways, however, they take a hands-off approach because they must also give the other roles the ability and freedom to look into new ideas for improving the company or organization.
- Champions — Upper management fulfill the champion roles in Six Sigma. These individuals make sure that Six Sigma is implemented across the entire company or organization in a seamless manner. Black belts will also receive mentoring and advice from these champions.
- Master Black Belts — Just under the champions are master black belts, individuals who devote all of their energy and time to Six Sigma implementation. Master black belts will mentor those under them, provide statistical analysis, and work to apply Six Sigma consistently in every department and role in the organization or company.
- Black Belts — Black belts work directly with specific projects in order that Six Sigma processes might be used where and when it is supposed to be applied. They will supervise green belts, execute particular tasks under the Six Sigma model, and, like master black belts, they also devote all their time to Six Sigma.
- Green Belts — An employee with a Six Sigma green belt is an individual with Six Sigma training who will keep up their existing job responsibilities and tasks while they are helping to implement Six Sigma. Black belts will supervise them in their implementation of Six Sigma.
- Yellow (or other color) Belts — This is an optional level that refers to anyone in a company or organization that has some kind of basic education and training in the Six Sigma tools.
For more information on Six Sigma processes, implementation, advantages and more, please consult the following:
Six Sigma Resources
- An Overview of Six Sigma — Here is a brief article that is a great place to learn about Six Sigma for beginners.
- Discover 6 Sigma — Discover 6 Sigma endeavors to show readers how the Six Sigma processes can be implemented at a variety of different companies and organizations.
- MBA Journal — This page provides a detailed introduction to Six Sigma and its advantages.
- MMTC Success Stories — Links to articles and other documents describing success stories related to Six Sigma implementation are found on this page.
- Six Sigma Changes People — Duke University’s Medical Center has benefitted from implementing Six Sigma training and processes, as this article demonstrates.
- Six Sigma and the Environment — The Environmental Protection Agency explains how Lean Six Sigma can help companies become more environmentally friendly.
- Six Sigma Goes to Washington — This is an article from Quality Digest that explains how the United States federal government is benefitting from the Six Sigma program.
- Six Sigma IQ — Six Sigma IQ is full of resources on Six Sigma, including articles, webinars, and more.
- Six Sigma US — Six Sigma US is a comprehensive resource on the Six Sigma program that includes information on its processes, training, and more.
- What Is Six Sigma? — This site from General Electric explains the Six Sigma program and describes its implementation at the company.
Six Sigma Training and Certification
Six Sigma Tools
- Lean 6 1005 — Downloadable Excel templates and other Six Sigma tools are available here.
- MoreSteam Toolbox — The MoreSteam Toolbox has many online tools to measure the Lean Six Sigma Processes.
- OSSS Free Templates — Several free templates for producing Six Sigma presentations are located on this page.
- Six Sigma Calculators — Users can find free a free process design calculator and other Six Sigma calculators when they visit this site.
- Six Sigma Metric Calculator — Here is a calculator that can be downloaded for the computer desktop and used to calculate an organization’s process sigma level.
- Six Sigma Minitab Menu — Download this Six Sigma minitab menu to keep all Six Sigma data and process designs organized.
- Six Sigma Power Points — This download can be used to create presentations to introduce Six Sigma to company employees.