Six Sigma Methodology Report: Business Goals and Implementation

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This report delves into the Six Sigma methodology, highlighting its significance in achieving business objectives. It underscores the benefits, such as improved analytical skills, customer satisfaction, and employee engagement. The report explores the core philosophy of Six Sigma, emphasizing error reduction and cost-effectiveness. It explains the input and output model, key business drivers, and the impact of metrics and scorecards, particularly KPIs, on overall business performance. The report also discusses quality management, quality improvement, and methodologies like DMADV, DMAIC, and IDOV, as well as DFSS. Furthermore, it covers Failure Mode and Effects Analysis (FMEA), including DFMEA and PFMEA, emphasizing their roles in identifying potential failures. The report references relevant literature to support its claims, providing a comprehensive understanding of Six Sigma and its practical applications.
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Running head: SIX SIGMA METHODOLOGY
Six Sigma Methodology
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2SIX SIGMA METHODOLOGY
Businesses apply Six Sigma due to some of its major benefits. For example, Six
Sigma certification improves the analytical skills and business acumen. In other words,
applying Six Sigma methodology ensures customer satisfaction, customer loyalty, employee
satisfaction as well as better partnerships. The philosophy of six sigma is based on the
management principles and demonstrates a theory that reducing errors and defects is an
effective approach to lower the costs and enhance customer loyalty for business success
(Mason, Nicolay & Darzi, 2015). In order to establish a connection between the chosen Six
Sigma project and business goals, it bases itself on continuous improvement and decision
making based on accurate data driven facts that are adequately aligned with the business
objectives.
The input and output model is demonstrating the relationship between the different
products and elements associated with the business. Input in the business can be money,
knowledge, supplies etc. whereas, output is what comes out of the business that is profit,
customer feedback and so on.
The key business drivers are the input activities such as price of products, efficiency
rates and downtime, number of sales people, commodity prices, and wages per employee as
well as the average size of the stores etc.
The metrics and scorecards have potential impact on the overall business as it
measures the performance using the KPI (Key Performance Indicator) (Uluskan, 2016).
These KPIs are used for demonstrating the effectiveness of a company’s ability to achieve the
key business objectives.
Quality management and quality improvement fold into project management
environments and different project management approaches. Quality management is
responsible for overseeing the business tasks based on the quality policy. Quality
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3SIX SIGMA METHODOLOGY
improvement (QI) is a formal and systematic approach towards analysing the practice efforts
and performance.
DMADV (Define, Measure, Analyse, Design, and Verify) and DMAIC (define,
measure, analyse, improve, control) are DFSS methodologies. DFSS and DMADV are
ideally similar in terms of the stages or procedures associated with the methodologies
(Srinivasan et al., 2016). The IDOV methodology on the other hand, align with
DMAIC (Define, Measure, analyse, Improve, and Control) as it includes the four major
phases Identify, Design, Optimize and Verify
DFSS or the Design for Six Sigma and these methodologies effectively guides the
overall business processes in creating a new product or service with minimal errors,
maximum customer satisfaction and high quality control.
FMEA or Failure Mode and Effects Analysis applies a structured approach for
identifying the potential failures existing in the design of a process or product. The Failure
Mode shows ways through which a process can potentially fail. On the other hand, Effects
show how the failures can lead to consequences involving defects, waste or harmful
outcomes for the business or the customer,
Risk Priority Number or RPN is used for calculating risks in business and prioritizing
then from lowest to the highest. Design Failure Mode Effects Analysis (DFMEA) and
Process Failure Mode Effects Analysis (PFMEA) are two distinct types of procedures or
methods for analysing the potential failure and drawbacks in the major operations of business
(Furterer, 2016). DFMEA mainly focuses on product design whereas PFMEA focuses on
failures in the business processes.
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4SIX SIGMA METHODOLOGY
References
Furterer, S. L. (2016). Lean Six Sigma in service: applications and case studies. CRC press.
Mason, S. E., Nicolay, C. R., & Darzi, A. (2015). The use of Lean and Six Sigma
methodologies in surgery: A systematic review. The Surgeon, 13(2), 91-100.
Srinivasan, K., Muthu, S., Devadasan, S. R., & Sugumaran, C. (2016). Six Sigma through
DMAIC phases: a literature review. International Journal of Productivity and Quality
Management, 17(2), 236-257.
Uluskan, M. (2016). A comprehensive insight into the Six Sigma DMAIC
toolbox. International Journal of Lean Six Sigma, 7(4), 406-429.
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