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Six Sigma Methodology Workshop
The Six Sigma MethodologyWorkshop provides you with in-depth instruction on Six Sigma methodology. The Six Sigma methodology is a measurement-based, management strategy that combines a number of the tools and techniques used in Total Quality Management and other "quality initiatives" for analyzing the root causes of a business process problem (whether in production, marketing, sales, design or any other area) and solving it. Unlike other initiatives, however, Six Sigma requires that a very specific road-map, or process, be followed under which defects are defined, and the business process is measured, analyzed and improved. Once the process is producing as few defects as possible, Six Sigma requires that appropriate controls be put into place to continually monitor the improved process and ensure that the cost savings realized continue – thus, the core of its methodology: Define, Measure, Analyze, Improve, and Control or DMAIC.
 
The increase in performance brought about under this methodology leads to a vast improvement in product quality, customer satisfaction, employee morale, and business performance. Consistent with the CIMBA learning philosophy, the managerial methodology of Six Sigma expressly recognizes the importance of customer-centered, data-driven decision making. It is being used profitably in virtually every industry around the world, and by both large and small companies within those industries. Importantly, the methodology is well rooted in mathematics and statistics. For additional information on Six Sigma, please see www.isixsigma.com or www.ge.com/sixsigma
 
 
CIMBA has embraced Six Sigma in an effort both to provide MBA students with an experiential learning opportunity focusing on business process and problem solving and to provide its client companies with a unique opportunity to understand and evaluate the Six Sigma methodology. Consistent with the CIMBA learning philosophy, the managerial methodology of Six Sigma expressly recognizes the importance of customer-centered, data-driven decision making. It is being used profitably in virtually every industry around the world, and by both large and small companies within those industries. Importantly, the methodology is well rooted in mathematics and statistics.
 
The Six Sigma methodology is a measurement-based strategy that combines a number of the tools and techniques used in TQM and other "quality initiatives" for analyzing the root causes of a business process problem (whether in production, marketing, sales, design or any other area) and solving it. Unlike other initiatives, however, Six Sigma requires that a very specific road-map, or process, be followed under which defects are defined, and the business process is measured, analyzed and improved. Once the process is producing as few defects as possible, Six Sigma requires that appropriate controls be put into place to continually monitor the improved process and ensure that the cost savings realized continue. The increase in performance brought about under this methodology leads to a vast improvement in product quality, customer satisfaction, employee morale, and business performance.
 
The primary metric of Six Sigma is defects per million opportunities (DPMO), with the Six Sigma goal being 3.4 DPMO. For this metric to be accurately calculated for any process, Six Sigma requires that a process unit, a defect within that unit, and an opportunity for such a defect be properly defined and quantified. Under Six Sigma, a process unit is something that can be quantified by a customer, a measurable and observable output of the business process, and can be either a physical product or a service. A defect is defined as any part of a product or service that does not meet customer specifications or requirements. Importantly, the term customer under Six Sigma refers to both internal and external customers. Beginning at the output or customer delivery point, and mapping the process through to its must basic inputs, each independent, measurable, and observable chance for a defect is a Six Sigma opportunity. The total count of opportunities indicates the complexity of the product or service process being examined. In this way, Six Sigma is about reducing variation in key businesses processes through the systematic use of statistical tools, with data driving managerial decisions rather then mere intuition.
 
Consistent with the notion that managerial reasoning should be based on data, information and evidence, the CIMBA Six Sigma lab is dedicated to providing students with an understanding of the use of Six Sigma in managing, improving and reinventing business processes. The primary focus of the workshop, which is taught by a Six Sigma Master Black Belt trained at General Electric, is to provide students with in-depth instruction on Six Sigma methodology. The successful completion of this workshop and a follow-up, hands-on Six Sigma project involving the local business community leads to the achievement of Six Sigma Green Belt status.
 
 
Six Sigma is a quality improvement philosophy and methodology that has been used successfully in improving the operations of organizations worldwide. Leading organizations including FIAT, Magna, Starwood Hotels, ITT Lavoro, GE, Boeing, Delta Airlines, Raytheon, IBM, Motorola, Lexus, and Allied Systems, as well as numerous smaller companies in Europe, North America, and Asia have successfully utilized the Six Sigma methodology to improve their internal operations as well as supplier performance.
 
The value proposition of Six Sigma includes:
-         Increased product and service quality
-         Increased speed to market or delivery
-         Increased product value (Cost, Design, Service)
 
 
The focus of Six Sigma
Six Sigma focuses on the improvement of processes by:
 
  • Identifying characteristics which are Critical to Quality Measurements from the customers perspective
  • Utilizing data to drive and focus improvements
  • Examining the inputs of the process and focusing on improving quality at this point.
  • Reducing or eliminating defects.
  • Reducing variation.
  • Increasing process capability.
  • Harnessing the tools of a common measurement system and common language
 
The end goal is to achieve efficiency and effectiveness by meeting customer demands and business objectives.
 
The Methodology
The Six Sigma methodology is based on five steps, known as the DMAIC, which lead to the long term improvement and control of processes: 
  1. Define stage: At this stage, the goal is to identify customer issues and requirements and define the internal processes that address them. The focus is on what is wrong, but more importantly why it is not operating optimally.
  2. Measure: During the measurement stage, data is collected to determine how well the processes are actually performing, providing a “baseline measurement” as to the frequency of defects. This measurement is used to determine the extent of improvements as well as to calculate the overall returns on investment that may be achieved.
  3. Analyze: The analyzing stage involves the identification of root causes of problems- that is, to identify the inputs that may be causing the defect and when and where the defects are occurring.
  4. Improve: The “vital few” inputs are identified, and solutions are proposed to correct the problem permanently. A realistic implementation plan is then developed to introduce improvements into the organization.
  5. Control: A frequent problem in change within an organization is that an improvement often relapses after a short time period, leaving employees frustrated and customers unhappy. The continuous monitoring of the process through the use of a “dashboard”- a visual/graphical display of how the process is performing ensures that the improvements are permanent, and are achieving the goal of improving the problems customers wanted corrected in the first place.
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