Sig Sigma has been gaining a momentum in industry, but academics argue that although the tools and techniques are similar to approaches of quality management it improves organisational structures. It helps organisations control process improvement activities and enable problem exploration. Although it provides benefits, it also encompasses a line of challenges.
Some businesses adopting the principles of Six Sigma claim that it has revolutionised their organisations. Some notice very impressive financial performance. It allows organisations to react more organically in coming up with new improvement ideas and operating in more organised way when implementing them.
Some literature defines Six Sigma as a “high-performance, data-driven approach to analysing the root causes of business problems and solving them”.
The definition emphasise the idea of getting to the root cause of problems in order to improve the process. This is very important, because there is tendency to attack symptoms rather than underlaying problems in business.
Six Sigma is an organized, parallel-meso structure to reduce variation in organizational processes by using improvement specialists, a structured method, and performance metrics with the aim of achieving strategic objectives.
Source: Schroeder, R.G., Linderman, K., Liedtke, C., Choo, A.S., 2008. Six Sigma: definition and underlying theory. Journal of Operations Management
Parallel Structure
The structure is defined as an extra creation that operates outside of the organisational activities of normal way of operating. It aims to improve the organisation.
Businesses generally improvement teams lead by Black Belts and supported by Champions who focus on improving the organisation. These parallel structures are not new in the quality management principles. However, the Quality Circles have faced some real challenges in implementation. They generally have relatively little authority and power to implement their ideas, lack of funds and incomplete information. The Quality Circles allow employees to explore problems, there are issues with managers who are threatened by the ideas, thus many organisations experience failure with control and authority of implementation. Six Sigma, therefore, is meant to provide some structural evolution to tackle those challenges.
Six Sigma provides hierarchical structure where leaders (C
hampions) initiate, support and review key improvement projects. Black Belts than serve as project leaders who mentor Green-Belts in problem solving efforts. Strategic project selection and leadership engagement help to achieve the multilevel integration.
Strategic project selection
Six Sigma organisations develop formal mechanisms to select Six Sigma Projects. These mechanisms are called "project hoppers" and include senior management to filter out Six Sigma projects that do not have financial or strategic implications. Giving management the decision rights to initiate the projects helps to ensure that project selection is based on strategic importance and not on convenience.
Leadership Engagement
Leaders are also engaged in the ongoing execution of Six Sigma Projects. Senior executives, generally vice presidents, perform many functions for Six Sigma Projects, including project selection, selecting Black Belts and other resources, removing barriers to project completion and conducting progress review. The ongoing senior executive engagement is important to the successful completion of Six Sigma projects.
Improvement specialists
Black Belts are typically full time improvement specialists. They go through an extensive training in improving processes. Many organisations also train most employees on any projects assigned to Six Sigma. These individuals are called Green Belts. There are also master Black Belts who receive an extensive training who provide mentoring and consultancy.
Black Belts play an essential role in Six Sigma because they fill the gap between senior management and project improvement teams. They report to the higher level of the organisation. They also help to maintain the discipline and vision of the bigger picture. Some organisations do not use full-time Black belts but part time project leaders. They are also can be called "coaches" or "continuous improvement specialists".
Structured method
Six sigma uses a structured method of process improvement methods with emphasis on root cause analysis techniques. DMAIC (define, measure, analyze, improve, and control) methods are often used. This technique is consistent with problem-solving steps.It involves different organisational members. Champions play an active role in the "Define" step and supportive role in the remaining step. Process Owners play active role in the "Control" step but more supportive role in the remaining steps. Green Belts take action in "Measure", "Analyse" and "Improve". And Finally, Black Belts are the project leaders so they are active in all steps.
Six Sigma approaches a substantial array of business activities and it is a problem-solving mentality and many organisations claim that is raises the level of performance. It also can be applied to any function and department in the organisation.
Performance metrics
Six Sigma uses different types of metrics:
- critical-to-quality metrics,
- financial metrics,
- strategic metrics.
These can also be categorised to customer-focused metrics and financial metrics.
The customer-focused metrics and understanding customer needs is in the root of Six Sigma. This means, that the customer requirements help establish the project improvement goals and generally are critical within the Six Sigma Process.
The financial metrics are generally determined by financial personnel in the organisations. Often companies will attempt to validate the financial benefits of Six Sigma projects. This way Six Sigma provides a level of financial control. A measurement orientation also helps to promote facts decision-making process. It encourages in the same time the problem exploration process. This allows to make decisions based on facts and expertise rather than positional authority and domination.
The Six Sigma improvement goals are based on target defects-per-million-opportunities that can lead to higher level of performance than do-best goals. Clear goals help team alignment, measure success and provide basis for feedback about performance.
Theory of Six Sigma
Six Sigma can be viewed from different structural dimensions: structural control and structural exploration.
Control strategies include control, behaviour and social control. Outcome controls specify the outcome of tasks. They need to be measurable and based on customer requirements. Behavioural controls regulates activities of specific behaviours related to task execution. Following this structure method avoids jumping to conclusions and adequate research to a problem. Establishing clear roles and responsibilities helps ensure the execution of the process and avoid having things falling. Control strategies also provide control where neither outcome nor behaviours can be clearly observed. Teams might be undergoing highly formalised skills training called "value training". This extensive training of Six Sigma specialists provides organisational members to the value of fact-based decision making. Black Belts need to demonstrate strong commitment to quality values.
Structural exploration helps the teams be open for new perspectives. Because there is a link with external environment ( problem area and leadership) it allows the team so see problems from different perspective. They can understand a problem from strategic perspective. Six Sigma also creates a common language and common methods of solving problems.
Bibliography:
Schroeder, R.G., Linderman, K., Liedtke, C., Choo, A.S., 2008. Six Sigma: definition and underlying theory. Journal of Operations Management
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