six sigma

This is the list of few posts about the different problem solving methodologies in Six Sigma.

1. Plan Do Check Act (PDCA)
2. Plan Do Study Act (PDSA)
3. identify define investigate analyze solve confirm
4. Investigate Design Execute Adjust (IDEA)
5. Define Measure Analyse Improve Control (DMAIC)

The successful development of a project largely depends on Risk analysis which helps to adopt a systematic approach in managing risks and uncertainty associated to the project. If you know the problem chances are that you’ll make sure to avoid it: this is why performing a Risk analysis is so crucial. Every project contains a certain level or magnitude of risks, therefore it is vital to keep all project stakeholders well informed about them and about what will be done in order to mitigate these risks at an acceptable level.

The risk is the measure of the probability of an event and the costs associated with not achieving an expected purpose.
There is a failure of a project with any combination of the three following ways: performance, costs and schedule.
1. The product or service does not meet expected performance levels
2. The current costs are higher than those budgeted
3. The delivery or timing is too late

Risk analysis is part of a larger methodology which is the risk management that has an inclusive process of dealing with risks. The risk management plan is a smart way to guide the risk management process and to document its results. The followings are the steps of a risk management process:
IDENTIFY: identify risks before they become a problem
ANALYSE: transform risk data into decision making information
PLAN: translate risk information into action
TRACK: monitor risk indicators during the life cycle of a project
CONTROL: adjust deviations from what was planned
MITIGATE: reduce the impact of any unforseen event
COMMUNICATE: the key factor for a successful risk management program. Never stop providing visibility and feedback data internal and external to project activities.

Successful applications of an effective Lean Six Sigma strategy share a very strong management support. In fact a Lean Six Sigma program does not happen accidentally, however, having said that just think about the following. There are two main opportunities when implementing an improvement program, could be very difficult: when times are bad and when times are good.

When times are bad the profitability is very low and the resources are focused on strategic activities to ensure the survival. In this situation the company can’t afford to continue losing money because of poor quality and performace.

When times are good the profitability is high, therefore resources are focused on the actual source of cash flow, resulting in the fact that improvement will be the last thing to do in order to take advantage of the current positive situation. But when profitability is high, within an ineffective company, also the costs of poor quality and internal wastes are high.

Skilled managers must be willing to make significant commitments in order to implement and to support a successful Lean Six Sigma initiative.

The Six Sigma methodology has two components: the strategy and the tactic. The strategic component is the Business Process Management (BPM) and one of the tactic components is DMAIC: Define, Measure, Analyse, Improve, Control. To apply the continuous improvment to already existing processes Six Sigma has a “work horse tool”: the DMAIC. Each step of the DMAIC process is required to ensure the best possible results from Lean Six Sigma projects. When new products or new processes must be created within a Six Sigma project, another tool is used, the DMADV: Define, Measure, Analyse, Design, Verify.

DEFINE the customer, the CTQ - Critical to Quality issues, the business involved.
MEASURE the performance of the business process involved.
ANALYSE the data collected and processes to identify the root cause of defects and opportunities for improvement.
IMPROVE the target process by design solutions to fix and to prevent problems.
CONTROL the improvements to keep the process on the new course.

The IDEA problem solving loop is similar in nature to the PDCA and DMAIC process cycles. The process of IDEA consists of basic step-by-step questions to guide the problem solving team toward new and innovative solutions. The IDEA report is formatted so that the four steps are concisely and clearly displayed on one page.

INVESTIGATE: provide a problem statment, background information, determine the cause of the problem.
DESIGN: envision the idealized future state, suggest several solutions, indicate the potentially best solution.
EXECUTE: detail key goals of the project, outline the implementation steps, indicate expected project impact.
ADJUST: Reflect on the project outcome and results.