Running Head: SIX SIGMA
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Six Sigma Analysis
Jenn Silbernagel
April 15, 2015
Bellevue University
FMGT 325- Formulating Data Driven Decisions
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Abstract
Six Sigma is a methodology that is an aid in solving problems and contributing to an increase in
the successful operations of a business. Six Sigma is a popular but complicated problem solving
method that requires training and understanding. Company XZY chose to use the Six Sigma
process due to a decrease in customer sales. Company XYZ began a new system to reduce
inventory called the Just In Time (JIT). The employees are blaming the JIT system for the
customer’s complaints. The top complaints are the shipments being late and there is an increase
in defective products. With the rising issues, Company XYZ wants to improve the process
before there are bigger issues. Six Sigma has several different methodologies and processes. The
DMAIC process is one of the most common processes used in six sigma process improvement
projects.
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With the inefficiencies with the Just-In-Time (JIT) production strategy it was determined
that there is room for process improvements. The six-sigma process chosen is the DMAIC
process. The DMAIC process represents five phases. The five phases are define, measure,
analyze, improve, and control. The first phase is define, which defines the goal of business
process to research. The second phase is measurement, which uses metrics to understand the
performance of the business. The third phase is analyze, which determines the root cause of the
process that needs to be improved. The fourth phase is improve, which consists of testing the
changes made by the proceeding processes. The fifth and final phase is control, which develops
metrics that help the business monitor the success of process improvements.
The DMAIC process was determined to be the most productive due to sales dropping
15% and approximately $150,000 lost in revenues last quarter (Bellevue, 2015). It is imperative
to fix the process and increase sales in a short time to ensure a healthy quarter end. According to
Geethai Narayanasamy, “DMACI projects often take short duration to fix a customer problem
and process improvement” (n.d.). Due to the sales dropping, the company needs to find a suitable
business process improvement as soon as possible to boost sales. The other reason for choosing
the DMAIC method is that JIT process is already in place and it is not meeting the customer
expectations. The DMAIC method contributes to revealing the root cause of the issues at hand.
When finding the root cause a person should also use the 5 Whys. The 5 Whys are qualitive and
easy for people to use and provides different viewpoints from different people. When finding the
root cause it aids in correcting the actual problem not finding solutions to other problems just to
have the original problem occur again with different symptoms. Finding the root cause should
improve processes and improve the bottom line. The downfall to DMAIC is that when deciding
if a project is going to affect the bottom line a company needs to be positive that the goals are
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attainable and not waste valuable resources such as time and money. DMADV is another process
that mirrors DMAIC, except for the final two phases, which are, design instead of improve and
verify instead of control. The following process map shows the DMAIC and DMAVD processes:
(Six Sigma Training. n.d.).
There are similarities of the two processes such as they both enhance process
improvements to meet the bottom line and they use data and facts to solve problems (I Six
Sigma, 2015). DMADV is better suited for long term and ongoing projects.
When using the DMAIC process of six sigma the root cause discovered, when the
process was put into place there was not employee involvement and there was not a clear
understanding of how the actual business operation process flowed. While the Just-In-Time
process shows, an ROI of thirty percent the loss of sales of fifteen percent in a quarter is less than
desirable for the company’s bottom line. Company XYZ has to act before the loss of sales is
disastrous to the company’s financial well-being.
When using the DMAIC tools there are several other tools that you can use in
conjunction. According to the DMAIC Tools Map on the website for Silicon Beach Training you
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can use value stream maps, system diagrams, swim lane charts, and project charters in the define
process. In the measure process, your options are flowcharts, spaghetti diagrams, surveys, kano
diagrams and CTQ trees. Pareto charts, activity sampling, metrics, and hypothesis testing are
tools used in the analyses phase. In the improvement phase, the options are risk analysis, root
cause analysis, and lean cell. Innovation, ss organization, standard work, and control charts are
some of your tool options in the control phase. With six sigma, several options are available to
help the business decide what tools, and charts are best for the process improvement.
When using the six sigma tools I was able to determine that the root cause of the sales
decline is the customer dissatisfaction in the quality of the product and the longer shipping times.
Customers are the reason that businesses thrive. By using, the problem solving tools I was able to
come up with the causes, effects and correcting processes to help ensure that the customers are
receiving quality products in a timely matter.
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References
I six sigma.(2015, April 17). Dmaic versus dmadv. i Six Sigma. Retrieved http://www.isixsigma.com/newto-six-sigma/design-for-six-sigma-dfss/dmaic-versus-dmadv/
I six sigma.(2015, April 17). Six sigma dmaic roadmap. i Six Sigma. Retrieved
http://www.isixsigma.com/new-to-six-sigma/dmaic/six-sigma-dmaic-roadmap/
Narayanasamy, G. (n.d.). Dmadv-another six sigma methodology. What is Six Sigma? Retrieved
http://www.whatissixsigma.net/six-sigma-dmadv/
Silicon Beach. (n.d.). Dmaic tools map. Silicon Beach Training. Retrieved
http://www.siliconbeachtraining.co.uk/downloads/download-DMAIC-methods-tools-map.pdf
Six Sigma Training. (n.d.). Dmaic versus Dmadv. Six Sigma Training Org. Retrieved
http://www.sixsigmatraining.org/DMAICDMADV_files/image004.jpg
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“Appendix A”
Below is an example of mind mapping chart used in the six sigma process.
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“Appendix B”
Below is a process map created to demonstrate the process of solving the problem.
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“Appendix B”
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