Six Sigma Strategy

There are eight phases involved in applying Six Sigma to achieve world class performance in a process, division or company:

1. Recognize
2. Define
3. Measure
4. Analyze
5. Improve
6. Control
7. Standardize, and
8. Integrate.

Each phase is designed to ensure the methodical and disciplined application of the Strategy, the correct definition and execution of Six Sigma projects, and the incorporation of results in day-to-day business endeavors.

These eight components of the strategy fall into one of four categories:

Identification. The Recognize and Define phases fall under this category, in which companies begin to understand the fundamental concepts of Six Sigma and recognize Six Sigma as a problem-solving methodology with a unique set of tools. These phases allow companies to recognize how their processes affect profitability, then define what the critical-to-business processes are. The key component for companies to address in these two phases is variation across processes — how much of an impact variation has on results in terms of cost, cycle time and defect rates.

Characterization. Measure and Analyze fall into this category, which considers where a process is at the time it is measured and points to the goals to which a company should aspire by establishing baselines and benchmarks — thus providing a starting point for measuring improvements. Leadership creates an action plan to close the gap between current and desired processes, to meet goals for a particular product or service. It entails breaking down every product into its key characteristics, creating a detailed description of every step in a process, and measuring short- and long-term process capabilities.

Optimization. This category (comprised of the Improve and Control phases) identifies the steps required to improve a process and reduce the major sources of variation. Key process variables are identified through statistically designed experiments, and the “vital few” that have greatest impact are isolated. The knowledge gained from these steps is then used to improve and control a process, ultimately improving profitability, customer satisfaction and shareholder value.

Institutionalization. The Standardize and Integrate phases that comprise the Institutionalization stage address the integration of Six Sigma into the way a business is managed on a day-to-day basis. More than just a focus of projects through to completion, this stage offers a way to step back and look at how collective results of smaller projects affect the large, high-level processes that run the day-to-day business.

Of course the hard bit is actually deploying this strategy!