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Every business aspires to satisfy the customer's needs and make a profit, and this goal can be achieved by reducing the defects in the process. Six Sigma can identify and eliminate errors in any industry through a management system. Through its methods, businesses can enhance their profitability by improving the efficiency of their structure and the quality of their processes. Six Sigma is an ideology of strengthening business processes using statistical methods instead of qualitative measurements. Six Sigma practitioners use statistics, financial analysis, and project management to improve business functionality.
Six Sigma has a simple goal to deliver nearly perfect products and services for company transformation to maximize customer satisfaction. Six Sigma has five principles:
COPQ stands for Cost of Poor Quality. An organization's cost of poor quality (COPQ) is the cost associated with offering low-quality products and services to its customers. Another way to put it is that it refers to the total amount of losses incurred by the company due to doing things incorrectly. Instances include scrapping, reworking, repairing, and failing to keep a warranty. Organizations use the Cost of Quality to measure the resources used for quality in their processes. Put another way, it is the expense of producing quality products.
The cost of quality is the combination of good quality and the price of poor quality.
The cost of quality is divided into four categories:
This is one of the most frequently asked six sigma interview questions for freshers in recent times.
Measuring performance metrics with accurate methods is critical when working on a Six Sigma project so that you can determine what changes have been made and the value of the changes. It is commonly measured by Defects Per Unit (DPU), Defects Per Million Opportunities (DPMO), Parts per Million Defective (PPM), and Rolled Throughput Yield (RTY).
DPU (Defects per Unit): It measures the average number of defects per unit. It's found by dividing the total number of defects found by the number of units.
DPMO (Defects per million opportunities): It measures how often you have made a mistake or flaw (defect) for every chance you had. It can be calculated by dividing the total number of defects found in a sample by the total number of defect opportunities multiplied by 1,000,000.
PPM (Parts per Million): It measures the number of defective units per 1 million., calculated by simply taking the number of defective units of the same size, dividing that number by the total sample size, and multiplying by 1 million.
RTY (Rolled throughput Yield): A manufacturing or service process' RTY (or First Pass Yield) measures the chance (or percentage) that a defect-free unit will be produced. For this, you need to map out the steps of a process.
The Pareto Principle is the simple way to improve the business by identifying the focus area to putting effort and resources to achieve maximum efficiency. It simply states the 80/20 rule; in other words, 80% of the results come from 20% of the effort. For example:
Those who follow the Pareto Principle in Six Sigma projects know that most problems can be attributed to a small number of causes. Graphing a Pareto Chart in graph form can help teams visualize the pain caused by the significant few problems. By creating a chart, teams are better able to:
Data collection plan is a well-thought strategy to gather baseline data and the data that offers hints for root causes. The process specifies the locations, methods, timing, and individuals responsible for data collection. The operational description of the measure and any sample plans are included in this plan, which is created for each measure.
A data collection plan ensures that everyone involved in a Lean Six Sigma project is aware of the data plan and is working from the same page. Additionally, it ensures that the appropriate organizational stakeholders receive this information and can assist us with our data needs.
Steps to create a Data Collection Plan Six Sigma
The top-down element is associated with problem selection. Teams working on Lean Six Sigma projects solve real-world problems impacting customers and processes. The top-down approach involves a senior manager, a Senior Champion, considering the company's primary business issues and objectives and proposing strategic improvement initiatives. After developing a strategic vision, the Six Sigma Champion identifies processes, CTQs (Critical-to-Quality Characteristics), and opportunities for improvement.
Six Sigma implementation creates shared understanding and vocabulary by aligning with business strategy and customer needs. Nevertheless, due to its extensive scope, this process is challenging to implement within a particular time frame.
VSM stands for Value Stream Mapping. It is a method that illustrates, analyzes, and improves the necessary step to deliver a quality product. VSM is a crucial methodology of lean Six Sigma that tracks the steps from the beginning to providing a service to the customers. Add them
The main objective of Value Stream Mapping is to identify and eliminate waste. There are four elements of the VMS:
This is a common yet one of the most important 6 sigma interview questions and answers for experienced professionals, don't miss this one.
An affinity diagram is a way to group ideas, opinions, and issues based on their relationships. An affinity diagram is typically used to categorize ideas generated during brainstorming sessions, and it's beneficial for analyzing complex problems.
The Affinity Diagram is generally used when a problem is new, complex, or unfamiliar, but not when there is a mathematical or structured component. The tool is easy to use and facilitates team collaboration by letting everyone share their thoughts, ideas, and questions.
Steps of Affinity Diagram:
Six Sigma aims to improve the productivity and quality of a project team or organization. Six Sigma uses different charts aids to identify variations between data samples to accomplish this goal, and histograms and box plot is used for graphical representation.
Histogram: A histogram is a type of bar chart showing a data set's frequencies graphically. In a histogram, the Y-axis (vertical) represents frequency, and the X-axis (horizontal) represents the measured variable.
Box Plot: This chart graphically represents the five most important descriptive variables for a data set in a box plot. This table has five values: minimum, first quartile, median, third quartile, and maximum.