Six Sigma is a methodology for reducing defects to a minimum through a disciplined, data-driven process. The system was created by engineers at Motorola who wanted to increase the granularity of measuring product failings. They discovered that increasing the observation pool from defects per thousands of opportunities to defects per million opportunities allowed them to observe more accurately how improvements could be made to the existing system. By utilizing six sigma methodology to this end, Motorola documented more than $16 billion in savings.
The Six Sigma method of reducing errors has been utilized across a number of fields beyond manufacturing including healthcare, banking, software development, and sales and marketing. Because the methodology follows a strict, repetitive process focused on testing, measurement, and adjustment, many departments and industries have discovered uses for the method in their field.
By utilizing Six Sigma methodology to improve the efficiency of your project portfolio – specifically with resource, labor, and time management – you can develop a system that is both measurable and long-lasting.
There are two Six Sigma sub-methodologies for implementing change – DMAIC for existing processes, and DMADV for new processes.
DMAIC
- Define
- Measure
- Analyze
- Improve
- Control
DMADV
- Define
- Measure
- Analyze
- Design
- Verify
These sub-methodologies can be implemented to assist with facets of enterprise project management, creating a system that increases efficiency in an effective and measurable way.
Define
The first step in the Six Sigma process is to define the parameters for the project, in this case being the improvement of resource management. It’s important to explicitly outline which projects will be included in the process, as well as what figures will be measured.
Having a strict definition of project parameters is important for accuracy. In traditional Six Sigma, manufacturers would be measuring the accuracy of millions of products, with specific quality guidelines. Because the goal was to have only 3.4 defects per million opportunities, inaccurate measurement definitions could lead to faulty tests and ultimately wasted analysis.
Additionally, the system for improvement within Six Sigma is supposed to be repeatable. By carefully defining parameters the first time around, you can more successfully evaluate solutions on their effectiveness, and choose the best option for resource management.
Measure
At this step in the process, you will measure the current state of your project’s resource management to establish a starting point. While you may not be pleased with the current state of resource management, it is still important to accurately measure and record this information to see how effective different strategies are.
In addition, it’s important to thoroughly measure applicable variables. You never know what aspect of the resource management process could use improvement. Recording any foreseeably useful information can help find inefficiencies to improve upon.
Analyze
Now you can analyze your measurements to find flaws in the current system. This is where your enterprise project management software becomes especially valuable. Dashboards provide you with the tools to easily analyze your measurements.
Dashboards also present findings from data in interesting and actionable ways. For example, most dashboards allow you to filter out unnecessary information in order to view only pertinent data in side-by-side graphs or charts.
By manipulating such comparisons, you can discover hidden bottlenecks in resource distribution, or otherwise unnoticed correlations. While dashboards can greatly assist in the Six Sigma process, there are also other data analytics tools available online that can help provide analytical insight into your data.
Design/Improve
For new Six Sigma projects, this is the stage in the process where solutions are designed based on the analysis. Because Six Sigma is based entirely upon figures and statistics, solutions need to be heavily reliant upon the data discoveries made in analysis.
For ongoing projects that have been through the Six Sigma process before, this is the stage in which you develop a new plan for improvement based upon both observations from measurement and analysis, as well as historical data from previous iterations.
All new recommendations and initiatives need to be highly detailed and specific. General ideas for improvement lack the measurability necessary for future analysis and take away. A general initiative might provide temporary improvement, but will lack the necessary detail to make a lasting impact.
Control/Verify
The last step of the Six Sigma process is to control the newly implemented improvements. It’s important to remain consistent in the application of changes in order to fully analyze the effect the intended improvements have on efficiency. Additionally, this is the step in the Six Sigma process where you verify your original hypothesis. Did your change in the process produce the intended results?
Allow enough time after implementation for changes to make an impact before measuring fluctuations in data. The appropriate time of implementation depends upon the volume of products manufactured, in addition to the time required for manufacturing and measurement. At a minimum, you should allow for one month of fluctuation due to the volatile nature of new processes before observing the impact. If you decide to begin the Six Sigma cycle again before allowing the improvements to make an impact, then new measurements won’t accurately express potential for change, possibly ending a winning idea before it has had a chance to show its worth.
The Six Sigma methodology is a time tested solution for inefficiency in production, starting with the first DMADV cycle at Motorola. The solutions procured by this system shouldn’t be limited to manufacturing alone. By applying the principles of Six Sigma to enterprise project management, your team can increase project efficiency in a lasting and effective way.