2

UNIVERSIDAD AUTÓNOMA DE NUEVO LEÓN

FACULTAD DE CONTADURÍA PÚBLICA Y

ADMINISTRACIÓN

Ensayo Six Sigma

ALUMNOS: MATRICULAS:

Jaylinn Alessandra Gonzalez 1955299

Susy Daniela Donath Manríquez 1954681

Daniel Alejandro Flores Monzón 2079670

Roberto Flores Villalobos 2079597

Eduardo Tadeo Hernandez Castro 1962254

NOMBRE DEL MAESTRO: Carlos Castillejos Guichard

GRUPO: 5Ki

MATERIA: Abastecimientos

Ciudad Universitaria, 13 de noviembre 2022

Index

Introduction 3

Development 3
What is it used for in quality 3
How to apply it 4

Six sigma 5
What is it/process 5
The DMAIC Method in Six Sigma 6
The DMADV Method in Six Sigma 6
Characteristics 7

Advantages and disadvantages 9

Conclusion 10

References: 11
Introduction

It is easy to make mistakes, and the business world is no exception, mistakes that will
cost you a lot in the long run if they are not detected and corrected in time. Luckily there
are many methods to organize and improve a company and make it more efficient,
either improving your operational processes or your organization.

Thanks to these methods, companies can aspire to a considerable reduction in risk and
even a great improvement in business performance, which is why this essay deals with
the six-sigma methodology, a good continuous improvement strategy which always
seeks to improve. the performance of the processes in terms of time, defects that can
be found in the system, analyzing them from their root to counteract them, reduce
variations or delays in said process, always taking as a priority and point of reference
the needs of the client and that you are at their service.

All this methodology is highly systematic and quantitative, which has 3 priority areas of
action to achieve: customer satisfaction, reduction of cycle time and reduction of
defects. Its goal is to generate high-quality processes that generate at most 3.4 defects
per million opportunities for error.

This essay is approached from what it is, to how it is applied, its characteristics, its
advantages, and its disadvantages, as well as other aspects relevant to this topic.

Development

What is it used for in quality

Six Sigma is an approach to quality management that focuses on minimizing the defects
in a product or service by measuring the number of defects in a process and
systematically resolving them. The Six Sigma management tool can be widely applied
to manufacturers, supply chains, engineering firms, finance, healthcare, and many
more.
It is used to define various techniques and management tools designed to make
business processes more efficient and effective. It provides statistical tools to eliminate
defects, identify the cause of the error, and reduce the possibilities of error. Among the
great benefits offered by this tool is the possibility of considerably reducing costs by
minimizing the number of rejected units, especially when they are mass-produced.
Thus, Six Sigma creates an environment of continuous process improvement, enabling
businesses to provide better products and services to customers.

Quality management under Six Sigma relies heavily on adequately assigned

management roles. There are typically five levels involved in the implementation
process: 1) executive leadership; 2) champions; 3) Master Black Belts; 4) Black Belts,
and 5) Green Belts.

These designations respond to the level of involvement that each party has in the
project and to their level of Six Sigma understanding. In fact, companies can certify their
staff at different levels to ensure a robust implementation process when switching to Six
Sigma.

How to apply it

Six Sigma can be applied to any process in any industry to establish a management
system for identifying errors and eliminating them. It provides methods to improve the
efficiency of business structure and quality of processes, enhancing the profitability of
the business.

The primary objective of Six Sigma is customer satisfaction, and to achieve the
objective, various methods are followed to improve the performance of a product or
business process.

When it comes to quality management, applying the Six Sigma approach does not only
mean solving quality issues. Instead, its emphasis lies on prevention, continuous
monitoring, and data collection.
The main value of the approach is that it focuses on evidence-based decision-making
processes, which are backed up by data and information. So, instead of haphazardly
fixing issues that may not cause any real problems, companies that apply Six Sigma to
their quality control processes target very specific problems and resolve them in a timely
manner.

Six sigma

Six Sigma, better known by its name in English, is a process improvement strategy,
focused on reducing their variability, reinforcing and optimizing each part of the process,
reducing or eliminating defects or failures in the delivery of a product. product or
customer service. The goal of six sigma is to reach a maximum of 3.4 defects per
million events or opportunities (DPMO), with a defect being understood as any event in
which a product or service fails to meet customer requirements. Among the benefits
obtained from six sigma are: improved profitability and productivity. An important
difference in relation to other methodologies is customer orientation. It was started at
Motorola in 1988 by engineer Bill Smith, as a business strategy and quality
improvement, but later improved and popularized by General Electric. The results for
Motorola today are as follows: Productivity growth of 12.3% per year; reduction of
non-quality costs above 84.0%; elimination of 99.7% of defects in its processes;
manufacturing cost savings of over $10 billion and 17.0% annual growth compounded
over earnings, revenue, and share value. The cost of training a person in six sigma is
more than offset by the benefits obtained in the future. Motorola claims to have saved
$17 billion since its implementation, which is why many other companies have decided
to adopt this method.

What is it/process

Six Sigma is a work methodology applied by companies to measure operational

efficiency and look for alternatives to improve it. It is focused on improving and solving
complex problems through control tools and variation reduction in the highest
performance processes. The goal of the Six Sigma method is to improve the company's
processes and procedures to reach a high level of performance. There are different
levels of Sigma depending on the defects per million opportunities (DPMO), that is, the
number of defective products per million units delivered.

The DMAIC Method in Six Sigma

The DMAIC process consists of five steps:

1) Define - The first step of the process is to define what you want to achieve with your
project.

2) Measure - Then you need to decide how you will measure your goals and which
statistical analysis and data collection method you will use.

3) Analyze - The third step is to analyze the process and discover potential influencing
variables.

4) Improve - You then need to make improvements based on the results of your
analysis.

5) Control - Finally, you will need to control the outcome by evaluating whether your
changes have been successful or not.

The DMADV Method in Six Sigma

The DMADV method, on the other hand, focuses on the development of a new product.
This method also has 5 steps:

1) Define - Start by defining the purpose of the projects and set measurable goals.

2) Measure - The second step is to determine the customer requirements and define
what characteristics should be measurable, so that data can be collected and compared
with the specified requirements.

3) Analyze - The third step involves developing design alternatives, and identifying
requirements and these determine the optimum combination of requirements. As well as
determining the life cycle cost of the design and identifying the best available design
option to meet the goals.

4) Design - The design phase involves developing a high-level design, and then a more
detailed model prototype to identify potential flaws before production.

5) Verify - The final phase is for the validation of the design. All relevant stakeholders
should be satisfied with the design, and it should be effective in the real.

1.- The Six Sigma model meets the goal of 99.99966% efficiency, which means that as
few as 3.4 products out of every million units manufactured could reach customers
defective, faulty, or out of order. the agreed parameters.

2.- Six Sigma allows you to have processes under control at all times, establish
measurable variables to analyze the operability of each of the areas of your company
and define new strategies to optimize their efficiency. With this, not only will operations
improve, but you will also create a business identity in which the search for total quality
and excellence will be your pillars.

3.- Its start-up triggers an improvement in the productivity and profitability of the
products thanks to the optimization of the processes, which guarantees a greater
amortization of the investments. It is a methodology that involves all the professionals of
the company and all its areas. Therefore, the improvement of the processes must be
carried out jointly, thus the subsequent operation will be homogeneous and more
efficient.

Characteristics

1.- Organizational structure: It is essential to have a business culture in which the

implementation of project management knowledge and training of participants in the Six
Sigma methodology is possible. The latter includes not only the staff, but also the
relationship with suppliers.
2.- Alignment with the needs of the business: when proposing a new project, it must be
in accordance with the needs of the business, mission, vision and objectives of the
company. In addition, work must be done on a detailed structure and sequence of
activities, phases and expected results.

3.- Classification of improvement ideas: executing a Six Sigma program must be a

formal process. That is why the ideas about what will be improved should be classified
and converted into clear parameters that represent the client's requirements.

4.- Proactive leadership: strong leadership and management support are the
cornerstone for the success of this methodology: you must train, motivate and reward
the teams that participate.

5.- Training: remember that the company that invests in training is more likely to
succeed, as opposed to those that do not. You must take into account a training and
education program for team members and collaborators on key issues for the
development of the project and, above all, respect the guidelines so that the
methodology is taken seriously.

6.- Collaborative environment: the objective must be to transform people into your
knowledge assets in the areas of root cause analysis, innovative problem solving and
process improvements, so that they can add value to the organization.

7.- Knowledge of customer expectations: companies that are focused on this

methodology know the expectations of their customers regarding their products and
services. This allows them to seamlessly deliver on their promises.

8.- These expectations are divided into three categories: performance (objective and
measurable), perception (subjective and difficult to measure) and results.
Advantages and disadvantages

Six Sigma has a proven track record of adding value and ensuring quality to the output
of a business in the form of incremental improvements to a product or a service. It may
also be used to optimize supply chain processes and increase customer satisfaction.
The benefits of Six Sigma go beyond simple problem-solving and consider the entire
production process from the raw materials to the end product, as opposed to only the
end product.

On the other hand, Six Sigma inspects the business processes minute-by-minute and
generates large amounts of empirical data, leading to time-consuming and complicated
procedures. Also, because it is a quality improvement process at its root, adoption of its
protocols often leads to an increase in the overall costs.

Sometimes when a company implements Six Sigma, problems arise as the company
focuses on Six Sigma endorsed policies only and forgets about its specific mission
statement or policies. For small businesses, it may constrain new ideas favoring
creativity and innovation, which require some risk-taking to implement. Companies have
to find certified Six Sigma institutes to train their employees or conduct in-house
training without formal certification. In either case, the cost of Six Sigma adoption by
small businesses is too high to be feasible. Even large companies must provide a lot of
training for employees to grasp the system.
Conclusion

As we saw, the Six Sigma method that is widely employed is the DMADV method. This
involves the design of the procedure, ensuring customer satisfaction, measuring the
parameters required for quality maintenance, and analyzing so that an alternative is
always present to maintain the high quality. Design the details, and finally, Verify all the
processes before implementing them.

The main focus here is how to make better or improve the business methods already
adopted by the organization a set of tools that applied correctly, they allow a company
to become a product offering organization with a world quality level; It is not a fácil or
easy initiative to apply, but it is a way to the achievement of market positioning with a
high competitive advantage; as well as certainty to know that everything that
organization produces (whether products or services) will fulfill more beyond customer
expectations.

To end the six sigma has a good appliance in the business but has its downsides, as
every method.

We've seen Six Sigma improve processes and supply chains in a general way, which is
why many of today's companies use Six Sigma. These improvements make there
greater competitiveness because there is efficiency in processes and performance. A
clear example is Coca-Cola FEMSA. They use this method to reduce the consumption
of indirect materials to reduce costs.

Other examples are: Fedex, Kimberly and Clark ,General Electric, Whirlpool, Microsoft,
Motorola, Boeing Airlines,etc.

We also saw that it is important that our employees are instructed in a certified six
sigma institution.
References:

Santos, D. (2022, 26 septiembre). Six sigma: qué es, para qué sirve y ejemplos.
https://blog.hubspot.es/marketing/que-es-six-sigma

Six Sigma for Improved Quality Management. (2022, 24 julio). HQTS.

https://www.hqts.com/six-sigma-for-improved-quality-management/

Corporate Finance Institute. (2022, 23 octubre). Six Sigma.

https://corporatefinanceinstitute.com/resources/management/six-sigma/

Muhoro, N. (2019, August 8). Advantages & disadvantages of Six sigma. Small
Business - Chron.com. Retrieved November 13, 2022, from
https://smallbusiness.chron.com/advantages-amp-disadvantages-six-sigma-43963.html

Enterprises that utilize six sigma - Zoeken. (s. f.).

https://www.bing.com/search?q=enterprises+that+utilize+six+sigma