A comparison between DMAIC and DMADV

Six Sigma is comprised of various methods that help in increasing the effectiveness and efficiency of business processes. The two most commonly used Six Sigma methodologies include DMAIC and DMADV. DMAIC represents define, measure, analyse, improve and control. DMADV represents define, measure, analyse, design and verify. Although both the methodologies have some common characteristics, they cannot be interchanged. They are designed for use in different business processes.

The similarities

  1. Both the methodologies are used for reducing the number of defects to less than 3.4 per million opportunities available for such defects to occur.
  2. Both the methodologies use facts and statistical tools for finding solutions to common problems, related to quality.
  3. Both the methodologies require the services of Green Belts, Black Belts and Master Black Belts during the implementation stage.
  4. Both concentrate on achieving the financial and business objectives of an organization.

Both the methodologies require support from a Champion and Process Owner during the implementation stage.

The Differences

Both the methodologies may share the same first initials, but that is where the similarities end. The major differences are listed below:

  1. DMAIC is associated with defining a business process and its applicability whereas DMADV helps in defining customer needs in relation to a product or service.
  2. DMAIC is used for measuring the current performance of a business process whereas DMADV is used for measuring the customer needs and specifications.
  3. In DMAIC, a business process is analysed to find the root cause of a defect or recurring problem. In DMADV, a business process is analysed for finding options that will help in satisfying the customer needs and specifications.
  4. In DMAIC, improvements are made in the business process for eliminating or reducing defects whereas, in DMADV, an appropriate business model is designed that helps in meeting customer requirements.
  5. In DMAIC, control systems are put in place to keep a check on the future performance of a business process. In DMADV, the suggested business model is put through simulation tests for verifying efficacy in meeting customer needs and specifications.

When can DMAIC and DMADV be used?

Now, we are going to discuss when you can use DMAIC and DMADV. After identifying the similarities and differences, it can be concluded that DMAIC is used on a process or product that already exists, but is unable to meet customer needs or specifications. In comparison, DMADV is used when a new product or process needs to be developed to meet customer requirements. It is also used when a product or process has been optimized using DMAIC but is still unable to meet customer needs and specifications or the Six Sigma quality levels.

Companies who do not have prior experience in Six Sigma can take help from professionals such as ‘Black Belts’ and ‘Master Black Belts’. They help in making the right choice between DMAIC and DMADV. They also provide help during the implementation stage and this is necessary for the success of any Six Sigma initiative or project.

Company restructure: Six Sigma certification

By adopting Six Sigma methodologies, companies are restructuring their business and laying off employees to prepare for economic hardships. As a company owner, you should encourage your employees to go for Six Sigma certification courses. Six Sigma training teaches your employees ways to reduce cost and expenditures to the bottom line and still have a capability of operating at full capacity. Six Sigma offline and online training will teach you how to look at every process within a business and determine where money is being spent that can be saved, how to use your own company resources to complete projects without outsourcing, and more.

business teamwork – business men making a puzzle over a white background

Six Sigma certification can also teach you and your staff how to restructure an organization by eliminating the vertically driven business and changing it to a horizontal structure. You will find through Six Sigma courses that a horizontally driven organization brings the entry-level employees closer to the executives on a more personal level. When top management is closer to the bottom level of an infrastructure the company is more successful. Management and executives will learn through Six Sigma training exactly how to successfully change the infrastructure from a vertically driven organization to a horizontal driven business.

Six Sigma certification gives employees the tools that they need to succeed in their position. These types of classes or courses are not only designed for the management level but they are ideal for all level staff members. Employees will learn how to identify the problems that cause the business to slow down in productivity, bottlenecks in processes, eliminate waste, reduce cost, and much more. Companies that send their employees to Six Sigma courses notice improvements beginning within the business right away. The cost savings are phenomenal for some. The cost of the courses is usually absorbed quickly and well worth the investment.

Since passionate business owners have difficulty seeing core issues or do not have the time to spend identifying them, hence they need assistance from Six Sigma professionals. If a company will encourage its employees in Six Sigma training, then it will help them in many aspects. The quality of the service and products are key to the success of the company. Business owners are very aware of this fact. They also know that the Six Sigma certified employees should know how to analyse the problems and suggest plans of action. They will also stay with the company after the project is complete to ensure that it is working correctly and bringing about the kind of results the business executives require for success.

When quality is improved, the company itself will improve overall. Customers and clients recognize change when they see it, specially when it has a positive effect on employees, products and services. When customers see a noticeable positive change in the attitude of the employees, they get a better feeling about the company and will recommend them, as well as give them their repeated business.

So, you should encourage your employees to go for Six Sigma training because it will give your company an immense benefit on a long-term basis.

Lean Sigma certification: a speedier version of traditional Six Sigma

Lean Six Sigma certification and training process highlights that speed is directly tangled to excellence in the process. You can improve the process flow by eradicating deviations or errors. This will automatically speed up the process, delivering better quality, and help you to maintain a healthy relationship with your clients and customers. If you hold a Lean Six Sigma certification, then you will be able to look at the process and locate the speed bumps to roll out better products and services more hurriedly.

It is true that speed does not mean truncating or squeezing your delivery schedule to get the product out more quickly. Speed means the elimination of mistakes which slow down or stop the process and thereby, affecting the quality and delivery. By adopting the Lean Six Sigma method, you can become more skilled and competent in looking for opportunities in order to modernize your business process. With the help of the Lean Six Sigma method, you can identify your core process and you have the tools which will help you to make the core process better and more smoothly.

If you possess a Lean Six Sigma certificate, you will be able to understand the two basic disciplines for speeding up the process and they are short frequent learning cycles or knowledge creation, and delayed commitment. Being Certified in Lean Six Sigma also means that you have mastered the statistical tools and skills with which help you to achieve your goals as well as your organization’s goals.

Whenever the project involves knowledge creation rather than just knowledge replication, speed and quality will come from improving the flow, and Lean processes tell senior management that you have the skills to accomplish this goal. Many times, project managers are guilty of gumming up the process by forcing early choices and reducing the number of possibilities, rather than listening to their Lean professionals. Project managers lead the project from the frontend and often take a decision on their own. They hardly consult with the certifies professionals or allow those professionals to run the process to reveal what is right and what is wrong in the application. Lean Six Sigma certification means having an understanding of a multitude of options simply by looking at the core process itself.

Tweaking or changing the process as you move through it will narrow the process into a smoother stream that naturally speeds up because the problems have been eliminated. This is where Lean Six Sigma certification differs from traditional Six Sigma professionals. Layering in Six Sigma adds practices that are unwieldy and not right for your core process, making it slow and unresponsive, as well as not tolerant to change. This is sometimes taken as applying discipline to an unruly situation.

An individual certified in Lean Six Sigma would recognize this problem almost immediately by analysing the process and why it is slowing down

Six Sigma- a good corporate strategy

The term Six Sigma was invented by an employee at Motorola back in the early 80s. The business models adopted by Motorola by following the Six Sigma method became such a rousing success that soon several other companies followed in the similar fashion and made a good profit and improved their financial stability and their market value.

Six Sigma Methodology

Across various sectors and across the board the implementation of the Six Sigma strategy has benefited and succeeded in raising the bar for quality standards. The banking sector, finance, healthcare, consumer goods and even fields like telecommunications have improved leaps and bounds due to the Six Sigma methods of business improvement.

The strategic role of Six Sigma

The prime objective of Six Sigma is to step up the performance and standards of a product and to eliminate any deviation from that standard. The six denotes the benchmark for the number of faults that define a poor quality product. It is an effective tool in the management of quality and a metric known as DPMO has been established which stands for Defects per million opportunities. With the Six Sigma method, this has been effectively cut down to only around 3-4 DPMO. This speaks of the effectiveness and efficiency of this implementation.

For instance, if a company wants to improve customer satisfaction by 25 per cent, then Six Sigma projects that are related to the voice of the customer can take priority and become an important part of the organizational strategy of achieving the customer-related objective. To become a part of strategy execution, in this case, Six Sigma professionals could develop customer surveys, test questionnaires, gather customer data, analyse data and establish focus groups to name a few activities. Also, some old projects can be given new life through corporate objectives.

Different methods exist for improving the customer demand and satisfaction in quality and the Six Sigma approach has a basic two-pronged one. One is the improvement or enhancement of existent properties of products to elevate their level. Another is to innovate and create and conceptualize new strategies for the development of new products and processes or services. Six Sigma aims at tackling three targets effectively in one smooth motion. This is improving the production, removing defects in the products and overall increasing the consumer satisfaction levels.

To improve the process of Six Sigma project selection for the Master Black Belts, Six Sigma professionals can align the needs established by organizational objectives with Pareto’s Principle, or the 80-20 rule. Through incorporating, factors such as savings, the probability of success, cost and time of completion, Six Sigma professionals can find the essential 20 per cent of projects that can generate 80 per cent of the results that are necessary for achieving objectives. While objectives can guide Six Sigma professionals to the right type of projects, logic-based premises such as Pareto’s Principle can assist in the identification of the specific projects that are necessary for success.

In order for the Six Sigma strategy to be effectively put into action, it is necessary to involve the workforce in a company. If there is some dissent or criticism it is unlikely the best benefits will come out of it. The ideas of team building are very relevant at this stage and without it, the corporate companies cannot survive or establish a good working practice.

 

The core elements of Six Sigma training

The popularity of Six Sigma training has reached such heights in the business world that many corporations have gone on to develop their own institutes; many others have started in-house training for their employees. However, there is still a lot of demand for proper training that is untapped and many training institutes and universities have cropped up offering basic training courses.

There are separate training for different Six Sigma levels (Yellow belt, Greenbelt, Black Belt, and Master black belt). Though most of the training institutes follow a more or less similar curriculum for Six Sigma training.

The basics of Six Sigma training

Differences notwithstanding, the central theme of Six Sigma training required for certification must remain the same. These are the six core basic elements of Six Sigma training.

  1. A comprehensive training on DMAIC and Six Sigma methodology: This involves familiarizing trainees on statistics and its applications, the five key elements of the DMAIC process, and the implementation of this methodology.
  2. The role of each key person: Each person in the organization plays a critical role in the implementation of Six Sigma. Thus, Six Sigma training needs to focus on understanding the key elements of every person’s role and the skill to communicate with key players across the organization.

3. Developing abilities to define and work on projects: In Six Sigma training, the emphasis is placed on the streamlining of processes, focusing on the core competencies of each of these. Six Sigma training also focuses on identifying and developing breakthrough processes, products or services. As a result, root cause analysis and crisis management abilities become the key to developing versatile management abilities.

4. Cross training necessity: The deployment of Six Sigma methodologies puts the emphasis on a team-based approach. Naturally, qualities such as interpersonal skills, ability to communicate effectively, and the ability to transfer knowledge and clarify issues are also important. Sharing of knowledge across the organization is crucial for to the success of Six Sigma.

5. Problem-solving tools: In Six Sigma methodologies, problem-solving tools are statistical. Six Sigma training essentially teaches all those involved in the implementation of how to use statistical tools in order to analyse a problem and solve it. Six Sigma training techniques assume that all candidates do not necessarily have formal training in statistics.

6. Presentation and closing techniques: In Six Sigma training, everyone is taught how to make presentations to management and other decision-makers. Six Sigma training also focuses on how to make the transition to closing projects after their conclusion or abandonment.

All Six Sigma training objectives are tied to a quality-first policy. In a nutshell, Six Sigma training instructs the aspirants on how to dissect information, analyse it, validate the results, and implement for the betterment of an organization.

How can Lean Six Sigma bring quality and efficiency to a firm?

The lean method is all about ensuring that products move faster through processes. The Six Sigma methodology ensures that the quality and efficiency of the goods being manufactured also improves. Thus, a combination of the two as Lean Six Sigma can bring out key transformations and improve the efficiency of goods and services being provided.

There are certain basic things such as data authenticity, effective logistics, reduction in cycle times and so on that makes the Lean Six Sigma initiative bring new efficiency and quality to companies.

  1. Data authenticity: The data that goes into Lean Six Sigma improvement projects should be highly authentic. You need to make some arduous efforts to collect genuine data and bring about effective improvements in process and products.
  2. Managing performance: Lean Six Sigma implementation projects require a team If a team were strained with the personal egos of individual team members, it would become quite difficult to achieve the desired results in time. The project manager should continuously try to motivate team members to contribute their efforts towards the achievement of common goals and objectives.

  1. Production system: Lean emphasizes the sequential production system, rather than using the shop scheduling technique. The sequential technique is very effective in manufacturing only those amounts that are required by the next process – and only when they are required. It effectively helps reduce waste to a large extent, as well as eliminating the sources causing waste. This technique is useful not only for big organizations but shows good results for small and medium-sized businesses as well.
  2. Effective logistics: The Lean Six Sigma system helps develop an effective logistics system that aims at reducing inventory carrying costs and waste. This helps the continuous flow of raw materials to finished goods from one process to another.
  3. Cycle time management: Lean Six Sigma methodologies stress reducing long cycle times, which are a reflection of inefficient manufacturing processes and excessive non-value-added costs. The focus is on eliminating the root cause of extended cycle times, rather than devising short-term solutions.
  4. Linear production system: Lean Six Sigma training helps develop a production model such that the production happens as and when the demand exists for the product. It should be flexible so that the production can be decreased or increased according to seasonal variations, without affecting the quality of the end product.
  5. Timely decision: To make the most of what the market has to offer, manufacturing firms need to be proactive in making essential strategic decisions, such as when to downsize and when to start recruiting. A timely decision is one of the main factors that make the difference between a lost opportunity and increased profitability. Lean Six Sigma is beneficial because it helps in making timely business decisions.

These features of Lean Six Sigma methodology help bring in efficiency and quality to all companies, small and large alike and help them to reach their desired goals.

 

 

Lean Six Sigma objectives

Lean Six Sigma is a new control management system that is winning over every company. This is a combination of the already famous Six Sigma method and Lean manufacturing. Lean Six Sigma uses the best of both worlds to solve problems of a company by identifying the issues in production or services, thinking of an efficient way of solving them and increase the speed and quality of the production or service.

While some may say that Lean Six Sigma is only for large corporations this is wrong, in fact, it is much better suited for smaller companies as it brings about a change much faster. While Six Sigma tries to do a makeover of the company by bringing about a total change, lean Six Sigma makes small changes to an ongoing process and improves it to its maximum. So the changes can be seen quicker than with Six Sigma methods, and the overall process is much more cost effective.

Lean Six Sigma statistical methodology is used to improve the ongoing process, by implementing small changes that remove the defects from the production or service to improve the overall quality and speed. The overall result of the Lean Six Sigma method brings about a change to the overall quality of performance and success of the company.

The prime objectives of Lean Six Sigma are

  1. Ability to use a structured approach to process improvement.
  2. Ability to use DMAIC (Define, Measure, Analyse, Implement and Control) methodology.

  1. Skill to predict, prevent and control defects in a process.
  2. Understanding the elements of waste.
  3. Skills to achieve sustainable quality improvement through process improvement.
  4. Understanding of variation in processes.
  5. Skills to reduce variation in processes and achieve predicted outcomes.
  6. Ability to identify, measure and analyse process potential.
  7. Usage of inferential statistics.
  8. Usage of hypothesis testing.

There are two choices when you decide to go for Lean Six Sigma training and they are offline courses and training and online Lean Six Sigma training. Online courses are good for people that are better at doing things on their own pace, but they will still have a time period in which they must finish the course. Offline training courses are classroom-based courses that also have their benefits but are a bit more expensive.

The ultimate goal of Lean Six Sigma statistical Methodology and training is the focus on the customers. The company needs to know what the customer in their service or products, as well as the cost of the service and or product and the function. Lean Six Sigma is a great method to keep everything under control, to improve the speed of the production and the overall quality as well as to keep the investment and capital requirements at the lowest possible point thus achieving greatest profit.

Six Sigma-customer angle

Serving customers and making them happy one hundred per cent of the time is tricky business. Six Sigma provides business owners with many valuable tools for measuring the relationship between customer and company. In order to be successful, companies must establish a positive relationship with customers, one that will want to make them continue to purchase the products or services offered by the company.

Six Sigma places the highest priority on customer data input which provides the much-needed insight into what the customers need and what he or she is thinking about the products or services that are already on the market as a measure of performance. The design team needs to understand the requirements of the customer and predict whether the existing) design meets customer expectations.

How is customer satisfaction ensured by Six Sigma?

Customer’s experience of defects and costs: Customers have a different perspective on quality and cost. The variation in satisfaction levels across different market segments and regions needs to be analysed. In Six Sigma, customer input, however, scattered it may be, when analysed can be categorized making way for an in-depth understanding of company goals.

Product Relevance: The relevance of any product to the customer stems from its utility, cost and quality. A robust design is not just strong but simple, flexible and idiot-proof. It consistently produces a high level of performance despite huge variations in manufacturing and customer needs. Anything not adding value will not get customer attention.

Engaging the customers: Today’s customers are very choosy when they are planning to buy a product or service. Six Sigma works to make things clear to the customers by sharpening the cutting edge (value) that customers are looking for in a product or service. Companies like Motorola, who implemented Six Sigma, go beyond product development and profits in their commitment to customers. In addition to their regular helpline, they have established another line dedicated to this purpose. Customers can use this line of communication for more detailed questions relating to either product or service and track the status of their original question.

Adjusting process quality to meet the requirements of the customers: The need for adjusting the process capability is basically considered in DMAIC, without putting a significant burden on the cost. This begins with an estimation of financial impact, feasibility studies of the technicalities involved and market uptake. The outcome of these studies will guide any process adjustments.

Controlling process variation: The uncertainties of processing are the variation that needs to be tackled as a critical step in achieving the 3.4 defect threshold. Uncertainties arise mainly due to a huge number of key elements in a process, outdated process steps and lack of control. Variability surrounding a product or process can be rooted out in the design and analytical stages.

Nowadays, all business activities are customer-centric. Even the best product may not sell if it possesses useless value for the customers. So, if you want to enhance the customer satisfaction rate, then you must adopt Six Sigma methodologies in this steep competitive era.

Six Sigma has an amazing utility in the banking sector

Six Sigma proves to be perfectly suited to the needs of the service industry, which is in constant contact with customers and has customer delight as its top priority. The banking sector has found the benefits to be reduced cycle times, better cash management, reductions in complaints due to defects and overall customer satisfaction from improved performance. Financial institutions like Citibank, Bank of America, and many more have achieved great results from Six Sigma initiatives.

Let’s take a look at how Six Sigma plays an important role in the banking sector.

Improves customer satisfaction: The customer is king and customer satisfaction is the deciding factor in a bank’s efforts to achieve higher profits. Six Sigma projects involve defining objectives and opportunities in consultation with bank employees, as well as top management. There may be an opportunity to improve, based on customers’ feedback or complaints received. Unless the project definition is done correctly, taking further steps would be a waste.

Monitor performance: Data plays an imperative role in the banking sector because it helps the professional to track how processes within a bank are initiated. Six Sigma professionals to collect data regarding bank operations in consultation with top management. With the help of data. the customer waiting time, the services offered, the satisfaction level of customers, facilities, etc. are measured. The data also help them to find out the amount spent on each customer. If the performance level slows down considerably, then the prime cause of the process problem is identified and solved by using Six Sigma approaches.

Uplifts profit and reduces cost: these days the customers are choosy and each one has a unique requirement. With the help of six sigma approach, banks are able to identify the specific needs of each customer eliminating process inefficiencies, and errors and enhance customer satisfaction. At the same time, they are offering better customer services to them. Better services and facilities increase customer retention rate which will help the bank in getting more profit.

Avoids banking errors: it has become an important role for the banks to measure and conduct an assessment of the processes before and after the implementation of key measures. In such a case, customer satisfaction level can be measured before implementing sigma approach and after taking corrective measures. Besides this, Six Sigma approaches can be employed to eliminate mistakes in calculations, errors in order to provide efficient and updated banking services to customers.

Eliminate delays in a process: If a bank faces any problem, they should try to implement new approaches. Problems such as delays in providing any facility such as loan or mortgages have a great impact on the level of customer satisfaction and rate of retention of customers. A bank can easily conquer all these problems by applying Six Sigma approaches to offer better customer services. In this way, the retention rate will also increase.

These are some areas where Six Sigma approaches can be applied in the banking sector. Banks which have already adopted Six Sigma applications can enjoy an edge over their competitors and can successfully establish their presence in the market even in this competitive banking industry.

Six Sigma Training: helpful or hype?

Six Sigma has become a household name in the corporate world. But still, there is strong debate exist between the he supporters and skeptics of Six Sigma training. On one side, people believe that the companies as well as individuals will get immense benefit by Six Sigma training. While on the other hand, the skeptics believe that there won’t be one single solution which will help an organization to solve problems on various types of business models.

Let’s discuss how Six sigma certification will help a company to achieve its goal.

Can mitigate errors from a process: If a company acquires Six Sigma professionals who have a vast knowledge and experience, then those certified professionals can identify and extirpate repeatable errors from a process. By identifying and eliminating errors from a process, you can make a process more efficient and will help the company in enhancing its revenue.

Improve business process and quality of the product or services: Once you have a Six sigma certification with you, you have the proficient knowledge to identify the characteristics of a company’s business processes and you will also be able to measure, analyse, control, and improve them. By eliminating error, you will help your company to deliver the highest quality of products or services to the customers.

Better customer service: By solving all the customer complaints and providing them with the best quality products or services, you will help your company to serve the customers in a better way. In this way, you will also help your organization to maintain a healthy and robust relationship with the customers.

More exposure and better salary: These days, Six Sigma methodologies are applied in every industry like healthcare, retail, aerospace, electronics, telecom, banking and financial services, IT, HR, marketing, and many more. So, if you hold a Six Sigma certification, you will get more exposure and job opportunities from various sectors. Because the individuals who are certified in Six Sigma are highly knowledgeable and have experienced in dozens of different methods to streamline business processes. Not only that, Six Sigma certified people are the highest paid professionals globally. According to indeed.com, the salary for Six Sigma certified individuals routinely break into the $100,000+ pay bracket.

Nurture leadership quality:  Six Sigma certification imbibes leadership quality in you because you know how to how to reduce costs, increase revenue, and ways to improve the efficiency of the business process. If you are a professional black belt or green belt, then you can train other employees regarding Six Sigma and its application.

These are some benefits of having Six Sigma certification for an organization.

But is it really worth?

Six Sigma is a time-consuming process and it takes years to implement. If you can implement it wisely, then you will get a chunk of benefits. But if your company is looking for a quick fix or solution for the existing problems, then the Six Sigma professionals couldn’t help you in solving the situation. However, if your company has a long term goals and understand the importance of customer satisfaction, then Six Sigma is definitely the tool of choice.