![]() ![]() ![]() This shows how a lower standard deviation is better for production.īut back to Six Sigma, in this instance, standard deviations are often called “Sigma Levels.” Normal DistributionĪ dataset might be of ‘normal distribution’ if most data points are clustered close to its mean average, with data points tapering off symmetrically in a well-defined pattern. However, they have very different standard deviations.Ĭompany A produces screws with a standard deviation of 5.9mm, whereas Company B’s screws have a standard deviation of 0.007mm.Īs you can imagine, no one will think much of company A’s screws. The curious thing about these two companies is that both sets of screws have a mean average length of 6mm. The five screws made by Company B measure: 6mm, 6.01mm, 6mm, 6mm, and 5.99mm Which Company Would You Prefer to Purchase Your Screws From? The five screws made by Company A measure: 2mm, 1mm, 13mm, 12mm, and 2mm You visit both companies and sample five of each of their screws. They’re both producing 6mm screws for a particular car. In terms of business processes, typically, you want a low standard deviation. So the standard deviation is low, around 0.4. For example:Īs you can see, there’s lots of variation here! So the standard deviation is high – over 800,000.Ĭonversely, there’s not much variation here at all. Standard deviation is used to calculate how varied a set of data is. Sigma is the Greek letter ‘Σ,’ and in statistics, Sigma represents standard deviation. However, to understand the basis behind Six Sigma, you must first understand three terms:īelow, I describe each in turn: Sigma Level Unsurprisingly, the word statistics can make some of us feel a bit ill, so I promise to explain this as painlessly as possible. The idea behind Six Sigma is rooted in statistics. In fact, there’s even an ISO standard that sets the international standard for implementing the Six Sigma method. Today the Six Sigma methodology has wide-reaching applications and benefits from significant standardization. As a result, Six Sigma takes a holistic approach, aiming to improve your organization’s products, services, and internal processes rather than focusing on just one area. The crux of Six Sigma is gaining a better understanding of your customer’s requirements to streamline your procedures and reduce waste. However, since its conception, it’s evolved to help businesses improve all manner of processes, including project management workflows. You can still take inspiration from the process to improve your own processes, from report writing to accounting to production! What is Six Sigma?Īs I’ve already said in the intro, Six Sigma is a methodology initially designed to improve manufacturing processes. If you like the idea of Six Sigma, give it a go, as you’ll definitely see results, but don’t worry if you think it’s too much for your business. Furthermore, training for senior Six Sigma staff can take a month (or more) which needs to be renewed every three years. Projects need to be valued at least $100,000 to be considered a genuine Six Sigma project. Generally, I think Six Sigma is a very effective project management method but is largely inaccessible to many.
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