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The Scenario’s mentioned below when an organization decides to go for Six Sigma which is a
method or a tool to reduce process variations and reduce customer delays or product defects in a
manufactured item. The basics of Six Sigma has been explained generously in my previous articles
but to freshen up a bit Six Sigma is a process whereby you Implement the DMAIC (Define, Measure,
Analyse, improve & Control) and you use statistics, graphs, Cause and effect diagram to calculate
variation in the process of Manufacturing an item or a Software or to measure process variations.
Process of Implementation
The vital issues are how to meet the customer’s critical requirements and get the possible financial
benefits to the organization. The Implementation process followed during the Six Sigma
improvement process is given below
1. Take corporate decision to go for Six Sigma.
2. Appoint a champion and a core group
3. Train the champion and the core group.
4. Understand what are current problems
5. Understand Customer requirements.
6. Assess your Current performance.
7. Calculate current cost of quality.
8. Decide the goal.
9. Estimate the cost of implementation.
10. Estimate the cost savings.
11. Decide to go for Implementation.
12. Identify and select external agency for training.
13. Select employees for training.
14. Impart training.
15. Appoint team leaders and team members.
16. Carry out projects.
17. Review projects.
18. Complete project implementation.
19. Publish results.
20. Celebrate.
The champion would ideally be the CEO and the core group would be Black belts and Green Belts as
well as those who play key role in Managing the organization.
Calculation of Cost of Quality: Cost of Quality is a direct reflection on the performance of the
organization. The higher the cost of quality, the necessity to implement six sigma becomes vitally
important. Each organization needs to calculate waste in the cost of quality and eliminate all the
costs not adding value to the customer.
An illustration of Cost of Quality is Given Below
Cost of
Head of
Rework Cost 1,20,000 3,40,000 80,000 5,40,000
Cost of Scrap 3,10,000 9,20,000 2,50,000 14,80,000
Material Cost
in Rs.
42,000 12,00,000 1,16,000 13,58,000
After estimating the cost of implementation of Six Sigma, the next step is to compare the current
losses due to cost of quality and if the cost of implementation is less than the current loss it is
advisable to go for Six Sigma Implementation.
The CEO should call for a meeting of all the employees and inform them about the management
proposal to adapt to Six Sigma methodology.
The Next Step is to select the best External training agency to impart training to the employees of
the organization.
The External Consultant will decide on Green belts , Black belts certification of the employees once
they have been trained they can work on the heart of Six Sigma that is DMAIC and in each phase
review with the management and then maintain the gains by using Six Sigma Methodology.
The Author Suresh .V. Menon is a Certified Black belt in Six Sigma and has worked in various
capacities as Principal Consultant, ERP Consultant, Project Manager, and Test Manager &
Implementation Manager. He can be contacted at sureshmenonr1009@gmail.com for comments and queries.
