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Key Takeaways: Benefits of Six Sigma
Six Sigma can help organizations increase efficiency, eliminate production variations and improve process controls in any project across numerous industries. Six Sigma certifications, or belts, can help you show current and future employers that you have the knowledge and ability to lead teams, enhance efficiency and spearhead improvement efforts across every stage of the project life cycle. Six Sigma principles and philosophies can be applied to traditional and Agile project management methodologies such as Waterfall, Critical Path, Scrum, Kanban and more.
Facts & Expert Analysis About the Benefits of Six Sigma:
- Defect elimination: When used properly, Six Sigma aims to reduce manufacturing defects and variations to as few as 3.4 defects per 1 million opportunities. Statistically, this means 99.99966% of a manufacturer’s products will be defect-free.
- Salary ranges: Depending on their Six Sigma certification level, certified individuals in the U.S. can earn between $42,000 and $135,000 per year.
Lean and Six Sigma: Lean and Six Sigma are often thought of as the same, but there are many differences. Lean focuses on continuous improvement methods and waste reduction, whereas Six Sigma focuses on reducing product variations and defects. However, Lean Six Sigma successfully combines both sets of principles.
Don’t overlook the benefits of Six Sigma, a set of principles and philosophies that can be incorporated into project management methodologies and enhanced with the best project management software. However, though Six Sigma can help eliminate product defects and variations, it’s complex enough that certification is practically required to implement it correctly. We’ve listed Six Sigma as one of the best project management certifications for project leaders. When used correctly, it can drastically reduce project costs, eliminate non-value-adding processes, reduce defects and improve people management skills. If you’re interested in Six Sigma and want to learn more, you’re in the right place. Below, we’ll explain what Six Sigma is, how it can improve organizational efficiency, what the different levels of certification entail and the salary range you can expect. We’ll even list the benefits of becoming certified.
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What Is Six Sigma?
Six Sigma, created by Motorola engineer Bill Smith in 1986, is a set of guiding principles that can be used with many project management methodologies. It uses statistical analysis to improve business processes, increase profit margins, boost employee morale, manage risks, reduce defects and create high-quality products that increase customer satisfaction.
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Six Sigma can improve manufacturing by identifying and eliminating the variables that cause product defects. Proper implementation of Six Sigma can lead to reducing manufacturing defects and variations to as few as 3.4 defects per 1 million opportunities. Statistically, this means manufacturers can expect 99.99966% of their products to be defect-free. Organizations can choose between two implementation methods: DMAIC, “define, measure, analyze, improve and control,” is used to improve current processes, while DMADV, “define, measure, analyze, design and verify,” is used to create new project processes. Though Six Sigma was initially designed for use in manufacturing, it has evolved to work with Agile frameworks. Six Sigma is now used in healthcare, aviation, education, finance, retail, marketing and many other industries.
Lean vs Six Sigma vs Lean Six Sigma
Bring up the subject of Six Sigma and many will tell you that they love the Lean process. Though they could indeed be talking about Lean Six Sigma, it’s important to note that Lean, Six Sigma and Lean Six Sigma are different. The confusion stems from the U.S. military, which adopted Six Sigma and tacked on the term “Lean” for no apparent reason. The confusion surrounding Lean and Six Sigma became so great that Lean Six Sigma was eventually developed to truly incorporate both sets of guiding principles. Below, we’ll break down the Lean and Six Sigma methodologies so you can better understand them.
Lean
Lean is a set of principles that champions the concepts of a continuous improvement process, waste reduction and respect for people. In the 1940s, Taiichi Ono, a Toyota engineer, used Lean to help improve car manufacturing. Ono went on to create the Kanban methodology, and successfully blended the two methods to help turn Toyota into a manufacturing juggernaut.
Six Sigma
Six Sigma focuses on eliminating process variations and improving organizational process controls with a statistical approach. You can see why the U.S. military might have added “Lean” in front of “Six Sigma”: To eliminate manufacturing variations, you must first continuously improve processes, which in turn reduces waste.
Lean Six Sigma
Lean Six Sigma is a data- and fact-driven methodology that can help leaders identify and prevent manufacturing defects and reduce waste. Lean Six Sigma tools are designed to exceed customer expectations by cutting costs, eliminating processes that add no value, and promoting work standardization and process flow. It analyzes everything — and everyone — that can create variations in work and waste. If you adopt this approach, everyone on the project should do their best to identify waste and participate in process improvement.
What Lean, Six Sigma and Lean Six Sigma Are Not
It is worth noting that Lean, Six Sigma and Lean Six Sigma are not tools to improve project or task management; they are guidelines and principles that help improve or create processes that can help an organization reduce errors and boost efficiency. They can reduce waste and variance, but cannot in themselves inform you of the best way to run a given project. As such, Six Sigma and Lean should be used in conjunction with other project management methodologies. Agile methodology and its associated frameworks can be combined with Six Sigma to mitigate errors while improving efficiency and focus.
Six Sigma Certifications
If you’re ready to boost your career in project management, you’ll need to create a plan to obtain your Six Sigma certifications. The process of becoming a Six Sigma master can be long and complicated, as there are numerous certifications available. Below, we’ll cover each of the Six Sigma belts (certifications), what they cover and how you can learn the course material.
Six Sigma is split into six certifications, or belts, each of which proves that you have mastered some or all of the Six Sigma methodology.
White Belt
The first Six Sigma belt is the White Belt. You’ll learn about Six Sigma’s history, the processes used to create customer value, the Demming wheel (which is also known as the “plan, do, check and act,” or PDCA, method) and how Six Sigma works in general. There are no prerequisites; you can take the course and the 30-minute, multiple-choice exam for free.
Yellow Belt
The Six Sigma Yellow Belt is for those who understand Six Sigma basics. It’s the ideal certification for those wishing to cement their status as a core part of a project team, and for those who already run and oversee improvement processes using the Demming wheel (the “plan, do, check and act” method). There are no prerequisites for the Yellow Belt. If you have gained knowledge via on-the-job training, you can pay $99 for the open-book exam, which features multiple-choice and true-or-false questions. You must score 140 out of 200 points to pass. Those who require more training can find a training partner or pay $349 for a self-study course.
Green Belt
The Six Sigma Green Belt is for those with advanced problem-solving skills who know how to use the “define, measure, analyze, improve and control” (DMAIC) model. Applicants must prove they have three years of experience as a full-time, paid Six Sigma team member. The Green Belt trains individuals to work on small, defined Six Sigma projects. The two-hour exam is open book and consists of multiple-choice and true-or-false questions. You must score 280 points out of 400 to pass. Like the Yellow Belt, you can pay $349 for self-study guides, or you can find a training provider. The exam can be taken online or in person.
Black Belt
The Black Belt certification is for those who thoroughly understand Six Sigma philosophies…