UNIVERSIDAD PANAMERICANA

Escuela de Ciencias Económicas y Empresariales

PROJECT SIX SIGMA

Alumnos:

Ayelen Hernandez Sandoval

Jose Ramiro Hernández

Carlos Alberto R. de Leon Quezada

Maestro:

Leobardo L. Quiroga Almaguer

Materia:

Dirección de operaciones

Fecha:

23 de Octubre de 2023
Definition of the methodology:

Six Sigma, is a process improvement methodology, has emerged as a powerful tool

for organizations seeking to refine their business processes. It focuses on establishing
uniformity in processes to reduce variations and minimize defects in the final product,
ultimately leading to enhanced customer satisfaction and increased profitability. Is focused on
increasing quality.

At the heart of Six Sigma lies a fundamental philosophy: all processes can be defined,
measured, analyzed, improved, and controlled. This methodology operates on the premise
that every process comprises inputs and outputs, and by meticulously controlling the inputs,
the outputs can be optimized.

The goal of Six Sigma is to detect 3.4 defects per million. That is, any damage that the
product or service presents and that fails to meet the customer's requirements. How many
standard deviations fit between the process specification limits. A process that operates at six
sigma has a failure rate of only 0.00034%, which means it produces virtually no defects.

The Six Sigma methodology follows a structured approach known as DMAIC:

1. Define: In this initial step, organizations identify the problem or opportunity for
improvement. A clear definition of the issue sets the foundation for the entire process.

2. Measure: Measurement is critical to understand the current state of affairs. Through data
collection and analysis, organizations quantify the extent of the problem and its impact on
processes.

3. Analyze: The analysis phase involves a deep dive into the data to uncover the root causes
of the problem. Tools like the "5 Whys" technique are employed to systematically identify the
underlying issues.

4. Improve: Armed with a comprehensive understanding of the problem's causes,

organizations embark on the improvement phase. Here, they implement changes and
enhancements to processes to eliminate defects and inefficiencies.
5. Control: The final step is control, where organizations establish mechanisms to ensure the
sustained success of the improved processes. This phase involves setting up monitoring
systems and creating standard operating procedures to prevent regression.

Six Sigma, driven by data and focused on quality, has successfully transformed processes
across various industries. It is not just a training program but a systematic approach aimed at
achieving quantifiable business outcomes. By adhering to its principles and utilizing its tools,
organizations can reduce defects, increase customer satisfaction, and realize substantial cost
savings.

In conclusion, Six Sigma is a methodology that empowers organizations to attain

operational excellence. It places customers at the forefront, harnesses the power of data,
fosters continuous improvement, encourages inclusivity, and ensures adaptability. Through its
principles and tools, Six Sigma has become a catalyst for positive change, enhancing the
quality of processes and products while driving business success.

Brief history of the methodology

Six Sigma is a term coined by Motorola engineer Bill Smith in the 1980s. This is what
the company called its proposal to radically reduce product defects. It then experienced a new
boost towards the end of the 20th century, when it was applied by General Electric
throughout its organization, both for manufacturing and services, achieving spectacular
results.

The etymology is based on the Greek symbol "sigma" or "σ," a statistical term for
measuring process deviation from the process mean or target. The history of the Six Sigma
methodology has its roots in the mid-20th century. Six Sigma's evolution and widespread
adoption have transformed it into a global standard for process improvement and quality
management.

● 1940s and 1950s: The origins of Six Sigma can be traced back to quality control
methods developed during World War II, particularly by engineers; their work laid the
foundation for modern quality management and process improvement.
 ● 1980s: The term "Six Sigma" was first coined by Bill Smith, an engineer at Motorola,
in the early 1980s. Smith aimed to find a way to measure and reduce defects in
Motorola's manufacturing processes more effectively. He chose "Six Sigma" to
signify a high level of quality control, aiming for products with less than 3.4 defects
per million opportunities.
● 1986: Motorola formally introduced Six Sigma as a company-wide initiative, with
Bob Galvin, Motorola's CEO at the time, championing its implementation. The focus
was on reducing defects, improving quality, and saving costs.
● 1990s: Six Sigma gained significant momentum during the 1990s, largely due to
Motorola's success with the methodology. Other major corporations like General
Electric (under the leadership of Jack Welch), AlliedSignal (now Honeywell), and
Ford began adopting
● 2000s: Six Sigma continued to spread across various industries, including healthcare,
finance, and service sectors.

Throughout its history, Six Sigma has evolved, with different variations and
adaptations, including Lean Six Sigma, which combines Six Sigma's focus on reducing
defects with Lean principles for eliminating waste. Today, Six Sigma remains a cornerstone
of process improvement, with countless professionals trained.

To understand this methodology there are five key principles that underpin the Six Sigma:

1. Customer-Centric Approach: Six Sigma places a strong emphasis on understanding and

meeting customer needs.

2. Data-Driven Decision Making: Data is a cornerstone of Six Sigma. It is used to pinpoint

areas of process variation and inefficiency.

3. Continuous Improvement: known as Kaizen, it advocates making incremental

enhancements over time, gradually leading to significant positive changes in processes.

4. Inclusivity: Six Sigma encourages participation from all team members, irrespective of
their roles.
5. Flexibility and Responsiveness: Promotes adaptability to change, ensuring that processes
can pivot when needed without major disruptions.

To implement Six Sigma effectively, various tools and techniques are employed:

● Brainstorming: This technique stimulates creative thinking and idea generation,

critical during the improvement phase of the DMAIC cycle.
● Root Cause Analysis: Utilized during the analyze phase, this method helps identify
the underlying causes of problems by repeatedly asking "why" until the core issue is
unearthed.
● Voice of the Customer: Gathering customer feedback aids in understanding.
● 5S System: Eliminates waste and inefficiencies by categorizing, organizing, cleaning,
standardizing, and sustaining processes.
● Benchmarking: By comparing processes with industry leaders or competitors,
benchmarking helps identify areas for improvement.
● Poka-yoke (Mistake Proofing): Preventing errors and inefficiencies during production
is crucial for maintaining quality and reducing defects.
● Value Stream Mapping: This technique visualizes material and information flows to
uncover waste and inefficiencies in processes, facilitating learner operations.

The main applications of Six Sigma methodology include:

Process Improvement: The primary goal of Six Sigma is to improve processes by identifying
and eliminating defects, errors, and variations. It helps organizations streamline their
operations, reduce waste, and improve efficiency.

Quality Management: Six Sigma focuses on delivering products or services that consistently
meet or exceed customer expectations. It helps organizations maintain a high level of quality
throughout their operations.

Cost Reduction: By reducing defects and errors, Six Sigma can lead to significant cost
savings. This is achieved by minimizing rework, scrap, warranty claims, and other costs
associated with poor quality.
Customer Satisfaction: Six Sigma emphasizes understanding customer needs and
expectations. By aligning processes with these requirements, organizations can enhance
customer satisfaction and loyalty.

Data-Driven Decision Making: Six Sigma relies on data and statistical analysis to make
informed decisions. This approach ensures that improvements are based on facts and not just
intuition.

Reducing Variation: Six Sigma seeks to reduce process variation to ensure consistency and
predictability. This is particularly important in industries where small variations can lead to
significant quality problems.

Cycle Time Reduction: It helps in reducing the time it takes to complete processes, which can
lead to faster delivery of products or services to customers.

Supply Chain Optimization: Six Sigma principles can be applied to optimize supply chain
processes, ensuring that materials and products flow smoothly and efficiently through the
supply chain.

Risk Management: By identifying and addressing potential sources of defects and errors, Six
Sigma can help organizations mitigate risks and avoid costly problems.

Product Development: Six Sigma principles can be applied to improve the product
development process, ensuring that new products meet quality standards and are brought to
market more efficiently.

Finance and Banking: Financial institutions use Six Sigma to streamline processes such as
loan approval, transaction processing, and customer service to reduce errors and improve
efficiency.

Manufacturing: Six Sigma has its roots in manufacturing and is extensively used in industries
like automotive, aerospace, and electronics to improve production processes and product
quality.

Service Industries: Service organizations, including hospitality, call centers, and IT services,
use Six Sigma to enhance the quality of their services and customer experiences.
Government and Public Sector: Some government agencies and organizations have adopted
Six Sigma to improve the efficiency and effectiveness of public services.

Six Sigma is a versatile methodology that can be applied across a wide range of
industries and processes to drive improvements in quality, efficiency, and customer
satisfaction. As such, it is not only applicable in a single industry since it helps us correct
errors to a margin of almost 0, which makes it very useful for any industry, which is why six
sigma is a very useful methodology in multiple industries.

Actual status. The methodology has had updates

Integration with Industry 4.0 and Digital Transformation: Six Sigma has likely further
integrated with Industry 4.0 concepts, leveraging technologies like the Internet of Things
(IoT), big data analytics, artificial intelligence (AI), and machine learning to improve process
monitoring, data analysis, and decision-making. This integration allows for real-time quality
control and predictive maintenance.

As these technologies require steady streams of accurate, structured data and tightly
controlled, standardized processes to function, six sigma can play an important role in setting
the stage for successful industry 4.0 deployment. In addition, the goals of six sigma and
industry 4.0 are intertwined. Industry 4.0 can even be thought of as an extension of six sigma.
It should be noted that, similar to green six sigma, researchers have only just begun to
formally study how six sigma can augment industry 4.0. The industry still has a long way to
go when it comes to developing evidence-driven frameworks and best practices for
integrating these two business philosophies.

Agile and Lean Integration: To address the need for greater flexibility and
responsiveness in rapidly changing markets, Six Sigma may have integrated more closely
with agile and lean principles. This integration allows organizations to maintain high levels of
quality while adapting to customer needs more efficiently.

Sustainability and Environmental Focus: With increasing concerns about

sustainability and environmental responsibility, Six Sigma methodologies may have evolved
to incorporate tools and techniques specifically aimed at reducing waste, energy
consumption, and environmental impact.
 Customization for Various Business Models: Six Sigma has likely continued to adapt
to different business models, including service-oriented industries, startups, and small to
medium-sized enterprises. Customized approaches to Six Sigma may have been developed to
suit these diverse needs.

Global Standards and Certifications: The standardization of Six Sigma certifications

and training programs across industries and regions may have improved to ensure consistent
quality and competency among professionals.

Cross-Functional Teams: Collaboration and cross-functional teams have always been

important in Six Sigma. Recent updates may emphasize the importance of interdisciplinary
collaboration, ensuring that experts from various domains work together to solve complex
problems.

Crisis and Risk Management: Given the experiences of the COVID-19 pandemic and
other global crises, Six Sigma may have developed more robust methodologies for risk
management and crisis response, helping organizations become more resilient.

Emphasis on Customer Experience: While Six Sigma has always focused on customer
satisfaction, it may have become even more customer-centric, with an increased emphasis on
understanding customer needs and preferences through advanced analytics and market
research.

Hybrid Approaches: Organizations may have adopted hybrid methodologies that

combine the principles of Six Sigma with other quality management frameworks, such as
Total Quality Management (TQM) or the Theory of Constraints (TOC), to create a more
tailored approach to quality improvement.

Six Sigma remains a prominent methodology for process improvement and quality
management worldwide. Many organizations, regardless of their industry, continue to
implement Six Sigma practices to reduce defects, enhance customer satisfaction, and
optimize operational efficiency.

The future of Six Sigma lies in its ability to adapt to changing technologies, market
dynamics, and customer expectations while remaining committed to its core principles of
defect reduction and process improvement. Organizations that successfully integrate Six
Sigma with emerging technologies and methodologies will be better positioned to achieve
their quality and operational excellence objectives.

Current research through an official research article:

1. Methodology and implementation of six sigma:

This article presents the methodology and implementation of the Six Sigma model in
different types of organizations. Six Sigma is a tool with the purpose of measuring and
improving quality. It is defined as a data-based methodology to achieve the closest quality to
perfection. This is achieved by examining the production processes in a comprehensive
manner. Also the Six Sigma method is a philosophy that appeared in the eighties thanks to the
engineer Mikel Harry, through the evaluation and analysis of process variation in the
Motorola company. It was the first company to implement this methodology as a market and
quality improvement strategy. This methodology also focuses on continuous improvement.

Six Sigma is a methodology composed of five phases: Define, Measure, Analyze,

Improve and Control. Represents the number of standard deviations obtained at the exit of the
process. Its objective is to increase the capacity of the processes, in such a way that they
generate the minimum defects per million units produced. These defects must be
imperceptible to the client.

Six Sigma is a methodology based on five principles:

● Customer focus.
● Focused on processes.
● Methodology for carrying out projects.
● Organizational structure.
● Fight against variation.

This tool focuses on process improvement by focusing on critical aspects for the
client. By measuring the different processes, reducing the number of defects so that
production can continue in a common way.

The Six Sigma method also known as DMAIC (Define, Measure, Analyze, Improve
and Control) is structured in five phases.
 ● Definition phase: Six Sigma projects are identified that must be evaluated by
management to avoid underutilization of resources, in order to assign the necessary
priority to each project.
● Measurement phase: consists of the characterization of the process by identifying key
customer requirements, key product characteristics and parameters that affect the
operation of the process.
● Analysis phase: current and historical data are analyzed. Hypotheses about possible
cause-effect relationships are developed through the use of statistical tools.
● Improvement phase: the cause-effect relationship is determined to predict, improve
and optimize the operation of the process.
● Control phase: the necessary controls are designed and documented to ensure that the
implemented system is maintained over time.

An important point in this article was that it is mentioned that there are different
sigmas, from 1 to 6, which is what this research is about, and in each of them efficiency
begins to improve until reaching 6 sigma = 99.9999966% of efficiency.

Through this method we can achieve optimized use of resources, reduction of costs,
in order to increase competitiveness against competing companies.

Albert, E. N., Soler, V. G., & Molina, A. I. P. (2017). Metodología e implementación de Six
Sigma. 3C Empresa: investigación y pensamiento crítico, (1), 73-80.
https://www.3ciencias.com/articulos/articulo/metodologia-e-implementacion-six-sigma/

2. Quality and productivity in the different processes of Six - Sigma:

This article talks about making known and understanding the importance of quality
and productivity in the different Six Sigma processes within organizations, which is
considered a very helpful methodology and tool that improves the processes carried out in
any type of company. These Six Sigma processes are based mainly on the reduction of waste
and of course on the quality of the products and services provided by the companies, carried
out by all the personnel that are part of it, who have the responsibility and commitment to
fulfill the tasks assigned which will lead to greater productivity, lower costs, quality and
greater customer satisfaction, generating profit in cases.
 Six Sigma processes that are applied within organizations generate a change in
mentality that helps achieve and establish a culture that is aimed at quality and continuous
improvement, helping the company to achieve the objectives set. Six-Sigma leads to knowing
each and every one of the processes that make up a company. The results are reflected in
greater productivity, more robust products, quality and a solid permanence in consumer
markets; better goods and services and totally satisfied customers.

As a measure of how good products and services are, a higher Sigma level means
higher quality of a product or service and a lower level means poor, the original Six-Sigma
program includes leadership, the Six steps and a series of related measurements.

What Six-Sigma represents:

● As a metric: Six Sigma represents a way of measuring the performance of a process in

terms of its level of products or services out of specification.
● As a work philosophy: Six Sigma means continuous improvement of processes and
products supported by the application of its own methodology, which mainly includes
the use of statistical tools, as well as other support tools.
● As a goal: a process with a Six Sigma quality level statistically means obtaining an
international category by not producing defective services or products.

Albert, E. N., Soler, V. G., & Molina, A. I. P. (2017). Metodología e implementación de Six
Sigma. 3C Empresa: investigación y pensamiento crítico, (1), 73-80. https://doi.org/
10.23857/fipcaec.v5i4.302

3. Current situation of the methodology six sigma, the management of risks and the
management of the quality:

Six Sigma is attracting more and more attention as it has moved from a focus on
achieving quality level improvement and the process of using statistical tools to a
comprehensive management framework for managing a business. Six Sigma has become
synonymous with improving quality, reducing costs and increasing customer loyalty.

The goal of Six Sigma is to improve product and service performance by reducing
defects inherent in the processes and materials used to produce them. It has become an
efficient business process optimization and one of the most important strategies for
companies. There are several key elements that are necessary to achieve success in
implementing Six Sigma. Some of those components of success are described below:

● Senior Management Support: Those who have implemented the Six Sigma practice
agree that the most critical success factor is management support.
● The organizational infrastructure: Achieving Six Sigma quality levels requires full
commitment from all departments and active participation from all company team
members.
● Training: In addition to hardware and software, “human hardware” is needed for work
productivity. Training is one of the most important pillars and human intervention is
fundamental in the productivity equation.
● Tools: Employees must be trained with the proper tools to successfully approach and
complete Six Sigma projects.

Although Six Sigma has been successfully implemented in many large corporations,
there is still less documented evidence of its application in smaller organizations. But six
sigma can be launched successfully in an environment of SME companies, plus it gives many
advantages if they apply this initiative.

As Six Sigma is increasingly being considered the route to organizational and

business excellence, it has been widely publicized in recent years as the most effective means
of combating quality problems and gaining customer satisfaction. As a management
initiative, Six Sigma is best suited for organizations with repetitive operations. It is
increasingly important for SMEs.

Six Sigma as a powerful business strategy has been well recognized as an imperative
for achieving operational and service excellence.It is also a quality measure that seeks the
elimination of defects using the application of statistical methods. A defect is defined as
anything that could lead to customer dissatisfaction.

Blasco Torregrosa, M., Gisbert Soler, V., & Pérez Bernabeu, E. (2015). Situación actual de
las metodologías six sigma, la gestión de riesgos y la gestión de la calidad. 3C Tecnología,
4(4),198-212.https://www.3ciencias.com/wp-content/uploads/2015/12/Situación-actual-de-las
-metodolog%C3%ADas-Six-Sigma-la-gestión-de-riesgos-y-la-gestión-de-la-calidad.pdf
 4. Lean six sigma methodology for the fresh cheese manufacturing:

The objective of this article is to develop a lean Six Sigma methodology for the fresh
cheese manufacturing process applying the DMAIC method, which allows the improvement
of the production process. The application of the Lean Six Sigma methodology, to optimize
resources and generate greater added value to the products derived from them.

The Lean Six Sigma methodology combines a strong dose of agility, with the
elimination of defects, applied statistical methods that contribute to carrying out analysis to
understand the behavior of the processes and the variables that affect production. The union
of these two methodologies makes it a strong strategy to analyze controlled and stable
operations in each of the industry processes.

The fundamental principle of Lean is the elimination of waste, also known as "muda",
while Six sigma is a method based on the analysis of data and metrics that examines the
repetitive processes of companies and aims to bring quality to levels close to to perfection,
reducing defects as much as possible, aiming to reach the figure of 3.4 errors or defects per
million opportunities and is distinguished from other methods in the fact that it tries to
prevent problems before they occur.

Improvement processes in the industry seek to eliminate everything that does not
contribute to the added value of the products and customer satisfaction. In industry, the
appeal of Six Sigma and DMAIC is the ability to drive optimal product manufacturing,
eliminating waste, defects and overproduction; The name Six Sigma is actually derived from
the statistical model used. In statistics, a standard deviation is also called “Sigma” or σ. Thus,
Six Sigma, or six standard deviations, became the gold standard for defining production
limits, reducing the number of defects and improving processes in any type of industry.

The DMAIC provides a standardized and structured framework for making process
changes. This allows documentation to be produced to summarize all decisions made and
progress made in the production system. The lean six sigma methodology uses several
well-known tools in the world of quality, however, it is necessary to complement it with the
use of other methodologies and the formation of a human infrastructure to guarantee
production efficiency in the industry.
Rodríguez, L. T. C., Beltrán, X. E., & Viera, R. G. (2022). Metodología lean six sigma para el
proceso de fabricación de quesos frescos. Ciencias de la Ingeniería y Aplicadas, 6(1), 44-58.

5. Lean six sigma and industry 4.0, a review from operations management for the
continuous improvement of organizations

Operations management is characterized as one of the three main functions of an

organization, the remaining two being: marketing and accounting. For all these reasons,
operations management is decisive in achieving high levels of efficiency, performance,
productivity and business competitiveness. Currently, operations management has great
importance and connotation, in a global context marked by globalization, the progressive use
of technological tools and Industry 4.0. This scenario and context has generated greater
uncertainty and complexity for companies. That is why operations management favors
strategic management for the effective achievement of objectives with greater performance,
efficiency, productivity and competitiveness.

Some of the benefits or advantages attributed to operations management are the

generation of a greater competitive advantage, based on a better knowledge of the internal
elements that the organization has and the external elements with which it interacts.
Regarding customer satisfaction, operations management also has a direct impact, by
enabling the implementation of quality management systems that make it possible to satisfy
the needs of consumers. In this way you can exercise greater control over the planning of
production processes, inventory control and the capacity of employees, so that all this
contributes to greater user satisfaction in the product or service provided.

Six Sigma has ten principles, which are:

1. Committed leadership from the top down, at all levels of the organization.
2. Management structure that includes full-time staff.
3. Training and continuous training of each of the actors involved in the use of Six
Sigma.
4. Customer-oriented accreditation focused on ensuring that processes comply with the
Requirements of the client.
5. Directed with data and supported by statistical thinking for process improvement.
 6. Robust methodology.
7. Projects generate savings or increased sales.
8. Work is recognized.
9. Long projects.
10. Communication at all levels, inside and outside the organization.

The Six Sigma work team is made up of:

● A Six Sigma director, who defines the strategic objectives, responsibilities, selects the
project and the teams that will be part of it, among other activities.
● Senior managers (champions): They are responsible for each of the areas, who
provide strategic management and resources for the projects to be carried out.
● Master black belts: It is a staff with high expertise.
● Black belts: Technical experts who are dedicated to the Six methodology Sigma. They
lead projects and maintain a culture of process improvement.
● Green belts: Technical experts with partial dedication to Six Sigma.

Additionally, for a process to be classified as Lean Six Sigma, the failures of a process
should be a maximum of 3.4 Defects Per Million Opportunities (DPMO). In this way each of
the processes can be classified according to the level of quality or DPMO level. To do this, it
is assigned a variable Sigma level between Zero and Six, depending on the defects obtained,
as shown in the following table:

Efficiency of a process according to sigma.

 The Lean Six Sigma methodology enables the continuous improvement of processes,
to increase the performance, productivity and business profitability. It arises from the
complementation of the Six Sigma methodology with Lean Manufacturing, in achieving a
joint effort for the reduction of process variation and waste. Likewise, it focuses on
increasing the quality of the process and the satisfaction of customers and employees.

José Felipe Ramírez Pérez, Virginia Guadalupe López Torres, Sergio Alonso Hernández
Castillo, Maylevis Morejón Valdés (2021).LEAN SIX SIGMA E INDUSTRIA 4.0, UNA
REVISIÓN DESDE LA ADMINISTRACIÓN DE OPERACIONES PARA LA MEJORA
CONTINUA DE LAS ORGANIZACIONES
https://revistas.unesum.edu.ec/index.php/unesumciencias/article/view/584/370

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https://www.3ciencias.com/articulos/articulo/metodologia-e-implementacion-six-sigm
a/
● Albert, E. N., Soler, V. G., & Molina, A. I. P. (2017). Metodología e implementación
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https://doi.org/ 10.23857/fipcaec.v5i4.302
● Blasco Torregrosa, M., Gisbert Soler, V., & Pérez Bernabeu, E. (2015). Situación
actual de las metodologías six sigma, la gestión de riesgos y la gestión de la calidad.
 3C Tecnología,
4(4),198-212.https://www.3ciencias.com/wp-content/uploads/2015/12/Situación-actua
l-de-las-metodolog%C3%ADas-Six-Sigma-la-gestión-de-riesgos-y-la-gestión-de-la-c
alidad.pdf
● Rodríguez, L. T. C., Beltrán, X. E., & Viera, R. G. (2022). Metodología lean six sigma
para el proceso de fabricación de quesos frescos. Ciencias de la Ingeniería y
Aplicadas, 6(1), 44-58.
● José Felipe Ramírez Pérez, Virginia Guadalupe López Torres, Sergio Alonso
Hernández Castillo, Maylevis Morejón Valdés (2021).LEAN SIX SIGMA E
INDUSTRIA 4.0, UNA REVISIÓN DESDE LA ADMINISTRACIÓN DE
OPERACIONES PARA LA MEJORA CONTINUA DE LAS ORGANIZACIONES
https://revistas.unesum.edu.ec/index.php/unesumciencias/article/view/584/370