As the level of Sigma progresses higher towards zero, the less the defects will exist and the process will be more able. Learning the Math behind Calculating Sigma levels is a requirement of quality professionals, process improvement consultants and persons wishing to bring out continuous improvement initiatives. Diving into this blog post, one will learn everything about the Sigma level, its importance, and the step by step process through which it can be calculated based on real life-examples. Regardless of whether you are a Lean Six Sigma Green Belt, Black Belt, or some other corporate leader who wants to enhance operations at your company, this guide will clarify the nature of sigma level calculation and ROI of calculating it in your organization.
Why Sigma Level Matters ?
The level of Sigma is a statistic calculation that shows the extent to which a particular process is not being perfect. In particular, it indicates the amount of process mean and standard deviations between the specification limits closest to the process mean. A business process that runs at six sigma state only has 3 defects per million opportunity (DPMO) hence this kind of process is very effective and trustful. To the lesser level of sigma lower the process capability and defects will be more. The value of sigma level is that it offers a uniformity in measuring the performance of the processes in various functions and sectors and this is what explains its widespread adoption in Lean Six Sigma methodologies. The measurement of the Sigma level assists the companies to establish performance standards, detect areas of difficulty, and place improvement initiatives in priority with the help of specific data.
The calculation of Sigma level is a pillar on the phases of the DMAIC (Define, Measure, Analyze, Improve, Control) strategy of methodologies. It assists teams to measure and calculate performance as per the ongoing progress. This is a fallacious assumption that involves many organisations initiating improvement programmes in a manner that does not entail the knowing of the base performance. Determining the current Sigma level would help the teams set a data-based standard and direct the improvement objectives. Besides, it is also possible to prioritize the projects depending on defect intensity and cost of poor quality (COPQ). A low Sigma process could be the main reason of customer dissatisfaction or lack of efficiency in operations and determining the level of Sigma associated with such process assists to gain understanding of the problems.
Common Pitfalls and Tips for Accurate Sigma Level Calculation
Wrong data collection is one of the most frequent traps in the calculation of the Sigma level. In the event that the defects or the number of opportunities is incorrectly counted, the whole analysis will be marred. It is therefore necessary to validate data before calculation is done. The other problem is that all the defects have equal weight. As a matter of fact, certain flaws can be more serious than others particularly in the health-care, aviation, or a food processing sector. Whereas, in order to take the benefit of a comprehensive measure of process quality by the use of Sigma level, FMEA (Failure Mode and Effects Analysis) or Pareto Analysis can go along way in providing better and better responses.
Further, you should keep in mind that Sigma level is process-dependent. The fact that a business group achieved a level of six sigma in one of its departments does not imply that the company is at that level in every area. Hence, Sigma levels must be measured and monitored independently by zone in the organization by department.
Leveraging Sigma Level for Operational Excellence
Sigma level calculation is not a statistical activity alone – it is a performance driver of continuous improvement and excellence in operations. It assists organizations to benchmark actual performance, point out areas of inefficiency and come up with very achievable quality improvement goals. Sigma level gives us a tangible metric of success regardless of whether you are decreasing defects in a manufacturing line, streamlining a supply chain process, improving customer service turnaround times, or some other endeavour. With proper use, it may result in a lower cost, higher customer satisfaction, and a data-driven decision-making culture. Due to the growing levels of competition in business and growing customer demands, excelling in Sigma level calculation is going to become one of the major distinguishers in your Lean Six Sigma endeavor.
