What Is Six Sigma and How Does it Apply to Project Management?

Motorola developed the comprehensive Six Sigma operations management method in 1986 to help companies better understand their customers’ requirements as well as eliminate waste and defects from their processes. By understanding the underlying functions, as well as statistics, engineering and project management, managers can reliably and systematically achieve these objectives. Across various disciplines, such as production, marketing, finance and administration, Six Sigma projects are undertaken to improve an organization’s products, services and processes.

Six Sigma is more comprehensive than predecessor process improvement methods, including Continuous Quality Improvement (CQI) and Total Quality Management (TQM), because it uses more advanced data analysis tools and agile project management methodologies. Business professionals can apply these to improve efficiency and process quality in any industry.

As a result, project managers trained in Six Sigma can help their organizations reduce costs and waste of valuable resources, develop more robust and profitable practices, perpetuate a cycle of continuous improvement and strengthen their competitive positions in the marketplace. Graduates of a Master of Business Administration (MBA) degree in Project Management can pair their expertise with Six Sigma training and fulfill in-demand roles in several fields.

Six Sigma Principles and Steps

Project management and Six Sigma training work well together, giving professionals the specialized skills and comprehensive knowledge to succeed. The project management methodology consists of five main principles/steps:

1. Focus on the customer: Maximize positive customer experiences and minimize negative experiences. To accomplish this goal, a business must be highly disciplined in consistently developing products and services that perfectly match customer wants and needs. Intensive market research is required, as is using key performance indicators and data analytics to understand and improve the customer experience.
2. Use data to assess the value chain and find the problem: Describe the steps of a process to identify poor performance and gather related information. Data collection goals, data gathering purposes and expected insights should be identified by asking “why” questions. Assess whether the data is helping to achieve the objectives, whether you need more information or if data cleansing is necessary. Finally, identify the problem and its root cause.
3. Eliminate defects and outliers: After identifying problems, modify the process to eliminate defects. Identify all non-value-adding activities in the given process and eliminate them. When the value chain cannot reveal the problem area, there are various tools to identify it. Removing outliers and defects from a process eliminates bottlenecks.
4. Get stakeholders involved: Adopt a structured collaborative process in which employees, vendors, customers and other stakeholders contribute potential solutions, which requires sharing knowledge of Six Sigma principles and training contributors to ensure the success of this step.
5. Be systematic and communicative: Make the benefits of the new approach apparent to all employees to gain companywide buy-in. Make sure they understand all aspects and methods involved in the process, anticipate the “why” questions and answer them to ensure the new process will succeed. Employees must also understand the Six Sigma processes that led to change so that they can play their roles appropriately in the flexible and responsive new system.

Six Sigma Methodologies

There are two main Six Sigma methodologies: DMAIC (Define, Measure, Analyze, Improve, Control) and DMADV (Define, Measure, Analyze, Design, Verify). Both methodologies use teams to solve problems, include variation, have a customer focus and use many of the same statistical tools to find solutions.

DMAIC is focused on improving processes through data and often applies in manufacturing and product delivery. DMADV is commonly used to analyze and evaluate the design of a product, service or process. It aids in devising a matrix of new methods and monitoring ongoing performance and results. DMAIC is best for improving existing products and services, while DMADV is ideal when existing processes do not meet current objectives.

How Six Sigma Relates to the Project Management Body of Knowledge (PMBoK)

The PMBoK is the established standard used by professional project managers across industries. It is also the foundational knowledge required for certification as a project management professional by the Project Management Institute and is required knowledge for certification as a project management professional (PMP). The PMBoK develops skills — many of which overlap with the Six Sigma discipline — in project plan development, time and cost management, quality management and risk management. Students in the Southeastern Oklahoma State University online MBA with a Concentration in Project Management program will develop these skills and enable project managers to engage in continuous improvement of their processes and careers.

Learn more about Southeastern Oklahoma State University’s online Master of Business Administration with a Concentration in Project Management program.