Manufacturing BasicsProgram & Project Management

What Is Six Sigma in Project Management?

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By Joel Smith - Guest Contributor

Published
5 min read
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How can Six Sigma methodology and software transform your project management strategy?

Do your projects ever have early defects that send them off the rails? As a project manager, are you aware of how much time and money your company loses to these unexpected problems?

Six Sigma techniques help you eliminate potential issues by streamlining your project management process, and making every project more efficient with each iteration. 

This article will walk you through the process of implementing the Six Sigma methodology, and we’ll also recommend software for each phase of Six Sigma to help you streamline its implementation.

What is the Six Sigma methodology?

Six Sigma is used to improve processes by reducing error frequency. It was originally developed to eliminate defects in manufacturing and uses statistical tools and data to continually optimize project execution. Six Sigma is implemented using a step-by-step framework to collect data and identify defects in a project.

What are the benefits of using Six Sigma in project management?

Improving processes with Six Sigma reduces all types of waste. In project management, it's used to iterate and improve project execution. 

Here are some of its project management benefits:

  • Fewer mistakes

  • Less wasted time

  • Reduced project costs

  • Streamlined processes

Motorola developed Six Sigma in the 1980s, and by 2006, Six Sigma techniques saved them $17 billion[1]. However, this process isn't just for large corporations. The principles of Six Sigma can be used to reduce costs in projects of any size. Small businesses can benefit just as much from process improvement.

The 5 phases of Six Sigma 

There are 5 phases of implementing the Six Sigma methodology. They're summarized in one acronym: DMAIC. DMAIC stands for:

  • Define

  • Measure

  • Analyze

  • Improve

  • Control

As we detail the phases of Six Sigma below, we'll also discuss software that helps you implement each step. Additionally, it’s important to note that having Six Sigma-trained members on your team will make implementing those processes easier.

Define: Set the goals and direction for implementing Six Sigma in your projects

When using Six Sigma for project management, define your targets. What are you trying to accomplish with the particular project you’re working on? Your results from implementing Six Sigma depend on your goals. What do you want to measure? Clarify the outcomes you want to achieve and the metrics you'll track.

/ Software to implement

OKR, or “objectives and key results,” is a method for defining business goals. The “objective” represents your overall goal for implementing this process. The “key results” are how you track the step-by-step process of getting there. They are measurable benchmarks on the path toward your goal.

Measure: Track your criteria for project completion

You'll execute the project and track your key metrics in this step. Measure your progress against the desired outcome, and collect data as the project unfolds. Later, you'll use that data to develop process improvements.

/ Software to implement

A Gantt chart is a horizontal chart that tracks your project's progress. It is a timeline of all the tasks and how long it's taken to complete them. This software makes creating Gantt charts easy.

Analyze: Study the collected data, and learn from the results

After the project, look back on the data you've collected. What story does it tell?

Use this information to develop solutions to any problems that occur. The detailed data often clarifies areas for improvement.

/ Software to implement

Using data analysis software to analyze your data makes the process efficient. If you've tracked your OKRs using quantitative data, compile it to see what story it tells. Your data might include feedback from your team or other qualitative metrics.

Improve: Use the lessons learned to develop new project management techniques

Now that you've analyzed the data, it's time to come up with solutions. Look at areas where things could have gone better. Also, pay attention to processes that worked well. Come up with new process ideas to improve your project management strategy. Save these plans so you can review them before future projects.

/ Software to implement

You can use idea management software to organize ideas for improvement. These can come from the data you've gathered, and your team can share their insights as well. Collect your ideas using this software, then decide which ones to implement into your future projects.

Control: Implement the new project processes, and create systems to apply them

This step ties together all the phases of Six Sigma. Take the improvements from the last step and implement them. Adjust how you execute each project with your new ideas in mind. Put controls in place to ensure the process changes are applied.

Writing down your project management processes ensures they are repeatable and consistent. 

Once you have defined your processes, adjusting them to reflect changes is simple.

/ Software to implement

Business process management software will enable you to streamline your business processes based on your ideas for improvement. Digital processes can be automated using this software, and other processes can be systemized. To systemize a process, write out its workflow into repeatable, step-by-step instructions. Then the results are more consistent, because the process is executed the same way every time.

Implement Six Sigma in your project management strategy

Now that you've learned how Six Sigma processes work, it's time to take action. Brainstorm how to implement the Six Sigma methodology with your team. They will be a crucial element of your project management strategy. To wrap up, we'll share a software category that can assist with implementing Six Sigma.

/ Software to implement

Kanban is a task management tool that can guide the Six Sigma methodology. Add tasks to the “board” to track their completion. You can set up a board for each phase of Six Sigma, and add the steps of each stage.

How to implement Six Sigma today

Let’s review how using Six Sigma can reduce defects in your projects. Applying it consistently will improve your project management strategy with every iteration. Over time, you’ll cut costs on every project.

Here’s how you can implement each step to improve your project management processes:

  1. Define: For each process, determine the end result you want to achieve. What’s your goal for implementing Six Sigma?

  2. Measure: In order to achieve your goal, you have to know your starting point. Collect data on your process, and track errors in project execution.

  3. Analyze: Now that you have the data, it’s time to interpret it. Look at the data for repeated points of failure, and determine where the process could be more efficient.

  4. Improve: Use your analysis to come up with ideas for improving the process. Your team can provide their insights for project improvement too.

  5. Control: Finally, implement your ideas from the previous step. Add them into your project management process. 

  6. Then, repeat the Six Sigma framework with the process improvements included. Continue implementing Six Sigma until you’re satisfied with the efficiency and error rate of your projects.

You can get started implementing the methodologies of Six Sigma today. Start by taking a look at the software categories we've shared for each step of the process:

  1. Define: OKR Software

  2. Measure: Gantt Chart Software

  3. Analyze: Data Analysis Software

  4. Improve: Idea Management Software 

  5. Control: Business Process Management Software 

Overall: Kanban Tools Software


Sources

  1. What Is Six Sigma?, Six Sigma Daily


Looking for Project Management software? Check out Capterra's list of the best Project Management software solutions.

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About the Author

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Joel Smith is a writer based out of Kalamazoo, Michigan. A former company founder, he specializes in writing about business, technology, and cryptocurrencies.

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