Identify Business Problem
At the beginning of a Six Sigma project, the Business Problem is defined. Questions such as What, When, Where are addressed in a problem statement. Magnitude and Consequence of the problem is also discussed. Project Scope is identified.
Identify Statistical Problem
Root causes for the business problems are identified. Those root causes are converted into statistical problems using Hypothesis testing methods. Trivial Many Causes: These are all the possible causes of the given problem. They may cause impact to the problem. Vital Few Causes: These are the few critical causes which cause maximum impact over the problem.
Identify Statistical Solution
Identification of only 3-4 vital root causes using statistical analysis is achieved. These root causes are vital because they have maximum impact on the problem. Any given problem follows a Pareto principle which states that 80% of the problems are caused due to 20% of the root-causes. Solutions to these root causes are studied and an optimal value for each solution is identified.
Identify Business Solution
These statistical solutions are then converted to implementable practical solutions. Implementation of these business solutions is carried out in the process. Improvements are observed and sustained.