Risk management in a highly globalized environment means staying current with consumer demands, ever-changing product complexity and the push for continuous improvement and efficiency. The systematic Six Sigma methodology is designed to help prioritize and make sense of constantly changing requirements, global markets, supply chains and product complexity.
What is Six Sigma Management?
Six Sigma is a project management approach developed by a former Motorola vice president and quality assurance manager. Six Sigma’s objective is to increase the quality and efficacy of the business procedure in question. Specifically, the methodology aims to:
- Identify defective processes or components thereof
- Correct or remove the identified elements
- Minimize variability and redundancy in business processes
- Increase efficiency and profit by improving resource allocation and reducing waste
Lean Six Sigma places particular emphasis on collaboration as a means to minimizing waste.
Six Sigma Principles and Methodologies
There are three “pillars” of Six Sigma, each of which is supported by the LogicManager platform:
- Reaching the desired result requires a constant stream of resources and monitoring efforts
- All business processes are composed of elements that can be identified, assessed, evaluated, and augmented
- Improving the quality of your process/product requires effort from the entire organization, particularly executive management
Six Sigma adheres to either of two methodologies: DMAIC and DMADV.
DMAIC stands for:
- Define each variable (goals, customers, processes, product, etc.)
- Measure the important components of your current operations
- Analyze the data you’ve collected to uproot cause/effect relationship and root causes
- Improve the business process, if possible – if not, replace it
- Control future inefficiencies before they manifest as product/service defects
DMADV has similar elements and stands for:
Here’s How LogicManager Facilitates Six Sigma Management
LogicManager’s ERM software supports Lean Six Sigma methodology for risk management by providing root-cause analysis tools and a patent-pending Taxonomy. Both of these resources streamline the DMAIC and DMADV methodologies.
As the only risk management software that links risk assessments to actual impact on performance, LogicManager uniquely identifies program deficiencies so risk managers can implement controls, metrics, and workflows that provide bottom-line value to the organization.
Six Sigma methodology is made actionable and reportable through integration with the RIMS Risk Maturity Model for enterprise risk management, an internally facing framework scientifically aligned with up to 25% increase in firm value.
The LogicManager Platform Provides:
LogicManager provides resources and mentoring so you can successfully complete each component of the Six Sigma methodologies:
- Root-Cause Risk Library (KPIs)
- Complete the define step by tapping into a pre-built (entirely customizable) library of risks. LogicManager comes out-of-the-box with hundreds of defined risks, approximately 70% of which are cross-functional and 30% of which are industry specific. The root-cause library also helps with the analyze part of DMAIC and DMADV.
- Risk Assessment Criteria and Tools
- Completing the measure step is made easy with a series of industry best-practice assessment criteria templates. The templates standardize all your assessments, ensuring every department can easily communicate with any other department.
- Our risk assessment tools make it easy to reach out across departments, push out risk assessments, surveys, and tasks, and document existing mitigation and monitoring activities.
- Risk Mitigation Strategies & Controls
- Improve by building a searchable repository of mitigation activities, which you can pin to specific risks and assign to specific parties in your organization. Changes in threat levels are no longer a problem – simply consult with the control owner to determine affected activities.
- Control the future by monitoring your mitigation activities and adjusting them as needed.