Standards Comparison

    Six Sigma

    Voluntary
    1986

    Data-driven framework for defect reduction and variation control

    VS

    ISO 31000

    Voluntary
    2018

    International guidelines for enterprise risk management.

    Quick Verdict

    Six Sigma drives process excellence through DMAIC and defect reduction for operational gains, while ISO 31000 provides risk management guidelines for strategic resilience. Companies adopt Six Sigma for cost savings and quality; ISO 31000 for informed decisions and uncertainty navigation.

    Process Improvement

    Six Sigma

    ISO 13053:2011 Six Sigma Methodology

    Cost
    €€€€
    Complexity
    Medium
    Implementation Time
    12-18 months

    Key Features

    • Structured DMAIC methodology for existing processes
    • Professional belt hierarchy and roles
    • Data-driven statistical root cause analysis
    • Tollgate governance linking to strategy
    • SPC control plans for sustainment
    Risk Management

    ISO 31000

    ISO 31000:2018 Risk management — Guidelines

    Cost
    €€€
    Complexity
    Medium
    Implementation Time
    12-18 months

    Key Features

    • Eight core principles for effective risk management
    • Integrated framework with leadership commitment
    • Iterative six-step risk management process
    • Customizable to any organization or context
    • Non-certifiable guidelines emphasizing continual improvement

    Detailed Analysis

    A comprehensive look at the specific requirements, scope, and impact of each standard.

    Six Sigma Details

    What It Is

    Six Sigma is a de facto management framework (ISO 13053:2011 provides formal guidance) focused on reducing process variation and defects to achieve near-perfect quality levels (3.4 DPMO). It employs a data-driven, statistical approach via DMAIC (Define, Measure, Analyze, Improve, Control) for existing processes and DMADV for new designs.

    Key Components

    • DMAIC/DMADV methodologies with phase deliverables and tollgates.
    • Belt hierarchy: Champions, Master Black Belts, Black/Green Belts.
    • Tools: MSA, SPC, DOE, FMEA, control plans.
    • Governance model tying projects to financial returns; certification via ASQ/IASSC.

    Why Organizations Use It

    Drives cost savings (e.g., GE $1B+), customer satisfaction, risk reduction. Voluntary but strategic for competitiveness, compliance integration (ISO 9001). Builds data culture, stakeholder trust via proven ROI.

    Implementation Overview

    Phased rollout: sponsorship, training, project portfolio, DMAIC execution, sustainment. Suits all sizes/industries; enterprise-scale needs 12-18 months. No mandatory certification; internal audits ensure maturity.

    ISO 31000 Details

    What It Is

    ISO 31000:2018, Risk management — Guidelines is a non-certifiable international standard providing principles-based guidance for systematic risk management. Its primary purpose is to help organizations of any size or sector manage uncertainty affecting objectives, using an integrated, iterative approach focused on creating and protecting value.

    Key Components

    • **Three pillarsEight principles (e.g., integrated, customized, dynamic), a framework (leadership, integration, design, implementation, evaluation, improvement), and a six-step process (communication, scope/context/criteria, assessment, treatment, monitoring/review, recording/reporting).
    • Built on PDCA cycle; no fixed controls, emphasizing flexibility.
    • Guidelines only, not for certification.

    Why Organizations Use It

    • Enhances decision-making, resilience, and opportunity capture.
    • Builds stakeholder trust, supports governance, reduces losses.
    • Aligns with regulations/standards like ISO 27001; voluntary but strategic for competitiveness.

    Implementation Overview

    • Phased: leadership alignment, gap analysis, pilot, rollout, monitoring.
    • Tailored to context; involves policy, training, tools (e.g., GRC platforms).
    • Applicable universally; no audits required, internal assurance suffices. (178 words)

    Key Differences

    Scope

    Six Sigma
    Process improvement, defect reduction via DMAIC
    ISO 31000
    Enterprise risk management principles and process

    Industry

    Six Sigma
    All industries, manufacturing to services
    ISO 31000
    All organizations, any sector globally

    Nature

    Six Sigma
    De facto methodology, certification optional
    ISO 31000
    Non-certifiable guidelines, voluntary framework

    Testing

    Six Sigma
    Statistical validation, MSA, capability analysis
    ISO 31000
    Risk assessment, monitoring, internal reviews

    Penalties

    Six Sigma
    No formal penalties, project failure risks
    ISO 31000
    No penalties, poor risk decisions consequences

    Frequently Asked Questions

    Common questions about Six Sigma and ISO 31000

    Six Sigma FAQ

    ISO 31000 FAQ

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