Six Sigma in Data Warehousing

Six Sigma was originally developed as a method for reducing defects and improving quality of business processes in the manufacturing industry. However, with the development of new concepts and methodologies, 6 Sigma is being increasingly employed in the services industry as well including the information technology (IT) industry.

Data warehousing costs often run into millions of dollars, making it very difficult for organizations to offer cost-effective DW related services to their customers. By implementing Six Sigma concepts and methodologies, IT companies have been able to reduce DW costs and even improve the level of services offered by their clients.

The basics of data warehousing

DW systems and methodologies are quite complex in nature and are designed to provide different types of services to customers. The various components of DW can be designed and developed by a company in house or by a third party (IT company) having the requisite experience in DW.

Most companies prefer joint development of DW components in consultations with the third party especially hired for this purpose. This method allows companies to utilize their own resources and that of the third party. This method helps in reducing developmental costs and avoiding costly mistakes such as missed deadlines and project reworks.

Data warehousing design challenges

By utilizing 6 Sigma concepts and methodologies, IT companies have been able to understand the exact design requirements of DW based on inputs provided by the client. By using Six Sigma tools and techniques, inputs are quantified to provide a specific target to software programmers who are working on the DW design. Based on the targets or objectives, software programmers fork out different DW designs and test each one of them in terms of ETL, which refers to extraction, transformation and loading of data. ETL is the main process in DW and if proper design is not developed, it could lead to increased ETL related costs.

ETL also has a direct affect on the end user, making it necessary to employ 6 Sigma concepts for developing a design that suits the requirements of the end-user. For ensuring that a newly developed design will cater to the requirements of the end user, the developers put each design through Six Sigma simulations. Simulations create all the problems that are common to DW for testing the efficacy of a DW design. After conducting such simulations, data is gathered and analyzed using Six Sigma statistical tools and techniques.

The DW design that manages to have the least number of problems during the simulations is selected and put through more extensive 6 Sigma simulations. After making the necessary changes, the DW design is ready to be implemented at the client site. Changes if any, are also made at the client site to improve the overall efficiency of the DW design. The chances of any major changes at this stage are very rare because the design has been thoroughly tested through Six Sigma simulations.

Using Six Sigma, IT companies have been able to offer multiple benefits to their clients such as reduced developmental costs, more efficient DW systems and components, and easier implementations. By utilizing Six Sigma in DW, IT companies have enabled their clients to concentrate more on their core objectives rather than waste precious resources on designing, developing, and implementing DW systems.

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