Six Sigma Six Sigma at many organizations simply means a measure of quality that strives for near perfection. Six Sigma is a disciplined, data-driven approach and methodology for eliminating defects (driving toward six standard deviations between the mean and the nearest specification limit) in any process – from manufacturing to transactional and from product to service. The statistical representation of Six Sigma describes quantitatively how a process is performing. To achieve Six Sigma, a process must not produce more than 3.4 defects per million opportunities. A Six Sigma defect is defined as anything outside of customer specifications. A Six Sigma opportunity is then the total quantity of chances for a defect. Process sigma can easily be calculated using a Six Sigma calculator. The fundamental objective of the Six Sigma methodology is the implementation of a measurement-based strategy that focuses on process improvement and variation reduction through the application of Six Sigma improvement projects. This is accomplished through the use of two Six Sigma sub-methodologies: DMAIC and DMADV. The Six Sigma DMAIC process (define, measure, analyze, improve, control) is an improvement system for existing processes falling below specification and looking for incremental improvement. The Six Sigma DMADV process (define, measure, analyze, design, verify) is an improvement system used to develop new processes or products at Six Sigma quality levels. It can also be employed if a current process requires more than just incremental improvement. Both Six Sigma processes are executed by Six Sigma Green Belts and Six Sigma Black Belts, and are overseen by Six Sigma Master Black Belts. According to the Six Sigma Academy, Black Belts save companies approximately $230,000 per project and can complete four to 6 projects per year. (Given that the average Black Belt salary is $80,000 in the United States, that is a fantastic return on investment.) General Electric, one of the most successful companies implementing Six Sigma, has estimated benefits on the order of $10 billion during the first five years of implementation. GE first began Six Sigma in 1995 after Motorola and Allied Signal blazed the Six Sigma trail. Since then, thousands of companies around the world have discovered the far reaching benefits of Six Sigma. Many frameworks exist for implementing the Six Sigma methodology. Six Sigma Consultants all over the world have developed proprietary methodologies for implementing Six Sigma quality, based on the similar change management philosophies and applications of tools. Managing Six Sigma to enhance the quality of the organisation? 1. Leadership/top management commitment is essential. Secure the top management commitment by first training them. This training should consist of an introduction to Six Sigma, tools and techniques used, and the roles and responsibilities of the management as Champions. The leadership team has to be totally convinced of the benefits of Six Sigma. In addition, executive management should form a steering committee to ensure that: Organizational goals are aligned with Six Sigma projects. Resources are planned for and roadblocks removed. A person to lead this effort in the organization is selected. They will be trained as a Black Belt and will report to the Steering Committee. They must select their best performing person for this job. 2. All leaders should be trained as Six Sigma Champions. This is normally a two-day training session that ensures that the Champions learn to ask the right questions of Six Sigma practitioners. This group includes the steering committee, process owners, and functional managers (like the production manager, maintenance manager, etc.). 3. Include Six Sigma planning within the business operating plan. Ensure that when the operating plan for the next year(s) is being made, Six Sigma project savings become an input for that plan. 4. Select the right consultant to train your Belts. There are a lot of mediocre programs floating around being offered even by reputed training institutions. One point to remember is that you will be best trained by a Six Sigma practitioner (Black Belt or Master Black Belt) rather than an academic who will teach you only theory. A typical Black Belt training program is spread over 4-5 months, and a Black Belt will need to complete 2 projects before they are certified (which will typically take longer than 6 months). A Green Belt training program is spread across 4 months and requires one project for certification. At Owens Corning I designed a White Belt (3 day) training program to help employees on the shop floor lead their own projects (though smaller in size and duration). 5. Ensure that the return on training investment is at least 20 times. This can be done by good project definition and correct practitioner allocation. 6. Get the movement going at the shop floor level. Rather than having a few Black Belts or Green Belts doing projects all the time, train shop floor operators and supervisors in the use of tools and techniques (White Belt program). This way the ownership is theirs and they are doing the improvements on their own. Reward well the project leaders and their team members when they receive certification. Make it such that other people aspire to get this certification. The certified candidates should be adequately compensated during their annual performance review. 7. Create a certification process. Ensure that the certification process is rigorous and true. This will ensure that only after successful completion of projects and demonstrating proper use of tools/techniques, the practitioner candidate will get certified. The functional area manager, finance leader and Six Sigma reviewer should sign on the certificate declaring that the benefits have actually started accruing. 8. Develop a mentoring process. Ensure that proper guidance/handholding is being done by experienced practitioners for the new candidates after their training. This will ensure that the course corrections are made regularly and the projects get completed on time. 9. Ensure financial validation of projects. Make sure that the finance leader is signing off on the project’s actual savings. The finance department should do the reporting of the metrics and savings in the control phase of the projects. The project metrics should continue to be tracked after the project is declared completed. This tracking responsibility should be on the project leader or process owner if handed off by the project leader. 10. Never allow Six Sigma to be classified as a quality manager’s job. A quality manager’s role is distinct and they will not be in position to manage the Six Sigma process as for the entire business.
Posted on: Sat, 18 Jan 2014 04:18:21 +0000
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