The 6 Steps to Six Sigma

Step 1

Get the proper level of Six Sigma expertise at the executive level of the company. If the top leaders don’t understand the advanced six sigma principles, the company has no shot to attain total quality. This will probably require a hefty budget, entailing the hiring of several high-priced consultants for long periods of time. The consultants need to observe and gather data about the companies operations, and show the executives how to interpret the data.

Step 2

Get the staff involved. The ones in the trenches are the most knowledgeable about the day-to-day operations, and the day to day’s are where most costs are spent. This means getting people like the shop foreman, the line supervisor, and the office manager involved in the training. Not only do they need to understand the thinking behind six sigma, but they also need to buy into the benefits. Since they’re the ones carrying out the orders and directing the vast majority of employees, if the trench-level staff isn’t aligned with management, the company is sunk.

Step 3

Measure the data - quantify the number of defects per unit. This applies not only to manufacturing, but to services as well. It’s easier to measure defects on an assembly line. You just divide the number of defective units by total output (that’s really simplified, but you get the point). Services are more vague.

This is why it is vital to get input from your customers. Ask them how things are going from their perspective. Is there anything they would like to see you improve on that would make their experience more favorable? You’re looking to increase overall quality. Nobody knows your faults better than your customers.

Everything must be measured and quantified into actual numerical data. How long does it take the average customer order to ship? What percentage of customers is satisfied with your performance? What is the average employee break time? How long does it take the customer service department to answer the phone? Once enough data is gathered to answer questions like these, the six sigma process and the path to quality improvement can begin.

Step 4

Now you must analyze all of the data that has been collected so far and identify the difference between perfection and your current operating efficiency level. The goal is to constantly close the gap between the two. Again, as stated in Step 2, staff buy-in is extremely important. If management does not show a link between "total quality improvement" and "workplace improvement," then all the data collection will go to waste. The staff will not willingly take the extra steps (which often require harder, more detailed work) if they are not being rewarded. Some companies use bonuses to provide incentive, other companies offer prizes for attaining goals or add employee perks based on improvement levels.

Step 5

Now is the time for improvement. Changes in procedure and operations should have been in place, and more data should be collected to gauge the level of overall quality improvement. Either the hired consultants or an internal team of Six Sigma Black Belts should supervise the data collection. Again, this step will be expensive. Gathering the vast amount of data needed to accurately assess performance takes a great deal of time, resources, and capital. But without proper data and measurement, you will never know if the changes are working or not.

Step 6

After improvement begins, the constant chore of ongoing control must be monitored. Unforeseen variables will arise. Employees may turn over, competitors might introduce new products, your facility may undergo changes, and many other things could happen which will impact the overall quality of your business. Top level Black Belts need to be constantly analyzing data to gauge the impact of any future changes, spot possible trends, and formulate actions to keep on the path of consistent and eternal improvement.

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Six Sigma And Healthcare

Six Sigma methodologies aim at improving overall quality by eliminating defects and achieving near perfection by restricting the number of possible defects to less than 3.4 defects per million. Six Sigma methodologies were originally developed for implementation in the manufacturing sector but with time their use has spread to the services sector as well. In the services sector, Six Sigma concepts are used mainly for eliminating transactional errors.

Today, the concepts and methodologies of Six Sigma are increasingly being used in the healthcare industry for improving the quality of services rendered, increasing efficiency, and eliminating human errors that can often prove fatal. However, the use of Six Sigma in the healthcare industry is a relatively new phenomenon as compared to other service industries that have undergone some type of data-supported, systematic, quality-improvement process. With medical and technological advancements, the demand and expectations for improved medical care are continuously increasing. However, due to lack of effective management systems, inefficiency is increasing, which often leads to congested emergency rooms, customer complaints, and lost revenues.

Benefits

Six Sigma concepts and methods enable a healthcare organization to offer improved healthcare services to patients by streamlining business processes. In the healthcare industry, the quality of services rendered depends a lot on human skills, which is often very difficult to measure and control. Six Sigma is effective as it is based on a comprehensive approach that focuses on improving both human as well as transactional aspects of a process. Although implementing Six Sigma concepts in the healthcare industry is a challenging task, it does help in getting quick results.

In the healthcare industry, the factors that determine the quality and efficiency are usually the flow of information and interaction between people. Six Sigma helps in streamlining the flow of information and achieving strategic business results by initiating cultural shifts all throughout the organization. Six Sigma focuses on improving processes rather than just concentrating on the task, which helps in increasing the scope of improvements. It provides the necessary tools and methodologies that help in analyzing and transforming human performance, necessary for achieving significant long-term improvements.

Process

Six Sigma helps in defining a vision for the future, identifying specific goals, and establishing quantitative measures for turning that vision into reality. It helps in formulating goal plans and setting timelines for moving from current performance levels to Six Sigma performance levels. The plans are defined only after documenting their effects on the organization’s work processes’ that may include flow of information, surgical site procedures, handling patients, and others.

The basic requirements for successfully implementing Six Sigma programs are usually long-term vision, commitment, leadership, management, and training. It is important to provide the requisite training to doctors, nurses, and the administrative staff for making them aware about the various concepts and methodologies. The training may initially appear to be expensive, but is often worth the cost when one considers the benefits such as improved quality of services and increased efficiency. It is necessary for employees working in a healthcare organization to develop an understanding about the various Six Sigma concepts. This will help them in integrating new techniques into the Six Sigma processes for improving quality and effectiveness.

Tony Jacowski is a quality analyst for The MBA Journal. Aveta Solution's Six Sigma Online ( http://www.sixsigmaonline.org ) offers online six sigma training and certification classes for lean six sigma, black belts, green belts, and yellow belts.

Keys To Six Sigma Success

Six Sigma delivers but its success hinges largely on the seriousness of the organization. Although, it is not as simple and as this, Six Sigma is gradually following a path that its processors took during their heydays. While it is too early to predict the future of Six Sigma, it gradually is causing fewer eyebrows to raise in boardrooms across the world anymore. We will take an insider look at the causes for this and what keys open the door to Six Sigma success, as both are inseparable from each other.

An Insight Into Six Sigma Implementation

Six Sigma requires the organization restructured correctly from top to bottom. From Champions to Green Belts, people are hired or insiders are trained for specific duties. Personnel at each level of the organization have their assigned and well-defined jobs with varying degrees of authorities and powers so that, apart from executing their routine job duties, they are able to effectively solve problems. This is a sticky issue where powers overlap within executive departments. Unfortunately, at times this causes relationships to sour, however unintentionally. The actions of champions, who are supposed to intervene, can be mistaken for intrusion in cross-departmental matters such as this.

It is here that the success of Six Sigma requires total commitment from upper management of organizations. If the tense atmosphere is not remedied, Master Black Belts or Black Belts can get frustrated and fail to concentrate. Further deterioration, whether because of procrastination on the part of Champions or upper management, brings professionals into the fear zone. Consequently, the Six Sigma implementation suffers. The delay in its implementation adds to the already hefty financial bills with results yet to be realized.

Obviously, this pushes upper management into a corner with few options. With the commitment of upper management being challenged, the vision that the organization had fails to gel with the larger scheme of things.

Key To Successful Implementation Of Six Sigma

More or less, it is slow implementation that throws the Six Sigma vision into question. If the first among these is the miscalculation about the different aspects which include the saving potential and implementation timeframe, the intensity with which the implementation is being made comes in a close second.

The Anomaly Of Limited Savings: It is agreed that Six Sigma implementation is a huge expense to organizations, but if companies adopt stringent accounting practices to calculate savings, with tightening of expenditure as may become appropriate, results can be expected to turn around. The expenditures can be calculated just like capital expenditures, and proper adjustments to future budgets must be made. Failing this, savings in terms of money in such cases cannot be expected to be substantial.

The Intensity Factor: If for any reason, there are less stringent implementation methodologies and the process is pushed through without proper training of professionals, you can expect the results to be mediocre. Compromises give way to a slippery slope and ultimately the failure of Six Sigma.

Tony Jacowski is a certified Master Black Belt for Aveta Solutions – Six Sigma Online ( http://www.sixsigmaonline.org ). Six Sigma Online offers online six sigma training and certification classes for lean six sigma, black belts, green belts, and yellow belts.

Six Sigma In A Small Business

As a small business owner, you will eventually sense the need for Six Sigma implementation in your business. Typically, yours is a 3-5 year old company on the threshold of expanding your operations to meet the growing customer expectations but is cornered to optimize your resources on generating more sales than anything else. Small companies in the bracket of 50-100 employees (most of them being non technical) and revenue of $10-15 million find themselves in this fix. The predicament at this stage is one of a person who is caught between a tiger and cliff.

Finding A Way Out Of The Jam

The situation needs to be given a rational thought concerning how many resources can be afforded and whether the time has really come for Six Sigma. The cost of hiring consultants being hardly affordable, you have to explore options like hiring a Black Belt and having some of your employees trained in-house for Green Belt positions.

What you probably don’t want to miss out on in hiring an experienced Black Belt, although expensive, are the benefits you get because of her/his domain knowledge and experience. Her proven track record will have the best chances of outweighing the initial cost benefit of grooming in-house Black Belts. An experienced Black Belt helps by bringing the focus immediately into a pressing issue on hand which is crucially important to the organization. Alternately, your best man with brilliant analytical and leadership skills may be trained as a Black Belt, and you may enroll in a Champion Session.

The trouble with this kind of an arrangement is whether you can afford to lose your best person from his current job. Enrolling Black Belts, can be an option for you, but you must realize that it takes some time before the new Black Belts get acclimatized with your scheme of things. At the same time, Green Belts, most often being part-time, don’t need to be of high skill. Choosing a few reasonable persons from your organization will suffice. A great Black Belt can take minor shortcomings of Green Belts in stride and things will eventually balance out.

Resolving The Issue Of The Master Black Belt

Even an experienced Black Belt will need the support of a Master Black Belt. The vacuum can be felt typically when the Black Belt finds herself in a logjam. A typical case could be one of technical or organizational reasons. But hiring Master Black Belts is a costly proposal. Secondly, growing and training Master Black Belts in house is also impractical. You will have to hire a consulting Master Black Belt.

But getting a professional is not easy, especially when many of them are more interested in increasing ‘their-hours-in-work’ than in the task. You can consult your state’s ‘Manufacturing Extension Programs’ or a trusted contact to refer you to a consulting Master Black Belt. In any case, with you at the helm of affairs, you will know when to pull the plug when something is not working out.

Caution Is The Word

Probably you would want to go one project at a time. Assessing your progress at intervals should direct the course of action. Brainstorm with your internal team to decide on activities to go for Six Sigma and which of the activities are measurable. Establishing measurability and metrics beforehand is important.

Tony Jacowski is a quality analyst for The MBA Journal. Aveta Solutions – Six Sigma Online ( http://www.sixsigmaonline.org ) offers online six sigma training and certification classes for lean six sigma, black belts, green belts, and yellow belts.

Six Sigma In A Small Business

As a small business owner, you will eventually sense the need for Six Sigma implementation in your business. Typically, yours is a 3-5 year old company on the threshold of expanding your operations to meet the growing customer expectations but is cornered to optimize your resources on generating more sales than anything else. Small companies in the bracket of 50-100 employees (most of them being non technical) and revenue of $10-15 million find themselves in this fix. The predicament at this stage is one of a person who is caught between a tiger and cliff.

Finding A Way Out Of The Jam

The situation needs to be given a rational thought concerning how many resources can be afforded and whether the time has really come for Six Sigma. The cost of hiring consultants being hardly affordable, you have to explore options like hiring a Black Belt and having some of your employees trained in-house for Green Belt positions.

What you probably don’t want to miss out on in hiring an experienced Black Belt, although expensive, are the benefits you get because of her/his domain knowledge and experience. Her proven track record will have the best chances of outweighing the initial cost benefit of grooming in-house Black Belts. An experienced Black Belt helps by bringing the focus immediately into a pressing issue on hand which is crucially important to the organization. Alternately, your best man with brilliant analytical and leadership skills may be trained as a Black Belt, and you may enroll in a Champion Session.

The trouble with this kind of an arrangement is whether you can afford to lose your best person from his current job. Enrolling Black Belts, can be an option for you, but you must realize that it takes some time before the new Black Belts get acclimatized with your scheme of things. At the same time, Green Belts, most often being part-time, don’t need to be of high skill. Choosing a few reasonable persons from your organization will suffice. A great Black Belt can take minor shortcomings of Green Belts in stride and things will eventually balance out.

Resolving The Issue Of The Master Black Belt

Even an experienced Black Belt will need the support of a Master Black Belt. The vacuum can be felt typically when the Black Belt finds herself in a logjam. A typical case could be one of technical or organizational reasons. But hiring Master Black Belts is a costly proposal. Secondly, growing and training Master Black Belts in house is also impractical. You will have to hire a consulting Master Black Belt.

But getting a professional is not easy, especially when many of them are more interested in increasing ‘their-hours-in-work’ than in the task. You can consult your state’s ‘Manufacturing Extension Programs’ or a trusted contact to refer you to a consulting Master Black Belt. In any case, with you at the helm of affairs, you will know when to pull the plug when something is not working out.

Caution Is The Word

Probably you would want to go one project at a time. Assessing your progress at intervals should direct the course of action. Brainstorm with your internal team to decide on activities to go for Six Sigma and which of the activities are measurable. Establishing measurability and metrics beforehand is important.

Tony Jacowski is a quality analyst for The MBA Journal. Aveta Solutions – Six Sigma Online ( http://www.sixsigmaonline.org ) offers online six sigma training and certification classes for lean six sigma, black belts, green belts, and yellow belts.

Six Sigma And Beyond

“Six Sigma has galvanized our company with an intensity the likes of which I have never seen in my 40 years at GE.” Jack Welch admitted this in the year 2000 annual report of GE. As one goes by various comments, it becomes clearer that Six Sigma is not just a fad created by top management but an effective tool to fix gaps in performance which play a role in making improvements to the bottom line and customer satisfaction.

But is it enough for companies to have the ‘gaps’ closed just once? Does it ensure that ‘normalcy’ will not return to the daily scheme of things? Does Six Sigma need to be continued in order that the momentum gained is never lost? What would be the financial impact of continuing Six Sigma beyond complete implementation?

The Robust Nature of Six Sigma

Six Sigma’s intrinsic strength lies in its structured questioning ability which, when rationally executed, bring forth the inherent shortcomings in any process. The implementation methodology allows for comparing the prevailing procedure against what is defined to being the most suitable one at reducing error-producing subroutines. For example, removing errors from the preparation stage will have a positive impact on subsequent processes.

At certain levels, this is called as Customer Value Creation (CVC). CVC is a two stage method which comprises Customer Value Analysis and Operational Excellence or OE. Both of these are driven by a thorough understanding of customer values and the excellence in operation needed to achieve that. OE, as such, is a thorough fact based and analytical approach to removing bottlenecks.

Looking Beyond Six Sigma

Preparing the mindset for looking beyond Six Sigma requires a continuum plan for the road ahead. It is said that Six Sigma brings the objectives of companies to a winning stage; it is sustained for the future when a quality approach is adopted as a culture by the entire organization. Having set the stage, preparing for growth thereafter requires an ‘outside in’ approach and a retrospective view.

The “outside in” approach: The “outside in” approach begins with looking inside from the perspective of the customers. This is different from that of a mere marketing slogan. With a strong footing in science, taking into account behavioral economics across customer demographics, it covers the infrastructure support, after-sales service and supply chain management. In a way, the “outside in” approach paves the way for operational excellence (OE).

Operational Excellence is said to be focused on execution. If the “outside in” perspective works toward dispelling myths and wrongly conceived notions about customer needs, OE on the other hand, by using powerful analytical and measuring tools, prepares the ground for returning what the customer data revealed.

For looking beyond Six Sigma, a long-term vision is expressed and it can be summarized as a ‘growth cube’. The vision seeks to place the customer on top on a continuous basis. It comprises and emphasizes customer profitability and customer share with the number of customers. The growth cube is framed with a view to long lasting growth in terms of the three components instead of growth volumes.

Tony Jacowski is a quality analyst for The MBA Journal. Aveta Solutions – Six Sigma Online ( http://www.sixsigmaonline.org ) offers online six sigma training and certification classes for lean six sigma, black belts, green belts, and yellow belts.