Six Sigma For The Non-Manufacturing Sector

The Six Sigma revolution has systematically taken over various sectors of the industry owing to its methodological process variations of working towards achieving targets and eliminating any defects occurring in them throughout the procedure. Since it aims at providing top class service and works towards being a reliable and valuable enterprise for its customers, it has made an entry into areas such as banking, telecommunications, marketing, insurance, healthcare, software and construction.

Range Of 6 Sigma

Earlier the scope of Six Sigma was limited to manufacturing processes, which accounted for only two percent of the United States industry. Nowadays, the non-manufacturing corporations such as IT management, Finance, Human Resource, Sales and services have also realized the need for top quality and are implementing Six Sigma to improve their service value. In most non-manufacturing organizations, quality of the soft processes is banked on heavily for the company's success.

The non-manufacturing course follows the 5S code under 6 Sigma system, which is Sort, Set in order, Shine, Standardize and Sustain. The company requires classifying various items and then eliminates the ones, which are not related to the process and red tags them. This clears space for a much-required process that needs to be implemented on a daily basis. Secondly, it defines a work path for all individuals, decreasing the wastage of labor and focusing on specified details of the job. Polishing the work skills and worker's knowledge is also focused on to keep the work force updated with the latest developments of the world in fields of science, technology, economics, finance and others.

Need For 6 Sigma In Non-Manufacturing Ground

The non-manufacturing corporations mainly deal with customers, suppliers and clients on a routine basis. It encompasses those soft processes that are the driving force behind the production and distribution of every product and service. The soft processes are human centric and each situation is a unique case hence, it requires scientific application to reduce and manage the variances. This necessitates standardization, as the quantity of automated equipment is less and human resource is greater.

Performance And Efficiency

Efficiency is another factor which demands Six Sigma application. The managers are required to think and formulate utility processes to enhance the working conditions for subordinates thereby extracting optimum work out of them. There would be no point in extracting work from employees unless and until it is efficient to further the productivity, quality and quantity. Six Sigma provides tools that can be implemented to boost labor confidence and motivate them to better performance levels thus increasing not only their advancement but also elevates the company standards in the market.

Practical Aspects Of Implementation

Managing finances is the basic aim of all non-manufacturing concerns. To maintain an organization's status is a difficult job and furthering its stand is a Herculean task. Without adequate finances the company cannot sustain itself and implementing Six Sigma would help in sorting out the accounting needs.

Six Sigma has chances of working wonders for the non-manufacturing sector if the managers and policy makers are more receptive towards changes and new conceptual ideas.

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

Is Six Sigma Quality Worth The Price to Your Business?

The last few years have done wonders for demonstrating the power and potential offered by Six Sigma Quality, Motorola's now famous revolutionary business design strategy.

It is clear that it has become quite popular among many businesses who have undertaken the massive re-training and re-thinking of their policies and procedures in order to implement the whole new Six Sigma Quality way of functioning. What may be unclear to you is whether or not this sacrifice is worth it to your business. After all, it does take a great deal of time, effort, and often money in order to properly take on this new way of doing business.

The main issue that seems to be debated among businesspeople considering the implementation of Six Sigma Quality isn't whether or not it will work for them, but is rather whether it is a true long-term strategy or simply a fad that will soon be forgotten by those who did not use it, and loathed by those who made the change.

To assuage those fears, it is important to recognize that Six Sigma Quality is not like other business processes and strategies. In fact, when you really get down to it, it isn't truly anything new. What it is, is a capable, practical, and logical combination of many existing business and quality techniques that have withstood the test of time and shown themselves to be the leading methods for success. When properly combined, they become a new way of thinking, using existing individual elements whose structure and discipline have proven to obtain extremely desirable results.

Naturally, this is not to say that employing Six Sigma Quality will guarantee success for any business, however, when properly implemented with black belt training Six Sigma Quality has an exemplary track record for effective project resolutions in large and small companies alike.

If you are considering Six Sigma Quality for your business, you need to understand that it is not an easy or overnight implementation. It can be quite lengthy, but is considered by most to be well worth the effort once everything is in place and its potential starts to show its face. You'll add value to your existing initiatives with the knowledge that all of the necessary steps are in place for your business to reach its financial targets.

In the end, it is your decision to make. Six Sigma Quality is, after all, an extremely large step for a company to take, and only you know how, when, if, and in what way your business may adopt it. Your first step is to read as much as you can about Six Sigma - including information both for and against it - and to speak to a professional you trust to give you an honest opinion.

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

Six Sigma & Strategic Planning

Strategic planning, as applied to Six Sigma, implies that the drawing down of elaborate and systematic planning of areas of concerns that have far-reaching and tactical implications at the project selection stage. The purpose of strategic planning is to have produced fundamental decisions and actions that guide successful Six Sigma implementation.

An Overview Of Strategic Six Sigma

Many CEOs are skeptical about the outcome of Six Sigma, despite huge annual spending. A critical component which helps integrate the visions of the leader with the functioning of the organization is strategic programming derived from "strategy deployment mapping". This is said to produce an entirely new direction for the organization. The skepticism about the vision of building a future begins to gain momentum with the linking of visions to action plans and when it delivers tangible results. Six Sigma takes strategic planning to a different plane of thinking by delivering on this promise.

Success Begins With Planning

It should not be forgotten that the foundation for success is proper and adequate planning. Planning is the elaborate statement of vision by the leader of the company. This is true for both large corporations and smaller start-ups. The core of transforming organizational vision into tangible gains by employees has many steps to overcome obstacles on the path to achievement. Achievements will have to be translated to customer satisfaction for Six Sigma to be successful.

Sharing Of Vision

The vision which begins its journey with upper management needs to be shared by all the stakeholders. It may be difficult to demonstrate to employees that their actions relate to customer reactions directly. Another missing link that needs to be connected is the customer himself. The emphasis of Six Sigma is on factoring in customers & engaging them in defining needs. Deploying employees actively connects these disjointed needs. The powerful tools of Six Sigma highlight and simplifies the linkage between key elements, activities, strategies and finally the vision, paving way for smooth sharing of ideas. The methodology of Six Sigma communicates company vision effectively to all concerned in a language understandable by each of them.

Critical Mass

There is also a danger of leaders getting bogged down by trivial matters of day-to-day operations and numerous details. Two of the tools of Six Sigma (metrics), key requirements and differentiators, come to the rescue. These two metrics highlight the importance or irrelevance of some data and push for excellence on those that matter. The end result is helping leaders to envision the strategic importance of activities and steering clear of trivial, mundane things.

Deployment of Six Sigma can't be disconnected from strategic planning and financial activities, either. If the decision to implement Six Sigma is a result of strategic planning, it means the leadership has recognized the need for complete retooling of the organization, no matter what phase it is in.

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

Is Six Sigma The Ultimate Management Tool?

Today, Six Sigma covers a very wide range of industries such as healthcare, banking, manufacturing and construction, to name a few. The 2 methodologies adopted by Six Sigma take care of the existing process and the new processes that still need to be developed, through DMAIC and DMADV respectively. DMAIC and DMADV are acronyms for process improvement methodologies. The methodology is hailed as the finest quality management system or tool that the industry has ever seen.

What Makes Six Sigma The Finest Quality Tool Ever?

Six Sigma came to occupy center stage riding on its success of its founder and pioneer Motorola's successful implementation. The comprehensive, structured approach of Six Sigma involves the entire organizational pyramid. The organization needs to dedicate 100% of its time to the usage of unique problem solving techniques, with no nonsense responsibilities.

The comprehensive approach involves top management with designated key roles responsible for identifying and reviewing projects. Middle implementation groups like the Champions and Master Black Belts dedicate their time to removing trans-jurisdictional bottlenecks and to problem solving. Trans-jurisdictional bottlenecks are potentially very serious and can possibly derail the implementation. Champions handle this very tactfully like seasoned warriors. Master Black Belts are extraordinarily talented in problem solving and in using sophisticated statistical tools.

Statistical tools are highly customized to the situation and are very versatile. These tools are used to question and measure the processes in any business environment with the goal to rationally analyze and design/correct them. If with Six Sigma, you can achieve 3.4 defects per million opportunities, save millions of dollars and satisfy customers in addition to making the company lean and mean and appealing to employees and owners alike, the methodology is indeed the ultimate management tool. But is it the ultimate quality management tool that can never fail? Or are there chinks in its implementation armor?

Failure of Six Sigma Fortune magazine on January 22, 2001 writes about the satellite phone, Iridium, made by Motorola, the pioneer of Six Sigma. The phone was an utter flop as no one bought it. This means that Six Sigma only assures quality but not customer satisfaction. Customers only buy things they really want.

There are certain statistical snags that experts point at. They are critical of the universal standard rule that Six Sigma uses instead of going case-by-case on different tasks and not using more appropriate, common-sense based tools, such as decision, theory and cost- benefit analysis.

The statistical methodology: Some critics are skeptical that Six Sigma is a marketing ploy that helps make money for all those involved, especially the consultants. Since the methodology is taught and practiced in only one way and since there is an absence of standardization of both implementation and Six Sigma training, it lacks consistency. Still others are scathing in their criticism that those who claim huge successes were total failures in quality control before Six Sigma and that their focus on small areas brought huge returns.

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

Six Sigma for Small Business

It is not surprising that some people may perceive Six Sigma as being only for large corporations. Major corporations such as Allied Signal, Black & Decker, Dow Chemical, Dupont, Federal Express, General Electric, Johnson and Johnson, Kodak, Motorola, Sony, and Toshiba have all rolled out Six Sigma efforts and achieved outstanding results. Yet, it is incorrect to think that Six Sigma process improvement results can only be achieved by huge organizations. Small businesses can also succeed in implementing Six Sigma and reap the process improvement benefits that Six Sigma provides.

Certainly, there are factors that can be disadvantageous for implementing Six Sigma in a small business rather than a large business, such as lack of resources and expertise in change initiatives. However, there are also characteristics inherent in small businesses that can speed up the effective implementation of Six Sigma more than in large businesses, such as flexible process flows, a shorter decision-making chain, and higher visibility of senior management.

Six Sigma can work in any size business because the nature of Six Sigma is dependent upon characteristics inherent to any business, not on the size of a business. Six Sigma MAIC (measure, analyze, improve, and control) disciplines work no matter the size of the organization or even the size of the Six Sigma project.

Small businesses do have constraints that limit their ability to initiate a large scale Six Sigma implementation. However, there are ways to overcome these limitations. Small businesses don't have large reserves of excess cash to earmark for the massive training programs employed by the large corporations in implementing their Six Sigma programs. Small businesses generally cant afford to have full-time Master Black Belts on staff and may not have the personnel with the skills and expertise to step into the role of Black Belts without extensive training. A certified Six Sigma consultant can act as your Black Belt for the initial projects until you have generated sufficient savings to be able to provide some of those savings for training your own people. Training happens at a slower scale for smaller companies but it still happens. Financially, savings realized from the first set of projects usually justifies the entire cost of the Six Sigma training.

Once some members of the organization have been trained as Green Belts, Six Sigma projects proceed with Green Belts executing Six Sigma processes. Incrementally, Green Belts are developed into Black Belts and new Green Belts are trained. Using a more gradual training approach addresses many of the constraints of smaller companies and allows them to implement Six Sigma at a pace a small business can more easily manage.

There is a benefit to implementing Six Sigma in a smaller business. Because of the size of a small business, the financial results and cultural transformation that stem from Six Sigma will propagate more quickly through a smaller organization. Focusing the Six Sigma tools at virtually any properly scoped project will drive savings to your bottom line and achieve breakthrough change in your organization.:
Peter Peterka is the Principal Six Sigma Consultant in practice areas of DMAIC and DFSS. Peter has over 15 years experience in including implementation of Six Sigma for small business with a variety of organizations. For additional information please contact Peter Peterka at Six Sigma us.

Six Sigma Project Selection

Selecting the project becomes the necessary step after identifying the need for process improvement in your business or, for that matter, your department. But selecting a project is a series of complex decision-making processes aided by a variety of tools. A wrong project selection for Six Sigma implementation means the project is not in line with your business. You will end up encountering the same roadblocks and going in circles over and again.

Steps Involved In Six Sigma Project Selection

The steps that need to be taken in selecting a project for Six Sigma vary as per your line of business and the scale of the operation. However, the whole scope of Six Sigma hinges on two key focal points, namely, ‘total customer satisfaction’ and ‘increased return on investment.’ The steps may be formulated, keeping this in view.

1. Put The Customer First: Customer satisfaction being the first focal point, know the critical points to assure quality to drive the project (VOC). Each individual customer has a different point of view about quality and the summation of them can be the first point. Make use of the Pareto Chart for prioritizing the issues.

2. Projects Must Be In Line With Your Business: List the top three roadblocks faced by all the functional heads in your organization. Ensure that the roadblocks are directly concerned with the business. This exercise prioritizes the elimination of such obstacles by everyone.

3. A Good Project Must Be Manageable: A good, realistic project can be actually completed within a reasonable time, say, 6 months. Prolonged projects risk loss of interest and start building frustrations within the team and all the way around. The team also runs the risk of disintegrating.

4. Every Result Must Be Measurable And Tangible: Any project which can’t be measured before and after its completion has no value. Improvement in the bottom line, maximization of customer satisfaction or reduced burden on employees will all be measurable and so will keep the team motivated throughout.

5. Defining The Desired Outcome: This starts by defining the defects first. This also helps keep checks on the project in terms of process capability. This is one way of making the project measurable by progress.

Brainstorming And Using A Questionnaire

Brainstorming by the key personnel and functional heads in your organization is a good idea. Although there is no hard and fast rule as to whether this should precede or follow the internal and external (VOC) survey, it critically examines the steps involved in the process of project selection. However, the questionnaire itself can contain questions, critical of the prevalent scenario. You may include questions on external and internal defects in addition to questions on capacity and efficiency issues. Not the least important questions are the ones on less obvious cost drivers such as wastage.

Process Variation

Take a bite at the variation in process too. Whether it is possible to streamline the process variation and whether understanding the variation help you produce better quality and defect free parts with less input upon completion of the project? Where is the variation originating from, suppliers end or internal?

Wastage can give a deathblow if they are not dealt with properly. Materials, under-utilization of capacity and unreasonable inventory fall into the wastage category.

The sole consideration must be the vision and the dream to realize it. Care must be exercised to avoid wrong selection of the project which can only aggravate the situation and waste the resources of the organization.

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 Environment

It is not easy to implant the concept of Six Sigma into the culture of a company. This is because Six Sigma hardly bears any comparison with other quality management tools, barring a few similarities with Malcolm Baldridge National Quality Award. But unlike the Baldridge Award, Six Sigma gets to the core of the business sphere with proven tools. But what really stands out as the major difference between Six Sigma and all other quality management tools is the whole army of highly trained employees coming from various professional and organizational backgrounds, not just from the quality assurance specialization. This is why they are called internal change agents.

It is irrelevant to say whether Six Sigma evolved as an alternative to other quality tools or management tools. However, some similarities can be seen between Six Sigma and other similar programs. Certain tools and concepts of continuity in improvement are shared across all quality programs. But it is the set of differences that make the Six Sigma environment a unique one.

Six Sigma Environment

At the core, the concepts of Six Sigma gels completely with the fundamentals of doing business. This is underlined in the basic emphasis that is given to total customer satisfaction, taking profitability to different sphere through maximization techniques. To quote an expert, “Six Sigma speaks the language of business”.

The success of Six Sigma depends a lot on the environment in which it is being implemented. The conduciveness of the environment for Six Sigma implementation is brought about when the vision of upper management is shared by everyone in an organization. This becomes clearer when seen against the backdrop of huge number of personnel working for it. It could be different in an ISO 9000 environment as the onus of implementation is relegated to the quality assurance department. Satisfied customers, a more realistic workload for employees, an improved work culture and finally a rising bottom line and profitability for the owners, are all contributors to the success of Six Sigma.

Linking Six Sigma to Financial Gains

Next, Six Sigma does not just focus on manufacturing or production-related activities alone, but the entire gamut of doing business. Cross-functional implementation coupled with recognizing opportunities for improvements in all key areas of business can be neglected but at the cost of relegating Six Sigma to the status of other traditional quality programs. The finance and planning departments are also included in Six Sigma implementation.

The powerful tools available with Six Sigma help to improve functioning of key departments. For example, marketing and sales can collect customer input. Feedback in the form of customer satisfaction levels can help the finance department adjust the accounting method to focus on predominantly costs and benefits. Human Resource can concentrate on rewards and recognition based on universal criteria, tracking employee satisfaction etc.

Business becomes “as usual” with Six Sigma once the project selection does not remain the sole jurisdiction of the quality team. When individual department heads begin to own responsibilities for business goals, the environment can be said to have arrived where it was expected. It is “business as usual” from here onwards within the Six Sigma environment.

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.