1 Sigma Decisions in a Six Sigma World

Six Sigma has become the standard for product quality in our highly competitive world, but we are still wrestling with decision-making that is running at a less than one sigma success rate. Paul C. Nutt in his book, ?Why Decisions Fail? reports, ?For more than twenty years I have been studying how decisions are made, writing about what works, what doesn?t and why. The key finding is startling ? decisions fail half of the time.?

In this world of ?Continuous Improvement? it seems incomprehensible that we are still working with a decision-making process that results in a 50% success rate. Why worry about competition from off shore when decision-making with a 60%, 70% or even higher success rate would really give organizations a huge competitive advantage. The amount of time and money spent on bad decisions is incalculable and it boggles my mind to think about the cost of covering up bad decisions not to mention the blot a bad decision can be on a reputation or the personal friction it might cause.

Historically, most decision-making has been based on the ?rational model.? This involves: define the problem; state objectives; outline alternatives, estimate consequences; evaluate tradeoffs; recognize uncertainty; estimate risk tolerance; remove emotion and choose the best option. Somehow this whole process sounds negative to me. There is nothing positive about problems or estimating consequences. Evaluating tradeoffs signifies settling for something less than the optimum. Estimating risk tolerance doesn?t sound very positive either. Given that we are always faced with imperfect knowledge and the risk of unintended consequences in any decision, choosing the best option seems like a pretty risky proposition. My experience has proven to me that attitude is a huge determinant of success and if this process is negative by its very nature, it seems easy to understand why ?decisions fail half of the time.?

There is another school of thought that suggests when faced with a problem, it makes sense to create an hypothesis and then gather data to test the hypothesis. Unfortunately, this approach falls prey to some of the same problems with our traditional model. Problems equate to negatives. The symptoms of the problem may lead you to identify the wrong problem. Data gathered to support an hypothesis might provide the right decision but the wrong problem. Both the traditional and the hypothesis models are based on the ?how? of decision-making. The hypothesis approach appears to me to be an expeditious way to the same results. Since data shows that ?decisions fail half of the time,? it seems safe to say that reality is often more confused and messy than a neat model can allow for.

Peter Drucker once said, ?The best way to predict the future is to create it.? This truth also applies to decision-making. Decision-making is not a problem solving activity. It is an exercise in the construction of a preferred future. Traditional decision-making is grounded in the negative and in the past. The new way to make decisions is to establish a positive mind set, to fully appreciate the ?why? of decision-making and build from there. Since we move toward that which we define, what better way to make decisions than to utilize the Appreciative Inquiry process. Modified slightly as the Taking Aim approach, we ?marshal? our resources and think about the best of what is, our successes, the things we have done well and felt good about. This step sets up the positive attitude that is so critical to success. Next we get ?ready? by envisioning the perfect future or what might be. This desired future provides us with the answers to ?why.? ?Aim? is the next step where we actually design what should be and finally we ?Fire? or execute what will be. This is a much more positive approach and builds around the desired outcome rather than around the obstacles that may or may not exist. If in this process we can fully understand the why of what we are about to undertake, we can adapt to the vagaries along the way that can stifle a how based solution.

Appreciative inquiry is real and the supporting data is building. Paul Nutt in the book, ?Why Decisions Fail? points out that staying issue-centered is critical to good decision- making and AI is a process to stay issue-centered. Successful business users include Roadway, John Deere, Green Mountain Coffee and others.

We all agree that our customers deserve six sigma products. If our organizations are to survive; our customers to have an ongoing supply of our products; our owners are to earn a return on their investment and our associates are to have secure well paying jobs; don?t they deserve a better success rate on decisions than 50%. If that rate could be increased to 60% or 70% what kind of competitive advantage would you gain in your industry? Isn?t it time you thought about a new approach to decision-making?

Copyright Bob Cannon/The Cannon Advantage, 2003. All rights reserved.

 

Six Sigma And The Small Or Home Based Business

Although Six Sigma was originally devised as a quality improvement technique for the manufacturing industry, it is now increasingly being adopted by the services industry as well. The basic Six Sigma concepts and methodologies are more or less the same in the services sector where they are applied to both operational and non-operational processes.

Defining Six Sigma

Motorola was the first company to develop and implement Six Sigma concepts in its business processes. The main aim of the company was to reduce manufacturing defects and to achieve near perfect production processes that would help in production maximization. Six Sigma implementation projects aim at bringing the number of defects to not more than 3.4 per million opportunities that exist for such defects to occur.

This standard is applicable for both manufacturing industries as well as the services sector. Six Sigma implementations start with the assessment of current quality levels, which are termed as 1 sigma, 2 sigma, and so on. The aim is continuous quality improvements until Six Sigma quality levels are achieved.

Six Sigma In Small Businesses

Six Sigma can be effectively employed in small businesses irrespective of whether the business is a manufacturing unit or is servicing a customer base. Even in small businesses, Six Sigma aims at perfecting existing business processes and assessing the real costs of the business such as COPQ (Cost of Poor Quality). At first glance, it may seem that Six Sigma is suitable only for large businesses because of multimillion-dollar savings and huge reduction in the number of defects. However, this not mean that Six Sigma will not be cost-effective in small businesses as standard concepts and methodologies can always be tweaked to suit small scale process requirements and for reducing implementation costs at the same time.

Most small businesses compete with large and well-established businesses and this is why they always need to be on their toes in order to reduce costs and offer quality products and services to customers. Six Sigma helps because it provides a level playing field to small businesses, allowing them to concentrate on increasing the customer base by offering better quality products and services. For ensuring the success of Six Sigma initiatives, small business owners can hire the services of professional Six Sigma professionals such as Black Belts and Master Black Belts. They also have the option of training their existing employees.

The conclusion is that Six Sigma concepts and methodologies can be tailored to suit any business that has a ready customer base. It is also applicable in an online business where it is all the more important to have satisfied customers because news travels faster on the internet, especially when it is something to do with bad quality products or services. By employing Six Sigma, small businesses can ensure the quality of their products or services, which in turn will allow them to garner positive publicity through customer feedbacks and reviews. Such businesses are most likely to witness rapid growth because satisfied customers are the real assets of any business, whether big or small.

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.

 

Online Six Sigma Training

Six Sigma is a quality management methodology that follows a data driven approach for reducing waste and improving overall quality of goods manufactured or services rendered. It makes use of statistical tools and techniques that help in identifying exactly what the customer needs and designing sustainable methods to meet those requirements. By implementing Six Sigma, any organization can hope to increase efficiency, increase productivity, and reduce manufacturing costs. By employing statistical methods, companies can look forward to create a near perfect situation wherein the number of defects is reduced to less than 3.4 per million opportunities that exists for such defects to occur. Companies the world over have implemented Six Sigma in their business processes, which has helped them in attaining optimum competence and saving millions of dollars through phenomenal reduction in the amount of waste.

Why Online Training

The success of Six Sigma initiatives depends on a number of factors, one of which is the training imparted to owners and employees. Training is necessary as it allows organizational members to understand the various concepts and implement them in a proper manner. Due to hectic schedules, companies often decide to provide online training, making it easier for employees to select an appropriate time for training based on their work schedule.

Benefits Of Online Training

Employees often find it difficult to manage work schedules and training at the same time. Online training allows them to give priority to their current work obligations and receive training in their free time. Online training helps in better absorption as employees can decide on the number of topics to be covered in a day. Employees can receive online training in the comfort of their homes, which eliminates traveling expenses and time lost while traveling. Online training allows employees to view the entire course list on the screen from where they can select any topic they want to learn. Based on their knowledge, they can skip through topics that they are already aware of and continue with the rest of the topics. This helps them to devote more time to topics that are difficult to understand.

Online training courses offer practical tips related to work issues, which employees can use for learning the practical use of Six Sigma concepts and techniques. Employees can give online tests after completing a topic for assessing their learning quotient. Test results are displayed at the click of a button, allowing employees the freedom to move on to the next topic or study the same topic again if results are unsatisfactory. Employees can take part in online discussions, which allows them to gain different perspectives towards a common problem. Online training is imparted through interactive sessions, which may include audio/video clips, multi-media slide shows, online simulations, quizzes, and tests.

Classification Of Online Training Courses

Online Six Sigma training courses can be broadly classified into four different categories; namely, courses for functional managers, for quality control managers, for senior management, and for business associates. Each training course is designed to meet the specific learning requirements of individuals who work in different positions within an organization. Online courses can also be classified based on the level of training, which may be for Six Sigma Green Belt, Six Sigma Black Belt, or Six Sigma Master Black Belt. Companies can choose any of these levels for its employees depending on organizational requirements.

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.

 

Effective Online Six Sigma Training

Six Sigma training is beneficial to employees as well as the organization as a whole. However, since Six Sigma training is expensive, many organizations stay away from it. Online training is the best answer to all these problems. It is cost effective and flexible.

The aim behind implementing Six Sigma is to design near-perfect business processes, which will boost overall business performance. However, these implementations are not always easy because they often involve the overhaul of whole processes and systems. These process overhauls can cost a lot of money. In such a scenario, it makes sense to opt for the online training. There is another option to hire Six Sigma professionals, but even that could prove to be non-effective and expensive.

Additionally, it has often been noticed that Six Sigma professionals do not have the right kind of presentation and teaching skills. Six Sigma concepts and methodologies are implemented through projects and systematic procedures. As online Six Sigma training is available at every stage of a project, it is the best solution for most organizations.

Why Online Six Sigma Training Makes Sense

Online Six Sigma training uses interactive software tools to explain some of the most difficult topics. It allows employees to learn at their own pace. They can pay more attention to the topics, which they may find a bit difficult. They can skip through the topics that they are already aware of. Employees can learn when they are have time and are receptive to the things that are being taught. In addition, online training lets employees assess their understanding of the subject.

Employees just have to register for the online test, take the test and get instant results. It is that simple. In addition, they will receive feedback based on their performance. If they find that their performance in a particular topic is less than acceptable, they can learn the lessons again and take the test again. They can even take the Six Sigma lessons in the comfort of their home. This way, online Six Sigma training proves to be very motivating and enriching experience.

Additional Benefits

Online training offers far more benefits to the organization than the employees. Once employees are trained in Six Sigma, there is no need to hire Six Sigma professionals. The organization also saves on the production time as online training can be done after office hours. Employees can be called upon to play the role of change agents, responsible for implementing Six Sigma concepts in the organization.

How To Select The Most Effective Online Six Sigma Training Course

For selecting the most appropriate online course, organizations need to check the level of expertise being offered, the quality of content and the affiliation of the course. In addition, organizations also need to check the employee training costs as quoted by various online Six Sigma course providers.

Online Six Sigma training offers a new perspective to ?quality? in an organization. It offers a sort of recognition in the respective industry and boosts the organizational confidence as well. Online Six Sigma training can definitely be considered to be a long-term investment that pays off in the long run.

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.

Fundamentals Of Six Sigma Training

Six Sigma professionals have the requisite expertise and experience in implementing Six Sigma projects and their services are necessary for ensuring the success of the implementations. However, not all organizations can afford such services because Six Sigma professionals normally charge hefty fees. The best option then for such organizations is to provide Six Sigma training to their existing employees. Training existing employees not only helps in reducing implementation costs but also ensures that the implementations are completed within the specified time.

However, selecting the most appropriate training course for employees may not always be easy because of the recent increase in the number of entities offering Six Sigma training courses. The problem is compounded because most of the training entities claim to be the best in the business.

Organizations can develop their own training institutes, but this can further complicate the financial health of an organization that is already running short of funds. The best option then is to select the most cost-effective training program for the employees. Given below are some of the basics that a good Six Sigma training program should always have:

1. The training program should cover important Six Sigma methodologies such as DMAIC (define, measure, analyze, improve, and control) and DMADV (define, measure, analyze, design and verify).

2. The training program should aim at creating awareness about the roles and responsibilities of personnel associated with Six Sigma implementations. It should make the employees learn the tenets of effective communications, which is a necessity for successful Six Sigma implementations.

3. The training should cover all types of Six Sigma statistical tools such as Critical Path Method (CPM). CPM helps in designing a proper timetable that predetermines the start and completion of key events in any business process. With the help of CPM, employees can easily find out the exact status of various projects by monitoring key events through the CPM timetable. Other important statistical tools that need to be covered include FMEA (Failure mode and Effects Analysis), which helps in anticipating future problems through analytical interpretations.

4. The training should enable employees to learn the use of software tools such as RapAnalyst, which simplifies DOE (Design of Experiments) and many other activities related to data mining; MiniTab and SixNet Intelligence; and the Six Sigma calculator, which is a hand tool. The training should also cover the use of judgmental tools such as Ishikawa Root Cause Analysis Diagram (Fishbone diagram), Brain Storming & Affinity Group Tool, Thought Map, and Regulation Diagram.

5. The training should also enable employees to learn soft skills such as presentation skills and managerial skills such as decision-making. These skills will go a long way in ensuring the success of Six Sigma implementations.

A Six Sigma training program that covers all the aspects stated above needs to be selected, even if it is relatively more expensive than other available training programs.

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 Finance

The success of Six Sigma implementations depends on the ability of the implementation teams to identify and alter systems that are responsible for the efficiency of a business process. For successful implementation of Six Sigma concepts and methodologies, organizations need to increase coordination between all the teams involved in the implementations. Consistent support and guidance from senior management is also necessary for ensuring the success of Six Sigma initiatives.

Six Sigma Implementations And The Finance Department

Six Sigma implementations do help in reducing operational costs, but an organization cannot afford to make strategic decisions based on vague assumptions. Organizations need to measure the monetary value of benefits that is being derived through the implementations. The task of assessing the financial spin-offs of the implementations is often entrusted to the finance department that assesses the improvements in relation to the organization?s bottom line.

The finance department utilizes project tracking software that measures the improvements being made and generates reports showing the financial payoff. The software is used all throughout the implementation process and the data collected is stored for future referrals. This is important because Six Sigma programs aim at continuous quality improvements, normally a 30%-60% improvement in around 6 months. Data available from past implementations makes it easier to deploy new Six Sigma concepts and methodologies in an organization.

Selecting The Most Suitable Finance Personnel

For ensuring that the financial functions are successfully carried out, organizations need to select only the most experienced employees. Outsiders can also be hired for this purpose but it is always better to opt for existing employees as they have a better understanding about the organization?s business processes.

If the selected employees are new to the concept of Six Sigma, it is necessary to provide adequate training before allocating them the responsibilities that they are supposed to shoulder. Finance personnel selected by an organization, act as the official scorekeepers and report any deviations that might affect the organization?s bottom line.

Finance And Quality Issues

Quality improvements are one of the main objectives of Six Sigma implementations. However, for producing high-quality goods or services that satisfy customer needs, it is necessary to deploy the financial measurement tools and systems at all stages of the implementation process. At the start of the implementation process, a financial impact analysis is conducted to identify the derivable monetary benefits. During the implementations, the actual monetary value of benefits is assessed and reported to the senior management. During the final stages of the implementations, the actual and planned results are compared to provide the necessary feedback to the quality department.

The success of any quality improvement technique such as Six Sigma can be ensured if the implementations are done in accordance with quantifiable financial results. The financial skills of selected personnel also go a long way in ensuring the success of Six Sigma implementation programs.

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 Tools For Process Control

Six Sigma implementations aim at achieving near perfect production wherein the number of defects is substantially reduced. However, Six Sigma implementations are definitely not easy because they often require a major overhaul of existing business processes, which in turn requires extensive analysis and documentation.

Understanding The Six Sigma Pyramid

Six Sigma quality levels can be described with the help of a pyramid, wherein the base of the pyramid represents the current quality levels of a business. The aim is to move up the pyramid to make gradual improvements in the quality level such as sigma 1 to sigma 2, sigma 2 to sigma 3, and so on until the top quality level, Six Sigma, is not achieved. Every stage or quality level requires the use specialized statistical tools, about which the Six Sigma implementation teams should have in-depth knowledge and expertise.

Some Basic Tools

Businesses aiming for achieving sigma 3 or sigma 4 quality levels need to utilize Six Sigma measurement, analysis, and documentation tools. These tools will help in measuring the current percentage of material wastage, which is usually in the range of 50 to 60 percent if the company?s existing quality level is sigma 1. At sigma 2 levels, the wastage is around 33 percent, which means that there is still plenty of scope for improvement. Once the level of wastage is identified with the help of these tools, the Six Sigma implementation team can then start making the necessary changes in processes to achieve the next quality level.

Industry Specific Tools

A use of a particular Six Sigma tool depends on the type of industry. For example, in industries having high volume transactions, it would be impossible to measure and analyze each transaction. As such, only those tools are used that are designed to identify high value transactions based on predetermined logical parameters. These tools will allow a business to give priority to the improvement of most vital processes that deal with high value transactions.

Such tools are necessary for ensuring the success of Six Sigma implementation projects because higher quality levels cannot be achieved until and unless all the high value business processes are not utilized to their full potential. The full potential of a business process can only be realized when it reaches maximum optimization levels or achieves Six Sigma quality levels. All this can only be achieved by employing the right Six Sigma tools and techniques in the right business process.

For selecting the right tools, businesses need to opt for the expert advice of Six Sigma professionals. Although the tools are more or less the same used by engineers, supervisors, and other technicians, expert advice is still valued because it is only the Six Sigma professionals who know how to utilize the information generated through Six Sigma tools and techniques in a proper manner.

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 & Change Management

It has been said and proven repeatedly that change is the order of the world. When it comes to business, everything from its growth and expansion to its dissolution is continuous change. Changes happen because of new work conditions, work pressure caused by customer feedback, implementation of new processes or perhaps due to seasonal conditions among numerous other conditions. Whether it is for the company or its workers, if change is done positively, companies can overtake their counterparts and excel as a whole while giving their customers satisfactory service.

Workers Opposition

When it comes to change, the company should be ready for the after effects. Opposition from different and importantly the most unexpected corners should be expected. Workers should be given time, if they haven?t been able to adapt to the change. This negativity can be seen through their resistance to work and comprehending changes. The workers could also delay work and resort to tantrums, besides the ignoring of work and not cooperating.

How To Manage Change In Six Sigma

? Sometimes people are opposed to change only because they don?t want one. By adapting to the change, workers show their willingness to future change; therefore denying any kind of change could discourage the future ones.

? Project leaders could opt to explain the change and the benefits to the workers. This could make them aware of the possibilities and simplify things. Project leaders could use additional sessions with the workers explaining through one-on-one meeting, mails or even over a lunch.

? Workers sometimes resort to mocking and ridiculing the change to show their opposition. In this case, the Black Belt must anticipate the nature of the workers and should formulate reports derived from independent sources to prove the effectiveness of the change.

? If change takes a longer period to take effect, it could also force the leaders to adopt different means to add momentum to the change. Besides, the change proposed should be speedier and permanent in nature.

? The profit obtained after putting a proposed change to practice has a positive effect on not only the company, but also the workers involved. Shareholders vouch for the financial benefits acquired from the change.

? Leaders could prove to the workers the effectiveness of their change through the profit reports, which have been enhanced after the implementation of the change.

? The foundation of a change has a major impact on its future, therefore managers or team leaders should formulate the correct implementation of the change.

? The flexibility of the application or the software involved in the change should be cited. This could increase the participation level and a consistent rate of improvement, giving the workers a feeling of contribution and satisfaction.

? Besides the given remedies and options available, to change the resistance to change leaders could keep their workers updated about the forthcoming changes to avoid surprising them.

? Leaders and team members should share a good and healthy rapport, because of this communicating the different changes and new additions to the process can be intimated to the workers very effectively.

All said and done, change management is done on a broader scale and aimed basically to succeed in changing the mindset of the workers to adapt to change from time. Leaders should be ready for any kind of resistance to work, by the workers. They could identify the root cause of the resistance and explain its benefits to the workers. In addition, working hand-in-hand, team leaders and workers could be responsible for the profit of the company and their own progress.

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.

 

Applying For ? And Getting ? That Six Sigma Job

There is a growing demand for people with Six Sigma certification and expertise as companies realize the many ways in which the Six Sigma methodology can help their organizations grow and improve. Six Sigma has grown beyond its manufacturing origins with many government agencies and service providers now advertising for Six Sigma help. More importantly, even small companies are taking on Six Sigma consultants or full-time staff, which implies that the demand for Six Sigma professionals will only increase in the coming years.

Six Sigma Job Categories

There are many junior- and senior-level Six Sigma openings across a wide range of industries. The positions and job descriptions are oftentimes unique to the company and its requirements. Admittedly, many of these positions are filled internally, as companies train their own people in the Six Sigma methodology so that people already familiar with the corporate culture are provided with the needed skill sets. On the other hand, these same organizations often reach outside for help, seeking out experienced people to either lead, or implement full-scale Six Sigma projects throughout the company.

Six Sigma Job Openings

Many companies openly advertise job opportunities that are clearly Six Sigma based (e.g., Six Sigma Analyst or Six Sigma Black Belt). Others, however, advertise openings for positions that are not obviously Six Sigma openings such as Functional Project Lead, Director of Operational Excellence, Business Project Manager, or Senior Projects Manager.

Job openings such as these are usually for people with Six Sigma Black Belt capabilities ? someone trained in the Six Sigma methodology with experience in leading cross-functional process improvement teams. These people are tapped to lead individual Six Sigma teams.

Companies sometimes advertise for Six Sigma Master Black Belts to fill organization-wide Six Sigma program manager positions, in effect taking over very senior positions within the organization. The successful applicants will be tasked to lead the company?s Six Sigma implementation, oversee Black Belts and process improvement projects, and guide the Black Belts as needed. These positions will require the highest level of Six Sigma experience and qualifications.

Meeting Six Sigma Job Criteria

The primary requirement for a Six Sigma job is, of course, to be trained in the Six Sigma methodology, ideally as a Six Sigma Black Belt. This requires formal training from qualified Six Sigma consultants who have long experience in training and implementation of Six Sigma. Often, a request is made for those with a specific background such as in Six Sigma DMAIC or DFSS methodology.

Companies recognize experience as being the best teacher, however, so many establishments express strong preference (if not outright demand) for people with hands-on experience in completing at least one Six Sigma project.

Aside from Six Sigma training and project experience, companies have a preference for those with background experience (usually at least five years) in their particular industry or business. Management experience is another plus factor and this is usually a requirement by companies looking for a Six Sigma project team leader. Managing projects within structured environments, and proven management skills (as indicated by successful project implementation) will be a definite advantage in your favor, because companies in the initial stages of Six Sigma application will be looking for people who will lead and facilitate business teams as well as Black Belts and Green Belts through the process.

Other requirements

If you are applying for a Six Sigma position, you need to show that you have an excellent understanding of processes and quality methodologies as well as a willingness to grab the initiative and take the lead in making changes.

Another vital skill will be the ability to link strategy to execution. You need to show that you are able to look beyond surface issues and concerns: consider strategic business issues from a detached, clinical perspective, and use this as a springboard for developing and implementing creative and practical solutions to problems identified.

Steven French is a recruitment consultant to http://www.UteachRecruitment.com - the specialist UK teaching jobs recruitment agency. Visit Uteach Recruitment to find your perfect UK teaching job today.

 

Six Sigma and Its Benefits

Six Sigma is a business improvement methodology, originally developed by Motorola to systematically improve processes by eliminating defects. Defects are defined as units that are not members of the intended population. The objective of Six Sigma is to deliver high performance, reliability, and value to the end customer. Since it was originally developed, Six Sigma has enjoyed wide popularity as an important element of many Total Quality Management (TQM) initiatives.

Methodologies:
Six Sigma has two key methodologies: DMAIC and DMADV. DMAIC is used to improve an existing business process. DMADV is used to create new product designs or process designs in such a way that it results in a more predictable, mature and defect free performance.

DMAIC:
Basic methodology consists of the following five steps:

* Define the process improvement goals that are consistent with customer demands and enterprise strategy.

* Measure the current process and collect relevant data for future comparison.

* Analyze to verify relationship and causality of factors. Determine what the relationship is, and attempt to ensure that all factors have been considered.

* Improve or optimize the process based upon the analysis using techniques like Design of Experiments.

* Control to ensure that any variances are corrected before they result in defects. Set up pilot runs to establish process capability, transition to production and thereafter continuously measure the process and institute control mechanisms.

DMADV:
Basic methodology consists of the following five steps:

* Define the goals of the design activity that are consistent with customer demands and enterprise strategy.

* Measure and identify CTQs (critical to qualities), product capabilities, production process capability, and risk assessments.

* Analyze to develop and design alternatives, create high-level design and evaluate design capability to select the best design.

* Design details, optimize the design, and plan for design verification. This phase may require simulations.

* Verify the design, set up pilot runs, implement production process and handover to process owners.

Benefits of Six Sigma:
Those organisations that implement Six Sigma correctly achieve significant benefits that contribute to competitive advantage and to changing the culture in an organisation from reactive problem solving to proactive problem prevention. Specifically the proven benefits include:

Benefits For the organization:

* Bottom line cost savings (5%-20% of turnover per annum)
* Improved quality of product or service as perceived by the customer (internal and external customers)
* Reduction in process cycle times
* Development of staff skills
* Common language throughout the organization
* World class standard

Benefits For the individual:
* Improved knowledge and skills
* Ability to use a wide range of tools and techniques
* A status that is recognised world wide

For more details on Six Sigma visit www.halfvalue.com and www.halfvalue.co.uk

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Financial Spin-offs From Implementing Six Sigma

The Six Sigma approach comprises a management initiative, improvement projects and a set of methods and tools. Six Sigma is about a breakthrough in business improvement. Companies trying to implement the program find considerable difficulty in getting commitment from various functions. This happens despite the project teams being able to identify significant operating efficiencies. The main reason for this is the impact on the company?s bottom line not being clearly discernible. The Six Sigma program can be implemented much more effectively if the CFO and his/her staff can be brought on board so that their concurrence can be obtained.

The Six Sigma Program: The Six Sigma strategy aims at achieving breakthrough business improvements and then creating the required infrastructure and systems to grow and maintain the gains. Typically, Six Sigma projects target a 30% to 60% process improvement in 4 ? 6 months. The overall aim is that the Six Sigma mindset should spread throughout the organization. Employees become aware of the ramifications of poor performance, unproductive processes and non-value adding activities. It is essential that the improvements be linked to the bottom line. In fact, many organizations stipulate that the finance department verifies the financial spin-offs, and where exactly in the financial statement this will manifest itself. A project tracking software is employed, that measures the process improvements and the financial spin-offs and generates the reports. Considering the importance of the impact on the bottom-line, the finance function has to closely associate with the initiative from the outset.

Co-opting the Finance Function The success of the Six Sigma program depends largely on selecting and training the right people to fill key roles. Good companies allocate potential leaders on a high career growth path to fill key project positions. The detailed composition of the team is always a matter of debate. The team must have cross-functional representation to tackle various issues that may arise. Finance and accounting executives have a particularly important role as they act like scorekeepers and report on key business parameters affecting the bottom-line. This results in creating greater shareholder value, which in turn ensures the success of the Six Sigma initiative. The finance professional must be co-opted at the inception of the project to contribute the maximum value to the team. He can, also help in designing an appropriate incentive system for rewarding performance by team members in tandem with human resources.

Quality Issues: Quality in businesses encompasses the entire process and focuses on eliminating defects and producing goods and services that satisfy the customer. The Six Sigma process incorporates the financial aspects at all stages of the project:
? Before starting a project, a financial impact analysis is carried out to identify benefits.
? During the project, the employees and management become aware of the actual processes of the business in various aspects, and how they are performing, including financials.
? After the project or during completion, a review of actual results is done and the returns quantified. This serves as a feedback for the Quality department.

Any quality program, including the Six Sigma initiative, can be much more effective if the project is tied to quantifiable financial results. Informed and motivated employees, with good training can make all the difference to the success of the program.

Alexander Gordon is a writer for www.smallbusinessconsulting.com - The Small Business Consulting Community. Sign-up for the free success steps newsletter and get our booklet valued at $24.95 for free as a special bonus. The newsletter provides daily strategies on starting and significantly growing a business.

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LEAN or Six Sigma? Which Should My Business Be Using?

In all honesty, probably both! LEAN and Six Sigma are perfect partners and provide great synergy and complement each other nicely. Often I meet people who are unsure which approach to take and therefore delay in doing either. This means that they are losing valuable time in being able to make the changes to improve organisational performance. It is possible to start on one track and, along the way, find that your focus changes as you learn more about your processes and systems.

Looking at a process or system to decide which approach to use isn?t always black and white. A lot depends on the culture of the organisation and what type of data is available.

Organisations that are driven by objectivity and have many Key Performance Indicators (KPI?s) will often find more comfort in the Six Sigma approach. This is a result of the perception that it is more ?scientific? as it appears to be complex because of the statistical tools that can be applied. Those companies that are more subjective and intuitive feel more comfortable with the LEAN approach. To them, it seems less daunting as it does not rely on high order statistics in analyzing situations and tends to focus on team activities and employee engagement in solving problems.

Often people describe continuous improvement programs as a journey. If we consider the LEAN journey then I would say that Six Sigma can be used as a stop-over along the way. For instance, an organisation on the LEAN journey finds that it has a specific problem with yield in a particular department or a specific piece of equipment then area is a likely candidate for a Six Sigma project. This means that the organisation can still proceed under the LEAN umbrella but acknowledge that there is a specific activity that can benefit from the Six Sigma approach. To make things easier it may also be beneficial to engage an expert in Six Sigma for that activity so that the organisation maintains their LEAN focus.

Similarly, those undertaking a whole of business approach using Six Sigma as the process improvement vehicle can find that as part of the Improve phase there are opportunities to implement LEAN approaches. For instance, a manufacturing operation that uses Six Sigma finds that there is a high degree of variability in the setup and changeover times for equipment in various departments. Analysis shows that the cause of this variation is a result of a poorly organised workspace where valuable time is wasted in locating the appropriate tools and attachments. 5S and Quick Changeover techniques are used to improve this aspect of the operation or improve both the speed and variability of the set-ups.

Whichever approach is leadership is vital. It is crucial that senior management not only embrace the process, but seen as driving it. Senior management must be engaged and be able to provide the necessary leadership to maintain the momentum within the organisation. Active involvement in projects and in the monitoring and review process is essential so that improvement activities are seen to be integrated into the business.

In the end, it doesn?t really matter which approach you take. The important point to recognise is that you want to better in the future than you are today and there are powerful tools to help. LEAN and Six Sigma are not mutually exclusive and in fact make great partners to any business looking to leap forward in performance.

2006 ? Unbound Business Solutions P/L. All rights reserved

John Yealland is a management consultant and Certified Six Sigma Champion and Black Belt. His skills span the areas of I.T, Training, Logistics, Manufacturing and Operations. John can be contacted at http://www.unboundbusiness.com.au.

Cutting Costs With Six Sigma

Problems Faced By Companies On The Cost Front

On the cost front, most industries such as the manufacturing industry, service industry, health care industry and even the educational industry are all experiencing a great amount of pressure. As an example, hospitals are facing ever-decreasing compensation from insurance companies, which is a serious concern to many. Hospitals also experience the pressure of high labor costs and low productivity. This decline in revenue has come about due to the increase in costs and the ever-increasing competition. 6 Sigma has always been construed as a quality improvement tool, and quality has always been linked with high costs and expenditures. However, the efforts by the black belts and the master black belts to help save on costs have helped companies view Six Sigma favorably.

6 Sigma And It's Contribution Towards Cost Cutting

Six Sigma was never intended to be used as a cost cutting tool; nevertheless it has made great contributions towards that end. The methodology of 6 Sigma employs unique ways to help cut costs in all aspects of business. Firstly, Six Sigma contributes towards customer servicing. The opinions of the customer alone help define the quality of the products and services provided by any business. By figuring out the customer's needs; 6 Sigma can help by cutting down on any wastage like over-utilization and under-utilization of capacity. Six Sigma also helps stabilize process variation, which helps save on material conversion. Not only does this result in an increase and improvement in productivity and quality, but it also results in the reduced cost of rejection and re-working.

The reduction in Cost of Poor Quality (COPQ) is massive considering the overall tremendous savings coming from practically no rejections. This has come about due to the graduation from three or four sigma to 6 Sigma. For example, in the case of a hospital, after utilizing the Six Sigma methods in it's cardiology department, the hospital can cut down the average process time that is necessary for admission. This produces a dual-advantage. The first one being that the reduction of almost 45 minutes of the process time will lead to a decrease in labor costs. Secondly, the hospital department can now accommodate a larger number of patients because of the increase in the productivity.

The doctrines of total customer satisfaction and returns on investment are the main areas of focus. The 6 Sigma team helps generate innovative and creative ideas that are aimed at controlling costs. The team then helps employ risk management schemes and devises that lead to the early detection of various risk factors. An increase in yield from project portfolios will lead to an increase in resources resolving matters of risk.

The Biggest Challenge Faced By Six Sigma

The biggest challenge faced by 6 Sigma is from the outsourcing or off shoring of business processes. The developing third world countries have a lower cost structure and are attracting the large corporations offering them a chance to increase their overall return on investment. This is a process that is being engaged by medium and small-sized businesses, as the larger corporations have experienced significant success using outsourcing.

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.

The Road to Six Sigma: Cause-Effect and Scatter Diagrams

Part 2 of a 4 part series

Last week we talked about using Pareto analysis for organizing, simplifying, and prioritizing problem solving. This week, we're going to introduce two simple tools which can be used together to improve the performance of business systems. In improving any process, there are problems to be overcome. Most of these problems come to our attention due to their symptoms and effects. In order to solve these problems, we must find the root cause of each problem and eliminate that cause.

One of the most useful tools in problem solving is the Cause-Effect Diagram. Cause-effect diagrams were invented in Japan in 1943 by Kaoru Ishikawa as an aid to explaining how various factors in a complex process can be sorted out and related. Cause-effect diagrams are often referred to as fishbone diagrams because of their shape or Ishikawa diagrams after their inventor.

Cause-effect diagrams are extremely useful for organizing input from a brainstorming session. Brainstorming, to be effective, should be freewheeling and without judgments. Data is developed without regard to order, relationships or relevance. Once the data is captured, however, we need to sort it out and show the various relationships. Let's use as a simple example:

<p align="center"><img src="http://www.bizmanualz.com/articles/images/cause_effect.jpg" width="387" height="44" />

Now let's say that all the people affected by this situation have been gathered for a brainstorming session and have produced the following possible causes for variations in temperature:

• Heating plant
• Controls
• Insulation
• Dimensions of room
• Outside temperature
• Supply of energy
• Design of room (windows, doors, etc.)
• Person adjusting the controls

Note that the discomfort could have been caused by variations in humidity, noise, lighting or other factors, but in this case, it is a simple problem of incorrect and/or varying temperature. Because this is true, we can focus our efforts only on the possible causes of temperature variation. To help organize the information, we will group our data into four categories; People, Equipment, Process, and Environment.

<div style="float:left;margin-right:5px;"> <div align="center"><img src="http://www.bizmanualz.com/articles/images/cause_effect2-small.jpg" width="175" height="110" border="0" />
Cause-Effect Fig. 1</div> </div>

This is shown in the first cause-effect diagram (<strong>Cause-Effect Fig. 1</strong>).

We could have labeled our categories anything, but we used labels that work for the situation. Sometimes more than four groups are identified. No problem!

<div style="float:right;margin-left:5px;"> <div align="center"><img src="http://www.bizmanualz.com/articles/images/cause_effect3-small.jpg" width="175" height="108" border="0" />
Cause-Effect Fig. 2</div> </div> Now let's see where our possible causes can be logically placed (Cause-Effect Fig. 2).

Once we have arranged the data in this fashion, we can investigate each factor and determine if it is in control. In our example, the problem is that the occupants of the room are cold. We know the problem is not due to environmental factors because the design of the room has not changed, and the outside temperature is warmer than it was yesterday, when we were comfortable.

The person who adjusts the controls says that he has set the temperature at 80F, but the room is still cold.

Therefore, the problem must have something to do with the equipment. A careful examination reveals that the heating plant and controls are in good shape, but the gauge on the fuel oil tank registers zero. A call to the fuel oil distributor brings his truck in short order and soon we are achieving our <strong>desired output</strong>, comfortable occupants. (Sure -- They are comfortable! They don't have to pay for the heating oil.)

Now this is an absurdly simple example, but suppose our analysis of the cause-effect diagram did not reveal the <strong>root cause</strong>. Usually this means that we have not been sufficiently thorough in our analysis. We began with the premise that temperature was the source of the discomfort. But if that were not the case, we could easily miss important factors in the analysis. This points out the need for careful <strong>problem definition</strong>.

It also happens that the analysis reveals several possible causes, and it is not clear if there is one or more of these causes that need to be addresses in order to solve the problem. This brings us to our second handy tool, the <strong>scatter diagram</strong>.

<div style="float:right; margin:0px 0px 5px 5px;"> <div align="center"><img src="http://www.bizmanualz.com/articles/images/scatter-pos_small.jpg" width="175" height="106" border="0" />
<strong>Fig. 3: Example
Scatter Diagram</strong></div> </div>

Scatter diagrams, like the ones shown on<strong> Fig. 3</strong>, are a special type of cause-effect diagram developed from historical or experimental data. Scatter diagrams, will reveal the relationship, if any, between variations in one variable and variations in another.

Scatter diagrams do not identify which variable is the cause of changes in the other variable. Sometimes, both variables are changing as a result of changes in a third, unidentified variable. Therefore it is usually best to develop and analyze the cause-effect diagram first. We know from our simple example that changes in occupant comfort do not cause changes in room temperature, (at least not until someone adjusts the controls).

As an example, let's say that we are investigating why particulate emissions are high and varying in a random fashion. From a cause-effect analysis we have identified variable fan speed as a possible cause. Fortunately, we have daily data from the last fifty days on both indicated fan speed and lab sample particulate counts from the filter exhaust. The data and resulting scatter diagram show the situation more clearly.

<div style="float:left;margin:0px 5px 5px 0px;"> <div align="center"><img src="http://www.bizmanualz.com/articles/images/scatter1-small.jpg" border="0"/>
<strong>Fig. 4 </strong></div> </div>

What can we say about fan speed as a possible cause for variability in particulate levels? From the scatter diagram <strong>(Fig. 4)</strong>, it is unclear what the precise nature of this relationship is. It appears as a general rule that as fan speed rises, particulate counts rise. Because of the dispersion of the data, however, fan speed is probably not the only cause of this problem. We should keep looking.

So far we have discussed setting priorities for process improvement and looked at ways of finding and quantifying cause. Once we have our process in control, we need a tool for keeping the process in control and assessing opportunities to improve its performance. That's for next week when we will discuss <strong>control charts</strong>.

Learn more about developing policies, procedures and processes, or about improving your organization by attending the next Implementing Lean Thinking, How to Create Well Defined Procedures and Processes or Statistical Process Control classes. TO address other training needs, please visit the Bizmanualz Training Website.
Chris Anderson is the founder and CEO of Bizmanualz, Inc. Since 1995, Bizmanualz has specialized in empowering organizations to continuously improve compliance, control and customer satisfaction using effective and well-defined management

Future Of Six Sigma - Different Viewpoints

Since its introduction in the 1990's, 6-Sigma has become the buzzword in both the manufacturing and service industries. The various methodologies used in 6-Sigma are based on a disciplined and data driven approach that help in eliminating defects and achieving near perfection by restricting the number of possible defects to less than 3.4 defects per million. The methodologies are effective in managing business processes of both the manufacturing and service industries. In manufacturing industries, the concepts and methodologies are used for reducing the number of defects whereas in service industries, they are used mainly for reducing transactional errors.

Although many companies have been successful in reducing the number of defects through Six Sigma projects, the arguments raised against the efficacy of 6-Sigma in all aspects of business processes still do not seem to die down. Some management experts think that Six Sigma is inherently flawed, as it does not take into account the flaws that might be present in the system itself. They are of the opinion that the analytical and statistical tools used in 6-Sigma only expose flaws in the execution and do not account for a process that itself is riddled with defects.

Supporters of Six Sigma offer a different viewpoint. According to them, quality management tools such as Total Quality Management (TQM) and 6-Sigma are conceptually quite similar except for their labels. Business organizations may use any of these for improving overall quality. However, they often give preference to 6-Sigma as they believe that Six Sigma is more than just a process improvement program and is based on concepts that focus on continuous quality improvements. They have the opinion that 6-Sigma concepts combine statistical measurement tools with contemporary management techniques for achieving extraordinary results.

The Limited Use Of Six Sigma

6-Sigma gained prominence as an effective quality improvement technique after it was successfully implemented in Motorola. Since then, many large organizations have implemented 6-Sigma programs and improved the quality of manufactured goods or services rendered. However, the full potential of 6-Sigma has not been realized so far because many competent small to medium level enterprises have still not implemented Six Sigma programs. These enterprises have all the resources to implement such programs, but are often wary of the final certification, as they believe that it is meant only for large organizations. These companies often do not realize that 6-Sigma delivers the same benefits to both large as well as small business enterprises. The only difference may be in the volume of goods manufactured or services rendered.

The Future Of Six Sigma

6-Sigma may appear similar to other quality management tools such as TQM or Kaizen Events, but in reality, it is quite different. Other quality management programs often reach a stage after which no further quality improvements can be made. 6-Sigma, on the other hand, is different as it focuses on taking quality improvement processes to the next level. This means that 6-Sigma has the potential to outlast other quality management programs in the future.

The scope of 6-Sigma is also much broader than other quality management programs as it can be applied to every business process of an organization. The future is bright for 6-Sigma programs with the growing awareness in small and medium enterprises about the potential benefits that can be derived from implementing such programs.

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 Businesses

Six Sigma is a series of systems that focus on implementing quality measurement strategies based on data and statistical analysis to enhance operational performance. In the early days of its introduction, 6 Sigma was commonly misconceived to be a big business strategy, applicable only to large corporations. Though no such restriction was ever envisioned in its functional scope, it was rendered this status since only big businesses initially tried and applied the strategies to improvise their business processes (they had the money). However, it has been subsequently demonstrated that 6 Sigma can be equally productive when implemented in small businesses. Its features of Measure, Analyze, Improve and Control, have the potential of regulating work with proper standards irrespective of the size of the organization or the project under execution.

Advantages

One major benefit of small organizations employing Six Sigma is that they can speed up the implementation of 6 Sigma strategies. Owing to factors such as fewer layers of management hierarchy, flexible process flow and quick access to the top decision-makers in smaller businesses, the execution of Six Sigma in such organizations can be quite fast and effective. Another advantage of applying the process in small corporations is that training lead times can be shorter.

As the monetary expenses incurred on Six Sigma training are heavy, it is important to assess the savings that accrue from the first set of projects implementing the 6 Sigma strategies. Typically, it has been observed that the financial gains and the cultural conversion in management skills in smaller firms are rapid. In addition, applying 6 Sigma strategies in a small business environment can help achieve breakthrough results since the period between implementation and visible results is almost negligible.

In small businesses, individuals who are trained as 6 Sigma Green Belts and Black Belts can be used as trainers for coaching other employees. This helps in achieving more, since the trainers and trainees work in the same environ and the former can demonstrate live execution of Six Sigma procedures. In such an environment, employees who being initiated into Six Sigma implementation are able to see for themselves, the process errors being made and are able to often come up with innovative solutions to overcome those and improve productivity. In this manner, process issues get a two way perspective. These perceptions are beneficial since 6 Sigma strategies are not stagnant and are in a continuously reinventing mode.

Overall, changing the viewpoint of employees in a small organization is easier than in a large one.

Disadvantages

There are a few hurdles in the way of Six Sigma implementation in small organizations. Firstly, small-scale firms have a shortage of ready funds for investing in 6 Sigma training and implementation. Secondly, small corporations cannot afford full-time Black Belt personnel to guide their staff. The salary demanded by such personnel is substantially high and smaller firms often prefer investing that amount in areas such as marketing and product development.

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 vs. Total Quality Management

Six Sigma is a relatively new concept as compared to Total Quality Management (TQM). However, when it was conceptualized, it was not intended to be a replacement for TQM. Both 6 Sigma and TQM have many similarities and are compatible in varied business environments, including manufacturing and service industries. While TQM has helped many companies in improving the quality of manufactured goods or services rendered, 6 Sigma has the potential of delivering even sharper results.

Total Quality Management

Total Quality Management is often associated with the development, deployment, and maintenance of organizational systems that are required for various business processes. It is based on a strategic approach that focuses on maintaining existing quality standards as well as making incremental quality improvements. It can also be described as a cultural initiative as the focus is on establishing a culture of collaboration among various functional departments within an organization for improving overall quality.

Comparison To 6 Sigma

In comparison, 6 Sigma is more than just a process improvement program as it is based on concepts that focus on continuous quality improvements for achieving near perfection by restricting the number of possible defects to less than 3.4 defects per million. It is complementary to Statistical Process Control (SPC), which uses statistical methods for monitoring and controlling business processes. Although both SPC and TQM help in improving quality, they often reach a stage after which no further quality improvements can be made. 6 Sigma, on the other hand, is different as it focuses on taking quality improvement processes to the next level.

The basic difference between 6 Sigma and TQM is the approach. While TQM views quality as conformance to internal requirements, 6 Sigma focuses on improving quality by reducing the number of defects. The end result may be the same in both the concepts (i.e. producing better quality products). 6 Sigma helps organizations in reducing operational costs by focusing on defect reduction, cycle time reduction, and cost savings. It is different from conventional cost cutting measures that may reduce value and quality. It focuses on identifying and eliminating costs that provide no value to customers such as costs incurred due to waste.

TQM initiatives focus on improving individual operations within unrelated business processes whereas Six Sigma programs focus on improving all the operations within a single business process. Six Sigma projects require the skills of professionals that are certified as 'black belts' whereas TQM initiatives are usually a part-time activity that can be managed by non-dedicated managers.

Applications Where Six Sigma Is Better

Six Sigma initiatives are based on a preplanned project charter that outlines the scale of a project, financial targets, anticipated benefits and milestones. In comparison, organizations that have implemented TQM, work without fully knowing what the financial gains might be. Six Sigma is based on DMAIC (Define-Measure-Analyze-Improve-Control) that helps in making precise measurements, identifying exact problems, and providing solutions that can be measured.

Conclusion

Six sigma is also different from TQM in that it is fact based and data driven, result oriented, providing quantifiable and measurable bottom-line results, linked to strategy and related to customer requirements. It is applicable to all common business processes such as administration, sales, marketing and R & D. Although many tools and techniques used in Six Sigma may appear similar to TQM, they are often distinct as in Six Sigma, the focus is on the strategic and systematic application of the tools on targeted projects at the appropriate time. It is predicted that Six Sigma will outlast TQM as it has the potential of achieving more than TQM.

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.

Identifying And Selecting A Six Sigma Consultant

When tested quality programs such as Six Sigma are implemented the right way, process improvement in a company can result in tangible gains within 3 to 6 months. Employees feel satisfied and ultimately, the shareholders also benefit from the overall results. While it is possible for business owners to study quality initiatives and effect changes within their organization on their own, sometimes an external consultant with expertise in Six Sigma might be the best person to help lead the change. Consultants are immune to a company's internal politics and have the advantage of exposure to information and best practices from other companies where they have implemented the procedure.

Choosing The Appropriate Consultant

Selecting the right Six Sigma Consultant is a vital decision that can have a tremendous effect on your business. Ways to assess a Six Sigma consultant include checking if their experience is relevant, if their track record is successful, if they are willing to impart their knowledge systematically and if they are skilled at training and facilitation.

Features Of A Good Consultant

- Six Sigma Consultants should have a unique blend of skills in Six Sigma and relationship management in team development and conflict resolution. - They should serve as good communication lines between the employees or the customers and the leaders of the organization. - They should take adequate responsibility for writing projects, documenting them and making decisions for the project. - They should be able to lead the projects and facilitate conferences. - Six Sigma consultants should also be able to make presentations to associates and contribute to a company's change of management process.

Selection Criteria

- The key to selecting a good Six Sigma consultant is becoming aware of the specific needs and work culture of your firm. - Companies hiring a Six Sigma Consultant should initially perform a careful assessment of their internal environment and then formulate a team that can oversee the whole process. - The company should know whether it requires a full Six Sigma service implementation or whether it only requires training. - The main reasons for hiring Six Sigma Consultants should be their expertise on certain subject matters, are skilled at communication, be it written or verbal, are unbiased and can implement their skills within the company in a non-partial manner. - Accountability is also an important consideration; if the implementation doesn't work then it can be placed squarely as the responsibility of the consultant. From an owner's point of view, it's easier to blame an external consultant than to take sides within the company itself. - Cost is certainly a major factor while choosing a consultant but it should not be the only one. The professional fees charged by Six Sigma firms can vary from reasonable to very expensive and the key consideration should be the value that the consultant brings to the organization.

Pre-Hiring Measures

- It is advisable for companies to identify about 10 Six Sigma Consultants and ask for a proposal, based on which, they could shortlist 3 to make a presentation. This method of selection has worked very well for many companies. - Background information about a consultant can be obtained from other businesses that have been through the process before. - It is important to select a firm with more than a few years of Six Sigma experience. - During the selection process, team leaders must decide what role the consultant has to play during the project. The consultant can be a strong facilitator and an experienced practitioner, a team member or a subject matter expert. - To fit into any of these roles, a consultant has to have strong facilitation skills, in-depth process knowledge, industry exposure and should be able to perform specific tasks for the team.

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

Why Six Sigma Will Work In Healthcare

If ever there were an industry where we want zero defects, it?s healthcare. Patients, medical professionals, and healthcare administrators all want mistakes eliminated and quality and efficiency improved. Although most industries have undergone some type of data-supported, systematic, quality-improvement process, healthcare still has not. Medical and technological advances continue to outpace process and education adjustments. Demand and expectations for medical care are increasing. Inefficiency also leads to(causes, brings about, etc.) overcrowded emergency rooms, customer complaints, and lost revenues.

Six Sigma allows a healthcare organization to break through the status quo and achieve real process improvement. Although Six Sigma has its roots in manufacturing, it works just as effectively in a service industry such as healthcare. Healthcare organizations face unique challenges and it's no secret that they have a harder time applying quality improvement methods. Six Sigma?s comprehensive approach means that its methodology can be successful in healthcare organizations with quick results.

In a healthcare organization, the critical factors in quality and efficiency are flow of information and interaction between people. Transforming the process of this flow yields quality results. Six Sigma achieves documented bottom-line strategic business results by initiating an organization-wide culture shift. Until a process focus?rather than a task focus?is developed, the scope and endurance of improvements will be limited. Analyzing and modifying human performance in these environments is complex, but Six Sigma provides the tools and methodology required to achieve significant long-term improvements.

The Six Sigma process is a large step toward creating a learning organization through its well-defined road maps and management structure. Six Sigma defines a vision for the future of the healthcare organization, and then it identifies specific goals and establishes quantitative measures to turn that vision into reality. A formal plan is established to identify the overall program goals and timeline that outline the move from current performance levels to Six Sigma performance levels, with tangible, short-term goals in between. Specific Six Sigma projects are identified and goals defined and tied to a tangible organizational performance measure. A wealth of possible Six Sigma projects within healthcare includes, for example, information flow, surgical site procedures, patient handling, and patient charge items. Any process in healthcare is a candidate for a Six Sigma project.

To successfully implement a Six Sigma program requires long-term vision, commitment, leadership, management, and training. What makes Six Sigma successful is well-chosen training and a commitment from the top that is communicated to all levels of the organization. Financially, the first set of projects usually justifies the entire cost of Six Sigma training. Focusing the Six Sigma tools on virtually any properly scoped project will drive savings to the bottom line and achieve breakthrough change in the healthcare organization.

Experienced healthcare quality management should learn the language of Six Sigma and help integrate new methods into the Six Sigma process to improve effectiveness. Six Sigma is a proven approach to reduce defects and waste, thus saving money. Six Sigma will help healthcare organizations just as it has industrial, service, retail, and financial organizations.Peter Peterka is the Principal Six Sigma Consultant http://www.6sigma.us/aboutus.php in practice areas of DMAIC and DFSS. Peter has over 15 years experience in including implementation of Six Sigma in Healthcare http://www.6sigma.us/six-sigma-healthcare.php with a variety of organizations. For more please contact Peter Peterka http://www.6sigma.us/