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 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 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

Find more about Books on www.lookbookstores.com

Subhash Kumar SEO Manager subhash@halfvalue.com

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.

Business Owners all across the country are joining "The Community of Small Business Owners? to receive and provide strategies, insight, tips, support and more on starting, managing, growing, and selling their businesses. As a member, you will have access to true Millionaire Business Owners who will provide strategies and tips from their real-life experiences.

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.

Six Sigma In The Insurance Industry

6 Sigma concepts and philosophies were originally developed for improving the overall quality of business processes in the manufacturing sector. Companies like Motorola and GE were among the first few that successfully introduced Six Sigma concepts in their business processes. However, with the development of newer tools and techniques, 6 Sigma is now deemed appropriate for the services sector as well. The usability of Six Sigma in the services sector is easily evident from the increasing number of finance and insurance companies that are opting for 6 Sigma.

Consumers are increasingly becoming aware of the quality of services being offered to them, making it essential for the services industry to implement quality improvement techniques like Six Sigma for conforming to customer expectations. This is especially true for the insurance industry where the relationship between the insurer and the insured is still largely governed by sustained personal contact. By implementing 6 Sigma programs, insurance companies have been able to offer quality services at affordable rates to their customers.

Identifies Key Business Processes

Unlike other quality management practices such as Total Quality Management (TQM) whose effectiveness is difficult to measure, Six Sigma based improvement programs make use of statistical tools, which can measure the effect of changes being made in a very short time. 6 Sigma focuses on process orientation, enabling organizations to identify key business processes that are necessary for improving customer satisfaction. This helps managers in understanding the exact requirements of their customers and in altering business processes to suit customer needs and expectation.

Follows A Disciplined Approach

Six Sigma has helped insurance companies in improving quality as well as reducing costs of services offered. It has enabled insurance companies to follow a disciplined approach, which has helped in preventing errors, minimizing hand-offs, and eliminating rework and workarounds. It has also helped in increasing the speed of business processes used in the insurance industry.

Helps In Making Informed Decisions

6 Sigma has enabled managers in taking informed decisions based on statistical data. With the use of Six Sigma tools and techniques, managers no longer have to rely on their perceptions or gut feelings for rendering the level of services promised to policyholders, clients, and prospects.

Helps In Building Customer Loyalty

6 Sigma emphasizes on understanding the needs of the customers before making any changes to business processes. This helps insurance companies in building customer loyalty among their policyholders, which is necessary for the long-term success of any business organization. Insurance companies can also hope to increase their market share, as satisfied customers are most likely to recommend a company that offers quality services while advising a friend, relative or business associate. Helps In Reducing Costs

Six Sigma tools and techniques aim at streamlining business processes in such a way that helps in reducing costs. This helps insurance companies to improve their savings and avoid drastic cost-saving measures such as downsizing, which can have a negative effect on employee morale. It can also create doubts in the mind of policyholders and prospects as downsizing usually attracts a lot of negative publicity.

6 Sigma has helped the insurance industry in bridging the gap between planned strategies and actual operations by providing analytical and in-process performance measurement tools. These tools are used for comparing planned goals and objectives with actual outcomes and for finding the reasons as to why a particular business process is not giving the desired results. Once the exact problem has been pinpointed, managers can make the necessary changes that will help in improving overall quality of services rendered to policyholders and prospects.

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.

How To Overcome Six Sigma Controversies

"The more I learn about customer satisfaction, the less I know," the CEO of a Fortune 500 company recently lamented. By the time some companies get to understand their customers? needs fully, it will be too late. Management is often flooded with customer data detailing their satisfaction levels among other things. However, the data has been collected only as an exercise, not as a means to end customer dissatisfaction.

Can?t Anyone Achieve Six Sigma?

There is no doubt that Six Sigma has enjoyed the seat of power like no other management tool has to date. The milestones crossed by the methodology are also non-controversial. Then where are there any problems and why is doubt being cast upon its ability to deliver?

Paddy Rao, Associate VP of a large software services company, a Champion and Master Black Belt himself, cites a major stumbling block for Six Sigma implementation, which is cultural change. A sudden change in the way people work and an altered reporting structure is what people find as obstructions to their routines. ?Sometimes it takes ages to break this mindset?, says another Black Belt who worked with Rao.

Anyone that says they have successfully implemented Six Sigma means only that they have completed the implementation. It doesn?t mean that they have actually achieved 3.4 defects per million. You will notice many things changing as you go about deploying Six Sigma. The market changes, you may see a change in technology or even an internal matter like organizational change can occur.

The Robust Mechanisms Of Six Sigma

As with all other aspects of life, failures are always attributed to Six Sigma but not the successes. A successful Six Sigma implementation essentially requires a rock solid commitment from top management. Despite this, Six Sigma continues to question any authority, critically shaking most of the beliefs that the organization had about itself. As it goes deeper, it potentially shakes the foundations on which organizations exist.

The inordinate delay in data gathering is another obstacle to get Six Sigma out of the starting block. Sometimes the data is not divulged and other times it genuinely takes time to gather. Other priorities coupled with this pushes the implementation team to rush through the deployment.

Add to this the possibility of selecting the wrong project. If this happens, no matter how well you slog out later, the deployment will be a loser from the beginning. You will invariably fail to see a much different result from that of the original.

Indeed, it is the robust inbuilt mechanisms of Six Sigma that have worked for its success in almost all cases. One genuine concern about Six Sigma is about the cost of implementation, which very nearly challenges the ROI. As one CRM specialist put it, ?where ROI has catapulted because of CRM, Six Sigma has been credited for it?. This is the reason that Six Sigma is so widely accepted, despite the costs.

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.

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 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.

What is Six Sigma?

What is Six Sigma ?

Six Sigma is a method or set of techniques that has also become a movement focused on business process improvement. It is a quality measurement and improvement program originally developed by Motorola that focuses on the control of a process to the point of ? six sigma (standard deviations) from a centerline, or put another way, 3.4 defects per million items. A Six Sigma systematic quality program provides businesses with the tools to improve the capability of their business processes. It includes identifying factors critical to quality as determined by the customer, reducing process variation and improving capabilities, increasing stability and designing systems to support the six sigma goal.

The objective of Six Sigma is to deliver world-class performance, reliability, and value to the end customer.

Application & Success :

Starting with manufacturing, today Six Sigma is being widely used across a wide range of industries like banking, business process outsourcing (BPO), telecommunications, insurance, construction, healthcare, and software.

Methodology :

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.

Roles Required for Implementation :

Six Sigma identifies five key roles for its successful implementation.

Executive Leadership includes CEO and other key top management team members. They are responsible for setting up a vision for Six Sigma implementation. They also empower the other role holders with the freedom and resources to explore new ideas for breakthrough improvements.

Champions are responsible for the Six Sigma implementation across the organization in an integrated manner. The Executive Leadership draws them from the upper management. Champions also act as mentor to Black Belts. At GE this level of certification is now called "Quality Leader".

Master Black Belts, identified by champions, act as in-house expert coach for the organization on Six Sigma. They devote 100% of their time to Six Sigma. They assist champions and guide Black Belts and Green Belts. Apart from the usual rigor of statistics, their time is spent on ensuring integrated deployment of Six Sigma across various functions and departments.

Black Belts operate under Master Black Belts to apply Six Sigma methodology to specific projects. They devote 100% of their time to Six Sigma. They primarily focus on Six Sigma project execution, whereas Champions and Master Black Belts focus on identifying projects/functions for Six Sigma.

Green Belts are the employees who take up Six Sigma implementation along with their other job responsibilities. They operate under the guidance of Black Belts and support them in achieving the overall results.

Specific training programs are available to train people to take up these roles.

For more information regarding Six Sigma, buy books on Six Sigma.

Visit:
Halfvalue.com
[A unique shopping website]

Other useful websites:
Halfvalue.co.uk
Lookbookstores.com

Ekta Verma

Six Sigma Online Education

Six Sigma is a management methodology that makes use of data and statistical scrutiny, which provides companies with an ability to identify consumer needs and design a consistent and high-class method to meet those requirements. Simply put, it is a process devised to increase productivity and reduce costs. The statistical term 'Sigma' is a measure for determining how off beat a process is from its set standards. This method is known to have no more than 3.4 defects per million opportunities and is a pioneer in data driven decision-making. Various companies all over the world have integrated their policies with Six Sigma's disciplined structure to attain optimum competence. The process not only scrutinizes a company's existing systems and performance but also suggests changes to make it perfect.

Advantages Of Online Learning

Business owners and executives look for training sessions on Six Sigma in order to understand the concept and implement it. However, it becomes difficult for many of them to spare time from their hectic schedule to attend the sessions and hence prefer online training. The benefits of online training are as given below:

• Online Six Sigma training provides flexibility to students to commence and end the course according to their individual schedules. They have an option of taking the entire course in small sections to acquire better absorption of the subject.

• Online training facilitates students to learn from the comfort of their home thereby eliminating traveling expenses and travel time.

• When the entire course is listed in front of the students, they can take their pick of topics. They can omit those topics that they find easy or already have knowledge about and continue with the others only. This helps leveraging time and aids students in investing more time on difficult subjects.

• Online lessons offer practical tips that are relevant to real work issues, which help learners in applying some of the strategies as they are learning them.

• Typically, online sessions offer an immediate evaluation and feedback on a student's performance during a lesson.

• When discussions take place online, learners from all over the world can participate at the same time and share their views. This allows each participant to gain a new perspective towards a particular problem.

• The course matter includes audio and multi-media slide shows, practice conferences, online simulations, quizzes and exams.

• All students registered for the online Six Sigma course have individual access to earlier student projects and informative templates.

Course Specifications

There are various levels of courses for each group of personnel such as courses for senior management, for functional / process managers, quality leaders and for associates. Each course has specific highlights pertaining to the particular needs of the learners. For instance, a senior manager Six Sigma schedule will involve program overview, real examples of triumphant business strategies, financial benefits of implementation, list of application areas and the Six Sigma tools required. On the other hand, a functional or process manager's course will include Six Sigma methodology, concept, tools and necessities to translate senior management's tactics into objectives and actions.

Six Sigma Levels

Six Sigma certification is divided into various levels such as Six Sigma Green Belt, Six Sigma Black Belt, Six Sigma Master Black Belt and Design for Six Sigma. To register, a learner has to fill up the Six Sigma application form, choose a payment method, select the course they want to opt for, and provide an E-mail address so that course timings can be coordinated with online instructors. As soon as students complete their registration procedure, they are supplied with a registration number. As and when the learners complete a chapter, they can mail the documents to their personal Six Sigma instructor for evaluation.

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

Six Sigma Theory of

Six Sigma is a management methodology for accuracy in manufacturing, etc. to make sure things are done right the first time and with that comes increases of economies of scale-fewer returns, etc. Such processes are especially important in Military, Health Care, manufacturing, transportation and computer industries.

When every thing is right with fewer returns, less time is spent fixing your mistakes, thus higher profits. Some of this could be classified as Micro-management of little details which goes against the theories of Fly by the seat of your pants, entrepreneurs, yet when working on lower margins in low cost high volume matured industry sectors, if you cannot do it the Six Sigma way, you will be passed and put out of business by someone who is.

So I would say to those in any industry that the devil is in the details and Six Sigma is worth a read. You should start with Jack Welch's Biography and then go pick up a Six Sigma management book, yes you should be aware of this. I would also recommend that entrepreneurs also respect those resumes, which contain Six Sigma Black Belt in them. Although as I study this stuff I can tell you that you still need an entrepreneur and visionary out front and most are from the gut and few can do both.

So companies should be careful if they are looking for a problem solver or General Patton hard charger when you have a perfection systems guy of Six Sigma, most likely they are NOT the same animal and many times they will not even get along personally. Just make sure there is mutual respect and admiration for each of the others abilities. Too often Sign Sigma's think they know it all and forget the reality of the market or the customer. The sales teams or counter person is gold for information. Six Sigma black belts or whatever cool titles they give them now a days need to be full spectrum to work. Consider this in 2006.

"Lance Winslow" - Online Think Tank forum board. If you have innovative thoughts and unique perspectives, come think with Lance; www.WorldThinkTank.net/. Lance is a guest writer for Our Spokane Magazine in Spokane, Washington