Six Sigma Process Simulation And Modeling

Six Sigma has become a buzzword in industry circles since its introduction in the 1990's. The methodology is based on a disciplined and data driven approach and is used for eliminating defects and achieving near perfection by restricting the number of possible defects to less than 3.4 defects per million. It is being used effectively for managing processes of both, manufacturing and services industry. In the manufacturing industry, it is used for limiting defects in the goods produced whereas in the services sector it is used mainly for reducing transactional errors.

What Is Process Simulation And Modeling?

Simulation software based on Six Sigma methodologies can be used for simulating a wide range of processes in order to eliminate common industry problems related to defects, wastage of productive resources, and quality control. The basic idea governing Six Sigma process simulation is to provide an accurate system of measuring defects in a process, so that these can be eliminated during the actual production. The emphasis is on measurement and statistics for ensuring that the process is properly set up and measured. The methodology is also used for measuring baseline performance, which helps predict the effects of any improvements made in the process. Proper application of Six Sigma methodologies leads to tangible improvements effected by decisions that have been explored and proven in detail.

Scope

The Six Sigma philosophy covers different aspects of industrial processes ranging from pure defect management to process performance improvement. With the increasing use of Six Sigma methodologies, it has become widely accepted that process simulation and modeling techniques can be used for improving almost any type of manufacturing or transactional process. Most of the process simulation and modeling techniques are based on DMAIC (Define, Measure, Analyze, Improve, Control). In the 'Define' phase, the process simulation techniques are used for identifying the changes that would have made the most impact on the outcome. This helps in making the most appropriate changes. Various simulation tools are used throughout the other phases for providing detailed statistical data on the effect of any proposed changes related to throughput, utilization, delays, service levels, and any other factors related to the process.

How The Simulation Model Works

- The simulation software coverts numerical data into graphic representations, which are relatively easier to understand. - Commercial companies that specialize in providing Six Sigma services offer customized services, wherein the simulation model is an exact replica including all the elements used in the actual process such as machines, labor, conveyor and belts. - All these elements are represented by icons and once they are in place, one can define the link between these elements, establish the process flow, and add as much detail as possible for simulating the actual process more accurately and more effectively. - After setting up the simulation, one can simulate an infinite number of hypothetical scenarios both positive and negative that might affect the process. For example with the help of simulation, a manager can know exactly what will happen if a crucial machining tool breaks down or half the labor force does not turn up for work. - All these factors can severely affect production. However if the extent of potential damage is known beforehand, appropriate contingency plans can be put in place for restricting or even eliminating the possible loss of production.

Process simulation and modeling techniques help executives make informed decisions. The data generated by the simulation tools empowers decision makers with a deep insight about the process and procedures, allowing them the ability to make the necessary changes.

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 Document Control Issues

When discussing Six Sigma document control issues it is essential to recognize the effect Six Sigma has on any firms QS/ISO 9000 initiatives. From its inception until today, Six Sigma has evolved and at present is much more than a defect control mechanism. It is referred to as a methodology that is used to control course deviations that have the capacity to cause defects. In any process where change is initiated, there is often an undesirable variation in end results. The 6-Sigma methodology is intended to manage variation and do away with such expected defects. Its use guarantees superior performance, consistency and value to the end user.

Major Techniques

The two Six Sigma methodologies to be understood are Six Sigma DMAIC methodology (Define, Measure, Analyze, Improve, Control) and Six Sigma DMADV methodology (Define, Measure, Analyze, Design, Verify). What is most important in Six Sigma document control is timely interception and communication. When using 6-Sigma to uphold ISO 9000 certification, document control is an important aspect of the entire process. The Document Control feature is helpful in regulating the known coordinates. Its need arises when changes are made in any regular practice. As and when there is change in a system, it may require a while to understand and adjust to these alterations. Since the authorization to amend standard procedures is often made by an individual or specific body within a company, it is very important that all staff members who will be affected with these changes are notified in time. An accurate control measure guarantees that all personnel who are going to be affected by this interference are made aware of the changes. The document control aspect helps them analyze these changes, as well as realize that the new directives are now part of standard procedures. Document control helps associated personnel adhere, acknowledge and understand revisions in standard practices.

Alternatives

The document control procedures and alternatives have been discussed long enough to rationalize Six Sigma implementation. In most cases, a lot of objective revisions and realization of the need for change is possible through ISO 9000 Corrective Action data evaluations. The alternative is to use a proactive approach when implementing 6-Sigma to help provide greater value to the end customer along with developing a particular company"s reputation and projecting a much needed competitive edge. In Six Sigma methodology implementation, a company"s management selects and sponsors the Six Sigma project that is intended to accomplish planned objectives. As such, a specific project is awarded to a team that has potential process personnel and is led by a certified 6-Sigma Black Belt. Aside from having access to adequate funds needed to work on a new project, the team is also permitted to make authorizations to bring about the required change and implementing the blueprint of the methodology that is chosen.

Advantages Of Document Control

The document control procedures and alternatives ensure that a thorough evaluation has been carried out prior to undertaking any new project. Six Sigma methodology, together with an ISO 9000-type Document Control system avoids negligence of vital factors, provides accurate logistic results, allows for insight into long term project results and prevents process personnel from resorting to any previously used plan of action.

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

Change Management In Six Sigma

Change is the only constant thing in the world and businesses are no exception to this universal principle. The aim of change is bringing about continuous improvement in the competitive world through which businesses hope to surpass their competitors to meet customer needs better than the rest.

Change Meets Resistance

You need to anticipate resistance from unexpected corners while contemplating and proposing change. This could be for the first Six Sigma project or for the subsequent project, despite rigorous results with previous project implementations. Workers may respond by ignoring the change, by refusing or failing to comprehend changes, disagreeing with apparent benefits and resorting to delay tactics and tantrums. Other instances can be ignorance from other sections within the organizations and non-cooperation on projects

Managing The Change In Six Sigma

Project leaders understand that most resistance has no valid reasons.

1. For example, let us take the case of ignoring the change. People are opposed to change just because they don't want a change. Change entails doing things in a different way, which demands adoptability regardless of its simplicity. They assume ignoring the change proposal will ultimately lead to its withdrawal. Make it an irreversible change, perhaps by associating annual review to the success of the changed process.

2. Failure to comprehend is another place to manage the change assertively, although this is not intentional. Handling things can be easier in this case. Use additional sessions to explain, such as a lunch meeting, one-on-one meetings; mailers, tables, and calendars which are visible daily and can be used for tools.

3. Not accepting or ridiculing the true values of the benefits is another way of resisting change, which the Master Black Belt must anticipate. Use independent sources or/and positive results from other departments or projects to prove your point. See that the points are valid and the team can relate to them.

4. Failure to achieve speed: Slow progress in change initiatives may bog you down, forcing you to go through multiple steps, which you may want to skip, even though they are essential. But practically, this could be futile. Break the illusion of speed and build up the momentum as you progress on a scientific path only. This is more permanent and speedier than a diluted and scattered set of activities.

5. Sustaining and sharing the vision: They key to longevity of support down the line is the shared vision, the dream and positive attitudes. Following up launches with a flurry of short-lived activities achieves nothing. But the workforce needs to be galvanized regularly to keep the vision alive. Communicating and getting together regularly will help in this regard.

6. Proof of the pudding is in eating it: Shareholders look for economic benefits out of every project, although not opposed to changes as long as they see appreciation to top line and bottom line figures in the financial statement. You can only prove to them when you show increased profits riding on more volume and enhanced quality.

Managing the change in Six Sigma is no different from doing it elsewhere. But the scale of the operation and the interests concerned along with wisdom should guide the way ahead.

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 Data Warehousing

The primary reason that corporations introduce Six Sigma into data warehousing boils down to cost reduction. Large corporations are incurring huge expenditures, most of the times running into millions of dollars, which eats into stakeholders' margin, in creating and maintaining data warehouses. The criticality of data warehouses can be understood by their vital role in support to prediction of business performance.

There is no denying the fact that data warehousing is in a way, the powerhouse of Six Sigma deployment. In early stages of projects, data warehousing allows for better planning of deployment, design and tuning of the production environment.

Data Warehousing Basics

Data warehousing components are complex in nature and are multifaceted. The various components are either developed in house or by a third party or in joint development at the party's place of business. Typically, designers focus on functional and business needs and not on performance constraints faced by the production environment. The consequence of this costly mistake is the possibility of missing deadlines and reworking the project, which are manifestations of operational inefficiencies.

Challenges to Data Warehouse Design

It is not new that modern day data warehouses are built for auto refreshing and/or compatible for at least real time updating. ETL, as extraction, transformation and loading of data flow is a very resource-consuming exercise in data warehousing. The importance of data warehousing increases several times, considering the fact that data structures are both strategic and functional.

Even the real time refreshing of data becomes a daunting task with the refresh window getting clogged straining server resources. Then there are some other factors that have a play in affecting the performance of ETL.

Meeting the Challenge to Quantify the Data Warehouse Effect

Quantifying the effects of data warehouse is to project whether challenges can be scaled. The recent trend in data warehouse development is to treat them as belonging to the same family or group. Consider dedicating each family to a particular geographical location, and other subsets of respective hierarchical data. Warehousing modules for individual data groups (families) are developed at their initial stages and new ones are taken care off as and when they arise and are just plugged into the main data warehouse. The database could contain three fundamental tables such as tables to store attributes of data; storage of linking information; and finally, aggregated data ready for use.

Applying Six Sigma Elements into Software Development

Applying Six Sigma elements into software development typically helps in identifying potential problems in production if the development is done in the early stages of the project. Secondly, the mammoth task of data warehousing can return positive results if deployment plans are fine tuned before implementation.

The self-assessing nature and the provisions for internal auditing shed light on the course of implementation. At the same time, one cannot forget that databases developed remain tied to the system architecture on which they are built and bear heavily on the accuracy of predictions in a fluctuating business environment, ironically for which they are built.

About the Author

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 Much Does Six Sigma Cost?

Most companies contemplating Six Sigma implementation have most of the costs worked out beforehand. This follows the assumption that taking additional work means involving more people. You either hire people on fee base or recruit them on your payroll at a cost. Well, then there is the cost of implementation above this, which can run into quite a few thousands of dollars depending upon the project on hand.

But is that the cost of Six Sigma? There are several schools of thoughts and arguments about how to arrive at the cost of Six Sigma and one of which advocates an interesting theory. This appears to be the closest of all the definitions of Six Sigma.

Cost of Six Sigma

The cost of Six Sigma is the cost of lost opportunities due to errand processes or procedures which could have been saved had the procedures or the processes been corrected at the expense of a fraction of the cost.

Cost Consideration Before Project Selection

While contemplating the deployment, one needs to think about the composition of the team as well. The composition of the team can be so organized to as to contain the cost of hiring. The big question however, is whether the project team be placed within the purview of the QA department or be kept independent. Should the task force you are considering to form be composed of consulting Black Belts with select internal employees or should you purely consider only the freshly trained internal Black Belts? Consider whether cost of training will help save the cost of consultation and time, keeping in mind the future projects.

Some Realistic Points Of View

The truth about Six Sigma certification is no one is going to certify your organization after the implementation, as there is no such certifying standard just yet. This implies that both the implementation and achievement are relative, although measurable in terms of cost saved. But there not yet one single universally accepted standard barometer to tell whether the cost saved is absolute.

Let's just accept it; it is within the reach of the best employees of an organization to pull off wonders for their employer. They can be trained in-house or they can be asked to study 'how to' books and tools by attending a seminar or two. The next best step towards saving cost of Six Sigma is piggy backing on forums and discussion groups. This is absolutely possible, considering that many small enterprises have done this with great a degree of success.

Continuous self-education, forming of the team and introduction to not just Six Sigma tools and procedures but to the tools of management and cost give a broader picture. Six Sigma is no magic wand; it takes a excellent analytical and reasoning ability with dedicated and sustained efforts towards cost reducing (i.e; when we say problem solving.)

The cost of a Black Belt could run from $100,000 or more depending on the project at hand. The number of Black Belts is not something which is entirely decided by you if you are hiring Six Sigma consultants.

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

Is Six Sigma The Ultimate Management Tool?

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

What Makes Six Sigma The Finest Quality Tool Ever?

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

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

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

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

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

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

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

Lean Six Sigma - 5 Reasons Your Organization Needs It

Lean Six Sigma provides a powerful combination of the Lean manufacturing approach and Six Sigma. The two concepts are not very different in their outlook and methods, or in their applications and goals. Lean Six Sigma works on the philosophy of increasing speed by focusing on waste reduction. The result of Lean applications is shown in the improvement of quality and on reduced processing times and costs. Combining 6 sigma with Lean manufacturing augments short-term results with the power of comprehensive changes. The result is Lean Six Sigma.

Five Reasons Your Organization Needs Lean Six Sigma

Corporations increasingly prefer implementing Lean Six Sigma over any other methodology. Here are the five top reasons that organizations prefer Lean Six Sigma.

1. Lean Six Sigma is applicable across industry sectors: Although Lean manufacturing was originally developed as a quality management tool with a manufacture-centric approach, of late, industries across the board have accepted and successfully implemented the seamless Lean Six Sigma tool. The notion that Lean Six Sigma can't applied to non-manufacturing sectors doesn't hold true any more.

2. Lean Six Sigma results in immediate functional improvements: Implementation of Lean Six Sigma results in faster-than-expected reduction of production time and costs. This is because of the application of its tools such as kaizen (method of constantly analyzing process flow and its application), kanban (helps pull up production) and poka yoke (mistake-proofing).

3. Helps create value for consumers: The combined application of Lean manufacturing and Six Sigma results in tangible and real value creation for consumers. Consumers of products and services can enjoy better experiences in terms of increased utility and reduced prices. More and more organizations are showing an inclination to implement Lean Six Sigma for obvious reasons - it improves their bottom lines.

4. Practicality of execution: Lean Six Sigma facilitates transformation of organizations by creating a powerful linkage between strategic priorities and improvements in operations. Strategic priorities are the goals set by the top management team for higher returns on investment and improved customer experiences.

5. Focus on sustainable management capability: Lean Six Sigma's highly sustainable approach, being woven into every aspect of business, leads to the creation of sustainability from top down. Sustainability results from the quick realization of tangible benefits of implementing the program.

By implementing the Lean Six Sigma approach, organizations have realized time and again that it is possible to streamline their operations and to create value for both management and customers alike. The bottom lines of companies have soared with the successful implementation of Lean Six Sigma. As a result, many companies have created enormous value for their shareholders. Organizations are drawn to the Lean Six Sigma approach due to its fast implementation and results, in addition to creating additional value for the consumer at no extra cost.

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

Six Sigma solves problems with an unknown solution by Peter Peterka

Six Sigma is a powerful business improvement strategy. It helps your organization to identify, reduce, and eliminate defects from any product, process, or transaction. More than a "quality" program, Six Sigma is a flexible and dynamic continuous improvement strategy and process initiative that helps your organization uncover solutions.

For example, you may know that a particular process at your organization is not meeting customer specification or is otherwise not performing adequately. However, the solution is not apparent up front. There are many variables that could be causing the defect in the process. How do you determine what specific action you can take to improve your process and reduce defects? Finding that unknown solution is what Six Sigma does best. Six Sigma is not a pre-packaged one-fits-all solution. Six Sigma is a process that doesn't impose a particular outcome but discovers the previously unknown solution to a problem. It uses a structured systems approach to problem solving that achieves strategic business results through an intelligent step-by-step process. A structured thinking process helps solve problems better than an ad hoc, blank page approach.

Six Sigma leads organizations through five-steps of realization: 1. We don't know what we don't know. 2. We can't do what we don't know. 3. We won't know until we measure. 4. We don't measure what we don't value. 5. We don't value what we don't measure.

By using Six Sigma to identify and correct major problems you create real data that uncovers previously unknown solutions to problems - solutions that you most likely would not be able to discover except through the Six Sigma methodology. What drives this process is the DMAIC method. DMAIC is an acronym for five interconnected phases of a Six Sigma project: Define, Measure, Analyze, Improve, Control. By going through the structured phases you discover the unknown solution to your quality problem.

First you identify the problem you need to solve. At the Define stage of a project, you should have a defined issue or problem you wish to overcome and improve. Once a process is selected as a candidate for improvement, a problem statement is developed and the objective or desired outcome is defined. Progress measures are established and a cost/benefit analysis is performed. Also during the Define phase, you highlight what the project is supposed to do and how it is supposed to do it and what metrics apply. With a clear measurable set of indicators, the Measure phase studies the process to determine the key process steps and variables to determine the potential ways the process could be going wrong.

After measurements are gathered, the data is analyzed to discover what is causing process variation. Once problem causes are determined in the Analyze phase, you find, evaluate through testing, and decide on creative new improvement solutions. As you move through the Analyze and Improve stages of the process you will identify various process improvement scenarios, and determine which solution has the best net benefit impact to the company. Most likely, the variation is from a completely unknown source. Without going through the Analyze and Improve stages you would not have known what improvement was required, much less what categories of variables were being affected!

Six Sigma is about tackling problems with an unknown solution. Six Sigma experts know that there are no one-size-fits-all solutions. Six Sigma training provides participants with enhanced problem-solving skills, with an emphasis on the methodology for identifying and creating solutions. As Six Sigma practitioners, you need to be agnostic. Use the best tools from all of the various methods and apply the right solution to the right problem. Through being agnostic and open-minded you will discover solutions through observation and data rather than just impose solutions from the outside. This enables you to use the best from all of the various methods and tools available and apply the right solution to the right problem. You will be amazed at how well THAT works!

Peter Peterka is a Master Six Sigma Black Belt for Six Sigma us and has implemented Six Sigma in a variety of organizations. For additional information for Six Sigma Online Training please contact Peter Peterka at http://www.6sigma.us

Peter Peterka Peter Peterka is the Principal Consultant in practice areas of DMAIC and DFSS. Peter has eleven years of experience performing as a Master Black Belt, and has over 15 years experience in industry as an improvement specialist and engineer working with numerous companies, including 3M, Dell, Dow, GE, HP, Intel, Motorola, Seagate, Xerox and even the US Men's Olympic Team

Six Sigma Audit

Six Sigma methodology is not a self-sustaining management tool perhaps unlike other technologies. It can only deliver the results subject to multiple variables and inputs such as deployment intensity and culture. Nonetheless, the results take around 4-6 months to show, depending on the projects selected and adherence to the tenets of the methodology.

The Six Sigma audit process does not depart too much from the assessment process of the deployment, in order that implementation status is checked for its effectiveness. The audit procedure dwells on questionnaires and checklists which help auditors evaluate the status of respective processes on ‘as is’ condition which is later compared with ‘should be’ condition. The ‘should be’ condition is the reference standard clearly defined at the beginning of the deployment in the goal setting stage.

The audit process in Six Sigma is pretty much comparable with a ISO 9000 audit. Many Six Sigma companies have successfully developed Six Sigma audit procedures based on the ISO 9000 principles but goes a bit further in the sense that Six Sigma takes into consideration the Voice of Customer (VOC). However, while auditing customers it is the internal customers that are interviewed. Using of audit procedures developed by Malcolm Baldrige Quality Awards is not new and unique in Six Sigma audit.

Use of Checklists and Charts for Six Sigma Audit

Using charts, made in the form of checklists, in audit ensures that nothing is left to chance. A checklist, which is exhaustive, is prepared during the launch of the project. There will be multiple checklists for each process and activity which can be used methodically to assess the processes involved in the project. For example, to check the leadership level and knowledge levels of Black Belts you can use the appropriate list.

The process audit checklists, like the rest, are prepared based on the Standard Operating Procedure defined in the beginning. Each question critically examines as to whether a step is being followed and if yes, how well. The activities and sub activities, since they are measurable, can be rated on the fact sheet on a predetermined scale. The answers to these questionnaires are summarized on the sheet itself.

For example, take the case of a dispatch system. If the process variation had occurred, the deviation is recorded in the operator’s log which gets exposed during the audit. The variations are plotted against the standard deviation for exact picture.

The deviations from the mean represent process variation and with the help of these data, root causes of process variations are interpreted.

The Scope of the Six Sigma Audit

All in all, the scope of the audit is only limited by the preset goals and the customer reactions to the changes. The measurable aspects, including the customer satisfaction level are recognized independently and critically examined, which throws light on the current status of that process. The correlation that exists between all processes put together gives the final picture of where the project is heading with respect to ROI and customer satisfaction.

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.