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Thursday, March 27, 2008

Data Collection Tools In Six Sigma

You can't imagine being able to organize the enormous amount of data and manipulate them as easily as you would be able to do without data collection tools. Then again, the task is not easily done unless you have selected the right kind of tool appropriate for the project. You need these data collection tools at all steps where you generate numerical data.

Six Sigma Data Collection Tools

The data collection tools are mostly in excel format and come as Macro Plug Ins, barring a few exceptions of stand-alone applications.

Initial Raw Data Collection Tools

1. Operational Definitions Sheet- This sheet defines the metrics so that data collection across the board is consistent. 2. Voice Of The Customer Data Collection Tool- Collect data from internal database, surveys, interviews, listening posts and observations at the point of sales and use and organize them systematically 3. Worksheet For Customer Segmentation- Worksheet for segmentation is essential to identify and concentrate on the demands of main and sub-segments which helps get down to finer details 4. Check Sheets- Very handy in collecting smaller sample data of different attributes or counts for use in defining problem areas or substantiating the outcomes. 5. Data sheets- These plain and simple datasheets are used to gather small amounts of measured or variable data to for the purpose of defining a problem or substantiating the results.

Data Assessment Tools

Data assessment tools are not decision-making tools such as the Ishikawa Fishbone Chart or the Thought Map Relation Diagram.

1. Customer Requirement Translation And Analysis Tool- Analysis of customer requirement is done to translate to an understandable and an unambiguous language. The translated and interpreted customer data converts into measurable functional requirements... thus strengthening the operating team's capability to deliver products and services that customers will immediately identify and really relish. 2. SIPOC Diagram- SIPOC diagram is rather a presentation diagram and an analysis tool at the same time. It provides an "at a glance" like overview of various processes, and helps identify the venders, inputs and outputs of a process and customers by critically contrasting the input data against each other 3. Pareto Chart- A Pareto chart is helpful in identifying those small numbers of problems which cause about 80% of all the troubles. This is a tremendous help in reducing or eliminating the avoidable waste of efforts so that you can channelize your improvement efforts on continuous productive applications. 4. Production Scheduling And Actual Scorecard- The simple production scheduling and actual score card comes handy to evaluate the production schedules and operations & sales planning as opposed to actual results. This is the same template which is used for Pareto chart, 'schedule to actual' comparison and the checklist for quality. 5. QFD House Of Quality Chart- Quality Function deployment house of quality is an all in one tool. It helps identify customer requirements vis-a-vis products or services, develop an effective blueprint, formulate strategies to eliminate faults and failures and finally implement new design.

It would be futile to work without tools, either PC based or otherwise in a Six Sigma environment.

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

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Thursday, November 29, 2007

Six Sigma And Beyond

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

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

The Robust Nature of Six Sigma

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

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

Looking Beyond Six Sigma

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

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

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

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

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

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