Six Sigma For The Non-Manufacturing Sector

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

Range Of 6 Sigma

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

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

Need For 6 Sigma In Non-Manufacturing Ground

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

Performance And Efficiency

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

Practical Aspects Of Implementation

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

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

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

Six Sigma and Upper Management

The one ultimate reward that counts for any business organization is improvement of bottom line profitability and the return of satisfied customers. This end result must justify all the initiatives taken by upper management. Upper management utilizes a tool called "cost of poor quality (or "COPQ") as a barometer for evaluating six sigma projects. Apparently, it is the only way to get upper management to accept six sigma. The upper echelons of corporations have come to realize the importance of six sigma for its tangible economic benefits.

understand the value of upper management support for quality/process improvement top down fully, when you learn that management does not realize the importance of investing that extra time and money in quality improvement or lacks the commitment. Let's be straight forward, this scenario is not uncommon. Six sigma has such lasting power and broad scope that transcend departments and exposes the need (though not always) for change in organizational structure. Both of these would be hard battles to fight unless strong management support was present. Resistance of this type could be due to organizational inertia, or it could also be intentional.

Six sigma calls for long haul, complete and in depth implementation, which is definitely not for the faint of heart. It is possible only if your organization has 100% commitment from top management. This is why experts place blame on upper management for the failure of six sigma. Only continuous, rock solid support, monitoring and encouragement from the top brass only can prevent the failure of six sigma. Straightforward intentions for implementation should come from a customer centric viewpoint and a desire to produce quality services/products.

The continuity of the program requires undivided and dedicated monitory support until the end of the project. Upper management identifies the need, sets the ball in motion and provides continuous support (managerial and financial), which is the lifeline for the success of six sigma implementation. If these elements are not present, achieving the stated goals over a long period of time become difficult, if not impossible. One initial green light from management will not suffice; it takes continued commitment and engagement to inspire and motivate the people involved until the end.

Six sigma is a complete quality management and turn around system. As such, it identifies organizational shortcomings, wherever there are. With upper management on board, implementation stages can be monitored; midway course corrections can be suggested and any possible roadblocks at various steps of implementation can be overcome. As you can see, six sigma can be successfully implemented with the commitment of complete organizational support.

What upper management needs to understand is that six sigma is a widespread and far- reaching quality improvement program where it has to play a critical role in order to see ultimate business goals succeed. Although the various 'belts' implement six sigma, they are selected, trained and motivated by top management for the implementation of six sigma methodology. The upper management until the very end must support them. Only in this way can six sigma bring about significant and long lasting results to the organization.

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

Connections: Business Process Management and Six Sigma

One of the most powerful ways to improve business processes is combining business process management (BPM) strategies with Six Sigma strategies. BPM strategies emphasize process improvements and automation to drive performance, while Six Sigma uses statistical analysis to drive quality improvements. The two strategies are not mutually exclusive, however, and many companies have discovered that combining BPM and Six Sigma can create dramatic results.

BPM basics

Let's first take a look at the basics of BPM. It uses a four step method to create better processes and improve performance. The steps are as follows:

* Map the process (whether new or existing) from start to finish, capturing each step along the way

* Execute the process by using people and automated applications, with specific assignments of responsibilities and accountabilities for each step

* Manage the process through information flow, actions and related activities

* Analyze process performance and metrics, using findings as the basis for continuous process improvement

BPM has a strong base in software applications to help streamline and automate processes. At the software level, BPM is commonly applied within a single department or group to improve a specific process.

From the software level, BPM expands to a suite of software applications. The suite level enables BPM to link multiple departments or groups that affect processes. It promotes information sharing and accountability through use of a work portals where multiple users can share knowledge, documentation, and process management.

At its highest level, BPM expands to an enterprise-wide system. This level combines software and IT aspects with management practices to address broad structural and systemic issues within a business or organization. Business practices and operations are examined from a holistic standpoint, paying close attention to how occurrences in any one part of the system have a ripple effect across the organization.

Six Sigma basics

The concept of Six Sigma was developed at Motorola in the 1980's as they worked to improve the quality of their products and services. By implementing a systematic, rigorous routine, they were able to improve their products and increase customer satisfaction, thus increasing profits.

Six Sigma approaches business processes from a highly statistical standpoint. It incorporates three levels of activity:

* Metrics - statistical focus to make process outcomes 99.9997% defect free, otherwise expressed as 3.4 defects per million opportunities

* Methodology - structured approach to solving problems that uses specific tools and process mapping to achieve the metric goal

* Philosophy - the enterprise-wide embrace of defect reduction by making decisions based on hard data and customer focus

In short, Six Sigma allows an organization to reduce the variability in its products and services so that waste is reduced, efficiency is improved, and customer satisfaction is dramatically increased. Business problems are solved through rigorous application of data collection and analysis tools. The training that Six Sigma users receive is quite intensive, progressing through several increasingly sophisticated levels based on experience and accomplishment. Professional Six Sigma consultants and practitioners usually work to become certified at the various levels, increasing their ability to help guide development and implementation of Six Sigma methodology.

The methodology of Six Sigma is key to its success. An organization follows a five step progression that uses factual information and statistical analysis to address achievement of operational goals. There are some differences in the five steps depending on whether they are used to improve an existing process or design a new process. The end goal, though, is always to achieve the standard metric of 99.9997% defect free performance.

Combining BPM and Six Sigma

With this basic understanding of BPM and Six Sigma in mind, it is easy to see how powerful it can be to combine the two practices. Their strengths complement each other and create a synergy that infuses the entire operation with a focus on quality and performance.

The strength of BPM lies in its ability to automate processes and workflow through modeling and examination of inputs, outputs and performance. It is not as strong, however, in its ability to analyze data associated with very difficult or multifaceted problems. Six Sigma fills this gap by providing the statistical analysis needed to deal with complex problems.

The strength of Six Sigma lies in its rigorous approach to data collection and analysis. Through this process it is can identify even the smallest opportunities for process improvement, maximizing an organization's ability to institute necessary changes. It is not as strong, however, in its ability to monitor process improvements and ensure they are applied across the board. BPM fills this gap by providing tools to automate process improvements and connect those improvements across the entire organization.

Both BPM and Six Sigma represent significant commitments on the part of a business or organization, and they take time to implement them thoroughly. Tremendous organizational change is often required, leading most companies to start with a single department or pilot project and expand their use over a multi-year period. It is well worth the time and effort, though, to generate the substantial business improvements that are typical with BPM and Six Sigma.

Peter Peterka is President of Six Sigma.us. For additional information on Six Sigma Green Belt or other Six Sigma Black Belt programs contact Peter Peterka.

Design for Six Sigma by Peter Peterka

Design for Six Sigma (DFSS) is the application of Six Sigma principles to the design of products and their manufacturing and support processes. Whereas Six Sigma by definition focuses on the production phase of a product, DFSS focuses on research, design, and development phases. DFSS combines many of the tools that are used to improve existing products or services and integrates the voice of the customer and simulation methods to predict new process and product performance.

DFSS can be compared to DMAIC (Design, Measure, Analyze, Improve, Control) and often the acronym DMADV (Define, Measure, Analyze, Design, Verify) is used to describe the strategy of DFSS. The precise phases or steps of a DFSS methodology are not universally defined. Most organizations will implement DFSS to suit their business, industry, and culture. DFSS methodology, instead of the DMAIC methodology, should be used when: * A product or process is not in existence at your company and one needs to be developed * The existing product or process exists and has been optimized (using either DMAIC or not) and still doesn't meet the level of customer specification or six sigma level DFSS is a way to implement the Six Sigma methodology as early in the product or service life cycle as possible. It is a strategy toward extraordinary ROI by designing to meet customer needs and process capability. DFSS can produce the same order of magnitude in financial benefits as DMAIC. But it also greatly helps an organization innovate, exceed customer expectations, and become a market leader.

DFSS is the Six Sigma approach to product design--namely, designing products that are resistant to variation in the manufacturing process. Using DFSS means designing quality into the product from the start. You are preventing wasteful variation before it happens, thus being able to identify and correct problems early when the solution costs are less. A successful DFSS implementation requires the same ingredients as any other Six Sigma project: a significant commitment and leadership from the top, planning that identifies and establishes measurable program goals and timeline, and the training and involvement of everyone.

Planning for DFSS requires collecting the necessary information that will allow for error free production of defect-free products and processes that satisfy the customer profitably. DFSS attempts to predict how the designs under consideration will behave and to correct for variation prior to it occurring. That means understanding the real needs of your customers and translating those needs into vital technical characteristics of the product and ultimately into critical to quality (CTQ) characteristics of the product and process. You can then use design of experiments (DOE) to develop a robust design that optimizes efficiency and reduces defects.

Valid and reliable metrics to monitor the progress of the project are established early in the project, during the Measure phase if using DMADV. Key inputs are prioritized to establish a short list to study in more detail. With a prioritized list of inputs in hand, the DFSS team will determine the potential ways the process could go wrong and take preemptive action to mitigate or prevent those failures. Through analysis, the DFSS team can determine the causes of the problem that needs improvement and how to eliminate the gap between existing performance and the desired level of performance. This involves discovering why defects are generated by identifying the key variables that are most likely to create process variation. Failure Mode and Effect Analysis (FMEA) and Anticipatory Failure Determination (AFD) can be used for both the design of the product and the design of the process.

DFSS provides a structured way to constructively use the information learned from these analyses. Armed with real data produced by the DFSS process, you can develop competent manufacturing processes and choose processes that are capable of meeting the design requirements. Further analysis can verify and validate that the product design will meet the quality targets. This can be accomplished through peer reviews, design reviews, simulation and analysis, qualification testing, or production validation testing.

The benefits of DFSS are more difficult to quantify and are more long-term. It can take over six months after the launch of the new product before you will begin to see the true measure of the project improvements. However, the eventual return on investment can be profound. This is especially true when the organization can use the DFSS project as a template for fundamental changes in the way it develops new products and processes across the organization.

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 Training and Design for Six SIgma please contact Peter Peterka at http://www.6sigma.us

Peter Peterka is the principal Six Sigma Consultant in practice areas of DMAIC and DFSS. Peter has over 15 years experience including implementation of Six Sigma in Healthcare with a variety of organizations. For additional information please contact Peter Peterka at Six Sigma us.

Six Sigma Training 101 Better Management Basics

What is Six Sigma?

Six Sigma is a quality management program that is designed to achieve a six sigma level of quality for products. In the mid 1980s, Motorola pioneered Six Sigma and it has since been adopted by many other companies and manufacturers. Service companies also implement Six Sigma strategies to improve customer service and relations. The idea behind Six Sigma is that failures in quality and customer satisfaction occur after the sixth sigma of likelihood in a normal distribution curve. Hence, the idea is that there are less defects per product or customer service. Motorola defines the success of six-sigma quality in terms of the number of Defects Per Million Opportunities.

Why Use Six Sigma?

Many companies and critics of Six Sigma believed that achieving six levels of quality was impossible, but many companies have proved the critics wrong. Some companies even go beyond six-sigma. An example of this is GE Aircraft Engines, which operate at Nine Sigma levels of quality. Six sigma is practical because it reduces the amount of errors in customer service and products. This leads to increased customer satisfaction, increased revenue, more returning customers, and the acquisition of new customers. Companies that can implement six-sigma successfully have higher standards of quality and usually produce better products and services.

Why is it only Six Sigma?

Many people do not know how six-sigma relates to 3.4 defects per million. Essentially, people do not know how having six levels of sigma improves quality significantly. Many companies used to have less sigma, usually about three or four. However, Motorola was the first to use six levels. Six is the perfect number because whereas four sigma makes sure that there are only about 2.6 problems in a thousand. However, the problem arises with deviation. Imagine a manufacturing process in which a drill makes a hole that is supposed to be 100 micrometers. With four levels of Sigma, only about 1 in 400 will be defective. This unfortunately does not take into account the average value of measurement, which will shift over time. So, if the measurement gradually drifts as each new hole is drilled, about 6.6% of the output will be off by 1.5 sigma in each direction at anytime. If the process has drifted by 150 micrometers, then the hole will be off by 300 micrometers, which is an extremely large defective rate. Using 6 sigma, with a 1.5 sigma shift to make up for average deviation, the ratios are much lower and therefore the defective rates are much more sensible. The same drift in a six-sigma process will still only produce a defect for products or services that are more than 4.5 sigma away from the average in the same direction. Using the mathematics of a normal curve, this works out to 3.4 defects per million which is much more acceptable.

Conclusion

Customers value quality above all other things in a business. If a business produces a high quality product or service, more customers will return, and that business will gain new customers. Six-sigma helps to ensure the quality of goods and services is only the best. Six-sigma, when implemented correctly, is very effective and that is why many companies today use Six-sigma. This process was pioneered more than 20 years ago by Motorola, and has proven its lasting qualities through its continued use in the business world. Any company that wants to gain and retain customers while producing a high-quality product should consider the use of Six-sigma.
Dana Schorden enjoys writing about Six Sigma. Learn more at Six Sigma Weblog ( http://www.sixsigmablog.org/training/), a weblog with daily six sigma training tips and news.

A Holistic View of Six Sigma

"Only the overall review of the entire business as an economic system can give real knowledge" - Peter F. Drucker

No one needs to emphasize the holistic approach the Six Sigma deployment takes on overall business processes. All processes in an organization present at least one opportunity for improvement. Having a limited picture about the limitations of Six Sigma and its applications projects an all together different picture.

At the enterprise level, each company must consider the entire application of the project and this is certainly beyond the line employee level.

A Little Background

We have all known Six Sigma as a deployment strategy related to company activities and we have examples for justification. We have many glaring examples of successful and not so successful companies in recent history. Motorola, DuPont and General electric are some cases in point. Also known to us are the failures of deployment mostly in non- manufacturing businesses.

While thinking along the same lines, if in your understanding, Six Sigma is not applicable to your organization or industry, perhaps what first step you may take is answer whether it can improve the financial situation of your company within an acceptable timeframe. This fundamental answer must be obtained even before the project selection process. Answers to whether Six Sigma can work in all processes and parts of the organization must be put into place.

Thinking Beyond The Shop Floor

Notions and misconceptions such as those confining Six Sigma to the shop floor and relegating it as something of a quality implementation tool dedicated for manufacturing industry must be shown its due place for it to show results of any significance. The ‘beyond the factory’ approach encompasses almost all non-manufacturing aspects of the economy, not excluding those in the new economy group. For example, law offices, non-profit organizations, online business and the transport sector.

Three Critical Steps To Take Six Sigma Benefits Beyond The Shop Floor

Holistic thinking does not exclude non-production activities within organizations. Activities that don’t produce physical products but are still parts of production activities that go into manufacturing, as well as service industry sectors, such as transport industry or consultancy firms, contribute to the economy in a larger meaning by value creation. The following critical steps help reap major benefits in implementation:

• The Strategic Deployment: Think through the overall deployment of Six Sigma initiatives across the entire organization.
• The Tactical Deployment: Tactically selecting, conducting and closing the projects in all those environments.
• Methodical Deployment Of Operational Tools: Applying the analytic techniques of Six Sigma properly when facing common challenges beyond the shop floor, such as skewed (non-normal) distributions of cycle times, or the predominance of discrete data.

Holistic thinking In Six Sigma calls for adopting a statistical approach in its entirety to all aspects of conducting business and looking beyond statistics is an embedded part of deployment. Judgmental timing and accuracies assume the same degree of significance of decision making. There is not one single sure-fire formula to ensure the success of it.

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.