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 Core Concepts

By definition, Six Sigma is a series of systems of metrics that are used to measure defects and improve quality by application of a methodology to reduce defect levels to under 3.4 instances per million. Six Sigma is a trademark of Motorola that, by its implementation, saved the company some $17 billion. It has so much evolved and come of age that comparison with the original process is hardly possible. Fundamentally, Six Sigma manages process variations that cause defects and systematically and statistically tackles the unacceptable deviations from the defined standards and works towards eliminating defect incidences.

Core Concepts Of Six Sigma

By and large, customers don't judge a product by averages like performance but by what they actually get out of each product. Overall customer satisfaction rests heavily on the consistency with which the products are delivered. This is a result of the combination of reduced process variation and improved process capability.

The Core Concept Of Six Sigma

Today Six Sigma core concepts concentrate around defects and process variations. Defects are measured by metrics known as DPMO, defects per million opportunities. We can think of defects as offsets from the standard. Nothing is subjective, as all parameters are quantifiable. Basic measurable dimensions include time/delivery, cost/price, quality etc. In industry jargon these are called Critical to Delivery (CTD), Critical to Price (CTP) and Critical to Quality (CTQ), respectively. Each of these has a different significance to different industries, which needs to be identified before embarking on Six Sigma implementation.

What comes under the microscope next is the measurement system. Common sense tells us that a little element of subjectivity is present in all man-made measurements. For example, the some singers may be marginally better than others. A group of observers will score each singer a little differently, even if standards for performance have been established. Thus the criteria for an individual's passing or failing is purely subjective, exposing the chinks in the measurement system. It is this way with companies' relationships with customers as well.

Process Variability is the second Six Sigma core concept. The more variability in a process the larger the probability for a defect somewhere. At the heart of this concept is elimination of variation of process for defect removal. For example, if a carriage takes 40 minutes to transport a 5-ton load a distance of 10 miles at 99.9997% defect free Six Sigma, a four sigma will take 45 minutes to cover the same distance per same load but at 99.94% defect free. It might appear that 99.94% is quite good - if this is your conclusion, you will need to think again. Taking Six Sigma concepts into account, this equals a 20% defect in the product, which passes on to the customer.

The concept of Six Sigma is to improve the existing methodology or create a new, defect- free methodology for production. This is achieved through a methodology known as DMAIC, which is an acronym for Define opportunities, Measure performance, Analyze opportunity, Improve performance, Control performance. DFSS is the design for Six Sigma principles. Black and green belts evaluate the whole system and various fixes are chosen to be implemented.

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 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 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.

Keys To Six Sigma Success

Six Sigma delivers but its success hinges largely on the seriousness of the organization. Although, it is not as simple and as this, Six Sigma is gradually following a path that its processors took during their heydays. While it is too early to predict the future of Six Sigma, it gradually is causing fewer eyebrows to raise in boardrooms across the world anymore. We will take an insider look at the causes for this and what keys open the door to Six Sigma success, as both are inseparable from each other.

An Insight Into Six Sigma Implementation

Six Sigma requires the organization restructured correctly from top to bottom. From Champions to Green Belts, people are hired or insiders are trained for specific duties. Personnel at each level of the organization have their assigned and well-defined jobs with varying degrees of authorities and powers so that, apart from executing their routine job duties, they are able to effectively solve problems. This is a sticky issue where powers overlap within executive departments. Unfortunately, at times this causes relationships to sour, however unintentionally. The actions of champions, who are supposed to intervene, can be mistaken for intrusion in cross-departmental matters such as this.

It is here that the success of Six Sigma requires total commitment from upper management of organizations. If the tense atmosphere is not remedied, Master Black Belts or Black Belts can get frustrated and fail to concentrate. Further deterioration, whether because of procrastination on the part of Champions or upper management, brings professionals into the fear zone. Consequently, the Six Sigma implementation suffers. The delay in its implementation adds to the already hefty financial bills with results yet to be realized.

Obviously, this pushes upper management into a corner with few options. With the commitment of upper management being challenged, the vision that the organization had fails to gel with the larger scheme of things.

Key To Successful Implementation Of Six Sigma

More or less, it is slow implementation that throws the Six Sigma vision into question. If the first among these is the miscalculation about the different aspects which include the saving potential and implementation timeframe, the intensity with which the implementation is being made comes in a close second.

The Anomaly Of Limited Savings: It is agreed that Six Sigma implementation is a huge expense to organizations, but if companies adopt stringent accounting practices to calculate savings, with tightening of expenditure as may become appropriate, results can be expected to turn around. The expenditures can be calculated just like capital expenditures, and proper adjustments to future budgets must be made. Failing this, savings in terms of money in such cases cannot be expected to be substantial.

The Intensity Factor: If for any reason, there are less stringent implementation methodologies and the process is pushed through without proper training of professionals, you can expect the results to be mediocre. Compromises give way to a slippery slope and ultimately the failure of Six Sigma.

Tony Jacowski is a certified Master Black Belt for Aveta Solutions – Six Sigma Online ( http://www.sixsigmaonline.org ). Six Sigma Online offers online six sigma training and certification classes for lean six sigma, black belts, green belts, and yellow belts.