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Monday, March 31, 2008

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

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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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Monday, March 24, 2008

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

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Monday, March 10, 2008

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

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Thursday, March 6, 2008

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.

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Tuesday, March 4, 2008

Six Sigma and Statistical Methods

Six Sigma methodologies use statistical tools used to transform raw data into information. Based on the results, further actions are taken. Statistical tools and related aspects of Six Sigma methodology comprises about half of Six Sigma. In addition, Six Sigma places a lot of emphasis on graphical interpretation of data collected during the course of measurements.

The importance of statistical methods emanate from the fact that many hypotheses can be disproved with sufficient statistical data. The significance of statistical methods in Six Sigma increases with any increase in sample sizes. The statistical methods quantitatively facilitate evaluation of the performance of any process. The purpose of this being to tackle the cost of poor quality (COPQ) first, Six Sigma has a broader scope than the traditional cost effectiveness model.

Some Important Statistical Methods In Six Sigma

Variations in processes are measured in terms of deviation from the mean and data falling within the acceptable statistical limits. Graphical representation of this data helps companies to visualize things with greater accuracy. Let us examine a few of the most commonly used Six Sigma statistical methods.

Control Chart

The deviations within the acceptable limits (upper & lower) are due to common causes. Anything falling beyond the limits is attributable to some specific cause. For example, take the case of writing your name ten times. Although there are similarities, you probably won't be able to find any two signatures being exactly the same. The reason is an inherent variation that produces reasonable results within limits and is termed as 'common cause'. Special causes are those due to forced errors. A control chart has a mathematical mean line in the center and two limit lines. The third component of the Six Sigma control chart is the performance data, which is plotted over time.

You can seek special causes and track common ones through control charts by looking for:

* One set of data falling beyond the acceptable limits (special cause) * Greater than 6 data sets climbing or declining steadily within limits * Eight or more subsequent data sets falling on one side of the mean * Data falling alternately across the mean line

Interpretation emphasizes seeking out the special cause that brings stability to process variation. The real fun here lies in removing the common cause and induced variations also.

Brainstorming & Affinity Group Tool

Brainstorming generates and polishes creative ideas based on the principle that two heads are better than one. An affinity diagram is used to organize & develop brainstorming by fine tuning initial and raw thoughts and removing uncertainties. The advantage of this is that it obviously stimulates for generation of more ideas. The affinity diagram was not originally intended to be a quality management tool. First devised by Kawakita Jiro, the affinity tool emphasizes the need for sorting and titling the data only at the end. A typical affinity diagram organizes the brainstormed ideas on its left panel. On the right side are ideas neatly grouped into affinity sets. Reasons for an idea belonging to a particular set are not given particular importance, but all ideas are clarified. An idea may be present in a single group if it has any resemblance to another.

If there is one thing that summarizes the importance of statistical methods in Six Sigma, it can be none better than a saying, famous in Six Sigma circles - "In God we trust, all the rest bring data". Need we say more?

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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Tuesday, February 12, 2008

Six Sigma Software Tools

Six Sigma software tools augment the implementation of Six Sigma methodology by complimenting and sometimes substituting human efforts. Six Sigma software tools fill in the vacuum of additional needs by companies that are implementing the Six Sigma methodology.

Six Sigma Software Tools - Features And Size

Six Sigma software tools are available in different modules covering various aspects of implementation. There is one comprehensive package on the market that covers the entire span of Six Sigma activities. However, buying a Six Sigma software tool that comprises all modules during the course of Six Sigma implementation means that they all can't possibly be used. Generally, Six Sigma software tools are developed on an Excel platform.

When you are evaluating Six Sigma software tools, the size of your business or that of the Six Sigma implementation should not be of undue concern. Most Six Sigma software developers keep factors like these in mind when developing their products. There are two different Six Sigma software tools available, such as a desktop edition and an enterprise edition. You will always be able to find the type of software that you need. Due to recent improvements in technology, there is also a web-enabled module available!

Different Modules From Various Software Developers

Software developers, in accordance with the needs and demands of different businesses, have developed various Six Sigma software tool modules. Some examples of Six Sigma software tools are as follows:

1. DMAIC Six Sigma - a process management tool 2. Design for Six Sigma or DFSS - a design tool 3. Quality improvement package - a quality control tool 4. Production management package - a process simulation tool 5. Project optimization and simulation - An analytical tool 6. Testing and measurement - a testing and control tool

The all-encompassing comprehensive Six Sigma software tools packages pack a lot of powerful features into them which help speed up the decision making process and data mining, while dramatically simplifying predictive modeling activities. These features are enabled by a novel concept called "artificial intelligence" or AI. Artificial intelligence mimics the human thought process to automatically compute and solve complex problems. This feature comes in handy, especially when you are dealing with huge databases.

Support Back Up For Six Sigma Software Tools

Software producers and vendors offer assistance with their products. These include:

* Installation and maintenance support * Online help systems and tutorials * Product application guides * 24/7 toll free customer support * Money back guarantee for a limited time period

System Hardware Requirements

Most of the Six Sigma software tools are available for both Mac and IBM compatible PCs. The minimum system requirements are:

* At least Pentium 386; but for most products - 1.0 GHz Pentium processor * 256MB RAM * 1.0GB of free disk space * Graphics card (at least VGA or a better is recommended) * Windows, several versions; depending on which product you buy

With Six Sigma software tools at your disposal, you can process a lot of data, more than you ever could by hand. Artificial intelligence is used for faster, more dependable project selection and analysis. Six Sigma software tools also assist you in predicting future behaviors & tendencies. Six Sigma software tools have finally come of age and are here to stay.

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.

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Tuesday, February 5, 2008

Company Politics and Six Sigma by Peter Peterka

No grouping of human beings is without some amount of politics. Managing deployment of Six Sigma in your organization will unavoidably run into some personal issues and conflict. However, with deft handling of the personal and political issues that come up, along with patience and perseverance, your Six Sigma deployment will not get derailed.

Political factors that can affect a Six Sigma project include personal resistance to change, inflexible company policies, and incompatibility with existing organizational methods and goals. Not surprisingly, all of these factors also affect business processes of any kind. They are not unique to Six Sigma. This is one of Six Sigma's strengths: realistically acknowledging the way politics work in an organization. Six Sigma is not just number crunching. It understands the importance of and encourages the involvement of people throughout and at all levels of the organization working together toward a common goal. Six Sigma encourages planning, communication, and openness about processes, procedures, and information.

Many people see change, any change, as loss?a loss of their power or a loss of the security of the old way of doing things. Thus, people are prone to defend the old way, out of habit and out of unease. They wonder how change will affect them and what exactly happens behind the scenes and if they don't know, become apprehensive. This is a problem that can be overcome through communication. Six Sigma successes require clear and open communication at all levels. Any change in an organization will meet some resistance, either intentional or just from inertia. When management can effectively communicate that it is behind that change and can communicate the positive aspects of the change, resistance and ?turf? politics can be countered and overcome.

Another problem is people who disregard the value and power of Six Sigma and consequently, they are reluctant to support Six Sigma projects. To the uninitiated, Six Sigma may appear similar to or simply an evolution of other quality programs. There have been so many quality improvement fads over the years. It is not surprising that people are now a little jaded. Others may see Six Sigma as solely another cost-cutting or productivity enhancement fad. This is a short-sighted view. Six Sigma is neither a fad nor just another quality initiative. It is a ?way of life.? It is a multi-level, cyclical movement toward continual process improvement. The quality improvement fads sell themselves as cheap and easy quick fixes. The reality is that there are no quick fixes to significant process improvement. Six Sigma understands that; it is not a simple quick process. However, the right Six Sigma training and information will help people to understand that Six Sigma is significantly different; it is a robust continuous improvement strategy and process.

Once projects are begun, Six Sigma projects can become a battle of wills for control over which strategy, approach, or tool is used. Team meetings can devolve into arguments over which measurement to use, how it will be calculated, which charts will be generated, whether to use DMAIC or DMADV, etc. Six Sigma is not about making things more difficult. It is about using common sense to make things easier. It is certainly about recognizing that there is more than one road to improvement and more than one right answer to a problem.

In overcoming political problems, the leadership of senior management is critical. Successful Six Sigma programs are built on a solid organizational foundation. The organizational structure and system needs to be clearly identified and communicated to the entire organization to successfully implement Six Sigma Quality. Becoming a Six Sigma organization doesn't just happen. Planning and training goes into setting up a successful Six Sigma organization. Employee roles and responsibilities must be established and clearly communicated to all. For many companies successful in Six Sigma, the key factor has been the direct involvement of their top leaders.

Six Sigma is about getting everyone involved. A Six Sigma project forms a team of people who work together to identify problems and develop solutions. Such teams are not isolated teams rearranging the world for everyone else to live in. These teams are serving the organization by employing the skills and tools they have learned to increase quality and reduce defects. Instilling the team concept along with expert training will go a long way toward solving potential political troubles in your 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 Six Sigma Consulting please contact Peter Peterka at http://www.6sigma.us/.

joseph@sixsigma.us

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Wednesday, January 9, 2008

Six Sigma can Improve Government Practices

Government bodies at any level, local, state, and Federal, can implement Six Sigma to improve customer service and increase the effectiveness of government. Although Six Sigma has its roots in private-sector manufacturing, it works just as effectively in governmental organizations and government will reap the same benefits as corporations.

Many top companies have produced outstanding results with Six Sigma, dramatically cutting costs, increasing profits, and improving customer service. Governments arent looking for profits, but they still have motivation to reduce their costs and reduce the inefficiency and waste that causes cost overruns. The reduction of variation and defects within processes is the goal of Six Sigma and that goal is just as valid in government as in any other industry.

Any government institution is a service organization and its customers are the citizens it serves. Like a private sector service business, a government benefits when it learns how to serve their customers better by increasing quality and efficiency. In any service organization, the critical factors in quality and efficiency are the flow of information and interaction between people, especially interactions with customers. Transforming the process of these flows will yield quality results. At the heart of every service business are the opinions, behaviors and decisions made by people. Analyzing and modifying human performance in service environments is as complex as any manufacturing situation. Six Sigma achieves documented bottom-line strategic business results by initiating an organization-wide culture shift.

The governmental institution must understand that it needs to redesign its processes from the ground up to be as efficient as Six Sigma enables. No more business as usual. Until a process focusrather than a task focusis developed, the scope and endurance of improvements will be limited. Analyzing and modifying human performance in these environments is complex, but Six Sigma provides the tools and methodology required to achieve significant long-term improvements.

Six Sigma will help government operations groups, such as public works, law enforcement, and sanitation improve their processes to deliver services more efficiently. It will help departments that handle transactions, such as finance, libraries, and human resources, improve their processes to reduce waste and save money. It will help relationships with contractors and assure that contractors apply best practices to their own programs. Six Sigma will also instill a new attitude of efficiency and responsibility from governmental employees. The organization-wide culture shift comes from Six Sigmas recognition of meeting the needs of customers and the value of lower-defect business processes.

Six Sigma is still new to government. Fort Wayne, Indiana may be the first City in the country to implement Six Sigma. The City of Fort Wayne is using Six Sigma to initiate improvements in a number of different departments, including fire, community development, water pollution control, right of way, human resources, street, transportation engineering services and solid waste. Six Sigma has decreased costs, improved customer service and increased productivity throughout city government. Projects have resulted in over $3 million of savings or cost avoidance for the City.

The use of Six Sigma demonstrates a governments commitment to innovation and continuous improvement. Leaders in government will find many benefits to adopting Six Sigma methodologies and training their employees in Six Sigma.
Peter Peterka is President of Six Sigma.us and has over 15 years experience including implementation of Six Sigma in Government with a variety of organizations. For additional information please contact Peter Peterka at 6Sigma.us
 

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Saturday, December 15, 2007

Six Sigma Tools

Statistics are at the heart of Six Sigma’s powerful methodology for quality improvement. It pays to get to know some of the most important of the Six Sigma statistical tools.

Control Charts

The control chart is the fundamental tool of statistical process control; a proven technique for improving productivity. It monitors the variation of key characteristics and indicates the range of variability that is built into a system. Control charts provide diagnostic information about process capability that can be used to analyze variation in process data to demonstrate whether a process is operating consistently. The bounds of the control chart are marked by upper and lower control limits that are calculated by applying statistical formulas to data from the process. Data points that fall outside these bounds represent variations due to irregular causes, which can then be identified and eliminated. Control charts are effective in defect prevention and will help ensure that your process performs consistently. From them, you can, in a precise manner, monitor, control, and improve on process performance over time. This will allow you to be able to predict fluctuations, lower costs and ensure the process has a higher effective capacity.

Failure Modes and Effects Analysis (FMEA)

FMEA is a powerful structured approach that helps you to identify and counter weak points in the early conception phase of products and processes. Using FMEA allows you to analyze any system or subsystem in manufacturing or service industries in the early stages of the process. This systematic methodology identifies potential failure modes in a system caused by either design or process deficiencies. It also identifies critical or significant design or process characteristics that require special controls to prevent or detect failure modes. FMEA improves the quality of products and services and processes by preventing problems from occurring. It documents and tracks action taken to reduce risk while it integrates with the DMAIC methodology.

Histogram

A histogram is used to graphically summarize the distribution of a data set. A histogram is constructed by dividing the range of data into equally sized segments. This data tool enables you to quickly and easily answer several important questions: what distribution does the data have? What is the most common system response? Is the data symmetric or does it contain outliers?

Pareto Chart

A pareto chart is used to graphically summarize the relative importance of the differences between groups of data. A pareto chart is constructed by dividing the range of data into groups. The vertical axis of the pareto chart is the cumulative percentage, and the horizontal axis of the pareto chart is the groups of response variables. Unlike the histogram, the pareto chart is ordered in descending frequency magnitude. The Pareto Chart allows you to focus your efforts to achieve the greatest improvements by identifying the largest issues facing the process. It identifies the 20% of sources that are causing 80% of the problems.

Peter Peterka is President of Six Sigma us. For additional information on Six Sigma Black Belt or Minitab programs contact Peter Peterka at http://www.6sigma.us He 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. For partial list look here. Peter is a certified a Master Black Belt and holds an MS degree in Statistics from Iowa State and a BS in Chemical Engineering from Purdue. Peter worked for 3M over 10 years where he gained extensive experience applying Sigma Methodologies to a variety of processes.

Peter has successfully developed Six Sigma deployment strategies and training for Product and Process Development, Manufacturing and Business Process Improvement. His broad experience across many technologies helped him gain insight on how to apply Six Sigma methods to Business Processes.

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