Lean Six Sigma Implementation Basics

Lean Six Sigma methodologies are a combination of standard 6-Sigma quality improvement techniques and lean manufacturing principles that are used for speeding up business processes. 6-Sigma methodologies focus on reducing defects in business processes, whereas Lean 6 Sigma does not only eliminate defects but also improves the speed of a process and reduces waste by eliminating non-value added steps in a business process. Combining 6-Sigma and lean manufacturing principles is like combining the contents of two different toolboxes that help companies to improve quality and efficiency.

Compatibility

Depending on the type of methodologies used by an organization, Lean Six Sigma is often referred to as Lean Service, Lean Manufacturing, and Lean Enterprise. These concepts are compatible with standard Six Sigma methodologies and can be applied to every type of business processes. Both the concepts use similar strategies and methods and focus on improving business processes that serve customer needs. Both focus on identifying and eliminating sources of waste and processes that do not add value for maximizing output, efficiency, and throughput. They emphasize providing requisite training for enabling employees of an organization to understand the tools and processes of the methodology. Both concepts encourage the involvement of senior managers and key mentors within an organization for ensuring that quality improvement projects are executed without affecting the day-to-day operations.

Lean 6 Sigma uses different techniques for reducing costs, reducing production cycle times, expanding capacity, and improving productivity. It uses "value stream mapping" for identifying improvement opportunities. However, Lean Six Sigma concepts may sometimes prove inadequate in solving some of the more complex problems that call for advanced analysis.

Benefits

Standard 6-Sigma methodologies follow a disciplined, data driven approach and use statistical tools for analyzing quality at every stage of the production process. When combined with Lean manufacturing principles, it helps in identifying and resolving quality issues. Its successful implementation is important in reaping quick results and enabling employees and plant managers to harness better work patterns on plant floors. Lean Six Sigma programs are executed under the guidance of 6-Sigma Champions and Black Belts for enhancing the efficacy of quality improvement initiatives. It is necessary to deploy lean manufacturing techniques during the Six Sigma implementation process for ensuring that the improvement process includes a standard problem-solving approach.

Lean Six Sigma focuses on adding value to manufactured goods or services rendered by eliminating defects in every business process. This helps in building customer loyalty, as customers often prefer products and services that offer consistent quality. The matrices used in Six Sigma help in identifying customer needs, manufacturing quality products and rendering quality services.

Lean Six Sigma concepts and methodologies are based on a highly sustainable approach that gets easily integrated with the existing work processes within an organization. It requires the involvement of employees at all levels within an organization. The deployment of 6-Sigma programs can initiate a culture shift within an organization that helps in eliminating waste within the production process.

Lean Six Sigma helps in ensuring future success of an organization by radically improving quality and reducing waste. It also allows employees within an organization to design and develop new business processes that will help in making drastic improvements to the organization's performance.

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 - The Historical Perspective

The quest for perfection is second only to human survival instincts. These are the two reasons that were solely responsible for civilizations to flourish. That we are wearing clothes today as a symbol of the quest for perfection and innovation should reinforce this statement.

Was There A Conscious Effort To Develop Six Sigma Into A Competitor To Existing Systems?

This is a na?ve and unfounded question, as Six Sigma was developed as independently as any other school of quality management systems. If we value the famous quote of M.K. Gandhi that the end result justifies the means, then it clarifies the need to have more than one quality system.

Evolution Of Six Sigma

Six Sigma has its roots in the early industrial era of Europe during the 18th century and was introduced with just one conceptual normal curve metric by Carl Frederick Gauss. In the 1920s Walter Shewhart showed how 3 sigma deviations from the mean required process correction. Later, a Motorola engineer, Bill Smith, coined the term Six Sigma, which was then copyrighted by Motorola.

The Japanese Mark

The ever quality-conscious Japanese perfected the Six Sigma concept when they took over a Motorola factory in 1970, which manufactured TV sets. The new Japanese management set out on a mission to change the way activities were going on in the factory, placing high emphasis on all activities leading to production. With their zealous approach they later begin producing TV sets with just a 5% number of defects in comparison to the original records under Motorola.

Motorola's Contribution

Mikel Harry, who is regarded as the godfather of Six Sigma, along with Bill Smith, the father of Six Sigma, wrote and codified a research report on the quality management system, which highlighted the correlation between the performance of a product in the market with the amount of adjustment required at the point of manufacturing. This report clearly established that the lesser the number of nonconformities at each stage of manufacturing, the better the performance. The report paved for implementation of "logical filters", a key approach to problem solving. With the then Motorola CEO, Bob Galvin, playing a key role, later this four stage logical filter came to be known as the skeleton of the present Six Sigma. The four stages, then identified, were Measure, Analyze, Improve and Control (MAIC).

A New Road Map

With the results of the efforts of Mikel Harry and Bill Smith paying rich dividends, Motorola's Corporate Policy Committee had set goals for further improvisation of the system by declaring (in 1989) that they would achieve ten times better quality in service and products, with further improvement to 1/10th by 1991.

Galvin was instrumental in spreading the sense of quality in every sphere of business activity until total customer satisfaction was achieved. Until now, Motorola's approach was limited to a disciplined statistical approach to problem solving. This approach still got Motorola the coveted Malcolm Baldrige National Quality Award.

Major Contributors On Its Journey To Perfection

We can't forget the contributions made by Unisys Corp in 1988. Asea Brown Boveri in 1993 developed Six Sigma into its current form, which places importance on bottom lines and customer satisfaction. The current form of Six Sigma has implementation being carried out by key role players: Champions, Master Black Belts, Black Belts, and Green Belts.

Since then, the Six Sigma methodology has been and is applicable to different industries. The evolution of Six Sigma continues.

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

The Six Sigma Tool and TQM are Not the Same

Many business people have yet to recognize the difference between the Six Sigma tool and total quality management, also referred to as TQM. Though, at a glance, they do look rather similar, and the Six Sigma tool does indeed employ some of the techniques and strategies that are the foundation for TQM, they remain two entirely separate methods of doing business.

While both the Six Sigma tool and TQM place emphasis on how critical it is to look at a business' entire support and leadership structure from top to bottom, the similarities don't go much further than that. It is the focus on quality that causes the confusion between total quality management and the Six Sigma tool. Both approaches to business believe that constantly improving the quality of a business is vital to its continuing success. Furthermore, the Six Sigma tool cycle of define-measure-analyze-improve-control is comparable to the TQM cycle plan-do-study-act.

However, the differences are vast and important between these two strategies. It is these differences that explains why the Six Sigma tool continues to grow in popularity, while the TQM is fading out over time.

Among these differences, management is primary. In contrast with TQM, the Six Sigma tool was not created by people who had very little experience in management, and were therefore only capable of developing a plan that had very broad management guidelines. Instead, the Six Sigma tool was formulated by a group of the most capable CEOs in the United States, who had only business success as their ultimate goal. They worked through all of the tools and techniques know about the business world and incorporated each of the most effective, tried-and-true methods for having businesses operate at their full potential, in a framework that makes it entirely possible.

Therefore, the Six Sigma tool can be seen as a much more holistic approach to doing business. Though loosely based on traditional concepts, it employs those that have been known to work consistently across multiple industries and business sizes. It also focuses not only on the end result, but on the entire business and its processes and policies.

Of course, there are many other differences as well; to be rapidly summed up, the main difference of the Six Sigma tool is its ability to give organization a much clearer path toward success by using its potential to its fullest.

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

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
 

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.