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Wednesday, January 14, 2009
Driving Six Sigma Excellence throughout the Organization
Six Sigma's focus on the bottom line impact of quality improvements demands that practitioners have the tools and methodologies to support their goals. Aims management consultants as worked with some of the world's foremost Six Sigma thought leaders to create powerful process solutions specifically designed to make Six Sigma more efficient, more powerful, and easier to implement.
Aims management consultants Process for Six Sigma provides a visual framework for connecting the data that drives performance of their respective processes. Through this framework, the origins of hidden factories, bottlenecks, and other drivers of time, cost and rework are rapidly exposed, enabling "quick hit" improvements. Later, high-value opportunities are more easily assessed and prioritized for action by team members.
Why use Facilitators Lean Six Sigma?
- Improve on areas that directly impact and influence your customers
- Address issues that keep impacting on your efficiency
- Improve your existing processes and develop a continuous improvement philosophy
- Adapt quickly and effectively to rapidly changing forces
- Reduce delivery times and operating costs
- Increase the effectiveness of resource/investment.
Balance and flexibility
It argues against those who favor a particular leadership style, or those who excuse their own leadership approach – even when it's not working – by saying, "That's just how I am."
A lack of leadership balance and flexibility leads to poor decisions, misguided efforts, and millions, if not billions, wasted each year. We also examine how it creates scepticism from followers regarding your ability to lead, and failure of businesses to coordinate their activities to the best advantage of customers and shareholders.
On the positive side, we also see how understanding balance and flexibility can make you a significantly better leader, and help you foster better leadership throughout your organisation.
What is the real effect on the bottom line?
I would hope that the calculated savings net out the component of traditional cost reduction, as captured, for example, by the historical cost experience curve, so that the resulting number is truly reflective of the incremental savings that are directly assignable to the 6s initiatives. It is always very tempting to attribute all benefits to the current program, regardless of their true origins.
The Difference between Typical Project Management and Six Sigma Project Management.
Six Sigma is not just another project management initiative or process improvement programme. Six Sigma is not just a new term for project management nor is it a mere repackaging of old concepts. It is more than that because it is a robust continuous improvement strategy and process that includes cultural and statistical methodologies. Six Sigma is complementary with existing project management programmes and standards but differs in significant ways. Both disciplines seek to reduce failures, prevent defects; control costs and schedules, and manage risk. Generally, professional project management attempts to achieve these goals by encouraging best practices on a project-by-project basis, often through the mechanism of a project office that promulgates policy, provides templates and advice, promotes appropriate use of tools such as critical path method, and perhaps performs periodic project reviews.
Too many project management methods have failed not because they weren't adding value but because you couldn't measure the effectiveness of the methodology or quantify the value added by process changes. Six Sigma provides a structured data-driven methodology with tools and techniques that companies can use to measure their performance both before and after Six Sigma projects. Using Six Sigma, management can measure the baseline performance of their processes and determine the root causes of variations so they can improve their processes to meet and exceed the desired performance levels.
What to look for in a Six Sigma Provider?
· Personally available for as long as it takes
· Mentors for life
· Professionals who measure and define your needs
· Master Black Belts who believe totally in the Six Sigma methodology
· Dedicated to the Pursuit of Perfection
· Applications experts
· Recognized for granting only authentic Black and Green Belt certification
· Equipped with an Exit Plan that empowers organizations to sustain the program for life
What will you gain?
· The concepts, philosophy, and benefits
· The underlying principles
· An overview of how Lean Six Sigma is typically undertaken in other organisations
· Project selection
· A walk through the Lean Six Sigma Improvement Journey*, providing practical hands on experience for a range of supporting tools, techniques, and concepts
What is Six Sigma and its Impact on your Business?
Six Sigma is a letter in the Greek alphabet used to denote the standard deviation of a process (standard deviation measures the variation or amount of spread about the process mean).
A process with "Six Sigma" capability means having 12 standard deviations of process output between the upper & lower specification limits. Essentially, process variation is reduced so that no more than 3.4 parts per million falls outside of the specifications limits. The higher the sigma number, the better.
The "Six Sigma" term also refers to a philosophy, goal and/or methodology utilized to drive out waste and improve the quality, cost and time performance of any business. On average, one Six Sigma project will save an organization between $100,000 and $ 200,000. Black Belts with 100% of their time allocated to projects can execute five or six projects during a 12-month period, potentially adding over $1M to annual profits.
Six sigma project power distribution reliability.
Measure: Dollar value determined for each failure and the total. Each failure was assigned to a major component.
Analyze: Mapped the entire system by major component and identified failure rates for each major component. Found areas with projects scheduled that were very unlikely to fail and would add nothing to overall reliability. Other components were being ignored and had a highly likelihood of causing an outage.
Improve: Developed plan for each component depending upon failure mode and frequency for that component. Made a 10X reduction in the dollar losses due to power failures on site.
Control: Track each major component and modify action plan based on failure mode if needed. System shared with other locations.
Design for Six Sigma Introduction and Overview
Define
Project start up, Market and customer segmentation, The change management challenges of DMADV.
Measure
Voice of the Customer & Introduction to advanced VOC techniques, House of Quality 1, Benchmarking and setting design goals, Design scorecards, crystallizing the value proposition.
Analyse
Functional Analysis, House of Quality 2, Creative Thinking, Concept selection.
Design
Building the design elements, Lean design tools, Simulation & Scale up (including design for operation), Capability Evaluation, Robust Designs & Tolerancing, Intro to DOE.
Verify
Piloting & testing, Control Planning, Handover to operations.
The Six Sigma Story
Six Sigma is the name given to a management concept originated by Motorola in the late 1980’s with stunning results. It enabled them to become one of the first winners of the prestigious ‘Baldrige Award for Quality’ and is claimed to be responsible for very impressive improvements in all aspects of business performance. Other star performers such as GE, Allied Signal, Navistar, Polaroid, Bombardier, etc., also developed Six Sigma programmes.
During 1998, a number of British subsidiaries and suppliers to these large companies found themselves being introduced to the concept by their American customers with the result that now Six Sigma has become an important new approach to business performance improvement.
Sigma is the mathematical symbol for standard deviation and Six Sigma can simply mean predicting a particular level of quality achieved by a "process". For example ±6 sigma or six standard deviations would mean the process would be unlikely to produce more than 4 defects in a million. Mostly this would be considered an impressive performance. The "process" being referred to is often thought to be a manufacturing process, possibly mass producing cars, but this would be extremely short sighted. In fact, it is a popular misconception that Six Sigma is only applicable to the volume manufacturing processes - it is not.
What is Six Sigma from a Middle Management Perspective?
- It is a process that structures work into Project Charters that clearly define the Business Opportunity, Project Goals and Potential Benefits that directly link to Strategic Critical Success Factors, Customer Value and Bottom Line results
- It is a formal, structured problem solving / problem prevention process that strives for perfection (3.4 Defects / Million opportunities to create a defect).
What are the Results of Managing using the Six Sigma Process?
· Managers are able to make bolder decisions
The DMAIC Structured Improvement Methodology
· Identifying potential Six Sigma project opportunities
· Six Sigma in business, manufacturing & design
· The DMAIC Roadmap
· Overview of key Six Sigma tools & techniques
· DMAIC case studies
Six Sigma Improvement Approach
· Systematic and disciplined
· Data driven
· Project based (improvement through teams)
· Customer focused (internal and external)
Is SixcSigma Certification Right for You and for Your Business?
The different levels of Six Sigma Certification give each and every employee the chance to contribute, which in essence allows everyone to be part of the solution to the businesses problems. This not only creates a feeling of team work and unity, but also allows each and every employee to realize they are valued by the company.
Why use our Six Sigma e-Learning ?
· Intuitive, straightforward layout and navigation.
· Interactive exercises and colorful animation to keep student engaged.
· Lesson assessments to help cement knowledge.
· Cost effective and convenient method to deliver training.
· Useful as refresher training, even after the course has been completed.
· Student progress and test scores tracked and managed via a database system.
· Flexibility of training to be carried out at any time where a PC is present.
Saturday, January 3, 2009
How does Six Sigma apply in all sectors, companies or industries?
- Everything that anyone does is a part of a process.
- A process is efficient or inefficient depending on the output to input ratio. (this ratio could be productivity measure, cost measure, time measure or any other useful metric)
- Very few processes are defect free and most have unacceptable level of defects or delays (as per industry standards, company's own philosophy towards defects or based on customer expectations). Here, for many processes there is an internal customer (instead of or in addition to an external customer).
- Meeting customer (internal, external or both) expectations with reasonable cost is a key success criterion.
- Variation in process inputs or improper controls result in reduced efficiency or dissatisfied customers, which increases costs and breeds further inefficiency.
- Six Sigma requires that you define success criteria for key processes, eliminate defects (or reduce their severity or occurrences), and rigorously measure outcomes for exceeding industry standards or creating new benchmarks, thereby leading to competitive advantage in terms of cost or value for customers.
How are Six Sigma projects selected?
What does the term 'Six Sigma' mean?
How do I achieve my Black Belt Six Sigma Certification?
2. Global Quality Systems will award you a Six Sigma Black Belt Certificate of Completion if you complete one six sigma project and pass all quizzes with an score higher than 70%.
3. You will submit to ASQ an application form for the Black Belt Six Sigma Certification, provided that you have a specified level of education and/or experience and a proof of professionalism.
4. You will submit to ASQ a project affidavit form describing one or two completed six sigma projects. ASQ certification costs are not included in the Global Quality Systems course fee.
5. You are required to pass a written examination that consists of multiple choice questions that measure comprehension of the Body of Knowledge. The Six Sigma Black Belt Certification is a four-hour, 150 multiple-choice question examination. It is offered in the English language only.
What is Green Belt Six Sigma Certification?
Who should attend:
What Are The Six Sigma Certifications?
- Six Sigma Green Belts have received two weeks of training on the Six Sigma road map and essential elements of statistical methodologies supporting Six Sigma projects. Green Belts allocate up to 50% of their time on Six Sigma projects, and Black Belts assist them with projects as needed.
- Six Sigma Black Belts are technical leaders who have received four weeks of training focusing on the Six Sigma road map and extensive statistical methodologies. Black Belts normally dedicate up to 75% of their time to Six Sigma projects, and they assist Green Belts as needed. Green Belt certification is required for Black Belt certification eligibility.
- Six Sigma Master Black Belts represent the highest level of technical and organizational proficiency. They have received six weeks of training on the Six Sigma methodology, and they've learned the skills and tools required to teach Six Sigma philosophies and implement Six Sigma within an organization. Master Black Belts lead all levels of Six Sigma projects, and they help Black Belts apply methodology when necessary. Their jobs are completely devoted to Six Sigma. Black Belt certification is necessary for Master Black Belt certification eligibility
Six Sigma Implementation
Six Sigma Implementation Model: Steps—Establishing Management Commitment
- Information Gathering
- Training
- Developing Monitoring Systems
- Business Processes to be improved are chosen
- Conducting Six Sigma Projects
First phase in Six Sigma Implementation is to establish commitment of supreme command. This means training the principles and tools to senior management. This should be followed by a development of a management infrastructure to support the Six Sigma Implementation. One tool to monitor the change in management is to use QPR ScoreCard.
Second phase in Six Sigma Implementation is information gathering. This translates into intensive communication with customers, suppliers, and employees. Information about the conditions of the processes which should be improved, for example, supply chain is obtained from customers and suppliers. Analysis of the information helps to identify the obstacles standing in the way of success during Six Sigma Implementation.
Training the whole staff in the organization is the third phase on the way to Six Sigma Implementation. The training needs are assessed, and the training is conducted from top-to-bottom. Training levels can be, for example, Black Belt and green belt. Black Belts are the all-day problem solvers who also operate as team leaders in Six Sigma projects. Green belts are the team members in Six Sigma projects.
Fourth phase of the Six Sigma Implementation process is to develop a monitoring system. Because one main goal is continuous improvement, the framework of the management has to support that end. After the framework is in order, it is time to develop a monitoring system. Adequate measures should be created for strategic goals and key business processes. Measures can be internal and/or external, for example, customer satisfaction. One framework element is, for example, a balanced scorecard.
What is the Six Sigma Green Belt level? And how can I graduate to a Black Belt?
To get an all round understanding of Six Sigma, it is advised that people new to Six Sigma take both the Green Belt and Black Belt Certifications (at a special combo price mentioned below). The Project Management Certification is also a great addition to the Six Sigma Certifications.
The 6 Sigma Proposition
A common goal with a Six Sigma program is to minimize variation within all of our critical processes. Examples of key processes include: Invoicing/Billing customers; new product development; processing customer orders; Managing human resources (including payroll, holiday applications, etc.); Hiring employees; Budgeting; paying bills; Evaluating vendors.
Quantitatively, this means working towards Six Sigma quality, or fewer than 3.4 defects per million “opportunities.” An opportunity is defined as a “chance for non-conformance” (or put another way not meeting required specifications).
What is Lean Six Sigma.
Process Management is the bedrock on which to build such initiatives. By using Control 2007 as a strategic platform for mapping, measuring, structuring and improving business processes, right across the enterprise, organizations can optimize their approach to business improvement.
As Pete Pande, President of Pivotal Resources and author of 'The Six Sigma Way', underlines:
“I am presented with Six Sigma tools every day. Control is the first I have found that genuinely supports the most critical aspect of Six Sigma — that is, to clarify and drive end-to-end process management and improvement. It also helps ensure gains are locked-in, through ongoing measurement and monitoring support.”
How is Six Sigma different from other Traditional Approaches.
Also, while other programs mention philosophies, ideas, and requirements (e.g. ISO 9001 specifies requirements) Six Sigma provides a structured Roadmap on how to bring out the benefits.
Six Sigma Certification
The Six Sigma was created by Motorola in 1986 and since then, has been adopted by countless organizations. This methodology systematically removes flaws from products and processes using two models - the DMAIC and the DMADV. Motorola says it has saved $17 billion as of last year thanks to this system.
Gaining Six Sigma Certification involves many steps. This method uses "belts" to classify professionals within the system. White belts are the lowest and they understand basic Six Sigma concepts and might work on local problems. They are not allowed to be on a Six Sigma project team.
Yellow belts are one higher. This lets a person work on a project as a team member. Green belts help with collecting data and analyzing it for black belt projects. They can also lead green belt teams. Black belts lead projects involving problem solving and they train and coach teams as well. Master black belts act as in-house coaches for green and black belts and they are at the highest belt level.
What are the principal of six sigma?
The main principles of Six Sigma or Six Sigma Principles are:
- Customer must benefit in a way they understand and value
- Managers must direct and lead Six Sigma, they decide on targets and projects
- The targets must be significant and the payback should be clear - up-front
- The whole process should be based on measurable facts
- Six sigma based on improving the system not the people working within the system
What are the fundamental six sigma principles?
- The fundamental principle of Six Sigma is to "satisfy customer requirements profitably".
- A fundamental principle of six sigma is reduction of variability. The tendency is to apply this principle to everything.
- The fundamental principle of Six Sigma methodology is to solve the right problem the right way. To do this, two important issues need to be addressed. One is to prioritize the selection of target processes for improvement; the other is to choose a proper solution strategy.
- The central principle of Six Sigma is that by measuring the defects a process produces, one can systematically identify and remove sources of error, so as to approach the ideal state of no defects at all.
- The fundamental principle of Six Sigma management is that if an organization can measure the defects in a process, its senior management can systematically determine ways to eliminate them, to approach quality levels of zero defects.
- The basic principle of Six Sigma is to use a set of methodologies and techniques that aim to achieve high levels of quality and reduce cost levels.
Six Sigma Definition
The potential benefits of Six Sigma include up to 50% process cost reduction, cycle-time improvement, less waste of materials, a better understanding of customer requirements, increased customer satisfaction, and more reliable products and services. the largest drawback with Six Sigma is that it can be costly to implement and can take several years before results appear on a company's bottom-line.
Operational Definition
Used to remove ambiguity and ensure all data collectors have the same understanding. Reduces chances of disparate results between collectors after Measurement System Analysis.
Statistical Six Sigma Definition
The objective of Six Sigma Quality is to reduce process output variation so that on a long term basis, which is the customer's aggregate experience with our process over time, this will result in no more than 3.4 defect Parts per Million (PPM) opportunities (or 3.4 Defects Per Million Opportunities – DPMO). For a process with only one specification limit (Upper or Lower), this results in six process standard deviations between the mean of the process and the customer's specification limit (hence, 6 Sigma). For a process with two specification limits (Upper and Lower), this translates to slightly more than six process standard deviations between the mean and each specification limit such that the total defect rate corresponds to equivalent of six process standard deviations.
What does Six Sigma have to do with wine?
The data-driven principles of Six Sigma are employed, not only in the winemaking process as such, but in all stages of the process, for example when we:
- Conduct extensive analyses of soil, water and climate to find the most favorable sites for our vineyards.
- Choose rootstocks that thrive best in the soil composition of a given vineyard.
- Meticulously prune vines to enhance the quality of grapes and to allow consistent ripening.
- Apply chemical and sensory analyses to pick the grapes at just the right time to produce optimal flavor in the wine.
- Listen to the voice of the customer - whether you are a sophisticated wine drinker with well-defined preferences, a social wine drinker who knows what you like and wants the security of consistency, or you just want a good place to start.
What are the Benefits?
By reaching Six Sigma quality you will develop a culture that thrives on the identification and elimination of waste in all forms.
You can expect:
- Significant improvement in customer satisfaction
- Reduced cycle times, defects and costs
- Improved productivity and efficiency
- Financially measurable results
- Increased product dependability
How Does Six Sigma Work?
The management side focuses on using the management system to line up the right projects and match them with the right individuals. Management also focuses on getting the right goals and process metrics to insure that projects are successfully completed and that these gains can be sustained over time.
The technical side focuses on enhancing process performance using process data, statistical thinking, and methods. This focused process improvement methodology has five key stages: Define, Measure, Analyze, Improve and Control. Define is to define process improvement goals that are consistent with customer demands and company strategy. Next measure the key aspects of the current processes that your company is using and collect relevant data about these processes and current results. Then analyze the data to verify cause and affect relationships, be sure to consider all possible factors involved. Then improve or optimize the process based upon data analysis using techniques like Design of Experiments or observational study. The last step is to control to ensure that any deviations are corrected before they result in defects. During this step you will also set up pilot runs to establish process capability and will continuously monitor the process.
Why Six Sigma?
What is Six Sigma?
The approach can be applied in many situations and is equally relevant within the private and public sectors. Many major organisations have already adopted the methodology of Six Sigma and are experiencing remarkable improvements as a result.
Using a rigorous data based approach, Six Sigma encompasses an extremely wide and comprehensive toolkit as well as a structured methodology for deploying these tools, to increase customer satisfaction, drive out errors and waste, reduce cycle times, reduce costs and improve delivery.