Problem Solving With Six Sigma Root Cause Analysis

March 9th, 2010 by admin

This is applicable all the more so for businesses that just cannot afford to keep solving the same types of problems over and over again and deriving satisfaction from such dubious achievements. So what is the right approach to problem solving? Well, for that you just need to have a look at the time-tested Six Sigma root cause analysis tool that stresses locating and eliminating the root causes of the problem rather than finding quick-fix solutions.

In effect, it basically helps businesses to find long-lasting solutions for all types of problems that occur repeatedly when left unchecked in their natural state. For better understanding, let us discuss how exactly does the Six Sigma root cause analysis tool helps businesses to find the most appropriate solutions.

Defining and Measuring the Problem

The first step in the root cause analysis process deals with the identification and measurement of the problem. In this step, all the various aspects are considered such as when exactly does the problem occur, where exactly it occurs, what damage potential does it have, why exactly does the business needs to solve the problem and how will the business benefit by solving the problem.

All this is usually done by comparing the VOC (Voice of the Customer) that represents customer expectations and the VOP (Voice of the Process) that represents what customers are currently receiving. Using this approach helps businesses to devise effective solutions that are in line with customer needs and requirements.

Finding the Root Causes and Devising Effective Solutions

After identifying the problem, the next step deals with finding the root causes and also understanding their relationship with each other. This is usually done by collecting sample data related to the problem and consequently using the root cause analysis tool for finding the main factors responsible for the defined problem.

This step also deals with finding the most appropriate solutions that not only solve the given problem, but also ensure that the problem does not reoccur in the near future. Usually multiple solutions are suggested and put through advanced simulation tests to check their applicability.

From among these, the solution that best fits the bill is selected for final implementation.

Implementing and Controlling

A business may have zeroed in on the most appropriate solution, but its responsibilities do not end there. It’s because the business still needs to implement the solution and put in place control systems that will help in verifying the success or failure of the implemented solution.

It is only when the implemented solution passes the control tests can the business claim success for its problem solving initiatives.

Problems are inherent to business processes, and no tool or technique can ever claim to eliminate the occurrence of new problems. Six Sigma root cause analysis is preferred because it at least ensures that existing problems do not reoccur and are resolved in the most appropriate manner.

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Importance Of Six Sigma In The Business World

March 8th, 2010 by admin

Better Than TQM

Six Sigma is important because it scores much higher over other quality improvement techniques such as TQM. Business organizations employing TQM just focus on achieving predetermined quality levels, which certainly improves efficiencies but does not allow the organization to realize the full potential. Six Sigma is different as the focus here is to make consistent quality improvements until business processes are fully optimized. As soon a certain quality level is achieved, the organization shifts gears and starts concentrating on achieving other levels of quality. The whole process continues until all the business processes are fully optimized.

Data Driven Approach

Six Sigma concepts and methodologies stress the use of statistical tools and techniques for improving quality and reducing defects. The dependence on hard facts and figures automatically ensures that whatever decisions are taken will have the desired affect on the quality of goods or services and the efficiency of business processes.

An experienced production manager may be the right person to make quality-improvement decisions but if the decisions are based solely on gut feelings and preconceived notions, the decisions may not have the desired effect, especially if the task is to make adjustments in a complex business process. The inherent ability of Six Sigma to produce the desired results has thus increased its importance in today’s business world.

Helps Increase Customer Satisfaction And Build Loyalties

Another reason for the ever-increasing popularity and importance of Six Sigma is that it really helps when it comes to handling competition, which has increased considerably in today’s business world. Business organizations worldwide have realized that in order to beat the competition, they will have to offer better quality products or services to their customers and that too at competitive rates.

Six Sigma helps because it enables business organizations to achieve the above stated objective, which ultimately results in greater customer satisfaction and helps in building customer loyalty. Having a loyal group of customers is always important for any business because it ensures a constant flow of revenues even when there is a cyclical downturn in the industry.

The importance of Six Sigma has increased manifold in the last two decades and is set to increase even more in the coming years as more and more businesses realize its benefits. Six Sigma is anticipated to maintain its dominance over all other existing quality improvement techniques because it is flexible and can be altered to suit the requirements of new businesses that might come up in the near future. We can never be too sure about the future but as far as the present is concerned, Six Sigma is certainly calling the shots across all types of industries worldwide.

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Role of HR in The Six Sigma Initiative

March 7th, 2010 by admin

Six Sigma is not the latest buzzword in management circles. It has been here for quite a long time and companies have been raining accolades for this merit-worthy process. Six Sigma is a quality-oriented measure that aims to reduce management wastes, and improve internal efficiency through quantifiable tools. It is not only for product-based industries; six sigma can be applied to process-driven or service sector companies too. Six sigma process model consists the following methodology: Define, Measure, Analyze, Improve and Control. The process is executed by Six Sigma Green Belts and Six Sigma Black Belts, who are overseen by Six Sigma Master Black Belts.

Six Sigma overhauls existing processes of a company. Naturally, line and staff have to put in coordinated efforts to meet the Six Sigma objectives. As far as the HR department is concerned, the key deliverables for meeting six sigma requirements would be some of the following:

Recruitment and Retention

Six Sigma has several designated roles for key players. Hence HR has to ensure that members for each role are carefully selected. Of these, the black belts are the key to the success of the Six Sigma program. It is the responsibility of HR to make sure that assessment tools identify the potential candidates for the black belt level. These candidates are usually picked from a resource of promising candidates. To keep the black belts well entrenched in the Six Sigma program, the HR team has to:

1. develop a comprehensive competency framework to tap existing and latent talents

2. build and execute training models that cover the requirements of the six sigma process

3. create a retention strategy to ensure that the black belts remain in their positions till the completion of the six sigma initiative

Compensation and Rewards

Rewarding team players of the six sigma process can be quite complicated. This is because the people selected for the six sigma are from every rank and order of the organization. Hence the rewarding scale cannot be flat. At the same time, it becomes a sensitive issue to compensate individuals on the basis of their level of expertise within the six sigma program. HR has to deal with this touchy issue with great care and consideration. Compensation must be on the basis of fairness, in addition to merit. Also, compensation and rewards should be designed to ensure that team players are motivated to take on further six sigma projects. This compensation structure should be in sync with the overall objective of the six sigma project.

Knowledge management

HR can play a pivotal role in the knowledge management aspect of six sigma projects. There is immense learning in the six sigma process. During the implementation of the project, business processes are examined on a microscopic level, and their productivity is analyzed on a numerical basis. Valuable information about the company’s core competencies would be lost if there is no data management. The learning process needs to be collated and disseminated within the organization. The Hr team can be the knowledge resource center that can enhance business capabilities.

Change Management

During the implementation of the six sigma project, many management procedures would be overhauled. This would obviously lead to change in management thinking, working pattern and attitudes. Change of any type meets with a lot of organizational resistance. Here, it is important for HR to play the ‘change agent’ role and become the catalyst of change from old to new business processes. This can be achieved by establishing a proper communication network across the organization. For the six sigma project to succeed, HR has to propagate the benefits of the project to all reluctant managers.

This article covers most of the ‘visible’ functions of HR in the Six Sigma project. However, there could be many more dynamic roles that emerge during the six sigma process. HR hence has to be prepared to play multi-skilled role and adapt to the requirements of the six sigma project.

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Six Sigma For Your Business

March 6th, 2010 by admin

A story which started with companies like GE, Motorola has carried on strength to strength with many companies adopting the same set of practices which have made their processes variation-resistant and hence effective and efficient. Six Sigma for your Business can be your major cost saver with it saving costs by evolving the set of practices which you have in either developing your products or rendering services.

A business owner can decide to reengineer his processes with the Six Sigma approach. The classical DMAIC model allows him to improve the metrics of his processes which would directly or indirectly impact his business objectives. Cases where the business owner feels the need to develop new processes, he could follow the DMADV or the DFSS (Design for Six Sigma) model. These models are a step by step approach to ‘problem-solving’ and your problem statement can be easily converted to a profit statement, should you implement Six Sigma process improvement measures successfully.

To enable you with trained resources who can effectively implement the Six Sigma projects, many Six Sigma companies offer training courses which culminate in a Six Sigma certification for the candidates. If you think that you wish to get Six Sigma projects executed by expert consultants, that is possible. Either ways, costs would be involved but that is extremely negligible when you consider the benefits of a Six Sigma reengineered process.

With your business operating at 3.4 Defects per Million Opportunities (DPMO), you can be assured of your processes running optimally, in this case near perfection. Just be careful to pay enough attention to some basic considerations before you decide to reengineer your processes the Six Sigma way.

Ensure that you scope your processes for process improvements right. Fault in the scope of the project will end up with you spending a lot of money and time in waste. There would typically be stages for any Six Sigma process improvement measure. Success of a Six Sigma is dependant entirely on how the process performs in each of these stages. Eventually, the primary deciding factor for successful implementation of a Six Sigma plan would be the effective involvement of all the team members of the product development cycle in the project.

Six Sigma for your business will be effective and in many terms be the key to have your process aligned towards your business objectives. To achieve a degree of success which companies like GE, Motorola have achieved, you would need to achieve a classical integration of the Customer, Process and People. And to do that, you do not have to be a big brand as even small companies can implement Six Sigma processes.

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How To Assess The Success Of Six Sigma Implementation

March 4th, 2010 by admin

Analysis of a failed project will definitely help the team to know about the lack of commitment as well as attention by senior management, and towards the business and cultural investment that were required for accomplishing and sustaining the new levels of performance. It is here that the assessment will be needed when reworking a failed project, because it will reveal the exact nature of flaws.

Assessing The Various Deployment Stages Of Six Sigma

One of the most important things to remember in the implementation process is assessing the status quo at various intervals. Assessing a process will reveal any deviations if done from the intended line of progress. As it is known, process optimization and control are needed to render progressively higher quality in the deployment process. Performance efficiency and timeliness are also important, which is why a system of assessment needs to be put into place as an appropriate set of balances and checks to control all these factors.

No Two Six Sigma Assessment Procedures Can Be Same

No single assessment procedure developed by an organization can be applied to any other organization, or for even any other process for that matter. Companies that are successful in their own right have always developed their own assessment procedures. In fact, some of them have even used their internal audit system along with their own criteria in assessment. And even if you are using audit procedures developed by a reputable company like Motorola, it will still not be new or unique. Therefore, many organizations have gone ahead with evolving a custom developed audit system for their very own assessment procedures.

The Categories In Six Sigma Assessment Procedures

The most basic function of an assessment procedure is to understand the gap between “as is” and “what it should be” state of the process stage. The “should be” list indicates at the points decided in the very starting. There are categories for all processes including:

o Leadership

o Communication and implementation in day to day activities

o Project performance competency and effectiveness

o Organizational transformation

o The impact of the customer on processes

These top-level categories have different requirements to fill in to achieve the objectives completely. The assessment method used in this category includes written tests and interviews of top level managers all the way down to line employees, along with other meetings and seminars.

The overall results that are shown are applicable only to core business areas. In addition, the leadership assessment’s results also show possible areas of weakness and areas for improvement. In fact, these results help in drawing up a course correction plan. The results will also indicate the weaknesses that should be assessed as the first steps of fine-tuning processes needed for the changes.

The best thing about assessment procedures is that it can be warranted whenever needed. In normal conditions where results takes 4-6 weeks to show, the best course of action is to schedule the assessment procedure as an annual routine exercise. If you observe the implementation procedure of successful Six Sigma techniques, then you will automatically realize that the major bottlenecks in changing the organization’s mindset lies in sustaining whatever gains that are made to date.

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Profiting From Six Sigma Certification

March 3rd, 2010 by admin

One way in which to avoid mixed results stemming from improper implementation is Six Sigma certification.

What is Six Sigma Certification?

Simply put, Six Sigma certification is an indication that an individual has received training in Six Sigma programs. It is usually issued after the successful completion of a training course at a certain level of the Six Sigma program (black belts, green belts, master black belts, and so on).

As with certification in many different areas, such as obtaining a driver’s license, the certification comes not just after training, but after a student has demonstrated an understanding about that training. This understanding can be demonstrated both through class participation and the oral and written test portions of the program. It should be understood that this certification does not necessarily denote skill level within the area; there are different levels of proficiency across any classroom and Six Sigma is no exception.

In addition, many aspects of the training are not standardized, therefore some aspects demonstrated by employees with Six Sigma certification in one company will be different from those in another company.

Obtaining Six Sigma Certification

As you might have guessed from the last line above, there are several different ways in which an individual can gain Six Sigma certification. There are several Six Sigma training companies which provide the training necessary for companies wishing to implement the Six Sigma concept to eliminate defects within their processes. In addition, employees at companies with a long standing record of using the Six Sigma approach will probably receive some Six Sigma training of their own. Motorola and General Electric, for example, have developed their own in house training for Six Sigma principles which achieve the same results as the training companies.

You can probably infer from that that Six Sigma certification will not transfer as well from one company to another, generally speaking. Usually the companies wherein the Six Sigma concept originated (GE and Motorola as mentioned above) will have the most transferable value, with second tier training (training companies) coming in second and recent Six Sigma companies bringing up the rear as far as rock solid reliability in their training.

In short, it’s important to understand that certification will not guarantee that an individual will be able to flawlessly perform the Six Sigma ideas. What it will do, however, is guarantee that assist in the proper implementation of the Six Sigma process, which will guarantee profit both to the individual (it’s a good thing to have on a résumé) and for the company that chooses to implement the process.

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Cutting Costs With Six Sigma

March 2nd, 2010 by admin

Problems Faced By Companies On The Cost Front

On the cost front, most industries such as the manufacturing industry, service industry, health care industry and even the educational industry are all experiencing a great amount of pressure. As an example, hospitals are facing ever-decreasing compensation from insurance companies, which is a serious concern to many. Hospitals also experience the pressure of high labor costs and low productivity. This decline in revenue has come about due to the increase in costs and the ever-increasing competition. Six Sigma has always been construed as a quality improvement tool, and quality has always been linked with high costs and expenditures. However, the efforts by the black belts and the master black belts to help save on costs have helped companies view Six Sigma favorably.

Six Sigma And It’s Contribution Towards Cost Cutting

Six Sigma was never intended to be used as a cost cutting tool; nevertheless it has made great contributions towards that end. The methodology of Six Sigma employs unique ways to help cut costs in all aspects of business. Firstly, Six Sigma contributes towards customer servicing. The opinions of the customer alone help define the quality of the products and services provided by any business. By figuring out the customer’s needs; Six Sigma can help by cutting down on any wastage like over-utilization and under-utilization of capacity. Six Sigma also helps stabilize process variation, which helps save on material conversion. Not only does this result in an increase and improvement in productivity and quality, but it also results in the reduced cost of rejection and re-working.

The reduction in Cost of Poor Quality (COPQ) is massive considering the overall tremendous savings coming from practically no rejections. This has come about due to the graduation from three or four sigma to Six Sigma. For example, in the case of a hospital, after utilizing the Six Sigma methods in it’s cardiology department, the hospital can cut down the average process time that is necessary for admission. This produces a dual-advantage. The first one being that the reduction of almost 45 minutes of the process time will lead to a decrease in labor costs. Secondly, the hospital department can now accommodate a larger number of patients because of the increase in the productivity.

The doctrines of total customer satisfaction and returns on investment are the main areas of focus. The Six Sigma team helps generate innovative and creative ideas that are aimed at controlling costs. The team then helps employ risk management schemes and devises that lead to the early detection of various risk factors. An increase in yield from project portfolios will lead to an increase in resources resolving matters of risk.

The Biggest Challenge Faced By Six Sigma

The biggest challenge faced by Six Sigma is from the outsourcing or off shoring of business processes. The developing third world countries have a lower cost structure and are attracting the large corporations offering them a chance to increase their overall return on investment. This is a process that is being engaged by medium and small-sized businesses, as the larger corporations have experienced significant success using outsourcing.

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Six Sigma Statistical Software

February 27th, 2010 by admin

Six Sigma is about numbers. Six Sigma produces a stream of data on the process that are critical to your success. If you can not measure and understand what is measured is not possible. Six Sigma strength is clearly a data-driven analysis and decision making – is not that the opinion of someone or instinct.

The value of statistical analysis should not be underestimated. Analyzing all this data, you begin to understand the process ofand develop methods to identify and implement the right solutions for improving your process. The statistical analysis of data on key areas that may have adverse effects on product quality, if not controlled. Once you have these key areas we can focus efforts to improve processes for identifying

Given the importance of an intelligent management of all these data, you must find an efficient and powerful way to crunch the numbers. Of course, you want to avoid theEffort of manual calculations and save a lot of time using a statistical software application. One might be tempted to use Excel or another spreadsheet program, such as a calculator and a database to store data of statistical process control. However, it is easy to discover that a base table is too bulky, the size and complexity of data management and analysis is necessary to treat in a Six Sigma project to execute.

Enhanced statistical software, suchMinitab (http://www.minitab.com/) or Statgraphics (http://statgraphics.com) are very useful, if not absolutely necessary for the collection, classification, evaluation and analysis of data in a Six Sigma project collected. Both Minitab and Statgraphics are powerful applications completely independent statistical process control software for conducting statistical analysis. Both are ideal recommended for Six Sigma, as tools that help you to become a Six Sigma 's aremain advantages: the ability to make better decisions through data. Work with the DMAIC Define Measure-Analyze-Improve-Control Methods and Lean Six Sigma.

Both Minitab and Statgraphics philosophy Six Sigma offers a range of support tools for graphical analysis, collecting powerful statistics, quality analysis with potential for a number used by custom design.

Statistical Process Control Charts

Analysis of variance andRegression analysis

Design of Experiments

Faculty and Matrix Plots

Relations between variables

Data analysis and reliability

Process Capability Analysis

Hypothesis testing

Correlation and regression

Time Series Analysis and Forecasting

Measurement Systems Analysis

Regression analysis

Multi-variation analysis

ANOVA tools and techniques

Six Sigma Quality Assessment

Both applications offerwith near real-time statistics, so as to react quickly to prevent further damage. The statistical analysis of data highlights the key areas for process improvement efforts can have a negative impact on product quality, to focus not controlled.

But it is easy to purchase a statistical software, is more difficult to use effectively. E 'intelligent analysis of the data that create real change. Too often, Six Sigma / DMAIC teams collect andLoading data into Minitab or Statgraphics, find themselves overwhelmed by the prospect of where to start and how to use their new tool to analyze their data correctly, which features not only has no answers, but responses were significant and useful. As a result, Six Sigma / DMAIC projects often are linked below expectations productivity with statistical software.

Training for the use of Minitab is often offered with integrated training Six Sigma. Minitab trainingwill focus on solving practical problems with Minitab. This includes learning the practical aspects of the main statistical tools like Control Charts, Capability Analysis, regression and ANOVA. There is a strong emphasis on learning how to get data into Minitab for learning to manipulate the data more than once in Minitab and learn to graphically display the key results of the data. Proper training, you learn to Minitab as a professional, and therefore have a greater statistical power to drive yourSix Sigma projects.

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Basics of Lean Six Sigma Training

February 26th, 2010 by admin

Providing Lean Six Sigma training is something that needs to be done in the prescribed manner, especially if the desired results are to be achieved.

What is even more important is to select the right candidates for the training, obviously because not everyone can learn the technicalities involved in Lean Six Sigma implementations.

Here are some of the things that businesses need to consider when selecting candidates for Lean Six Sigma training.

Potential candidates should have…

- The ability to define, identify and resolve problems related to business processes.

- The ability to give their best performance even when working in a team.

- The ability to show the benefits of Lean culture to other team members and contribute towards the propagation of the same, all throughout the organization.

- The ability to identify bottlenecks and conceive innovative solutions for the same.

- The ability to create appropriate roadmaps for Lean implementations, so as to ensure that the day-to-day working or the organization is not affected.

- The ability to motivate others and solve interpersonal problems between implementation team members.

- The ability to overcome challenges and emerge a winner, even from the most discouraging of circumstances.

What Happens After Training?

After training, candidates are directly inducted as implementation team members or team leaders, depending on their individual skills, experience and their performance during the training. In this position, they are expected to shoulder some very important responsibilities, some of which are given below:

Prepare a detailed Lean Six Sigma implementation report, listing out even the smallest details. The content has to be written in simple language, without the use of complex technical jargon. This is necessary for avoiding confusion during the Lean implementation.

Carry out the related tasks by using available Six Sigma tools and techniques such as FMEA (Failure Mode and Effects Analysis), VOC (Voice Of The Customer), Affinity Diagrams, Histograms, Kano Analysis, Pareto Diagrams, QFD (Quality Function Deployment), Scatter Diagram, SIPOC Diagram and others.

Keeping track of ongoing Lean implementations, in order to ensure that everything is working as planned. If there are any discrepancies, it is the candidate’s responsibility to notify senior management or their superiors – Black Belts, Master Black Belts or Project Sponsors.

Businesses that wish to derive the best possible benefits from their Lean training initiatives should opt for online training. It will allow candidates to schedule their training according to individual preferences and the needs of the company. It will also help to alleviate the stress that candidates often feel when they are made to attend training sessions during or after their work hours.

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The Gradual Evolution Of Six Sigma

February 25th, 2010 by admin

In the following article, you will come to know exactly how Six Sigma evolved as a quality management concept. You will also become aware of people who contributed to the development of the Six Sigma and how their contributions have now made Six Sigma one of the most creditable quality management systems in the world.

The Early Beginnings

Most people believe that Six Sigma was devised by Motorola Company and was used for the first time in the late seventies. No doubt this is true, but giving the entire credit to Motorola will not be the right thing to do – because what is also true is that the roots of present day Six Sigma can be traced back to eighteenth century when industrial revolution was changing the contours of the European subcontinent.

The first contribution came from Carl Frederick Gauss, who gave a conceptual presentation of Six Sigma by using a normal curve metric. Later on, contributions were also made by Walter Shewhart, who showed the applicability of process corrections based on three sigma deviations from the mean.

The Japanese Contribution

The popular Japanese belief that nothing is perfect’; that there is only ‘better’ or ‘worse’, is quite similar to the basic Six Sigma objective (i.e. aim for continuous quality improvements). It proves the fact that Japanese people contributed a lot to the evolution of Six Sigma.

It happened in the seventies when a Japanese management was called in to improve the operations of a TV manufacturing unit controlled by Motorola. The Japanese showed their excellent workmanship and used innovative tools and techniques, which were later banded together to create the Six Sigma quality improvement methodology.

Motorola’s Contribution

Any study related to the evolution of Six Sigma will be incomplete without mentioning names like Bill Smith and Mikel Harry as well as their contributions towards the development of Six Sigma. Their contribution came in the form of a research project that proved that the performance of a product or service was linked directly to the adjustments effected in the associated business processes.

The report was no less than a revolution because it clearly indicated that product performance in the marketplace could be improved just by decreasing the total number of non-conformities at each stage of production. It led to the development of ‘logical filters’, which were referred to as Measure, Analyze, Improve and Control by the then CEO of Motorola, named Bob Galvin. These filters together represent the present day Six Sigma methodologies, namely the DMAIC, which stands for Define, Measure, Analyze, Implement, and Control, and DMADV, which stands for Define, Measure, Analyze, Design and Verify.

The evolution of Six Sigma has not stopped. In fact, the evolutionary pace of Six Sigma has increased dramatically over the years, mainly due to the growing need to accommodate newer business processes and technological advancements and breakthroughs. Since, Six Sigma’s evolution has helped it to survive the long years, it would not be wrong to assume that it would continue doing the same in the years to come as well.

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