Six Sigma Alternatives.

In past years, there have been many instances and evolutions of quality improvement programs. Scrutiny of the programs will show much similarity and also clear distinctions between such programs and Six Sigma. Similarities include common tools and methods, concepts of continuous improvement, and even analogous steps in the improvement framework. Differences have been articulated as follows:

• Six Sigma speaks the language of business. It specifically addresses the concept of making the business as profitable as possible.
• In Six Sigma, quality is not pursued independently from business goals. Time and resources are not spent improving something that is not a lever for improving customer satisfaction.
• Six Sigma focuses on achieving tangible results.
• Six Sigma does not include specific integration of ISO900 or Malcolm Baldridge National Quality Award criteria.
• Six Sigma uses an infrastructure of highly trained employees from many sectors of the company (not just the Quality Department). These employees are typically viewed as internal change agents.
• Six Sigma raises the expectation from 3-sigma performance to 6-sigma. Yet, it does not promote "Zero Defects" which many people dismiss as "impossible." 

Six Sigma Costs and Limitations

Institutionalizing Six Sigma into the fabric of a corporate culture can require significant investment in training and infrastructure. There are typically three different levels of expertise cited by companies: Green Belt, Black Belt Practitioner, Master Black Belt. Each level has increasingly greater mastery of the skill set. Roles and responsibilities also grow from each level to the next, with Black Belt Practitioners often in team/project leadership roles and Master Black Belts often in mentoring/teaching roles. The infrastructure needed to support the Six Sigma environment varies. Some companies organize their trained Green/Black Belts into a central support organization. Others deploy Green/Black Belts into organizations based on project needs and rely on communities of practice to maintain cohesion.

Six Sigma and City Government

·         Fort Wayne has implemented Six Sigma to improve customer service and increase the effectiveness of city government. Data based decision-making and empowerment of employees are key components to the success of the program.

·         Top companies have produced outstanding results with Six Sigma. Motorola, General Electric and Allied Signal dramatically cut costs, increased profits and improved customer service by using this system.

·         Six Sigma is new to City government. Fort Wayne may be the first City in the country to implement Six Sigma. Mayor Richard wanted to capitalize on the many benefits it could bring to Fort Wayne government.

·         The use of Six Sigma demonstrates the city’s commitment to innovation and continuous improvement. Reduction of variation and defects within a process is the goal.

·         Six Sigma is a disciplined approach to problem solving using data, statistical analysis and a diverse team of employees knowledgeable about the process or service to be improved. Teamwork is crucial to the success of each Six Sigma project.

Mayor Richard’s vision to bring a high powered private sector program to government has not only enhanced services for Fort Wayne citizens, but has also created a culture of renewed enthusiasm among employees to do their jobs better.

Motorola's Six Sigma Program

In 1988, Motorola Corp. became one of the first companies to receive the Malcolm Baldrige National Quality Award. The award strives to identify those  excellent firms that are worthy role models for other businesses. One of Motorola's innovations that attracted a great deal of attention was its Six Sigma program. Six Sigma is, basically, a process quality goal. As such, it falls into the category of a process capability (Cp) technique.

The traditional quality paradigm defined a process as capable if the process's natural spread, plus and minus three sigma, was less than the engineering tolerance. Under the assumption of normality, this translates to a process yield of 99.73 percent. A later refinement considered the process location as well as its spread (Cpk) and tightened the minimum acceptable so that the process was at least four sigma from the nearest engineering requirement. Motorola's Six Sigma asks that processes operate such that the nearest engineering requirement is at least plus or minus six sigma from the process mean.

Motorola's Six Sigma program also applies to attribute data. This is accomplished by converting the Six Sigma requirement to equivalent conformance levels (see Figure 1).

One of Motorola's most significant contributions was to change the discussion of quality from one where quality levels were measured in percentages (parts per hundred) to a discussion of parts per million or even parts per billion. Motorola correctly pointed out that modern technology was so complex that old ideas about acceptable quality levels were no longer acceptable.

One puzzling aspect of the "official" Six Sigma literature is that it states that a process operating at Six Sigma levels will produce 3.4 parts-per-million nonconformances. However, if a normal distribution table is consulted (very few go out to six sigma), one finds that the expected nonconformances are 0.002 parts per million (two parts per billion). The difference occurs because Motorola presumes that the process mean can drift 1.5 sigma in either direction. The area of a normal distribution beyond 4.5 sigma from the mean is indeed 3.4 parts per million. Because control charts will easily detect any process shift of this magnitude in a single sample, the 3.4 parts per million represents a very conservative upper bound on the nonconformance rate.

The Six Steps To Six Sigma Using

·         Step  1 - Identify the product you create or the service you provide

In other words ... WHAT DO YOU DO?

·         Step  2 - Identify the Customer(s) for your product or service, and determine what they consider important i.e. Customer Requirements

In other words ... WHO USES YOUR PRODUCT AND SERVICES?

·         Step  3 - Identify your needs (to provide product/service so that it satisfies the Customer)

In other words ... WHAT DO YOU NEED TO DO YOUR WORK?

·         Step  4 - Define the process for doing your work

In other words ... HOW DO YOU DO YOUR WORK?

·         Step  5 - Mistake-proof the process and eliminate wasted efforts using...

In other words ... HOW CAN YOU DO YOUR WORK BETTER?

·         Step 6 - Ensure continuous improvement by measuring, analyzing and controlling the improved process using DAMIC – (Define, Measure,Analyze,Improve,Control)
 

In other words ... HOW PERFECTLY ARE YOU DOING YOUR CUSTOMER-FOCUSED WORK?

Ensure continuous improvement by measuring, analyzing and controlling the improved process from Step #5

I was on board at Motorola when they conceived the 6 sigma concepts, (1985), and actually wrote the very first six sigma software. I believe the most useful part is the concept of Six Sigma is design margins. I worked directly with the late Bill Smith and others to develop software to meet Motorola's Six Sigma Concepts.

Benefits of Six Sigma

There are numerous benefits of six sigma as a way to address  issues and problems.  Among the benefits of six sigma is the decrease in defects that are allowed to reach the customer.  You can get some sense of the benefits of six sigma by reviewing some six sigma projects. Other benefits of six sigma  include:

• Focus on customers.
• Improved customer loyalty.
• Reduced cycle time.
• Less waste.
• Data based decisions.
• Time management.
• Sustained gains and improvements.
• Systematic problem solving.
• Employee motivation.
• Data analysis before decision making.
• Faster to market.
• Team building.
• Improved customer relations.
• Assure strategic planning..
• Reductions of incidents.
• Measure value according to the customer.
• Better safety performance.
• Understanding of processes.
• Effective supply chain management.
• Design and redesign products/services.
• Knowledge of competition, competitors .
• Develop leadership skills.
• Breakdown barriers between departments and functions.
• Management training.
• Improve presentation skills.
• Integration of products, services and distribution.
• Use of standard operating procedures.
• Better decision making.
• Improving project management skills.
• Sustained improvements.
• Alignment with strategy vision, and values.
• Increased margins.
• Greater market share.
• Supervisor training.
• Lower costs to provide goods and services.
• Fewer customer complaint

Six Sigma Training Levels

·         Once committed to Six Sigma methodology, learning can be organized by degree of employee involvement:

• Yellow Belt
• Green Belt
• Black Belt
• Master Black Belt
• Champion

Yellow Belt is a relatively new level, not yet widely accepted. A three- to five-day quick overview gives participants a basic understanding of the Six Sigma methodology, including DMAIC and simple statistical methods. It is often done on-site, given the large number of employees who can participate. Many organizations have gone directly to Green Belt training for all those working on projects. Other approaches may include one-day overviews delivered on-site for upward of $585 per person, followed by Green Belt training.

Green Belt is the role of project participant. Training is typically two weeks, separated by about a month so that the learner can participate in a Six Sigma project. Training consists of the application of DMAIC, project planning, process analysis and statistical analysis. Certification as a Green Belt requires work on a project with a reasonable bottom-line improvement, e.g., $75,000 as quoted by one training supplier. A typical program could cost $5,000 if accessed though open enrollment, not including travel and accommodations. This training is more often done on-site to accrue substantial savings per participant. Some organizations have used successful Green Belts as project leaders.

Black Belt plays the role of project leader and sometimes as coach for a number of projects. Considered the key change agent, the Black Belt must be technically oriented, a master of the advanced tools and a project leader. Training is delivered over four weeks separated so that the learner can lead a Six Sigma project. Training consists of advanced statistical methods, project leadership and advanced Six Sigma methods. Certification as a Black Belt requires leading a project with a higher bottom-line improvement, possibly $150,000. A typical program could cost upward of $20,000 if done as an open enrollment, often the preferred training since an organization would need only about one Black Belt per 50 employees.

Master Black Belt has the role of senior leader, manager of Black Belts, internal consultant and in-house trainer. Training lasts four weeks at minimum, often more depending on additional content. The weeks are separated so that the learner can lead a Six Sigma project. Training consists of advanced statistical methods, project leadership, Six Sigma methods, training capabilities and leadership and communication skills. Certification as a Master Black Belt requires work on three successful projects as a Black Belt. A typical program could cost more than $40,000. Open enrollment is the preferred delivery since an organization would only need one per major business site or unit.

The Champion role is the senior management leader of the Six Sigma implementation. Training of three to four days includes the basics of Six Sigma and is designed to prepare the Champion to give leadership to the Six Sigma team. A typical program could cost upward of $3,000. Open enrollment is the preferred method since an organization would only need one per major business site or unit.

The Executive Overview is offered to leaders and managers who should gain an understanding of “why” and “how” before embarking on a Six Sigma implementation. Training is completed in one day, typically at a cost of $350 per person. Open enrollment, often in major cities, and on-site delivery are available.

Master Black Belt Tom Riley, DuPont’s Global Services Business, shared some learning from the enterprise-wide Six Sigma training effort, which boasts great success: “Don’t start if you are not committed! Pick your best people to be Black Belts, Master Black Belts and Champions. Don’t let statistical purists run the process, and be sure to reward and recognize Black Belts who drive culture change.”