Tuesday, December 7, 2010

Who is using Six Sigma ?

Six Sigma has been around for over a decade and as such it has been deployed at lots of companies around the world. More than 75% of the fortune 500 companies have deployed Six Sigma in one form or another. Some companies have chosen not to call it Six Sigma due to copyright or other issues. They have a similar approach but may call it by a different name (such as STRIVE, MEDIC, etc).

Some of the more famous companies who are using Six Sigma are:
  • General Electric
  • Motorola
  • Caterpillar
  • Microsoft
  • Home Depot
  • Philips
  • Allied Signal
  • Xerox
  • Chevron
  • Dell
  • WIPRO

Also, some of the major players in India using Six Sigma are:
  • Banking: Bank of America, American Express, HDFC, HSBC
  • Call Centers: ICICI OneSource, Accenture, Satyam BPO, IBM Daksh
  • Hospitality: ITC Hotels, GRT Hotels
  • Hospitals: Apollo Hospitals
  • Retail: Reliance Retail
  • Telecom: Bharti Cellular, Vodafone, Siemens
  • Software: Wipro, Satyam, Accenture, Infosys
Six Sigma can be applied in all industries/companies as work always takes place in processes and the following hold true for every company (in any industry). 

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 measure outcomes for exceeding industry standards or creating new benchmarks, thereby leading to competitive advantage in terms of cost or value for customers. 

 Source:- http://www.benchmarksixsigmaforum.com

Thursday, December 2, 2010

Start with six sigma today !!!

Being a Fresher and a Quality enthusiast one often faces the question of  “How to start with Six Sigma?”. Out of the number of Six Sigma courses being offered it is very difficult to ascertain which on is the right one for you and with which course to start your training in Six Sigma with.

Six Sigma can be learnt even by a fresher (even without any Statistical academic background) without any work experience, whether graduate/ undergraduate. Six Sigma essentially implies a change in the attitude/mindset in the way of looking at things for the better from what it was earlier/till now. It is moving to the next (superior) level from the present level.

To start your journey in the Six Sigma domain, Green Belt (junior & middle level at work) training should be just apt for acquiring the required statistical & analytical knowledge needed for starters in the Six Sigma work area. Subsequently, on a GB project completion (under the guidance of a BB), you become more evolved as a Six Sigma professional & become ready for a Black Belt in Six Sigma.

Benchmark Six Sigma’s four-day Green Belt certification program provides an understanding of each step in the Define, Measure, Analyze, Improve and Control (DMAIC) methodology and many of the associated analysis tools. This program combines lecture, class exercises, case studies, and team exercises.

BSS’s program assumes no prior knowledge of similar techniques. So people from operations, finance, quality, sales, marketing, R&D, customer service, admin, training, HR, design, logistics, purchase, materials, maintenance, development, housekeeping, planning, strategy, have benefited in the past.

Our programs have unparalleled advantages. These include international recognition, world class trainers, advanced content, training techniques that bring concepts to life, project certification, opportunities for next level courses-BB and MBB, membership of an active and supportive online community.


 

Wednesday, December 1, 2010

Why use Six Sigma?

Here are some reasons why we should be using Six Sigma to make process improvements:
a) It is a structured approach - if we follow the process, people will not forget any important steps along the way before they implement the solution.
b) It helps quantify the benefits and thus make it easier to sell the improvements to senior managers in the company.
c) It uses facts & data and the rigor of statistical testing to arrive at the right root cause instead of fixing symptoms or putting band-aids.
d) There is a greater likelihood of the solution being sustainable if we follow the Six Sigma process.
e) Six Sigma focuses of solving the right problems using the project selection matrix.
f) It has proven itself in a large number of deployments. Frankly, there is no better tool out there to make process improvements - especially when the root cause or the solution is not known.



What is Six Sigma?

Six Sigma is a data driven approach 
It is an easily appreciable fact that decisions should be taken based on data (to the extent possible) and should not be based on the gut feel or judgment. Six Sigma provides us with information on which and what type of data should be collected, how it should be collected and how it should be analyzed. Example - In a bank, the number of employees was increased based on the gut feeling of the senior management, while the biggest competitor of this bank analyzed the trends of work flow for future projects through simulation and created flexi-profiles to reach very high service levels while maintaining the same manpower count.

Six Sigma is a process focused methodology
Everything that you do at the workplace has a process behind it. For bringing improvements it is always good to study the underlying process along with the results, especially if we are looking for a long lasting improvement and not a temporary quick-fix solution. 
As Deming said - 85% of the problems are due to system and process deficiencies and not due to human errors. Behind most human errors is a weak process. Example - The chances of wrong module being integrated in a software development can not be eliminated by just a reward or punishment mechanism.
Six Sigma provides a structured step by step roadmap
If a business problem is being resolved by a cross functional team over a period of time, it pays to utilize a structured methodology (like Define-Measure-Analyze-Improve-Control) with review stages. Example - If a company wants to reduce the TAT for a maintenance process, the situation is best addressed by following a structured methodology where all problem solving team members stay focused and can see visible progress.

Six Sigma uses non common-sense approaches
If common sense approaches were sufficient, there would not have been any chronic (repetitive) business problems at all. Example - To improve customer satisfaction index by 25% in 4 months time, you would need not one but a series of non-common sense approaches which Six Sigma provides
.
Six Sigma integrates the best of tried and tested management methodologies over the years.
Six Sigma has weaved various time tested management techniques in one roadmap. Also, Six Sigma is not rigid. It is an evolving methodology. New tools are being added to the Six Sigma toolkit by innovative practitioners. Recently, in a Benchmark Six Sigma Conference, speakers from Wipro, Infosys, Patni, Kanbay, Accenture, TCS, showed how Six Sigma methodology are being applied innovatively in their organisations.

Six Sigma improvement projects are mostly validated by financial benefits or by impact on a   KPI (Key Performance Indicator).
Whatever improvements we bring at the workplace must show in business results. People who make this possible are important resource in any organization. Example - A Six Sigma Green Belt who was successful in 5 out of 5 projects got excellent recognition in a company. (More and more companies are now linking employee and team growth with efficiency or cost measures).

Six Sigma works on improvements on a project by project basis by people trained as improvement experts (called Green Belts and Black Belts)
Improvements can be brought on a project by project basis and by no other way. Unless improvement areas are converted into projects, with assigned responsibilities and authorities to correctly trained people, the problems remain what they are. Example - In one manufacturing company certified as ISO 9001, long customer wait times for repairs during warranty were identified as an improvement area during each internal audit, but no one was trained on techniques to bring improvements (and the issue was not converted into a project with accountability). When this company started practicing Six Sigma, the same improvement areas could be carried out with meaningful ROI from each improvement project.
In organizations of any size or complexity, Six Sigma methodology poses the following questions repeatedly.
1. Are we working at the best possible performance levels for our key processes?
2. If the answer is yes, is it feasible to explore new processes that can set new benchmarks and give our company a bigger competitive advantage?
3. If the answer is no, what is it that is stopping us from forming and supporting a team that can enhance the performance level in a manner that makes business sense.
The age-old algebraic equation says it all: Y = f (X). If Y is the effect and the Xs are the causes, then putting all the focus on the Y or guessing which X is most significant are both bad ideas. 
One thing Six Sigma helps with is understanding these relationships statistically so work can be directed at the cause or combination of causes (Xs) most likely to change the effect (Y). This activity helps break the endless string of firefighting brought on by never really getting to the root cause of any effect.
This equation is at the heart of the Six Sigma methodology and with the DMAIC andDMADV roadmaps drives a company through a logical, sequential process to efficiently find the significant Xs and act on them. This gives the highest probability of success and helps turn the tide of reactive behavior.