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Argument
What is it?
What Argument Is
Dispute, involving conflict, with winners and losers
Thoughtful conversation with amicable colleagues to find a
truth to share
What Argument Isn’t
A screaming fight
Making up your mind before hearing the other side
ARGUMENT IS EVERYWHERE
Types of Argument
Adversarial—going for the win
Consensual—something for everyone
What type of arguer are YOU?
Adversarial Argument
Tries to change the other’s mind
Refutes the opposite view
GOING FOR THE WIN
Types of Adversarial Argument
Debate
Courtroom
One-on-one
Single Perspective
Debate
Debate requires participants on both sides of an issue trying to
win.
The participants don’t try to convince each other.
They try to convince a judge.
The judge picks the winner.
In political debates, the public picks the winner.
Courtroom
Specializes in legal issues
Lawyers take opposing sides.
Lawyers try to convince a judge and/or jury of guilt or
innocence.
Lawyers do not try to convince each other.
One lawyer is designated a winner.
One-on-One
Everyday Arguments
One person tries to convince another.
The arguer must identify with and focus on the other person.
Issues to be considered:
Wants
Values
The argument may have a winner and a loser, or a partial
victory may happen.
Single Perspective
Single Perspective arguments take place when one person tries
to convince a mass audience.
This technique is used in mass media.
Which issue and position is usually clear.
Opposing views, if referred to at all, are usually refuted.
The arguer rarely knows the effect of the message.
Consensual Argument
Consensual argument happens when people try to find common
ground.
Try to resolve differences.
Try to smooth the path for new ideas.
Uses creative methods for solving problems.
Types of consensual argument
Dialectic
Academic Inquiry
Negotiation
Internal
Dialectic
Dialectic arguments are used to resolve conflicts.
Two or more people argue as equals.
Questioning strategy:
What is (insert topic here)?
Participants explain and justify their positions.
The object is to discover common ground.
No winners
Academic Inquiry
Academic inquiry involves a complicated issue being discussed
from one or more viewpoints.
People use this method to discover new views, new knowledge,
and new truths.
Most academic matters are still open to inquiry.
Use this method to produce new angles and new examples.
Mutual feedback helps guide ideals.
Cooperative search for knowledge leads to no specific winners.
Negotiation
Negotiation is between two people or groups of people to reach
a consensus.
Used to formulate plans of action.
Takes place after both sides have stated their petitions.
Often requires cooperation and compromise.
Ideally, all sides are winners.
Internal Argument
Internal Argument happens when you argue with yourself.
Used for individual decision making or to increase motivation.
Different possibilities are identified.
Reasons for both sides are defined.
A conclusion is reached.
When can Argument Happen?
A forum must be made to hold the argument.
The issue must be arguable.
A person must argue the point.
An audience must listen to the argument.
Common ground must be established.
Somebody must change their position.
What is a forum?
A forum is simply the space in which an argument can occur.
Inside your head
Around your kitchen table
Cars
Courtrooms
Conference rooms
Academic essays and papers
Newspaper Editorials
Blogs
TV reports
And so on and so on and so on and so on …
What is an Arguable Issue
An argument needs to have one central issue that has not yet
been settled.
Potential for two or more views on the issue must be present.
Most issues are not black and white. Ranges of belief do exist
between the two extremes.
Roles: The Arguer
The arguer must:
Have expertise in the issue at hand.
Be motivated to take a position.
Be willing to risk expressing his or her own ideas on the topic.
Go beyond the current wisdom of the issue.
Find fresh perspectives and original insights.
Roles: The Audience
The audience listens to and considers the argument.
The audience needs to be able to understand, think, question,
discuss, and answer the issue being argued.
The audience needs to participate in the debate at some level.
Receptive audiences are potentially willing to change their
minds.
Common Ground
Both the arguer and the audience need to meet on common
ground.
Both sides need to be able to understand each other through
common language.
Finding commonalities in the argument will help draw the two
sides together.
Establishing Common Ground
Complete agreement between arguer and audience means no
argument will take place.
If both arguer and audience completely disagree because they
have no common ground, argument can’t happen.
The two parties must discover something in common in order to
have a possibility of argument.
Audience Outcomes
Successful arguments produce changes in the audience.
The type of change depends on the argument:
Negotiations bring people into consensus.
Dialectic and Academic Inquiry share information and build
common ground.
Internal debate helps make decisions.
Debate and One-on-One shift audiences from hostile to neutral
or neutral to agreement.
Debate and Courtroom arguments settle disputes
Single Perspective wins when audiences pay attention and were
educated.
When Arguments Fail
No disagreement.
Neutrality without interest.
Lack of motivation.
Too trivial of an argument.
Too risky of an argument.
Too big of an argument.
Lack of common ground.
LEAN SIX SIGMA FOR THE
TWENTY-FIRST CENTURY
Edward D. Arnheiter
Rensselaer Polytechnic Institute, Lally School of Management
& Technology
275 Windsor Street, Hartford, CT, 06120, USA
[email protected]
+1 860 548 7833
John Maleyeff
Rensselaer Polytechnic Institute, Lally School of Management
& Technology
275 Windsor Street, Hartford, CT, 06120, USA
[email protected]
+1 860 548 7870
Venkat Venkateswaran
Rensselaer Polytechnic Institute, Department of Engineering &
Science
275 Windsor Street, Hartford, CT, 06120, USA
[email protected]
+1 860 548 2458
ABSTRACT
Many organizations that have embraced the principles and
techniques of Lean and/or Six Sigma
are beginning to find their efforts complicated by important
changes in the business landscape.
These changes include full scale globalization, as well as
increases in the prevalence of
knowledge workers, the rate of technological change, worldwide
regulatory oversight, and
volatility in general. The effects of these trends on Lean Six
Sigma is discussed and
modifications that will need to take place in the application of
Lean Six Sigma, which appear to
be evolutionary rather than revolutionary, are envisioned.
INTRODUCTION
Constant, rapid change is the overarching theme for the
challenges that business and
management face in the new century. Business leaders have
been anticipating, speaking, and
writing about the demands that the new millennium would bring
for several decades. While
words and phrases vary, the underlying ideas are remarkably
similar. There is general agreement
that the winning companies will be those that convert these
challenges into opportunities.
In a number of works surveying the overall change landscape,
business thinkers identified
challenges facing 21
st
century managers and organizations. The need for management
to adapt to
change and to find new strategies, the “New Information
Revolution,” the importance of
knowledge worker productivity, and facing the personal
challenges found in the complexities of
a longer work life were identified by business guru Peter
Drucker (1999) as crucial issues facing
millennial business leaders. Others pointed to a volatile
business environment (Hamel, 2009,
Prahalad, 1998); frequently indeterminate industry and
organizational boundaries (Prahalad,
2010 Northeast Decision Sciences Institute Proceedings
March 2010 Page 586
1998; Hitt, 2007; Senge, 1999); global competition (Prahalad,
1998; Hitt, 2007; Nadler and
Tushman, 1999); changing regulatory environments (Prahalad,
1998; Nadler and Tushman,
1999; Laurie, 2006); the opening of markets (Hitt, 2007;
Nadler and Tushman, 1999); and
sustainability (Prahalad, 1998). Hamel (2009) maintained that
we are in an age of revolution that
demands radical innovation and the harnessing of the
imagination and creativity of every worker.
THE CHANGES
In this section, the main trends expected to affect the practice of
business management are
categorized. The authors wish to thank Linda Knaack for her
helpful assistance in the
development of this section.
Sustainable Business Development
An organization’s ability to be sustainable will be a key factor
in determining its success in the
new century (Rainey, 2006). Industrial growth is facing
increasing social and environmental
limitations. Peter Senge is one of the major proponents of a new
environmentalism driven by
innovation rather than regulation and views sustainability as an
opportunity for businesses to
develop new technologies, products, processes, and business
models as they transition from mere
compliance to full sustainability (Senge et al, 2001; Senge,
2006; Senge, 2008; Nidomolu et al,
2009). In high demand will be leaders who can effectively
spearhead efforts to create firms that
are sustainable (Rainey, 2006; O’Toole and Bennis, 2009).
The Global Marketplace
In a volatile world, successful companies will pay attention to
agility while continuing to focus
on quality, cost, and efficiency. Doz, Santos, Williamson, &
Berrebi (2004) argued that
converting Europe’s relatively small geographic area and its
diversity from obstacles to
advantages demands new ways of thinking about how companies
innovate. Their meta-national
innovation processes (sensing, mobilizing, leveraging) should
be applicable to countries around
the world.
Global Operations
A highly volatile nation, India is a good model for operating in
an environment of “shifting
regulations, spurts of growth, capital shortages, and challenging
supply base” (Prahalad, 2009).
Many corporations are realizing that the knowledge they need to
innovate is often found far
afield, and globalizing innovation is becoming a cost effective
option. Companies like Airbus
and STMicroelectronics have demonstrated that increased
innovation at lower costs gives them a
competitive edge. Globalization demands an entirely new mind-
set, not simply a change in
processes (Santos et al, 2004).
Rapidly Evolving Technologies
Thomas W. Malone, the Patrick J. McGovern Professor of
Information Systems at MIT’s Sloan
School (2009), when he announced the research and educational
initiative Inventing the
2010 Northeast Decision Sciences Institute Proceedings
March 2010 Page 587
Organizations of the 21st Century maintained that "We are now
at the threshold of a new era,
driven this time not by the technologies of production and
transportation, but by the technologies
of information, communication, and coordination. These
technologies…hold the potential to
completely transform the nature of work throughout the world."
Specific technological advances
like e-commerce, virtual teams, and artificial intelligence will
make the manager’s job more
complex and consequently more difficult. The increasing rate of
this technological change will
result in smaller product life cycles with little time to recoup
research and development costs.
Also, while technology facilitates gathering knowledge, it also
greatly increases the volume
acquired. The development and acquisition of knowledge is an
important piece of competitive
advantage (Hitt, 2007; Hill, 2004).
Changing Regulatory Environments
Both deregulation, which lowers geographical and other entry
barriers to many industries, and
increased regulations, in the area of sustainability, exert
significant pressures on any firm
operating in a global economy (Prahalad, 1998,Senge, 2008;
Nidomulo et al, 2009).
Rise of the Knowledge Worker
Knowledge workers use information or develop knowledge in
the course of their jobs. They
represent an ever increasing segment of the work force, and
managing them effectively is crucial
to any organization wishing to compete successfully in the new
millennium. The knowledge
worker exhibits an attitude towards work that is different from
traditional workers and
companies wishing to increase productivity must motivate
rather than control them (Drucker,
1999; Kanter, 2009).
Managing in a Volatile Environment
“Over the years managers have developed tools and techniques
to overcome challenges ranging
from inconsistent quality to stagnant productivity (e.g., Six
Sigma, Total Quality Management,
and just-in-time supply chains). Now what they need is a
system for addressing volatility.
Prahalad (2009) asks “How does a chemical company, for
example, cope with oil prices that
bounce from $50 a barrel to $150 and back in 18 months?” This
is a challenge to organizations
of the new century that many business thinkers and business
leaders are working hard to address
(Hamel, 2009; Prahalad, 1998; Prahalad; 2009; Hamel, 2000).
EFFECTS ON LEAN SIX SIGMA
The American Society for Quality (ASQ) Six Sigma body of
knowledge was used as a basis for
documenting the effects that the changes categorized above will
have on the implementation of a
process improvement program, such as Lean Six Sigma. This
structure is justified because the
ASQ body of knowledge contains Lean methods and principles,
and because many organizations
that operate successful process improvement programs use a
variety of names for the program
and emphasize different aspects of Lean and/or Six Sigma
(Maleyeff, 2007).
2010 Northeast Decision Sciences Institute Proceedings
March 2010 Page 588
The ASQ body of knowledge includes a number of main
sections. Using a series of tables,
details are provided regarding: (a) how the current elements of
Lean Six Sigma mesh with the
upcoming changes, and (b) what needs to change in the
application of Lean Six Sigma in order to
remain relevant. Tables 1-5 (respectively) concern Enterprise-
Wide Deployment; Organizational
Process, Management, and Measures; Team Management;
Define-Measure-Analyze-Improve-
Control (i.e., DMAIC, which is the main project organization
model used within Six Sigma); and
Design for Six Sigma.
Table 1
Enterprise-Wide Deployment
How Lean Six Sigma Elements Mesh What Needs to Change in
Lean Six Sigma
Sustainable
Business
Development
Change management skills and knowledge of
Lean Six Sigma principles will continue to be
crucial in meeting the goal of sustainability.
A better and systematic way to define the
value of long term sustainability will be
necessary, including cap and trade issues.
The Global
Marketplace
The strong focus on understanding customer
needs will be important as the diversity in
customer types increases.
Defining value in various economic and
cultural systems will complicate project
selection, including effects of tariffs.
Global
Operations
Leadership and knowledge in the areas of
Lean and Kaizen will remain important skills
for global operations managers.
Motivation for change will vary across
economic and cultural systems, and this will
complicate implementation of new processes.
Rapidly
Evolving
Technologies
The ability to understand how to integrate
technology within business processes will
take on increased importance.
The integration of technology across physical
and cultural boundaries will be critical, and
success may depend on learning from others.
Changing
Regulatory
Environment
Change management skills and solid
leadership are critical when the regulatory
environment is volatile.
Improvement project implementation may be
complicated by limitations based on
governmental laws and regulations.
Rise of
Knowledge
Workers
The ability to understand why and how Lean
Six Sigma works will facilitate better
understanding of its implementation.
Improvement efforts may move from process
improvement to creation of effective working
environments, including the virtual workplace.
Managing in a
Volatile
Environment
Change management skills are critical when
business conditions and supply chains are
unstable and volatile.
Project durations will need to be short but
thorough, with many interconnected projects
undertaken simultaneously.
Table 2
Organizational Process, Management, and Measures
How Lean Six Sigma Elements Mesh What Needs to Change in
Lean Six Sigma
Sustainable
Business
Development
Although measurements are important, many
traditional business performance and financial
measures do not address sustainability.
Financial measures will need to change to
create an emphasis on how improvements
impact societal and environmental goals.
The Global
Marketplace
Emphasis on critical-to-quality and related
measurements will assist with the integration
of performance metrics.
Decisions must take into account different
market perspectives and how services are
managed in diverse cultures.
Global
Operations
Lean Six Sigma is applied and will impact all
operations, including domestic and overseas
facilities.
Terminology of performance measures may
not be similar and how they motivate action
across counties will vary.
2010 Northeast Decision Sciences Institute Proceedings
March 2010 Page 589
Rapidly
Evolving
Technologies
Rapidly evolving technologies might require
new critical-to-quality and other performance
measures.
Financial measures need to focus more
directly on the impact of technology and
management must adapt fast to changes.
Changing
Regulatory
Environment
Current efforts to implement Lean Six Sigma
include critical stakeholders, so adding
another stakeholder should be easy.
More key stakeholders (government,
regulators) will exist and intellectual property
issues will increase in complexity.
Rise of
Knowledge
Workers
Business measures and metrics are important
tools for knowledge workers, but emphasis
must be placed on worker satisfaction.
Improvements are needed in how
performance of knowledge workers is
measured and used to develop allegiance.
Managing in a
Volatile
Environment
Balancing the need for longer-term financial
measures with a rapidly changing business
environment will be challenging.
Cause-and-effect will be more difficult to
determine and certain risks (political, legal,
etc.) will increase.
Table 3
Team Management
How Lean Six Sigma Elements Mesh What Needs to Change in
Lean Six Sigma
Sustainable
Business
Development
Teams might require retraining to focus their
efforts on long-term issues and projects that
contribute to sustainability.
Requires involvement of a green-certified
member and more stakeholders (e.g., energy
providers, community, or government).
The Global
Marketplace
Team management approaches using
diverse, international team members can
enable a company to stay in tune with market.
Need to include members on teams that
understand cross-region markets and mores,
perhaps using localized sub-teams.
Global
Operations
Team skill sets required and developed in
black belt system would allow people to work
well on “virtual teams” across the globe.
Challenges need to be overcome with multi-
functional teams in disperse locations, having
different languages and cultures.
Rapidly
Evolving
Technologies
Traditional team process will likely work well,
because it capitalizes on the knowledge
power of the group versus individual.
Need to expand team member scope with
those that understand potential and
limitations of technology solutions.
Changing
Regulatory
Environment
Teams must be agile and able to quickly
communicate any changes in foreign and
domestic government regulations.
New team members from regulatory bodies
will be needed with team-wide awareness of
regulatory effects across the globe.
Rise of
Knowledge
Workers
Concept of rewarding teams rather than
individuals will become more difficult as good
workers become harder to retain.
Need to convince workers that real benefits
will come to them personally since they will
not be motivated by slogans or money.
Managing in a
Volatile
Environment
Traditional team management approaches
might be too slow and cumbersome, lacking
the agility necessary to adapt.
Many members of the team will be new to the
company or to the job and therefore teams
need to be amorphous.
Table 4
The DMAIC Process
How Lean Six Sigma Elements Mesh What Needs to Change in
Lean Six Sigma
Sustainable
Business
Development
DMAIC can be applied to any process –
therefore it could be used as part of a broad
intangible framework like sustainability.
Need to find better ways to measure future
and indirect effects, and would need to
sacrifice short-term profits for sustainability.
The Global
Marketplace
This logical and thorough “scientific method”
can be well suited for competing within the
global marketplace.
Need to be proactive in identifying
opportunities for improvement as market
preferences change and evolve.
2010 Northeast Decision Sciences Institute Proceedings
March 2010 Page 590
Global
Operations
DMAIC is useful for all operations, whether
domestic or overseas; the universality of the
mathematical approaches is appealing.
Differences in education practices could
complicate training of the tools; challenges in
central vs. local control need to be overcome.
Rapidly
Evolving
Technologies
DMAIC may be too slow and ponderous when
technology is moving at breakneck speed
with projects taking months to complete.
More risk taking in choosing projects and
potential for “user” of project results being
unable to understand their implementation.
Changing
Regulatory
Environment
The DMAIC process can provide a structured
way for companies to assess changes within
the regulatory environment.
Changes in regulations will often motivate
improvement projects but recommendations
may require law changes to implement.
Rise of
Knowledge
Workers
DMAIC helps workers gain in-depth insight
into the details of the process – not just
superficial “managerial” knowledge.
Tools will evolve to downplay manufacturing
by including those specific to knowledge jobs,
and this would impact training regimens.
Managing in a
Volatile
Environment
DMAIC may be too slow and ponderous when
technology is moving at breakneck speed
with projects taking months to complete.
Need to modify DMAIC to move quickly
(Kaizen approach would help) and controls
will be emphasized to identify new problems.
Table 5
Design for Six Sigma
How Lean Six Sigma Elements Mesh What Needs to Change in
Lean Six Sigma
Sustainable
Business
Development
The tools and concepts of DFSS will take on
increased importance, as the criteria for
effective designs are broadened.
Norms, guidelines, and paradigms for
sustainable design need to be part of DFSS
projects to account for total life cycle costs.
The Global
Marketplace
The tools and concepts of DFSS will take on
increased importance, as the diversity of
customer types increases.
Designs must be cognizant of various user
emphases with decisions regarding design
flexibility becoming important.
Global
Operations
The tools and concepts of DFSS will take on
increased importance, as the diversity of
operations types and locations increases.
Designs must take into account
manufacturability in more diverse ways,
including capabilities across regions.
Rapidly
Evolving
Technologies
DFSS would still be valid, but the
methodology needs to be applied in a flexible,
rapid manner.
Project teams must be aware of how users
from around the globe understand or deal
with technology.
Changing
Regulatory
Environment
The tools and concepts of DFSS will take on
increased importance, as the number of
stakeholders increases.
Designs must be developed that are able to
evolve as regulations change and are
updated.
Rise of
Knowledge
Workers
The black belt system requires high skill set;
black belts would do well in a knowledge
worker economy.
An increased emphasis will be placed on the
design of services and solutions, with
corresponding differences in approaches.
Managing in a
Volatile
Environment
DFSS would still be valid, but the
methodology needs to be applied in a flexible,
rapid manner.
Design processes must be fast and their work
processes will need to be periodically
reviewed and updated.
CONCLUSIONS
Given the broad nature of this work and the potential for a
widely diverse set of opinions, the
authors look forward to a spirited debate on the future prospects
of Lean Six Sigma.
REFERENCES
References available upon request from John Maleyeff (contact
information listed above).
2010 Northeast Decision Sciences Institute Proceedings
March 2010 Page 591
Copyright of Proceedings for the Northeast Region Decision
Sciences Institute (NEDSI) is the property of
Northeast Decision Sciences Institute and its content may not be
copied or emailed to multiple sites or posted to
a listserv without the copyright holder's express written
permission. However, users may print, download, or
email articles for individual use.

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  • 1. Argument What is it? What Argument Is Dispute, involving conflict, with winners and losers Thoughtful conversation with amicable colleagues to find a truth to share What Argument Isn’t A screaming fight Making up your mind before hearing the other side ARGUMENT IS EVERYWHERE Types of Argument Adversarial—going for the win Consensual—something for everyone What type of arguer are YOU? Adversarial Argument Tries to change the other’s mind Refutes the opposite view GOING FOR THE WIN
  • 2. Types of Adversarial Argument Debate Courtroom One-on-one Single Perspective Debate Debate requires participants on both sides of an issue trying to win. The participants don’t try to convince each other. They try to convince a judge. The judge picks the winner. In political debates, the public picks the winner. Courtroom Specializes in legal issues Lawyers take opposing sides. Lawyers try to convince a judge and/or jury of guilt or innocence. Lawyers do not try to convince each other. One lawyer is designated a winner. One-on-One Everyday Arguments One person tries to convince another. The arguer must identify with and focus on the other person. Issues to be considered: Wants
  • 3. Values The argument may have a winner and a loser, or a partial victory may happen. Single Perspective Single Perspective arguments take place when one person tries to convince a mass audience. This technique is used in mass media. Which issue and position is usually clear. Opposing views, if referred to at all, are usually refuted. The arguer rarely knows the effect of the message. Consensual Argument Consensual argument happens when people try to find common ground. Try to resolve differences. Try to smooth the path for new ideas. Uses creative methods for solving problems. Types of consensual argument Dialectic Academic Inquiry Negotiation Internal Dialectic Dialectic arguments are used to resolve conflicts. Two or more people argue as equals. Questioning strategy: What is (insert topic here)? Participants explain and justify their positions. The object is to discover common ground.
  • 4. No winners Academic Inquiry Academic inquiry involves a complicated issue being discussed from one or more viewpoints. People use this method to discover new views, new knowledge, and new truths. Most academic matters are still open to inquiry. Use this method to produce new angles and new examples. Mutual feedback helps guide ideals. Cooperative search for knowledge leads to no specific winners. Negotiation Negotiation is between two people or groups of people to reach a consensus. Used to formulate plans of action. Takes place after both sides have stated their petitions. Often requires cooperation and compromise. Ideally, all sides are winners. Internal Argument Internal Argument happens when you argue with yourself. Used for individual decision making or to increase motivation. Different possibilities are identified. Reasons for both sides are defined. A conclusion is reached. When can Argument Happen? A forum must be made to hold the argument.
  • 5. The issue must be arguable. A person must argue the point. An audience must listen to the argument. Common ground must be established. Somebody must change their position. What is a forum? A forum is simply the space in which an argument can occur. Inside your head Around your kitchen table Cars Courtrooms Conference rooms Academic essays and papers Newspaper Editorials Blogs TV reports And so on and so on and so on and so on … What is an Arguable Issue An argument needs to have one central issue that has not yet been settled. Potential for two or more views on the issue must be present. Most issues are not black and white. Ranges of belief do exist between the two extremes. Roles: The Arguer The arguer must: Have expertise in the issue at hand. Be motivated to take a position.
  • 6. Be willing to risk expressing his or her own ideas on the topic. Go beyond the current wisdom of the issue. Find fresh perspectives and original insights. Roles: The Audience The audience listens to and considers the argument. The audience needs to be able to understand, think, question, discuss, and answer the issue being argued. The audience needs to participate in the debate at some level. Receptive audiences are potentially willing to change their minds. Common Ground Both the arguer and the audience need to meet on common ground. Both sides need to be able to understand each other through common language. Finding commonalities in the argument will help draw the two sides together. Establishing Common Ground Complete agreement between arguer and audience means no argument will take place. If both arguer and audience completely disagree because they have no common ground, argument can’t happen. The two parties must discover something in common in order to have a possibility of argument.
  • 7. Audience Outcomes Successful arguments produce changes in the audience. The type of change depends on the argument: Negotiations bring people into consensus. Dialectic and Academic Inquiry share information and build common ground. Internal debate helps make decisions. Debate and One-on-One shift audiences from hostile to neutral or neutral to agreement. Debate and Courtroom arguments settle disputes Single Perspective wins when audiences pay attention and were educated. When Arguments Fail No disagreement. Neutrality without interest. Lack of motivation. Too trivial of an argument. Too risky of an argument. Too big of an argument. Lack of common ground. LEAN SIX SIGMA FOR THE TWENTY-FIRST CENTURY Edward D. Arnheiter
  • 8. Rensselaer Polytechnic Institute, Lally School of Management & Technology 275 Windsor Street, Hartford, CT, 06120, USA [email protected] +1 860 548 7833 John Maleyeff Rensselaer Polytechnic Institute, Lally School of Management & Technology 275 Windsor Street, Hartford, CT, 06120, USA [email protected] +1 860 548 7870 Venkat Venkateswaran Rensselaer Polytechnic Institute, Department of Engineering & Science 275 Windsor Street, Hartford, CT, 06120, USA [email protected] +1 860 548 2458 ABSTRACT Many organizations that have embraced the principles and techniques of Lean and/or Six Sigma are beginning to find their efforts complicated by important changes in the business landscape.
  • 9. These changes include full scale globalization, as well as increases in the prevalence of knowledge workers, the rate of technological change, worldwide regulatory oversight, and volatility in general. The effects of these trends on Lean Six Sigma is discussed and modifications that will need to take place in the application of Lean Six Sigma, which appear to be evolutionary rather than revolutionary, are envisioned. INTRODUCTION Constant, rapid change is the overarching theme for the challenges that business and management face in the new century. Business leaders have been anticipating, speaking, and writing about the demands that the new millennium would bring for several decades. While words and phrases vary, the underlying ideas are remarkably similar. There is general agreement that the winning companies will be those that convert these challenges into opportunities. In a number of works surveying the overall change landscape, business thinkers identified challenges facing 21 st century managers and organizations. The need for management to adapt to change and to find new strategies, the “New Information Revolution,” the importance of knowledge worker productivity, and facing the personal
  • 10. challenges found in the complexities of a longer work life were identified by business guru Peter Drucker (1999) as crucial issues facing millennial business leaders. Others pointed to a volatile business environment (Hamel, 2009, Prahalad, 1998); frequently indeterminate industry and organizational boundaries (Prahalad, 2010 Northeast Decision Sciences Institute Proceedings March 2010 Page 586 1998; Hitt, 2007; Senge, 1999); global competition (Prahalad, 1998; Hitt, 2007; Nadler and Tushman, 1999); changing regulatory environments (Prahalad, 1998; Nadler and Tushman, 1999; Laurie, 2006); the opening of markets (Hitt, 2007; Nadler and Tushman, 1999); and sustainability (Prahalad, 1998). Hamel (2009) maintained that we are in an age of revolution that demands radical innovation and the harnessing of the imagination and creativity of every worker. THE CHANGES In this section, the main trends expected to affect the practice of business management are categorized. The authors wish to thank Linda Knaack for her helpful assistance in the development of this section. Sustainable Business Development
  • 11. An organization’s ability to be sustainable will be a key factor in determining its success in the new century (Rainey, 2006). Industrial growth is facing increasing social and environmental limitations. Peter Senge is one of the major proponents of a new environmentalism driven by innovation rather than regulation and views sustainability as an opportunity for businesses to develop new technologies, products, processes, and business models as they transition from mere compliance to full sustainability (Senge et al, 2001; Senge, 2006; Senge, 2008; Nidomolu et al, 2009). In high demand will be leaders who can effectively spearhead efforts to create firms that are sustainable (Rainey, 2006; O’Toole and Bennis, 2009). The Global Marketplace In a volatile world, successful companies will pay attention to agility while continuing to focus on quality, cost, and efficiency. Doz, Santos, Williamson, & Berrebi (2004) argued that converting Europe’s relatively small geographic area and its diversity from obstacles to advantages demands new ways of thinking about how companies innovate. Their meta-national innovation processes (sensing, mobilizing, leveraging) should be applicable to countries around the world. Global Operations
  • 12. A highly volatile nation, India is a good model for operating in an environment of “shifting regulations, spurts of growth, capital shortages, and challenging supply base” (Prahalad, 2009). Many corporations are realizing that the knowledge they need to innovate is often found far afield, and globalizing innovation is becoming a cost effective option. Companies like Airbus and STMicroelectronics have demonstrated that increased innovation at lower costs gives them a competitive edge. Globalization demands an entirely new mind- set, not simply a change in processes (Santos et al, 2004). Rapidly Evolving Technologies Thomas W. Malone, the Patrick J. McGovern Professor of Information Systems at MIT’s Sloan School (2009), when he announced the research and educational initiative Inventing the 2010 Northeast Decision Sciences Institute Proceedings March 2010 Page 587 Organizations of the 21st Century maintained that "We are now at the threshold of a new era, driven this time not by the technologies of production and transportation, but by the technologies of information, communication, and coordination. These technologies…hold the potential to
  • 13. completely transform the nature of work throughout the world." Specific technological advances like e-commerce, virtual teams, and artificial intelligence will make the manager’s job more complex and consequently more difficult. The increasing rate of this technological change will result in smaller product life cycles with little time to recoup research and development costs. Also, while technology facilitates gathering knowledge, it also greatly increases the volume acquired. The development and acquisition of knowledge is an important piece of competitive advantage (Hitt, 2007; Hill, 2004). Changing Regulatory Environments Both deregulation, which lowers geographical and other entry barriers to many industries, and increased regulations, in the area of sustainability, exert significant pressures on any firm operating in a global economy (Prahalad, 1998,Senge, 2008; Nidomulo et al, 2009). Rise of the Knowledge Worker Knowledge workers use information or develop knowledge in the course of their jobs. They represent an ever increasing segment of the work force, and managing them effectively is crucial to any organization wishing to compete successfully in the new millennium. The knowledge worker exhibits an attitude towards work that is different from
  • 14. traditional workers and companies wishing to increase productivity must motivate rather than control them (Drucker, 1999; Kanter, 2009). Managing in a Volatile Environment “Over the years managers have developed tools and techniques to overcome challenges ranging from inconsistent quality to stagnant productivity (e.g., Six Sigma, Total Quality Management, and just-in-time supply chains). Now what they need is a system for addressing volatility. Prahalad (2009) asks “How does a chemical company, for example, cope with oil prices that bounce from $50 a barrel to $150 and back in 18 months?” This is a challenge to organizations of the new century that many business thinkers and business leaders are working hard to address (Hamel, 2009; Prahalad, 1998; Prahalad; 2009; Hamel, 2000). EFFECTS ON LEAN SIX SIGMA The American Society for Quality (ASQ) Six Sigma body of knowledge was used as a basis for documenting the effects that the changes categorized above will have on the implementation of a process improvement program, such as Lean Six Sigma. This structure is justified because the ASQ body of knowledge contains Lean methods and principles, and because many organizations that operate successful process improvement programs use a
  • 15. variety of names for the program and emphasize different aspects of Lean and/or Six Sigma (Maleyeff, 2007). 2010 Northeast Decision Sciences Institute Proceedings March 2010 Page 588 The ASQ body of knowledge includes a number of main sections. Using a series of tables, details are provided regarding: (a) how the current elements of Lean Six Sigma mesh with the upcoming changes, and (b) what needs to change in the application of Lean Six Sigma in order to remain relevant. Tables 1-5 (respectively) concern Enterprise- Wide Deployment; Organizational Process, Management, and Measures; Team Management; Define-Measure-Analyze-Improve- Control (i.e., DMAIC, which is the main project organization model used within Six Sigma); and Design for Six Sigma. Table 1 Enterprise-Wide Deployment How Lean Six Sigma Elements Mesh What Needs to Change in Lean Six Sigma Sustainable Business Development
  • 16. Change management skills and knowledge of Lean Six Sigma principles will continue to be crucial in meeting the goal of sustainability. A better and systematic way to define the value of long term sustainability will be necessary, including cap and trade issues. The Global Marketplace The strong focus on understanding customer needs will be important as the diversity in customer types increases. Defining value in various economic and cultural systems will complicate project selection, including effects of tariffs. Global Operations Leadership and knowledge in the areas of Lean and Kaizen will remain important skills for global operations managers. Motivation for change will vary across economic and cultural systems, and this will complicate implementation of new processes. Rapidly Evolving Technologies The ability to understand how to integrate technology within business processes will
  • 17. take on increased importance. The integration of technology across physical and cultural boundaries will be critical, and success may depend on learning from others. Changing Regulatory Environment Change management skills and solid leadership are critical when the regulatory environment is volatile. Improvement project implementation may be complicated by limitations based on governmental laws and regulations. Rise of Knowledge Workers The ability to understand why and how Lean Six Sigma works will facilitate better understanding of its implementation. Improvement efforts may move from process improvement to creation of effective working environments, including the virtual workplace. Managing in a Volatile Environment Change management skills are critical when business conditions and supply chains are
  • 18. unstable and volatile. Project durations will need to be short but thorough, with many interconnected projects undertaken simultaneously. Table 2 Organizational Process, Management, and Measures How Lean Six Sigma Elements Mesh What Needs to Change in Lean Six Sigma Sustainable Business Development Although measurements are important, many traditional business performance and financial measures do not address sustainability. Financial measures will need to change to create an emphasis on how improvements impact societal and environmental goals. The Global Marketplace Emphasis on critical-to-quality and related measurements will assist with the integration of performance metrics. Decisions must take into account different market perspectives and how services are
  • 19. managed in diverse cultures. Global Operations Lean Six Sigma is applied and will impact all operations, including domestic and overseas facilities. Terminology of performance measures may not be similar and how they motivate action across counties will vary. 2010 Northeast Decision Sciences Institute Proceedings March 2010 Page 589 Rapidly Evolving Technologies Rapidly evolving technologies might require new critical-to-quality and other performance measures. Financial measures need to focus more directly on the impact of technology and management must adapt fast to changes. Changing Regulatory Environment Current efforts to implement Lean Six Sigma include critical stakeholders, so adding
  • 20. another stakeholder should be easy. More key stakeholders (government, regulators) will exist and intellectual property issues will increase in complexity. Rise of Knowledge Workers Business measures and metrics are important tools for knowledge workers, but emphasis must be placed on worker satisfaction. Improvements are needed in how performance of knowledge workers is measured and used to develop allegiance. Managing in a Volatile Environment Balancing the need for longer-term financial measures with a rapidly changing business environment will be challenging. Cause-and-effect will be more difficult to determine and certain risks (political, legal, etc.) will increase. Table 3 Team Management
  • 21. How Lean Six Sigma Elements Mesh What Needs to Change in Lean Six Sigma Sustainable Business Development Teams might require retraining to focus their efforts on long-term issues and projects that contribute to sustainability. Requires involvement of a green-certified member and more stakeholders (e.g., energy providers, community, or government). The Global Marketplace Team management approaches using diverse, international team members can enable a company to stay in tune with market. Need to include members on teams that understand cross-region markets and mores, perhaps using localized sub-teams. Global Operations Team skill sets required and developed in black belt system would allow people to work well on “virtual teams” across the globe. Challenges need to be overcome with multi- functional teams in disperse locations, having different languages and cultures.
  • 22. Rapidly Evolving Technologies Traditional team process will likely work well, because it capitalizes on the knowledge power of the group versus individual. Need to expand team member scope with those that understand potential and limitations of technology solutions. Changing Regulatory Environment Teams must be agile and able to quickly communicate any changes in foreign and domestic government regulations. New team members from regulatory bodies will be needed with team-wide awareness of regulatory effects across the globe. Rise of Knowledge Workers Concept of rewarding teams rather than individuals will become more difficult as good workers become harder to retain. Need to convince workers that real benefits will come to them personally since they will not be motivated by slogans or money.
  • 23. Managing in a Volatile Environment Traditional team management approaches might be too slow and cumbersome, lacking the agility necessary to adapt. Many members of the team will be new to the company or to the job and therefore teams need to be amorphous. Table 4 The DMAIC Process How Lean Six Sigma Elements Mesh What Needs to Change in Lean Six Sigma Sustainable Business Development DMAIC can be applied to any process – therefore it could be used as part of a broad intangible framework like sustainability. Need to find better ways to measure future and indirect effects, and would need to sacrifice short-term profits for sustainability. The Global Marketplace
  • 24. This logical and thorough “scientific method” can be well suited for competing within the global marketplace. Need to be proactive in identifying opportunities for improvement as market preferences change and evolve. 2010 Northeast Decision Sciences Institute Proceedings March 2010 Page 590 Global Operations DMAIC is useful for all operations, whether domestic or overseas; the universality of the mathematical approaches is appealing. Differences in education practices could complicate training of the tools; challenges in central vs. local control need to be overcome. Rapidly Evolving Technologies DMAIC may be too slow and ponderous when technology is moving at breakneck speed with projects taking months to complete. More risk taking in choosing projects and potential for “user” of project results being unable to understand their implementation.
  • 25. Changing Regulatory Environment The DMAIC process can provide a structured way for companies to assess changes within the regulatory environment. Changes in regulations will often motivate improvement projects but recommendations may require law changes to implement. Rise of Knowledge Workers DMAIC helps workers gain in-depth insight into the details of the process – not just superficial “managerial” knowledge. Tools will evolve to downplay manufacturing by including those specific to knowledge jobs, and this would impact training regimens. Managing in a Volatile Environment DMAIC may be too slow and ponderous when technology is moving at breakneck speed with projects taking months to complete. Need to modify DMAIC to move quickly (Kaizen approach would help) and controls will be emphasized to identify new problems.
  • 26. Table 5 Design for Six Sigma How Lean Six Sigma Elements Mesh What Needs to Change in Lean Six Sigma Sustainable Business Development The tools and concepts of DFSS will take on increased importance, as the criteria for effective designs are broadened. Norms, guidelines, and paradigms for sustainable design need to be part of DFSS projects to account for total life cycle costs. The Global Marketplace The tools and concepts of DFSS will take on increased importance, as the diversity of customer types increases. Designs must be cognizant of various user emphases with decisions regarding design flexibility becoming important. Global Operations
  • 27. The tools and concepts of DFSS will take on increased importance, as the diversity of operations types and locations increases. Designs must take into account manufacturability in more diverse ways, including capabilities across regions. Rapidly Evolving Technologies DFSS would still be valid, but the methodology needs to be applied in a flexible, rapid manner. Project teams must be aware of how users from around the globe understand or deal with technology. Changing Regulatory Environment The tools and concepts of DFSS will take on increased importance, as the number of stakeholders increases. Designs must be developed that are able to evolve as regulations change and are updated. Rise of Knowledge Workers
  • 28. The black belt system requires high skill set; black belts would do well in a knowledge worker economy. An increased emphasis will be placed on the design of services and solutions, with corresponding differences in approaches. Managing in a Volatile Environment DFSS would still be valid, but the methodology needs to be applied in a flexible, rapid manner. Design processes must be fast and their work processes will need to be periodically reviewed and updated. CONCLUSIONS Given the broad nature of this work and the potential for a widely diverse set of opinions, the authors look forward to a spirited debate on the future prospects of Lean Six Sigma. REFERENCES References available upon request from John Maleyeff (contact information listed above).
  • 29. 2010 Northeast Decision Sciences Institute Proceedings March 2010 Page 591 Copyright of Proceedings for the Northeast Region Decision Sciences Institute (NEDSI) is the property of Northeast Decision Sciences Institute and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use.