10. MANAGEMENT CONT.
Align business strategy
Mobilize teams to attack projects
Accelerate business results
Govern efforts for sustained improvements
Six Sigma has evolved over the last two decades and so has its definition. Six Sigma has literal, conceptual, and practical definitions.Essentially, Six Sigma is all three at the same time.
1The term SIX sigma was founded and started by Motorla engineer Walter Shewhart in the 1920’s. 2Prior to that time it was known as Three sigma, the point from a mean where a process requires correction.3Carl Gauss first introduced the concept of a normal curve and this is where the process begins.Motorola still holds the federally registered trademark of Six Sigma
1In the early to mid 1980’s Motorola engineers decided that traditional quality levels, being measured in defects per thousand of opportunities didn’t provide enough granularity.They wanted to measure defects per million, thus the birth of Six Sigma’s success.2Since it’s inception Motorola has saved over 16 billion dollars by adapting to Six Sigma.3As a result, hundreds of companies have adopted the Six Sigma way of doing business
1 The term "Sigma" is often used as a scale for levels of "goodness" or quality. 2Using this scale, "Six Sigma" equates to 3.4 defects per one million opportunities (DPMO). 3Therefore, Six Sigma started as a defect reduction effort in manufacturing and was then applied to other business processes for the same purpose
1 Six Sigma has evolved over time and there has been less emphasis the counting of defects and focusing on improving other aspects.Customer requirements has come into play and how to better understand and manage your clientel2. Aligning key process within your business to help achieve those high standards
1.Methodology also focuses on analyzing rigorous data to minimize variations with your production environment thus enhancing your effectiveness2Six Sigma will also help to establish your business and provide sustainability to your company. Focus upon methodology to achieve these results
At the heart of the methodology is the DMAIC model for process improvement. DMAIC is commonly used by Six Sigma project teams as a model to start any project.DMAIC stands for: Define screen.
Through experience, Motorola has learned that disciplined use of metrics and application of the methodology is still not enough to drive desired breakthrough improvements and results that are sustainable over time.For greatest impact, Motorola ensures that process metrics and structured methodology are applied to improvement opportunities that are directly linked to the organizational strategy.When practiced as a management system, Six Sigma is a high performance system for executing business strategy. Six Sigma is a top-down solution to help organizations.
The Six Sigma Management System drives clarity around the business strategy and the metrics that most reflect success with that strategy. It provides the framework to prioritize resources for projects that will improve the metrics, and it leverages leaders who will manage the efforts for rapid, sustainable, and improved business results.
2The most basic is the yellow belt. Not that many people achieve this level because there is not much one can do with it. People typically go for the higher belts. However, if you do want to go for the yellow belt, you will have to have a strong understanding of the Six Sigma style. 3Most people with a yellow belt cannot work on a black belt project; their every day work will reflect a quality vs. profit relationship. 4individuals containing a yellow belt demonstrate a strong understanding and knowledge of the Six Sigma process and standards
2People with this certification are often referred to as worker bees because they do the majority of the work during projects. 3They are the ones who gather all the necessary information. They also do a majority of the experiments and tests throughout the project. 4The main goals of a green belt are to ensure the success of the training techniques and lead smaller improvement projects.
2These are the people who are in charge of the Six Sigma projects within their respective companies. 3Most of the time, these are the people who are asked to take on this task on a full time basis. Once the project is completed and everything has been implemented, they will return to their regular duties. 4The projects they head up typically are expected to save the company at least $100,000.
Along with heading the project, they also are expected to coach, develop and advise other managers so the entire company can achieve this goal.
2This is the highest of the Six Sigma belts one can achieve.3You will not necessarily find a master black belt in a company just because they are implementing Six Sigma. 4This is because this person is a highly trained black belt who will do the work full time, even after the project is completed.
The master black belt will make sure everything continues running smoothly and all the training the company learned stays in the company. They are there to execute the practices throughout the company, not just within the project.
2Lean Six Sigma is a combination of the improvement in quality that comes from Six Sigma methodologies and increased speeds due to lean manufacturing principles. It is a discipline aimed at eliminating process defects.3 It focuses on removing any process steps that do not add any value. The combination of these two methodologies will improve the quality and efficiency of any organization
We can not take a look at a few scenarios and when to utilize Six Sigma
2Increase patient satisfaction and reduce errors by improving your processes.3Recover lost cost due to poor quality4.Reducing the time it takes to treat patients will shorten their hospital stay and increase proficiency
1Six Sigma will implement strategies that will add to the success rate of Patient Saftey. This should be all hospitals number one priority.3Development of Advanced technology is another added bonus. Keep the most up to date standards in practices can lead to quicker diagnosis and more accurate results.4Market growth is another bonus. Hospitals are in the business of staying in business. By adapting Six Sigma standards you can further strengthen your business and increase your market share.
2Six Sigma can increase your resource utilization to maximize the efficiency of your staff.3Increased efficiency will also lead to decreases in Length of stay. This will also help increase your turnover, improve patient satisfaction and decrease unnecessary costs.4The methodology’s will also assist with internal audits to recognize failures within a department. Understanding where your weak points are located will help turn your hospital around.
2Six Sigma can also be affective for governments. Lean Six Sigma can help identify wasteful spending and in turn increase profciency.3Muncipalities could identify departments or services that are being underutilized and make decisisons on how to improve their performance or remove the spending from those problem areas. 4This would lead to an increase in the ability of balancing governmental budgets.
2Xerox is a noted company that has adapted Lean Six Sigma into there standards of business and practices.3Samsung has noted using Six Sigma to increase production and reduce waste in their television plants4The leader and creator of Six Sigma, Motorola still uses the practice and is still a profitable company making billions every year
2Ford’s automobile plants employ Six Sigma into their production lines. This has helped Ford to create a billion dollar industry and the only US auto manufacture to not receive government bailout money when the market crashed.33M has deployed Six Sigma in their production and manufactoring plant propelling them into a billion dollar company4Agilent Technologies is a fortune 500 global manufacturer that provide bioanalytical and electronic measurement solutions also uses the methodologies of Six Sigma.
