6 Sigma - Chapter7

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© Copyright 2004, All Rights Reserved. Edutech Dimensions Pvt. Ltd.
Chapter 7: Launching Six Sigma
Aim
This chapter covers the implementation and deployment aspects of Six Sigma in an
organization.
Creating a Six Sigma Focus
To achieve Six Sigma, companies must determine how to focus and deploy the Six
Sigma Breakthrough Strategy so that key business priorities and strategy issues are
addressed.
A company that has recently had substantial losses, such as shrinking market share
or losses due to high labor costs, might decide to focus on short-term cost reduction.
On the other hand a company enjoying strong profits may decide to focus on long-
term projects aimed at strengthening its business by improving overall quality and
customer satisfaction.
Another company might want to reduce costs by, focusing on reducing its cycle time.
How a company decides to focus its Six Sigma projects heavily influences the way
Six Sigma is deployed. Standards must be established and consistently met. Bringing
about improvement is one thing; sustaining it is often more difficult and requires
greater diligence.
Here are some of the ways a company might choose to focus its Six Sigma efforts:
Focus 1: On Project cost savings.
• By focusing on project cost savings, a company can determine the number
of projects it needs to complete to save a specific dollar amount
• Projects are selected for potential reductions in fixed and/or variable
costs, and not necessarily for their effect on the root drivers of process
capability
• This is a more limited approach, and will likely do little to spread Six
Sigma throughout the organization
Focus 2: On Deliverable.
• Identify the product family or system that is the greatest cause of poor
customer satisfaction in a product or service that is important to a
company’s overall strategy

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• High warranty costs, for example, can signal products that might benefit
from the Breakthrough Strategy
• This kind of focus requires that companies examine a number of processes
that contribute to the product or service
• Companies should be wary of selecting projects that focus solely on
products. Focusing on problems such as high warranty returns and
customer complaints will highlight a product's symptoms but not the
processes that create the symptoms
• A management system that requires regular system audits
Focus 3: Standardize best-in-class management system practices
• Standardization at the operations level is no different from standardization
at the business level
• Once the business has uncovered a best in-class management practice, it
should seek to standardize it and transfer the knowledge to all relevant
sectors within the business
• The best-in-class practices of other businesses can be investigated and
applied, allowing the company to leapfrog its way to a higher retention
rate
• Once a company has standardized a particular Six Sigma practice, it must
integrate the practice into the fabric of its operations, reinforcing it
through a reward and recognition systems
Focus 4: Integrate standardized six sigma practices into policies and procedures
• Integration at the operations level is no different from what takes place at
the business level
• Once a Six Sigma practice is standardized, it must be integrated into the
fabric of the operations
• Practices become institutionalized when their cross-applicability is
interwoven into operating policies and procedures and then reinforced
through reward and recognition systems

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How does a Six Sigma work?
There are five main steps in the Breakthrough strategy of Six Sigma:
1. Select key Problem areas
2. Select and train the right people
3. Develop and implement improvements
4. Manage Six Sigma Projects
5. Sustain the gains
Step 1: Selecting key problem areas
Key problem areas in an organization would be those that:
1. Have a high impact on customer
2. Are critical to success
3. Show fastest or largest return
Step 2: Select and train the right people
Successful implementation of quality initiatives needs complete participation from
every employee in an organization. They should be well informed, trained and
motivated. A few people have to own the Six Sigma process.
Six Sigma Experience Levels
Six Sigma improvement efforts depend upon the contributions and teamwork of
skilled participants at the following experience levels.
Executive Leaders
Executive Leaders keep the Six Sigma program focused on real business problems
• They provide overall alignment with both the culture of the organization and
its strategic vision of the future, and they create the system context for the
Black Belt projects
Project selection approvals, liaise with the CEO or Chair of the Board,
Communications, Deployment, Company Metrics, Command and Control functions,
recognition of individuals and teams, and establishment of business targets all
depend upon Six Sigma Executives.

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Project Champions
Project Champions take their company's vision, missions, goals, and metrics and
translate them into individual unit tasks.
• Additionally, Champions must remove any roadblocks to the program's
success.
• Project Champions are involved in selecting projects and identifying Black and
Green Belt Candidates.
• They set improvement targets, provide resources, and review the projects on
a regular basis so that they can transfer knowledge gained throughout the
organization.
Master Black Belts
They are the technical leaders of Six Sigma.
• They serve as the instructors for both Black and Green Belts and also
provide ongoing coaching and support to project teams to assure the
appropriate application of statistics
• A built-in part of the long-term Six Sigma infrastructure, Master Black
Belts help to create most of the key elements, such as metrics,
enterprise maps, and training
• In addition, they provide strategic and operational assistance to
project Champions and management in the formulation and
deployment of the Six Sigma program
Black Belts
Black Belts are the backbone of Six Sigma deployment and continuous
improvements.
• They build teams and attack problems by managing projects and then driving
the teams for solutions that work, resulting in delivery of bottom-line results
• As the Executive Leaders and the Project Champions work through
deployment and resolve issues concerned with the ‘recognize and define’
phases of Six Sigma, Black Belts work through each project using the
principles measure, analyze, improve, and control

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Green Belts
Green belts provide internal team support to Black Belts.
• Are able to assist in data collection, computer data input, analysis of data
using the software, and preparation of reports for management
• Are respected workers who can manage the team in the absence of the Black
Belt
• Are part-time workers on a team and may migrate to this position because of
their skills using basic quality analysis tools and methods and their ability to
facilitate team activities
• May become Black Belts over time as they build a personal base of experience
that boosts them into a more technical role
Step 3: Develop and implement improvements
Broadly this has five important steps:
1. Define
2. Measure process
3. Analyze process
4. Improve process
5. Control process
There are 5 fundamental steps involved in applying the implementation strategy
to achieve the Six Sigma process:
1. Plan
2. Assess
3. Evaluate
4. Enhance
5. Control
Step 4: Manage Six Sigma Projects
As a manager of the Six Sigma initiatives, it is necessary that you:
1. Lead a focused effort
2. Frequently review process and remove barriers
3. Check real business impact
4. Continuously communicate progress to executive leadership and those
involved in projects

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Step 5: Sustain the gains
The most difficult part is to sustain the gains that have been achieved.
1. Implement effective control plans
2. Conduct regular Six Sigma training to reinforce the initiative throughout the
company
3. Review the project’s effectiveness at regular scheduled intervals
4. Continually identify and launch new Six Sigma projects
Successful implementation of Six Sigma
Successful implementation depends on the following principles:
1. Highly visible top-down management commitment to the initiatives.
2. A measurement system (metrics) to track the progress. This brings
accountability into the initiatives and provides a tangible picture of the efforts.
3. Internal and external benchmarking of the organization's products, services,
and processes. This information helps the organization understand its "real"
market position motivating them to adopt a breakthrough philosophy.
4. Concept of stretch goals. This would allow people to focus on changing the
processes by which the work gets done, rather than "tweaking" the existing
processes. This would show exponential rates of improvement.
5. Educating all levels of the organization. Without the necessary training,
people cannot bring about breakthrough improvement.
Summary
1. Six Sigma improvement efforts depend upon the contributions and teamwork
of skilled participants
2. Executive Leaders keep the Six Sigma program focused on real business
problems
3. Project Champions take their company's vision, missions, goals, and metrics
and translate them into individual unit tasks
4. Master Black Belts are the technical leaders of Six Sigma
5. Black Belts are the backbone of Six Sigma deployment and continuous
improvements
6. Green Belts provide internal team support to Black Belts

6 Sigma - Chapter7

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