Six Sigma Simplified for Service Organizations


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Six Sigma Simplified for Service Organizations

  1. 1. Six Sigma Simplified for Service Organizations Best Practice ApproachThe steps to develop a successful Six Sigma Simplified Process for Service Organizations are: FOCUS HONOR IMRPOVE SUSTAIN FOCUS Focus on developing a Master Improvement Story for your organization which aligns multiple teams (See example below). IMPROVEIdentify and eliminate root causes of organizational problems in time, defectsor cost. Old Six Sigma wisdom: 4% of your business generates over 50% of rework - start to tackle the 4% first. SUSTAIN Define and stabilize the improvement by developing Line Graphs until you have achieved Predictability and Consistency as basis for Process Improvement. HONOR Purpose: To recognize, review, and refocus
  2. 2. SIX SIGMA SCORECARD MASTER IMPROVEMENT STORY Long-Term Short-Term Measures Targets Increase Frequency ofVISION Customer Applicant Acceptance Sale % increase Increase Customer Customer % increase Satisfaction Satisfaction Increase Hiring “Perfect Fit” “Perfect Fit” % increase Achieved Rate Rate Financial Increase Task # of Task % increase Order Size Order Growth Increase # of Customers % increase Customers Increase Frequency % increase Frequency Reduce CycleSix Sigma’s Quality Time Cycle Time % reductionOperationalFocus # and % of Reduce Defects % reductionDrives DefectsFinancialGrowth and Reduce Costs Cost of Waste % reduction & ReworkCustomerSatisfaction Learning & Increase Core Training % increase Growth Skills Increase Opt Opt System Systems % reduction Unavailability Availability
  3. 3. ROADMAP to LEAN SIX SIGMA SUCCESS for Service OrganizationsSET BIG GOALSAfter you have identifed your key measurements and Early WarningIndicators for each of these goals, go ahead and SET BIG GOALS like 50% lessdefects in processing jobs. (You get 50% more bigger Ideas, forget the 10% here!)DON’T DELEGATEOnly start team approach with outlock of success and after you have alreadyvaluable Data collected and availableKEY SIX SIGMA TOOLSUse Line Graphs, Pareto/Fishbone and Cause and Effect Charts to focus andanalyze problems. Measure daily, weekly or monthly, where and what occursDevelop your “Yardsticks” your EARLY WARNING INDICATORS (Example below) “QUALITY” “PROCESS” Requirement Indicator Early Warning Indicator Percent of Defective Amount of rework per step Number of defects per step Missed Committments Time per process step Delay (Idle, rework time) Value Cost of waste and rework Paycheck errors For ex.: timesheet errors % timesheet late Cost of missed committment Number of Task orders lost
  4. 4. AVOID PITFALLS• Don’t use formulas and other to complicated tools in service business• Devide between Control Charts for COMMON CAUSE and SPECIAL CAUSE• Choose THE RIGHT CONTROL CHARTS: Use horizontal (X Axis)for day, week or month Use vertical (Y Axis) for number or percent defective, time, lenghts… 100% 80% 60% UCL 40% CL LCL 20% 0% week 1 week 2 week 3 week 4 Explanation: UCL: Upper Control Limits CL: Center Line LCL: Lower Control Limits You see how often data is collected (X axis) You see the number or percentage of defects (Y axis) The center line makes it happen to evaluate the process stability ! Take the UCL / LCL for your absolute customer requirements limits Define the scale from UCL to LCL in scale points from 1-10 Measure “Out of Control” processes and stabilize them with Preventive Actions !
  5. 5. Best Practice Roadmap for implementation• Use the SAFE Six Sigma Implementation road which is DIFFUSION Use the minimum amount of your organizational key resources, use “one day” swot teams• START SMALL Use the 4% rule, - 4% of any business create over half of the waste and rework, your workforce will learn by experience and our consulting – cost less than expensive training• SET BIG GOALS Try to reduce defects in one of your mission critical systems or processes by 50% in six months, for example: - Task Order errors - Service Defects - Billing errors - HR Third Party errors - Payment errors• FOCUS ONE GOAL AT A TIME Six Sigma is like peanut butter, wide spread - thin traction, FOCUS, efforts is the key here; Try to improve 4% of your entire processes, than the next 4%, than the next 4%, you will reach your goals. Naarow down focus on analyzing one problem at a time brings SUCCESS !• CUSTOMER FOCUS Try to use Six Sigma Simplified /TQM to please your customers, take their wishes serious: Requirement Measurement Period Better Number of defects Hour Percent defective Faster Committments missed week time in minutes, hr, days Cheaper cost per rework, time, waste shift,task order Think “Out of the Box” to find ways to create innovative solutions Copyrights2012©robertjaspertheartofquality