The baseline Six Sigma methodology is established as a data-driven, systematic approach to solution management, waste elimination and efficiency, while keeping a close eye on critical customer requirements. Statistical tools and analysis are often useful in the process, however, to believe that Six Sigma discipline can only be employed statistically is a huge mistake. While some senior project managers might heartily disagree, my experience has been that most successful process transformations require many of the same key ingredients proposed by strict Six Sigma discipline.
Successful business process transformations require key executive leadership involvement and sponsorship, expert in-house resources dedicated to the particular process or outcome, process-level knowledge managers or key resources who are regularly involved in the activity, and a group of supporting resources assigned to specific tasks and activities in support of the targeted outcome or initiative. The most critical ingredient is “good business requirements” and relevant, valid data relative to “as is” performance to be compared with post-transformation outcomes. In Six Sigma terms, these are Champions, Master black belts, black belts, subject matter experts and green or yellow belts.
Champions and master black belts focus on identifying the core project functions, developing its charter and the identification of the key deliverables and outcomes. Black belts lead and manage the project, employing the key resources identified in the charter to produce the stated objective of the project. Subject matter experts provide insights and expertise regarding the internal workings of the process or function being examined and tend to be the most prominent operators of the systems, equipment or resources used to produce the regular outputs of the process. Master black belts and black belts are empowered to make decisions within their scope of responsibility and are enabled to apply the Six Sigma methodology across broad functional and diverse segments of the organization which own the project or initiative.
The term Six Sigma relates to a measure of variation which implies that if a particular outcome is within six standard deviations of the mean of the process, and its nearest specification limit, then virtually none of the results will be outside the overall specification limit. In layman’s terms the widely accepted definition of a Six Sigma process is one that produces a maximum of 3.4 defective parts per 1 million opportunities. We speak from time to time about process capability and use the terms repeatability and reproducibility to measure good processes. In most capability studies, the objective is to calculate the number of “sigma’s” between the process mean and the nearest specification limit, rather than the standard deviation of the process. In the case that the process standard deviation increases, the mean of the process moves away from the center of the upper and lower tolerances. As the outcome moves further away from the center, the process capability sigma number goes down, and fewer standard deviations fit between the mean and the nearest specification limit. For that reason it is assumed that a process with a process capability (Cpk) Index of less than 1.5 (sigma shift) is deemed to be “not capable.”
There are two basic methodologies under the Six Sigma discipline. The first is the DMAIC (define, measure, analyze, improve and control) methodology which is primarily used when an existing business process is modified or enhanced to produce improved results. The second methodology is referred to as DMADV (define, measure, analyze, design and verify) which is employed when an entirely new process or design must be developed to achieve the desired improvement. A DMADV derivative, DMEDI (define, measure, explore, develop and implement) is becoming popular in service and healthcare business segments.
Enough of the lingo for now – so let’s get back to my premise that Six Sigma discipline can improve the transformation process for most successful projects. To understand what is being proposed we must, define the problem, measure all relevant attributes, analyze data to understand the issues and develop solutions. We then have to identify and implement improvements, verify that we have fixed the entire problem and validate that the improvement is real. Finally, we must execute the plan. Assuming that the project met the basic conditions for Six Sigma, a hand-picked cross-functional team made up of process experts, and gathering input from the customer, then identifying the true cost of poor quality, should produce outcomes that improve the organization and its bottom line.
Have I made this too simple?
OK, then – let’s add the concept of “lean.” Lean is a methodology which focuses on the elimination of waste and an increase in process speed and efficiency. Michael George, author of “Lean Six Sigma, Combining Six Sigma Quality With Lean Speed,” summarizes the concept as follows: “The activities that cause the customer’s critical-to-quality issues and create the longest time delays in any process offer the greatest opportunity for improvement in cost, quality, capital and lead time.” This further lends itself to the concept of PCE (process cycle execution). In this concept, process execution speed is a measure of Value-Added time divided by Total Elapsed Time. Lean processes traditionally have a PCE of 25% or higher. One of the most important outcomes of Lean is the increase in process velocity. This ensures that non-value-added activities are eliminated or at least controlled – in every process. There are many tools available to manage this waste. Some are as basic as the 5 “S’s” sort, straighten, shine, standardize and sustain. Others include the recognition of deadly wastes - such as overproduction, waiting, inventory, motion, transportation, excessive workforces and unnecessary capital investments.
The last subject of this discussion will be metrics. A successful transformation must have the right markers in place to gauge improvement and to allow an organization to know that it has reached its objectives. The right measures will guide the transformation and make certain that the appropriate benchmarks and early warning indicators are employed along the way. A set of balanced measures in a format which can be readily compiled and provided to key decision-makers quickly are pivotal in the success of any major initiative. Measures will include risks, costs, benefits, resources, cycle times, quality, process lifecycles, customer satisfaction, customer value and a myriad of targets and objectives. The key here is to make certain that you are measuring the right things in the right timeframe and can link them all back to your customer requirements and the mission, vision and strategy of your organization.
The rigors and discipline of Six Sigma can provide only one result for customers and your business – a better and more predictable outcome.
Ellory Conic
The author is Vice President, Six Sigma and Operations Analysis at Motif, Inc.,
a specialized BPO (Business Process Outsourcing) company providing rules based and decision intensive back office transaction processing services, customized email response services
and internet research, analytics & database generation to global clients.
(www.motifinc.com)
|
