Module Title: Managing and Leading Change Lesson 4 THE SIX SIGMA
Learning Objectives: At the end of the lesson, the students should be able to: 1. Define what is Six Sigma 2. Discuss the brief history of Six Sigma; 3. Comprehend the Six Sigma Terminology; 4. Appreciate the Six Sigma Teamwork and its benefits in business; 5. Describe the Six Sigma advantages; and 6. Recognize the Six Sigma belt levels
What is Six Sigma? Six Sigma is a quality program that, when all is said and done, improves your customer s experience, lowers your costs, and builds better leaders. Jack Welch
What is Six Sigma? Six Sigma is a set of techniques, and tools for process improvement. It was developed by Motorola in 1986. Sir Bill Smith, the Father of six sigma introduce this quality improvement Methodology to Motorola. He is considered as the Father of six sigma Six Sigma is now an enormous 'brand' in the world of corporate development.
Six Sigma: A Brief History Since the 1920's the word sigma (s) has been used by mathematicians and engineers as a symbol for a unit of Measurement in product quality variation. In the mid-1980's engineers in Motorola in the USA used Six Sigma (S) an informal name for an in-house initiative for reducing defects in production processes, because it represented a suitably high level of quality. In the late-1980's Motorola extended the Six Sigma methods to its critical business processes, and significantly Six Sigma became a formalized in-house 'branded' name for a performance improvement methodology, i.e, beyond purely 'defect reduction. In 1991 Motorola certified its first 'Black Belt' Six Sigma experts, which indicates the beginnings of the formalization of the accredited training of Six Sigma methods.
Six Sigma: A Brief History In 1995, Six Sigma became well known after Mr. Jack Welch made it a central focus of his business strategy at General Electric, and today it is used in different sectors of industry. (General Electric, or GE, is an American multinational conglomerate corporation incorporated in New York ) By the year 2000, Six Sigma was effectively established as an industry in its own right, involving the training, consultancy and implementation of Six Sigma methodology.
Components of Six Sigma The method consists of six specific components that businesses can employ. Each strategy concentrates on helping businesses improve their present strategies, increase their efficiency, while decreasing waste and increasing revenue.
Components of Six Sigma 1. The first strategy point is to always put the customer first. It is important for a business to know their customer, and do everything to provide them with the services they require. 2. The next concept is that all management decisions must be based on facts.
Components of Six Sigma 3. The third is to put an excessive amount of attention in management, improvements, and processes. 4. The fourth concept is to create a proactive management team. 5. The fifth is to ensure that collaboration is done without borders, meaning that every entity within the company should be involved in collaborative decisions. 6. The sixth and final concept is that an organization should always be aiming for perfection.
Six Sigma Objectives Overall Business Improvement Six Sigma methodology focuses on business improvement. Beyond reducing the number of defects present in any given number of products. Remedy Defects/Variability Any business seeking improved numbers must reduce the number of defective products or services it produces. Defective products can harm customer satisfaction levels. Reduce Costs Reduced costs equal increased profits. A company implementing Six Sigma principles has to look to reduce costs wherever it possibly can--without reducing quality..
Six Sigma Objectives Improve Cycle Time. Any reduction in the amount of time it takes to produce a product or perform a service means money saved, both in maintenance costs and personnel wages. Additionally, customer satisfaction improves when both retailers and end users receive products sooner than expected. The company that can get a product to its customer faster may win her business. Increase Customer Satisfaction. Customer satisfaction depends upon successful resolution of all Six Sigma s other objectives. But customer satisfaction is an objective all its own.
The Six Sigma Terminologies The most common terms used in the strategy are: champion, black belt, green belt, change agent, and Big Y. These terms may sound foreign to individuals who have not completed training utilizing the strategy, however, as an individual completes their training for this strategic method, the terms used in the course will become more clear. 1. A Champion - is the individual in charge of a specific project, most likely the senior manager. Their job is to ensure that whatever the task is, that it is completed properly. This individual is in-charge of leading a team of employees.
The Six Sigma Terminologies 2. Black belts - are full time employees. They are professionals in their field and they usually take on the role as leaders for a specific team. This individual is in-charge of the operations, as well as the outcomes of specific projects that their team has been given the duty to complete.
The Six Sigma Terminologies 3. Green belts - are also full time employees. These individuals have received training primarily in the actual data collection and statistical analysis that is so important to the Six Sigma strategy. They may participate in activities with black belt members, or head smaller projects on their own, with the assistance of an individual that has received the black belt certification. Black Belts serve as mentors to Green Belts
The Six Sigma Terminologies 4. Change Agents - are individuals who are responsible for leading changes within an organization, a task that is primarily a job for a Black Belt. The position that change agents hold could be an official position, or one that someone volunteers for. 5. The Big Y - is a complex term in a sense. This particular term refers to projects that are seeking to make improvements of high level measures. Big Y is normally used to describe the critical customer requirements that have to be analyzed when improvements are being made.
Six Sigma Concept The positive developments are surprisingly data driven. One of the first and most important things that organizations learn is the importance of collecting information and analyzing it. Data Collection makes it possible for businesses to see where their organizations are coming up short and how these weak areas can be improved. The entire Six Sigma Process is data driven. NO guesswork in making decisions. All good business decisions should be backed up with facts, and this is exactly what this particular quality improvement process helps the company do.
Six Sigma Concept Once the workforce is being used properly, these entities focus on making the most effective use of their own technical tools and resources. Since, Six Sigma companies are always driving forward to achieve larger and better goals, they are never in danger of falling behind. They work to create the highest levels of customer satisfaction and their enhanced efficiency and tighter supply chains allow them to offer feasible and affordable rates on their services and goods
Tutorial Activity Mini Case Study for Six Sigma Choose your partner