Six Sigma in Indian industries

Case Study

Author Author Position Date

Atanu Maity Program Manager August 05, 2009

Version: 1.0

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TABLE O

CO!TE!TS

INTRODUCTION TO SIX SIGMA................................................................................................................................5 HISTORY OF SIX SIGMA..............................................................................................................................................6 WHAT IS SIX SIGMA......................................................................................................................................................8 WHY SIX SIGMA DEVELOPMENT ?........................................................................................................................10 BENEFITS AND ADVANTAGES OF SIX SIGMA ...................................................................................................10

1. Improved Customer Loyalty......................................................................................................11 2. Customer Satisfaction................................................................................................................11 4. Business Results.........................................................................................................................13 5. Data nalysis Before Decision !a"in#....................................................................................14 $. %eam Buildin#..........................................................................................................................1& &. !easure 'alue ccordin# to t(e Customer...............................................................................1) ). *ffective Supply C(ain !ana#ement.......................................................................................2+ ,. Desi#n and Redesi#n -roducts.Services....................................................................................23 1+. Develop Leaders(ip S"ills......................................................................................................2$ 11. Inte#ration of -roducts/ Services and Distri0ution..................................................................2, 12. li#nment 1it( Strate#y 'ision/ and 'alues..........................................................................33 14. Supervisor %rainin#.................................................................................................................35 15. 2enerates Sustained Success...................................................................................................35 1$. Set a -erformance 2oal for *veryone....................................................................................3& 1&. *n(ance 'alue to Customers..................................................................................................3& 1). ccelerates t(e Rate 3f Improvement ...................................................................................3, 1,. -romotes Learnin# nd 4Cross5-ollination4..........................................................................3, 2+. *6ecutes Strate#ic C(an#es....................................................................................................3,
DOS AND DONTS OF SIX SIGMA........................................................................................................................... 0 !EY CONCEPTS OF SIX SIGMA .............................................................................................................................. 1 THEMES OF SIX SIGMA.............................................................................................................................................. THE SIX SIGMA ROADMAP....................................................................................................................................... " SIX SIGMA #UALITY TOOLS AND TEMPLATES................................................................................................50 IS SIX SIGMA RIGHT FOR US NOW ?......................................................................................................................51 WHEN SIX SIGMA IS NOT RIGHT FOR AN ORGANI$ATION..........................................................................5% SIX SIGMA TRAINING ................................................................................................................................................55 TRAINING THE ORGANI$ATION FOR SIX SIGMA.............................................................................................5&

.......................................................................................................................................................5&
LARGE ORGANI$ATIONS THAT HAVE ADOPTED SIX SIGMA......................................................................5" USE SIX SIGMA TOOLS TO MEET ISO "000 RE#UIREMENTS .......................................................................60 USE THE ISO "000 FRAMEWOR! TO ASSESS A SIX SIGMA SYSTEM ..........................................................61 SIX SIGMA AND #UALITY MANAGEMENT GLOSSARY...................................................................................6' CASE STUDY ( SIX SIGMA IMPLEMENTATION IN BHARTI BROADBAND.................................................6"

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Introdu"tion to Six Sigma

Six Sigma is a statistical concept that measures a process in terms o !e ects. Achie"ing #Six Sigma# means $our processes are !eli"ering onl$ 3.4 !e ects per million opportunities %DP&'( ) in other *or!s+ the$ are *or,ing nearl$ per ectl$. Sigma %the -ree, letter .( is a term in statistics that measures stan!ar! !e"iation. /n its 0usiness use+ it in!icates !e ects in the outputs o a process+ an! helps us to un!erstan! ho* ar the process !e"iates rom per ection. A sigma represents 121412.3 !e ects per million opportunities+ *hich translates to onl$ 30.4345 o non)!e ecti"e outputs. 6hat is o0"iousl$ a poor per orming process. / $ou ha"e a process unctioning at a three sigma le"el that means $ou7re allo*ing 11407.2 errors per million opportunities+ or !eli"ering 23.3125 non)!e ecti"e outputs. 6hat7s much 0etter+ 0ut *e are still *asting mone$ an! !isappointing our customers. 6he central i!ea o Six Sigma management is that i $ou can measure the !e ects in a process+ $ou can s$stematicall$ igure out *a$s to eliminate them to approach a 8ualit$ le"el o 9ero !e ects. /n short+ Six Sigma is se"eral things:

A statistical 0asis o measurement: 3.4 !e ects per million opportunities A philosoph$ an! a goal: as per ect as practicall$ possi0le A metho!olog$ A s$m0ol o 8ualit$

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#istory o$ Six Sigma

Since the 12207s the *or! 7sigma7 has 0een use! 0$ mathematicians an! engineers as a s$m0ol or a unit o measurement in pro!uct 8ualit$ "ariation. %:ote it7s sigma *ith a small 7s7 0ecause in this context sigma is a generic unit o measurement.( /n the mi!)12407s engineers in &otorola /nc in the ;SA use! 7Six Sigma7 an in ormal name or an in)house initiati"e or re!ucing !e ects in pro!uction processes+ 0ecause it represente! a suita0l$ high le"el o 8ualit$. %:ote here it7s Sigma *ith a 0ig 7S7 0ecause in this context Six Sigma is a 70ran!e!7 name or &otorola7s initiati"e.( %<ertain engineers ) there are "ar$ing opinions as to *hether the "er$ irst *as =ill Smith or &i,al >arr$ ) elt that measuring !e ects in terms o thousan!s *as an insu icientl$ rigorous stan!ar!. >ence the$ increase! the measurement scale to parts per million+ !escri0e! as 7!e ects per million7+ *hich prompte! the use the 7six sigma7 terminolog$ an! a!option o the capitali9e! 7Six Sigma7 0ran!e! name+ gi"en that six sigma *as !eeme! to e8uate to 3.4 parts ) or !e ects ) per million.( /n the late)12407s ollo*ing the success o the a0o"e initiati"e+ &otorola exten!e! the Six Sigma metho!s to its critical 0usiness processes+ an! signi icantl$ Six Sigma 0ecame a ormali9e! in)house 70ran!e!7 name or a per ormance impro"ement metho!olog$+ i.e. 0e$on! purel$ 7!e ect re!uction7+ in &otorola /nc. /n 1221 &otorola certi ie! its irst 7=lac, =elt7 Six Sigma experts+ *hich in!icates the 0eginnings o the ormali9ation o the accre!ite! training o Six Sigma metho!s. /n 1221 also+ Allie! Signal+ %a large a"ionics compan$ *hich merge! *ith >one$*ell in 1222(+ a!opte! the Six Sigma metho!s+ an! claime! signi icant impro"ements an! cost sa"ings *ithin six months. /t seems that Allie! Signal7s ne* <?' @a*rence =ossi!$ learne! o &otorola7s *or, *ith Six Sigma an! so approache! &otorola7s <?' =o0 -al"in to learn ho* it coul! 0e use! in Allie! Signal. /n 1223+ -eneral ?lectric7s <?' Aac, Belch %Belch ,ne* =ossi!$ since =ossi!$ once *or,e! or Belch at -?+ an! Belch *as impresse! 0$ =ossi!$7s achie"ements using Six Sigma( !eci!e! to implement Six
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Sigma in -?+ an! 0$ 1224 -? claime! that Six Sigma ha! generate! o"er three)8uarters o a 0illion !ollars o cost sa"ings. %Source: -eorge ?c,es7 0oo,+ 6he Six Sigma Ce"olution.( =$ the mi!)12207s Six Sigma ha! !e"elope! into a trans era0le 70ran!e!7 corporate management initiati"e an! metho!olog$+ nota0l$ in -eneral ?lectric an! other large manu acturing corporations+ 0ut also in organi9ations outsi!e the manu acturing sector. =$ the $ear 2000+ Six Sigma *as e ecti"el$ esta0lishe! as an in!ustr$ in its o*n right+ in"ol"ing the training+ consultanc$ an! implementation o Six Sigma metho!ologies in all sorts o organi9ations aroun! the *orl!. 6hat is to sa$+ in a little o"er ten $ears+ Six Sigma 8uic,l$ 0ecame not onl$ a hugel$ popular metho!olog$ use! 0$ man$ corporations or 8ualit$ an! process impro"ement+ Six Sigma also 0ecame the su0Dect o man$ an! "arious training an! consultanc$ pro!ucts an! ser"ices aroun! *hich !e"elope! "er$ man$ Six Sigma support organi9ations. Six Sigma stems rom the 8ualit$ mo"ement that starte! a ter Borl! Bar //. Six Sigma *as originall$ !e"elope! or &otorola in 1241 0$ =ill Smith. /t *as conceptuali9e! as a 8ualit$ goal at &otorola 0ecause technolog$ *as 0ecoming so complex that tra!itional i!eas a0out accepta0le 8ualit$ le"els *ere ina!e8uate. /n 1242+ &otorola announce! a i"e)$ear goal ) a !e ect rate o not more than 3.4 million parts per million ) six sigma.

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%&at is Six Sigma

Eirst+ *hat it is not. /t is not a secret societ$+ a slogan or a clichF. Six Sigma is a highl$ !iscipline! process that helps us ocus on !e"eloping an! !eli"ering near)per ect pro!ucts an! ser"ices. Bh$ #Sigma#G 6he *or! is a statistical term that measures ho* ar a gi"en process !e"iates rom per ection. 6he central i!ea 0ehin! Six Sigma is that i $ou can measure ho* man$ #!e ects# $ou ha"e in a process+ $ou can s$stematicall$ igure out ho* to eliminate them an! get as close to #9ero !e ects# as possi0le 6o achie"e Six Sigma 8ualit$+ a process must pro!uce no more than 3.4 !e ects per million opportunities. An #opportunit$# is !e ine! as a chance or noncon ormance+ or not meeting the re8uire! speci ications. 6his means 0usinesses nee! to 0e nearl$ la*less in executing our ,e$ processes. 6he Six Sigma can 0e !e ine! in se"eral *a$s. /t is a Hhighl$ technical metho! use! 0$ engineers an! statistician to ine tune pro!uct an! processI. /tJs a *a$ o measuring processesK a goal o near per ection+ represente! 0$ 3.4 !e ects per million opportunities %DP&'(K an approach to changing the culture o an organi9ation. &ost accuratel$+ though+ Six Sigma is !e ine! as a 0roa! an! comprehensi"e s$stem or 0uil!ing an! sustaining 0usiness per ormance+ success+ an! lea!ership. /n other *or!s+ Six Sigma is a context *ithin *hich $ou *ill 0e a0le to integrate man$ "alua0le 0ut o ten !isconnecte! management H0est practicesI an! concepts+ inclu!ing s$stems thin,ing+ continuous impro"ement+ ,no*le!ge management+ mass customi9ation+ an! acti"it$ 0ase! management. Another !e inition o Six Sigma is that itJs a goal o near per ection in meeting customer re8uirement. 6his is also accurate+ in act+ the term HSix SigmaI itsel to statisticall$ !eri"e! per ormance target o operating *ith onl$ 3.4 !e ects or e"er$ million acti"ities or HopportunitiesI. /tJs goal e* companies or processes can claim to ha"e achie"ement. Still another *a$ to !e ine Six Sigma is as a s*eeping Hculture changesI e ort to position a compan$ or greater customer satis action+ pro ita0ilit$ an! competiti"eness. <onsi!ering the compan$ *i!e commitment to Six Sigma at place li,e -eneral ?lectric or &otorola+

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Hculture changeI is certainl$ a "ali! *a$ to !escri0e Six Sigma. =ut itJs also possi0le to HDoI Six Sigma *ithout ma,ing a rontal assault on $our compan$ culture. / all these !e inition measure+ goal or culture change at least partl$ 0ut not totall$ accurate+ *hatJs the 0est *a$ to !e ine Six SigmaG =ase! on our experience or examples set 0$ the gro*ing num0er o companies see,ing Six Sigma impro"ement *e ha"e !e"elope! a !e inition that captures the 0rea!th an! lexi0ilit$ o Six Sigma as a *a$ to 0oost per ormance.

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%&y Six Sigma 'e(e)o*ment +

6he goal o the Six Sigma is to ena0le $ou to un!erstan! *hat Six Sigma is % 0oth a simple an! a complex 8uestion (+ *h$ itJs pro0a0l$ the 0est ans*er to impro"e 0usiness per ormance in $ears+ an! ho* to put it to *or, in the uni8ue en"ironment o organi9ation. /n our mission to !em$sti $ Six Sigma or the executi"e an! pro essional+ *e hope to sho* $ou that itJs Dust as much a0out a passion or ser"ing customer an! a !ri"e or great ne* i!eas as it is a0out statistics an! num0er crunching+ that the "alue o Six Sigma applies Dust as much to mar,eting+ ser"ice+ human resources+ inance an! sales as it !oes to manu acturing an! engineering. Six Sigma is a comprehensi"e an! lexi0le s$stem or achie"ing+ sustaining an! maximi9ing 0usiness success. /t is uni8uel$ !ri"en 0$ close un!erstan!ing o customer nee!s+ !iscipline! use o acts+ !ata+ an! statistical anal$sis an! !iligent attention to managing+ impro"ing an! rein"enting 0usiness processes. 6his is the !e inition that *ill pro"i!e the oun!ation or our e orts to unloc, the potential o Six Sigma or $our organi9ation. 6he t$pes o H0usiness successI $ou ma$ achie"e are 0roa! 0ecause the pro"en 0ene its o Six Sigma Hs$stemI are !i"erse+ inclu!ing <ost re!uction Pro!ucti"it$ /mpro"ement &ar,et share gro*th <ustomer retention <$cle)time re!uction De ect re!uction <ulture change Pro!uct/ser"ice !e"elopment

an! man$ more.

Bene$its and Ad(antages o$ Six Sigma

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6here are pro0lems. allo*e! to Sigma 0$ inclu!e:

numerous 0ene its o Six Sigma as a *a$ to a!!ress issues an! Among the 0ene its o Six Sigma is the !ecrease in !e ects that are reach the customer. Lou can get some sense o the 0ene its o Six re"ie*ing some six sigma proDects. 'ther 0ene its o Six Sigma

,- Im*ro(ed Customer Loya)ty

Accor!ing to -eorge =ox #All mo!els are *rong+ ho*e"er some mo!els are use ul#. Be 0elie"e $ou *ill in! this mo!el %graphic( *hich starts *ith customer satis action+ customer lo$alt$ an! customer retention use ul. A large actor in !etermining the li,elihoo! o success an! pro its in an organi9ation is customer satis action. Bhen there is customer lo$alt$ the customer retention rate is high an! 0usiness results ten! to ollo*.

2- Customer Satis$a"tion
6here exists an interaction 0et*een the !esire! results an! customer satis action+ customer lo$alt$ an! customer retention. 6he$ ma$ go 0$ other names such as patients+ clients+ 0u$ers+ etc. Bithout the customer it is impossi0le or an$ 0usiness to sustain itsel . Achie"ing the !esire! results is re8uentl$ a result o customer actions. An$ 0usiness *ithout a ocus on customer satis action is at the merc$ o the mar,et. Bithout lo$al customers e"entuall$ a competitor *ill satis $ those !esires an! $our customer retention rate *ill !ecrease. 6here are se"eral le"els o customers: Dissatis ie! customer))@oo,ing or someone else to pro"i!e pro!uct or ser"ice. Satis ie! customer)))'pen to the next 0etter opportunit$. @o$al customer))Ceturns !espite o ers 0$ the competition. Dissatis ie! customers are an interesting group. Eor e"er$ one that complains there are at least 23 *ho !o not. Dissatis ie! customers 0$ *or! o mouth *ill tell eight to sixteen others a0out their !issatis action. Bith the *e0 some are no* telling thousan!s. 215 o !issatis ie! customers ne"er purchase goo!s or ser"ices rom the compan$ again. A prompt e ort to resol"e a !issatis ie! customer7s issue *ill result in a0out 435 o them as repeat customers !epen!ing upon the 0usiness+

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ne* customer sales ma$ cost 4 to 100 times that o a sale to an existing customer. 6here has 0een less research on satis ie! customers to !etermine *hat it ta,es or a satis ie! customer to change. Bh$ ta,e a chance on mere satis actionG @o$al customers !on7t lea"e e"en or an attracti"e o er else*here. At the "er$ minimum the$ *ill gi"e $ou the opportunit$ to meet or 0eat the other o er. &aintaining lo$al customers is an integral part o an$ 0usiness. 'ne o the *a$s to help o0tain lo$al customers is 0$ ha"ing pro!ucts an! ser"ices that are so goo! that there is "er$ little chance that the customer re8uirements *ill not 0e met ' course one o the !i iculties is un!erstan!ing the true customer re8uirements. ?"en *hen $ou ha"e the re8uirements in a!"ance the customer can an! *ill change them *ithout notice or excuse. >a"ing a goo! reco"er$ process or a !issatis ie! customer is a necessit$. Bhen / oun! this it *as attri0ute! to Sam Balton oun!er o Bal)&art. A Customer o A customer is the most important person in an$ 0usiness. o A customer is not !epen!ent upon us. Be are !epen!ent upon him. o A customer is not an interruption o our *or,. >e is the sole purpose o it. o A customer !oes us a a"or *hen he comes in. Be aren7t !oing him a a"or 0$ *aiting on him. o A customer is an essential part o our 0usiness))not an outsi!er. o A customer is not Dust mone$ in the cash register. >e is a human 0eing *ith eelings an! !eser"es to 0e treate! *ith respect. o A customer is a person *ho comes to us *ith his nee!s an! his *ants. /t is our Do0 to ill them. A customer !eser"es the most courteous attention *e can gi"e him. >e is the li e0loo! o this an! e"er$ 0usiness. >e pa$s $our salar$. Bithout him *e *oul! ha"e to close our !oors. Don7t e"er orget it.

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Se"eral sur"e$s ha"e 0een !one on *h$ customers !o not gi"e a 0usiness repeat 0usiness. Ceasons gi"en 0$ customers or not returning or repeat 0usiness: &o"e! 'ther Erien!ships <ompetition Dissatis action ?mplo$ee Attitu!e 35 35 25 145 145

6hese sur"e$s *oul! in!icate that in a!!ition to the technical training an! Do0 s,ill training pro"i!e! to emplo$ees+ some e ort aime! at customer satis action an! emplo$ee attitu!e is appropriate. Cemem0er these ma$ not 0e the people normall$ thought as #Sales People#. Eor example &anagers+ Super"isors+ Secretaries+ Accounts Pa$a0le+ ?ngineers+ Accountants+ Designers+ &achine 'perators+ Securit$+ 6ruc, Dri"ers+ @oa!ing Doc,+ etc. i not helping to culti"ate @o$al <ustomers are hurting $our customer retention. 145 o lost customers are !ue to one cause+ emplo$ee attitu!eM /n or!er to ,no* ho* $ou are !oing in this area there must 0e some measurement. Data in!icate that less than 45 o !issatis ie! customers e"er 0other to lo!ge a complaint. &ost Dust ta,e their 0usiness else*here. 6est this on $oursel . 6he next time $ou get less than *hat $ou consi!er i!eal at a store+ 0usiness supplier+ restaurant+ mo"ie theatre+ hotel+ or an$ other 0usiness *hat !o $ou !oG <ulti"ating the customer relationship is ,e$ in achie"ing the !esire! 0usiness results. A passi"e s$stem that !epen!s upon $our customers to in orm $ou *ithout e ort on $our part is not li,el$ to $iel! the in ormation necessar$ to impro"e customer retention.

.- Business /esu)ts
?"er$ organi9ation *ants to achie"e some le"el o results. ;n ortunatel$ too o ten not e"er$one in the organi9ation has the same results in min!. >a"ing agreement on the !esire! results ten!s to ocus e orts. ?"en i the$ !o agree upon the 0asic !escription o the results ho* to measure achie"ement o those results is in !isagreement. ;n!erstan! *hat the !esire! results are. Some common result areas: Sales "olume Pro it 0e ore tax &ar,et share ?arnings per share
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Cepeat 0usiness 5 :e* customers 5 <ash Elo* Cycle %ime Patents issue! Sa et$ per ormance Ceturns Barrant$ claims ?n"ironmental per ormance De ect le"el Scrap Eirst pass prime <ost per unit pro!uce! De0t to e8uit$ &an$ others Agree on ho* to measure the result area. /s the measurement s$stem capa0le o pro!ucing num0ers that are use ul or the inten!e! result areaG Do all o the a ecte! people ha"e con i!ence in the measurement s$stemG <an num0ers 0e generate! 8uic,l$ enough to 0e use ulG Does the measurement !epen! upon the le"el o the resultG -enerall$ measurements o"er a continuum %e.g. 5 completion( are more use ul than $es/no %e.g. !one/not !one( t$pe measurement.

5- 'ata Ana)ysis Be$ore 'e"ision Ma0ing

As part o the mo!el *e explore in ormation an! gap anal$sis an! ho* that lin,s all o the other pieces together. See statistical !ata anal$sis graphic an! ho* it completes the mo!el. 6here are multiple reasons or !oing !ata anal$sis. &ost are to !o gap anal$sis 0et*een expecte!+ a stan!ar! or the competition.. An$ organi9ation that *ants to 0e success ul must ha"e a structure! *a$ o gathering !ata+ anal$9ing !ata an! !oing gap anal$sis. All important areas shoul! ha"e !ata collecte! an! then turn that !ata though statistical !ata anal$sis into in ormation. Data in o itsel is reall$ not *orth "er$ much. /t is onl$ *hen the !ata is torture! 0$ statistical !ata anal$sis to re"eal in ormation that it 0ecomes "alua0le. 6his gap anal$sis can "ar$ in complexit$ an! sophistication rom some "er$ simple a"erages an! histograms to complex regression anal$sis. Data collection or gap anal$sis can 0e !one or a num0er o reasons. /n e"er$ area *e ha"e !iscusse! thus ar there shoul! 0e !ata that is anal$9e! to pro!uce in ormation. =ase! on in ormation 0etter !ecisions shoul! result at all le"els in the organi9ation. A e* o the uses o in ormation resulting rom statistical !ata anal$sis ollo*:

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 Monitoring : An$ num0er o things can 0e monitore! rom mar,et con!itions+ per ormance o "arious parts o the organi9ation+ competitor actions/per ormance+ etc. 6he gap anal$sis is to assure that on going per ormance !oes not "ar$ too much rom target. Bhen !one correctl$+ gap anal$sis prompts action in the the area 0eing monitore!. All o the statistical process control rules or special cause "ariation are examples o action criteria rom monitoring. 6hese rules ma,e it eas$ to !o gap anal$sis an! ,no* *hen action is re8uire!. Deming al*a$s *arne! against tampering Nthat is ma,ing special cause corrections or a s$stem that is in statistical control. Bhen a process is in statistical control common cause "ariation is present an! a s$stem impro"ement is re8uire! an! entirel$ !i erent solution is nee!e!. A 0usiness strateg$ *ill ha"e a num0er o ,e$ per ormance areas each *ith a num0er o metrics that are the lea!ership *ants to impro"e. /t is al*a$s an interesting exercise in gap anal$sis to in! out *hat is impro"ement+ or *hich !irection is goo!. /s there a targete! goal or each metric an! are *e on target or achie"ing that target. &ulti)perio! e orts that !o not meet the target an! come as a surprise to management are a clue that an a!e8uate monitoring s$stem is not in place an! on going gap anal$sis is not in place. &easurements an! per ormance in!ication shoul! sho* i progress is 0eing ma!e or not. Sel!om !o e orts go or 11months *ith no change an! then in the 12th month all o the 0ene its are reali9e!. 'n going gap anal$sis rom the the plan can pre"ent some "er$ ugl$ surprises. Bith proper reporting an! trac,ing the Six Sigma proDects shoul! !eli"er in the areas important to achie"ement o the Strategic Plan. Ben"&mar0ing : A a"orite tool gap anal$sis. 'ne o the earl$ steps in an$ e ort is to un!erstan! the current per ormance. Be recommen! un!erstan!ing the c$cle time or e"er$ one o $our processes as *ell as those 0est in class. 6his can then 0e use! as a =enchmar, against other organi9ations that ha"e a similar process that !i erence is simple gap anal$sis. A =enchmar,e! point is also "alua0le in !etermining i acti"ities an! e orts associate! *ith a Six Sigma proDect ha"e ha! an$ impact. A caution against using a single point "alue or !oing the gap anal$sis. Ere8uentl$ there are c$clic patterns+ seasonal e ects an! other in luences that shoul! 0e consi!ere!. At a minimum *e 0elie"e $ou shoul! loo, at the a"erage o"er some perio! an! then compare that a"erage *ith an a"erage o"er a similar perio! o time a ter implementing a proDect. ' course the "ariation shoul! also 0e consi!ere! *hile !oing gap anal$sis. Se"eral months o poor per ormance ollo*e! 0$ one exception month can easil$ $iel! the same a"erage as the entire time perio! at mo!erate per ormance le"els+ $et the in ormation rom the gap anal$sis is much !i erent. Some =enchmar,ing has "er$ structure statistical gap anal$sis an! other use a more 8ualitati"e gap anal$sis o

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the !ata collecte!. /n most organi9ations there are se"eral areas that are important. A common la* in =enchmar,ing is to target a single per ormance metric. &ost organi9ations !o not ha"e a clear un!erstan!ing o the interrelationships an! can impro"e one area to the !etriment o another. An example o this is in the area o *aste. /t is relati"el$ eas$ in man$ processes to change the *aste rom soli! *aste to air emission or li8ui! *aste. <oncentration on onl$ one o these as a metric can o ten result in no net change is the total poun!s to the en"ironment. / the gap anal$sis is Dust or one t$pe o emission misun!erstan!ing can occur. 6he *aste Dust changes orm rom a soli! to air emissions or to li8ui! an! mo"es rom one to the other *ith no net change in actual *aste. 6he correct gap anal$sis is or each t$pe o emission an! also gap anal$sis or total emissions. Bhen 0enchmar,ing or a Six Sigma proDect collect !ata rom multiple time perio!s an! or se"eral !i erent metrics a gap anal$sis can 0e !one on each o the metrics. At a minimum+ ,no* the historical a"erage per ormance an! "ariation 0e ore attempting to !o an$ sort o gap anal$sis. 'ata Ana)ysis : 'ther la*s are the reorgani9ation e orts that eliminate sta ing especiall$ in support unctions *ith large claims o sa"ings. 6he remaining people in a !i erent cost center are still !oing the *or, o ten in a less e icient ashion. Acti"it$ =ase! Accounting can 0urst the 0u00le on man$ o these pseu!o sa"ings e orts. Bhen the Purchasing Department is rationali9e! an! line people pic, up the slac, it is not uncommon to in! that pro!ucti"it$ has !ecrease! an! the actual cost to !o the Purchasing acti"it$ has increase! rather than !ecrease! as claime!. Bithout a s$stem to accuratel$ collect an! anal$9e !ata mista,es o this t$pe are common. As a suggeste! gap anal$sis acti"it$ to in! out i this is a pro0lem in $our organi9ation+ go 0ac, i"e $ears ago an! in! out the total cost structure or a 0usiness. 6hen !ocument all o the impro"ement i!eas an! proDects !uring that i"e)$ear perio! an! the claime! sa"ings %0oth single points in time an! those that *ere to carr$ or*ar!(. ;se a simple time "alue o mone$ an! !o a gap anal$sis on $our are actuall$ reali9ing "s.the 0ene its claime! rom all o those proDects. /n one case a VP o &anu acturing claime! that i all the 0ene its rom proDects o"er a i"e $ear perio! *ere real he *oul! nee! no ra* materials+ no energ$+ no pa$roll an! *oul! 0e a0le to !ou0le the pro!uction. Six Sigma proDects can ma,e maDor impro"ements in ser"ice an! sta unctions+ Dust 0e sure that the measurements to !o the gap anal$sis capture *hat is reall$ happening. /t is eas$ to trans er costs rom one unction or location to another. &a,e sure $our proDects return the

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0ene it

to

the

organi9ation

as

*hole.

Predi"tion : Another "er$ "alua0le use o !ata is ma,e pre!ictions. 'ne o the a"orite tools is regression anal$sis. /n act one o the main reason or using statistics o an$ ,in! to gain some capa0ilit$ to ma,e pre!ictions. &an$ organi9ations ha"e "er$ sophisticate! regression mo!els or man$ acets o the 0usiness. 6he computer ol,s ha"e a!!e! to our lexicon -/-'O-ar0age /n -ar0age 'ut. An$ pre!iction mo!el is onl$ as goo! as the inputs. Sensiti"it$ anal$sis o an$ mo!el is high recommen!e!. /n act some people ha"e con!ucte! Designe! ?xperiments on purchase! proprietar$ mo!els to gain a 0etter un!erstan!ing o the actors an! interactions.

1- Team Bui)ding
@earn ho* *orl! class organi9ations use! team 0uil!ing an! emplo$ee moti"ation to 0ecome the lea!ers an! sta$ there. 6he essence o emplo$ee moti"ation is !e"eloping lea!ership s,ills. Bith A!ams Associates e ecti"e team 0uil!ing an! emplo$ee moti"ation it together. Success ul organi9ations are not in"ol"e! in team 0uil!ing as an en! unto itsel 0ut rather 0ecause *ith e ecti"e team 0uil!ing emplo$ee moti"ation increases an! organi9ational results are achie"e!. ? ecti"e team 0uil!ing starts *ith e orts that are aligne! *ith the organi9ational strategic plan. ?mplo$ee moti"ation increases *hen emplo$ees are *or,ing on real issues or the organi9ation. Six sigma plus proDects ha"e team 0uil!ing components an! emplo$ee moti"ation elements aime! at impro"ing *ell) !e ine! issues. ?nDo$ment in *or, increases team 0uil!ing e ecti"eness. 6eam 0uil!ing is a tool or impro"ing emplo$ee moti"ation. All teams go through "er$ pre!icta0le phases. Pno*ing an! un!erstan!ing these phases gi"es lea!ership the con i!ence to continue in the team 0uil!ing e"en *hen !uring one o the phases the emplo$ee moti"ation appears to 0e !eclining. Bhen lea!ership un!erstan!s this is a normal phase the$ ha"e con i!ence to continue team 0uil!ing or *orl! class per ormance. Assessments aime! at un!erstan!ing $oursel an! others can spee! team 0uil!ing. ;n!erstan!ing is the irst step in !e"eloping emplo$ee moti"ation. Bith an un!erstan!ing o other emplo$ees7 moti"ation e"er$ in!i"i!ual has the opportunit$ to a!! to the s$nerg$ o the team.

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2- Measure 3a)ue A""ording to t&e Customer

Be are continuing to 0uil! the mo!el an! consi!er measuring "alue as !etermine! 0$ the customer as e"i!ence o customer satis action. 6he graphic measuring "alue is strictl$ a customer satis action issue. :o matter *hat the pro!uct or ser"ice the customer !etermines *ith their !ollars the "alue proposition. /t is possi0le to change that un!erstan!ing through a "ariet$ o e orts on $our part 0ut ma,e no mista,e the customer7s satis action is the ultimate "alue measure o *hat is o ere!. Six sigma see,s to un!erstan! that "alue rom the "ie* o the customer an! enhance the "alue in a *a$ that is a!"antageous to 0oth the customer an! to the organi9ation. Bith increase! customer satis action the li,elihoo! o customer lo$alt$ increases. Some organi9ations 0ecause o unusual circumstances in! themsel"es in a high sales en"ironment *ith unusuall$ high margins. :ot in re8uentl$ people can practice enough sel !elusion to con"ince themsel"es that the customer satis action is high an! customers agree that there is a!e8uate "alue in"ol"e!+ *hen the real reason is some sort o mar,et place !iscontinuit$. 6hat is not to sa$ that there is not a lot o mone$ to 0e ma!e !uring these times. #Pet Coc,s# *ere a nice a! that ma!e han!some pro its or some people 0ut no one reall$ thought that the "alue *as there or the price pai!. As a a! it !ie! in a "er$ short time. / $our 0usiness see,s to capitali9e on this sort o mar,et place+ Dust reali9e that it is short li"e! an! the "alue comes rom the uni8ue i!ea+ not rom some un!erl$ing "alue or nee! in societ$. An$ ne* i!ea or pro!uct is in the position o tr$ing to 0alance the true "alue an! the #ne*ness# component. A classic o this is the earl$ Eor! &otor <ompan$. >enr$ Eor! insiste! on !ri"ing the cost o cars !o*n an! ma,ing them inexpensi"e so the mar,et coul! 0ecome 0igger an! 0igger rather that selling e*er cars at much higher prices. Let *hen the consumer tastes e"ol"e! to *anting colors other than 0lac, that *as seen as a a! that *oul! increase the cost an! *oul! soon !isappear. Bhat almost !isappeare! *as the Eor! &otor <ompan$. 6he changes in customer tastes can 0e surprisingl$ ast+ i $our processes !o not ha"e the c$cle time capa0ilit$ to respon! others are li,el$ to meet the changing customer !esires. Ee* organi9ations can *ait on the mar,et place to in orm them o exactl$ *hat the "alue o the pro!uct or ser"ice+ e"en the Eor! &otor <ompan$ 0arel$ sur"i"e! a miss rea!ing. Let in man$ cases i too much time is spent on stu!$ an! e"aluation the pro ita0le opportunit$ ma$ ha"e passe!. Small organi9ations ha"e the a0ilit$ to react an! change rapi!l$+ $et a e* large
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companies are a0le to ,eep their pro!uct pipeline ille! *ith pro ita0le inno"ation. 3& each $ear expects to ha"e 405 o the sales re"enue rom pro!ucts that are less than our %4( $ears ol!. /n some 0usinesses it ta,es that long to get appro"al or mo!el changes o the same pro!uct. 'ne o the most important competiti"e a!"antages in the mar,et place to!a$ is spee!. <$cle time re!uction in a!!ition to eliminating *aste has the real 0ene it o pro"i!ing more opportunities to learn. ?"er$ c$cle is a learning opportunit$. Eor those *ho learn in e"er$ c$cle+ i the$ Dust complete the c$cle one more time than $ou in the same time rame+ *ill in short or!er 0uil! a huge competiti"e a!"antage 0ecause the$ ha"e learn an! ,no* more. As can 0e seen rom the graphic the customer "alue *ill !ri"e re) !esign an! e"olution o $our pro!ucts an! ser"ices. 6his Voice o the <ustomer com0ine! *ith technical consi!eration !ri"e the pro!uct an! ser"ice e"olution. 6hose *ho are not sta$ing ahea! o this e"olution *ill soon su er. Vi!eos are a goo! example. 6he =eta &ax rom Son$ *ere irst to mar,et an! rom *hat / am tol! a superior technical pro!uct to V>S+ $et V>S *ith inexpensi"e pla$ers an! a mar,eting mo"e to get a *i!er "ariet$ o mo"ies !ro"e the =eta &ax rom the iel!. 'ne o the places that *e 0elie"e six sigma has great potential+ that is largel$ untappe!+ is in the mar,eting unctions o most companies. Bhen the mar,eting+ !esign+ manu acturing an! !esign all 0ecome a team ocuse! on !ri"ing customer "alue 0rea,through has generall$ 0e achie"e!. 'ne metho! o measuring "alue is to consi!er the !e ects in the entire process o !eli"er$ to the customer. @o*er !e ect le"els *ill 0e o higher "alue. Bith six sigma the concept o rolle! through $iel! is "er$ important. / !e ects occur in multiple places or stages 0e ore reaching the customer the$ can all 0e a!!e! together to get the total num0er o !e ect per unit. ;sing a Poisson approximation the Liel! Q e RR)DP;. %Liel! is e8ual to e *ith the exponent o minus the !e ects per unit(. :ote that i $ou a"erage 1 !e ect per unit the $iel! is 0.31744. Some ha"e multiple !e ects an! a0out 31.75 *ill ma,e it through *ithout an$ !e ects. Bhere an$thing that is less than the expectation o the customer is a !e ect. Doing some simple math 13.35 o the customer inter aces *ill ha"e a !e ect. 6here are multiple sur"e$s that in!icate that less than 45 o customers *ill e"er complain. 45 times 13.3Q 2.332 or approximatel$ 35. Bhich means that i 35 o $our customers %each transaction 0eing counte! as a unit( complain then $ou ha"e a !e ect rate a"eraging 1 per unit.

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/n the Decem0er 2000 issue o Sualit$ Progress -regor$ >. Batson suggests that there are three logical categories or ailures or !e ects. Eirst the pro!uct or ser"ice !oes not meet customer expectations+ secon! the price is not appropriate or the customer to see su icient "alue an! thir! the !eli"er$ in not *ith in the re8uire! time rame or the customer. 6he assumption here is that all !e ects are the same in the e$es o the customer. 6his "ie* o measuring !e ects rom the perspecti"e o the customer is essential i $ou are going to mo"e the impro"ements through six sigma rom incremental internal impro"ements to the !ramatic customer ocuse! changes that are oun! *ith Borl! <lass Per ormance. All o the non) pro!uct relate! !e ects are no* consi!ere! in the $iel!. >ere our $iel! is customer satis action. 6he implications o a 35 complaint rate 0$ customers are terri0le. 'nl$ 0$ chance are $ou a0le to pro!uce !e ect ree pro!uct or ser"ice 31.75 o the time an! all o the remaining pro!ucts or ser"ices ha"e at least one !e ect an! some multiple !e ects. Ee* 0usinesses can sur"i"e *ith that le"el o poor per ormance. &easuring "alue is more than Dust consi!ering the "alue o a pro!uct 0eing !eli"ere! to the customer as inten!e!. 6he "alue has to consi!er the total customer experience+ inclu!ing all o the support ser"ices such as logistics+ accounts recei"a0le+ etc.

4- E$$e"ti(e Su**)y C&ain Management

Be a!! suppl$ chain management an! the impact o suppliers is inclu!e! in our graphic mo!el. Ee* pro!ucts or ser"ices exist that so not re8uire some suppl$ chain management. 6he more suppliers that are in"ol"e! the more complex the suppl$ chain management 0ecomes. ?"en i the entire suppl$ chain rom 0asic ra* materials that come rom the earth or out o the min!s an! actions o people+ is not consi!ere! there is still a suppl$ chain that must 0e atten!e!. <$cle time o each step an! process in the suppl$ chain sets the limit on ho* ast the entire suppl$ chain can unction. 6here ha"e 0een a num0er or philosophies a0out ho* to !eal *ith the suppl$ chain management. =ac,*ar! integration+ !e"elop as man$ suppliers as possi0le to ma,e the suppl$ item a commo!it$+ competiti"e 0i!!ing+ single source+ supplier partnerships to name a e*. /n general the closer a pro!uct or ser"ice is to a commo!it$ item 0$ !e inition the more potential suppliers are a"aila0le. 6his can ma,e the suppl$ chain management extremel$ complex. &aintaining tracea0ilit$ 0ecomes much more 0ur!ensome. Eor example in the ;S purchasing *heat is generall$ consi!ere! a commo!it$ an! there are thousan!s o *heat armers see,ing to ill the nee!. 'n the other han! Pashmir *ool is not 8uite as rea!il$ a"aila0le
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in the ;S an! there are e*er pro"i!ers. %&a$0e in /n!ia it *oul! 0e a commo!it$ item.( 6racing a speci ic loa! o *heat to a particular iel! or armers can 0e an almost impossi0le tas,. 6a,e a relati"el$ ne* iel! that has 8uic,l$ 0ecome a commo!it$ ser"ice...*e0 site !e"elopment. 6he num0er o people !oing that ,in! o *or, has gro*n extremel$ ast. Let / am tol! that search engines in!ex less than 135 o all *e0 sites. A less commo!it$ ser"ice in this area are those *ho not onl$ can get $our *e0 site in!exe! 0$ search engines 0ut *ho can !o so *ith phrases that people actuall$ enter an! actuall$ !ri"e legitimate tra ic to a *e0 site. %/ $ou are intereste! in this area *e ha"e a strong recommen!ation 0ase! on per ormance an! a iliation.( <ommo!it$ suppliers are al*a$s at the 0ottom o the economic oo! chain. 6he price the$ get or their goo!s or ser"ices is generall$ out o their control an! the$ are orce! to ta,e *hat a airl$ price elastic econom$ o ers. 6his is not to sa$ that there are not commo!it$ suppliers *ho ha"e "er$ success ul an! pro ita0le 0usinesses. 6he$ are al*a$s see,ing to 0e the lo*est cost pro!ucer an! ha"e little i an$ price in luence. 6he$ ha"e to 0e extremel$ cost sensiti"e to all o the actors in"ol"e! in their s$stem. ;suall$ $ou *ill in! the success ul commo!it$ suppliers see,ing to !i erentiate themsel"es rom e"er$one else in some ashion. Easter !eli"er$+ rien!lier people+ easier cre!it terms+ 0etter ser"ice+ consistenc$ %lac, o "ariation( o pro!uct+ location+ 0ran!ing an! 0ran! allegiance+ customi9ing+ "arious pac,aging+ lot si9es+ etc. are all *a$s that commo!it$ pro!ucts an! ser"ices see, to mo"e a*a$ rom that pure commo!it$ image to a more speciali9e! an! higher price 0ut 0etter "alue pro!uct or ser"ice. Lour suppliers ha"e a strong an! important impact on $our pro!ucts+ ser"ices+ *or, processes an! !istri0ution. 6he ol! clichF is #Lou can7t ma,e a sil, purse rom a so*s ear.# /t seems o0"ious that the 8ualit$ o the ra* material *ill ha"e an impact on the 8ualit$ o the en! pro!uct. 6here are man$ that attempt to re!uce their cost structure at the point o contact *ith the supplier an! pa$ little attention to the internal processes an! s$stems that use that ra* material. 6here is a multitu!e o *a$s that the supplier relationship can impact 0e$on! Dust the ph$sical #8ualit$ # o the ra* material. Bith Six Sigma Plus the goal is to meet the customer expectations 0etter than an$ one else an! at a minimum 0e a0le to !eli"er at a !e ect rate o less than 3.4 PP& there are t*o 0asic approaches to !o that. 'ne is to ha"e $ou process centere! as *ell as possi0le at the target "alue. 6his is the on target component. <lassic Six Sigma allo*s or a 1.3 stan!ar! !e"iation shi t to compensate or the act that e* i an$ processes remain sta0le centere! exactl$ on the target "alue. 6he secon! *a$ to approach Six Sigma is to re!uce the "ariation in the process to the le"el that e"en *ith a 1.3 stan!ar! !e"iation shi t the chances o a !e ect are less than 3.44 ppm. 6he
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o0Decti"e is reall$ #'n target *ith minimum "ariation.# Suppliers ha"e the opportunit$ to greatl$ in luence 0oth o the o0Decti"es. 6he$ are at the 0eginning o the chain o process steps or $our pro!uct or ser"ice. Assume that $ou ha"e i"e process steps in $our organi9ation all o *hich are per orming at 0etter than a Six Sigma le"el+ lets sa$ 3ppm !e ect le"el. 6his is 0.222227 goo! at each process step. Eor argument sa,e there is no inspection an! sorting o the goo! rom the 0a!+ $ou are using *hat the supplier urnishes an! shipping to $our customer. / $our supplier is at the same 0.222227 per ormance le"el the !e ect rate or these six steps % 3 o $ours plus the supplier (is 0.222227R0.222227R0.222227R0.222227R0.222227R0.222227Q0.222242 or 14 ppm !e ect rate. Ceali9ing this has aile! to meet $ou o0Decti"e o less than 3.4ppm !e ect rate $ou an! all in $our organi9ation put in a lot o creati"e an! har! *or, an! re!uce each o $our process steps to 1ppm !e ect rate. Lour supplier impresse! *ith a 3ppm !e ect rate neglecte! controlling the process an! the !e ect rate rom the supplier clim0s to 13ppm. 6he o"erall per ormance a ter all o $our *or, an! e ort is no* 0.222242R0.222222R0.222222R0.222222R0.222222R0.222247Q0.222242. ?xactl$ the same place $ou starte! *ith 14ppm !e ect rate. /7ll lea"e the math to $ou to pro"e that *ith i"e process steps at 0.222222 e"en i the supplier *ere per ect the 0est $ou can !o is 3ppm !e ect rate. 6hese calculations !emonstrate a num0er o important concepts. 'ne is that suppliers can ha"e a tremen!ous impact on $our pro!ucts an! ser"ices. Another is that it !oes not matter *here in the se8uence the !e ect rate is high it *ill impact the o"erall per ormance. ?ach step is a supplier or the next process step. Suppliers !o not ha"e to 0e external to $our organi9ation. 6hin, o all processes as a com0ination o a num0er o simple three component process steps. %supplier to process to output ( . 6his part o the reason or Deming7s !ri"e to re!uce the num0er o suppliers. Per ormance le"el or one supplier is !i icult to maintain+ as the num0er o suppliers are increase! the "ariation increases. 6here are t*o sources o "ariation+ that *ithin each supplier an! the "ariation 0et*een suppliers. >a"ing e ecti"e suppl$ chain management can 0e an important part o an$ six sigma !e ect re!uction e ort. 6hose o $ou *ith some math inclination *ill 8uic,l$ reali9e that the o"erall process *ill al*a$s per orm at a le"el less than the *orst single process step. A simple strateg$ or impro"ing per ormance is to eliminate process %re!uction in complexit$( also !one in c$cle time re!uction. =ac, in the original example i *e onl$ ha! our steps plus the supplier all per orming at 0.222227 the en! result is 0.222243 a 3ppm !e ect impro"ement rate 0$ eliminating one process step. Some organi9ations that ha"e starte! to re!uce the num0er o suppliers in or!er to re!uce some o the "ariation+ un!erstan! that it is not the num0er o
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companies that the$ ha"e as suppliers that is important 0ut rather the num0er o processes that pro"i!e the pro!uct or ser"ice. 6hese organi9ations *ill 8uali $ a supplier on a process 0$ process 0asis an! insist upon ,no*ing i there is an$ change to the suppl$. 6his coul! 0e a change in machiner$+ a processing step+ personnel+ storage con!itions or an$thing else. /t is not that the$ *ant to run $our 0usiness 0ut rather an! un!erstan!ing o Dust ho* little it ta,es earl$ in a process to ha"e maDor impact at the en!. &uch li,e the ripple rom a roc, thro*n in a pon!+ the !iameter o the ripple Dust ,eeps getting 0igger an! 0igger. ;n!erstan!ing this *ill !ri"e $ou to ocus $our impro"ements inclu!ing as ar up the suppl$ chain as $ou can get. 6his is contrar$ to the intuiti"e approach o ha"ing a !e ect in a pro!uct an! loo,ing that the last process step 0e ore the !e ect *as !isco"ere! an! attempting to ma,e the impro"ements at that process step irst. Be conten! the 0est approach is to !ocument the "arious process steps in"ol"e! an! o0tain !ata a0out the per ormance o each process step. /t *ill 0ecome apparent *here the 0iggest opportunities exist. / this is !one *ith c$cle time re!uction an!/or complexit$ re!uction sometimes the highest !e ect pro!ucing process step can 0e totall$ eliminate!.

9- 'esign and /edesign Produ"ts5Ser(i"es

Be continue to 0uil! the mo!el an! consi!er pro!uct !esign + re!esign an! pro!ucts re"ie*s. 'ur mo!el inclu!es pro!uct re"ie*s as an important consi!eration o the o"er all e ort+ *ith customer sur"e$s as a prime input. &ost pro!ucts or ser"ices that !o not change an! e"ol"e *ill ha"e limite! success in the mar,et place. 6he c$cle time or each impro"ement is a critical measure o success. Bithout a!e8uate customer sur"e$s it is !i icult to un!erstan! the pro!uct !esign eatures that are contri0uting to the pro!uct/ser"ice success or lac, o success. 'n a regular 0asis pro!uct !esigns shoul! 0e e"aluate! an! regular pro!uct re"ie*s con!ucte!. Some such as the auto in!ustr$ ha"e loc,e! themsel"es into a c$cle o a ne* mo!el e"er$ $ear. Ere8uentl$ these are minor or Dust cosmetic changes. Bith Six Sigma Plus the re!esign o Pro!ucts an! Ser"ices shoul! 0e 0ase! on the &easure! Value rom the <ustomers an! Supplier capa0ilities. / !one correctl$ the Ce!esigne! Pro!uct an! Ser"ice shoul! !o a 0etter Do0 o meeting an! excee!ing <ustomer expectations than !i! the original pro!uct or ser"ice. Bhen Six Sigma Plus is applie! the economic return on in"estment shoul! impro"e or the =usiness ;nit in"ol"e!. =etter pro!ucts *ith e*er !e ects+ cost re!uction proDects+ 0etter un!erstan!ing o the <ustomer+ impro"e! *or, lo*+ emplo$ee commitment+ supplier in"ol"ement an! re!uce! c$cle times are 0ut a e* o the consi!eration in pro!uct re"ie*s. <hanges in pro!uct !esign shoul! re!uce complexit$+ ha"e e*er !e ects+ impro"e relia0ilit$+ an! o er the <ustomer unctionalit$ not in the original pro!uct !esign or ser"ice.

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Bhen these o0Decti"es are met there is a !irect cause an! e ect relationship to impro"e! margins an! larger mar,et share. 'nce $our customers ha"e !e"elope! a lo* tolerance or !e ects+ $ou ha"e a uni8ue mar,eting a!"antage o"er $our competitors. 6his is true pro"i!e! $ou continue to ocus on the <ustomer <ritical <riteria an! impro"ement processes. /n these areas mentione!+ it is going to 0e "er$ !i icult or a competitor to match the le"el o per ormance $our customers ha"e learne! to expect rom $our 0usiness organi9ation. 'ne o the interesting areas o competiti"e a!"antage+ achie"e! 0$ some organi9ations+ is to impro"e their support unctions an! re!uce the !e ect le"els. 'ne area that continues to ama9e is the technical support rom so t*are "en!ors. 6he irst pro0lem is the o0"ious !e ect that has 0een allo*e! to get to the customer or there *oul! 0e no nee! or the technical support. Let the all too true Do,e is # / $ou *ant o ice music all $ou nee! to !o is call technical support an! put $our phone on the spea,er unction#. Bhile man$ eel the$ must ha"e the latest release o all so t*are+ there are a num0er o organi9ations that re use to purchase the irst release o an$ so t*are. <orrecting 0ugs ma$ cause other pro0lems+ 0ut usuall$ 0$ the secon! or thir! release most are suita0le or !esigne! use. Similarl$ man$ o us re use to purchase the irst mo!el $ear o an automo0ile. 6he num0er o !e ects an! recalls is generall$ prett$ staggering 0ase! on our past experiences. Despite extensi"e mar,et research+ pro!uct !esign trials an! numerous pro!uct re"ie*s an! other e orts+ ailure o ne* an! re)!esigne! pro!ucts remains high. 'ne source attache! to this ailure is o ten the customer sur"e$s that are con!ucte! as part o the pro!uct !esign. A common an! o ten poorl$ !esigne! acti"it$ is customer sur"e$s. /n a 1224 Sualit$ Progress Article+ Pen &iller as,s TAre $our sur"e$s onl$ suita0le or *rapping ishGJ >is ans*er in too man$ cases is $es. As Pen &iller *rites+ #6he popularit$ o customer sur"e$s is on the rise. Lou can7t go an$*here *ithout 0eing as,e! to complete one. 6he$ are in most e"er$ hotel room an! restaurant an! on e"er$ airplane.# &iller i!enti ies the ollo*ing common pro0lems *ith customer sur"e$s:

6he *rong people are sur"e$e! 6he *rong 8uestions are as,e! 6he 8uestions are as,e! the *rong *a$ 6he 8uestions are as,e! at the *rong time Satis action an! !issatis action are assume! to 0e e8uall$ important 6hose *ho !i! not 0u$ or use the pro!uct/ser"ice are not sur"e$e! Sur"e$s are con!ucte! or the *rong reasons
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6he results are generali9e! to groups not sur"e$e! Sur"e$s are use! as a su0stitute or 0etter metho!s 6he results !o not !irect impro"ement actions.

/ $ou are counting on this ,in! o in ormation to help shape the pro!ucts !esign $our pro!ucts an! ser"ices it is li,el$ the$ !o no 0etter+ or e"en *orse than *ithout the sur"e$. Accor!ing to Pen &iller most customer sur"e$s coul! 0e "astl$ impro"e! i the$ as,e!:

Bhat Bhat Bhat Bhat

*as expecte! or *ante!G *as experience!G are $ou le"el o satis action *ith the pro!uct or experienceG is the !egree o relati"e importance o this "aria0leG

Six Sigma Plus ocuses on the <ustomer <ritical <riteria %the important "aria0les( that !ri"e a success ul pro!uct !esign or ser"ice. ;n!erstan!ing *hat the "oice o the customer is reall$ sa$ing is o "ital importance. 6he pro!uct re"ie*s or ser"ice re"ie*s using customer sur"e$s shoul! !o a 0etter Do0 o meeting the i!enti ie! <ustomer <ritical <riteria or a!!ress customer concerns an! issues not met *ith the original pro!uct !esign or ser"ice. Among those to 0e consi!ere! are expan!e! unctionalit$+ re!uce! cost+ impro"e! relia0ilit$+ more attracti"e !esign+ etc. Sualit$ Eunction Deplo$ment %SED( an! the resulting #>ouse o Sualit$# chart is a tool that is can 0e use! to 0alance the o ten)con licting re8uirements. &ulti unctional teams are use! in the !e"elopment+ an! the resulting matrix can ser"e as an important communication tool. 6he <ustomer <ritical <riteria are liste! an! ran,e!. ;suall$ a comparison 0et*een the existing !esign an! competitors !esigns is inclu!e! in the e"aluation. ?ngineering re8uirements nee!e! to meet the "oice o the customer are compile!. 6he relationships 0et*een the customer re8uirements an! the #engineering ho*# are sho*n in the relationship matrix. '0Decti"e measurements or each re8uirement are i!enti ie! an! technical !i icult$ assigne!. Positi"e an! negati"e relationships 0et*een !esign re8uirements are !etermine! along *ith relati"e importance ratings. Be shoul! utili9e this stu!$ to i!enti $ important issue%s( that can 0e sent or*ar! in $et another iteration concerne! *ith !etaile! !esign. Dra*0ac,s to SED inclu!e the amount o time an! e ort re8uire!+ sur"e$ errors+ an! some o the su0Decti"e assessments that are ma!e. /t is generall$ or this reason man$ people choose to ma,e a irst attempt 0$ using simpler approaches. A simple cause an! e ect matrix can o ten accomplish a goo! !eal o the !esire! results *ith much less e ort.

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6he outputs o a process are assigne! an importance "alue such as: 1)lo* 3) me!ium 2)high an! the customers o the process are as,e! to pro"i!e the ran,ing. /mportant process inputs are ran,e! on the same scale or impact on each output "aria0le. A team o process experts shoul! achie"e consensus on these ran,ings in a team meeting+ in!epen!ent o the customer ran,ings. Bhen the t*o ran,ings are then place! in a matrix+ *ith the process "aria0les in the "ertical column an! the customer ran,ings in the hori9ontal ro*. 6he resulting pro!uct %multiplication o the ro* times the column( is place! in each cell. :ext a!! cells in each ro* an! create a Pareto <hart. 6his *ill let $ou ,no* *hich input "aria0les ha"e the 0iggest impact on the customer. 6his sort o matrix can 0e carrie! !o*n another le"el *here the ,e$ process "aria0le can 0e 0ro,en !o*n into attri0utes an! the process 0ro,en !o*n into the in!i"i!ual steps. 6his allo*s or the process steps to 0e ran,e! accor!ing to the impact on the "arious attri0utes. Be ha"e oun! this sort o step*ise anal$sis *hich is easier or most team mem0ers to un!erstan! an! accept than a SED matrix+ also it can 0e carrie! out at se"eral !eeper le"els.

,0- 'e(e)o* Leaders&i* S0i))s

Be are continuing to 0uil! the mo!el an! consi!er the impact o lea!ership 8ualities an! lea!ership s,ills. See the graphic lea!ership 8ualities. @ea!ership s,ills are nee!e! at e"er$ le"el in the organi9ation. <onsistent training an! approach rom the executi"e le"el through managers an! super"isors *ill help all in the organi9ation !e"elop their lea!ership s,ills. De"elopment o lea!ership s,ills an! lea!ership 8ualities can start at "er$ earl$ ages. 6here are a large num0er o $outh groups that *ill assist $oung people *ith lea!ership training so the$ can !e"elop critical lea!ership s,ills. 6oo e* a!ults spen! the time to ta,e lea!ership s,ills lea!ership 8ualities training to un!erstan! an! *or, on !e"elopment o the lea!ership s,ills an! lea!ership 8ualities learne! in their $outh. Some chose to ignore much o the lea!ership training once the$ mo"e out si!e these organi9ations. 'pportunities to !e"elop lea!ership s,ills an! lea!ership 8ualities outsi!e *or, are not limite! to $outh groups. Social ser"ice organi9ations+ church an! local go"ernment o er a *ealth o opportunities or those intereste! in !e"eloping lea!ership s,ills. ?"en i $ou ne"er ha"e an$ intention o aspiring to a management position in $our organi9ation opportunities a0oun! or the application o lea!ership s,ills. ?"er$ organi9ation nee!s people *ith lea!ership 8ualities.

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'ne o the primar$ mechanisms o management !emonstrating lea!ership 8ualities it has+ is in strategic planning. / Six Sigma Plus is part o the strateg$ there are man$ opportunities to !e"elop lea!ership s,ills an! lea!ership 8ualities at other le"els in the organi9ation. /n an$ organi9ation lea!ership 8ualities can al*a$s 0e expan!e!. Bith Six Sigma Plus one o the o0Decti"es is to expan! the concept o lea!ership s,ills 0e$on! that o organi9ational position. Ere8uentl$ people e8uate lea!ership *ith some title+ position+ or ran,. 6hose *ho ha"e !emonstrate! lea!ership 8ualities re8uentl$ ha"e these titles. ;n ortunatel$ there are cases *here the title or position has 0een grante! 0e ore the lea!ership s,ills ha"e 0een !e"elope!. 6his is an in!ication o lapse o lea!ership responsi0ilit$ 0$ those *ho place an unprepare! person in a role re8uiring extensi"e lea!ership s,ills. 6oo o ten "er$ success ul technical people are place! in roles *ith lea!ership re8uirement *ithout 0eing prepare!. 6he 0est engineer is ma!e ?ngineering &anager or the 0est operator is ma!e Super"isor. :one o us *oul! allo* people untraine! in <i"il ?ngineering to !esign an! 0uil! a maDor high*a$. :either *oul! man$ o us *illingl$ go into surger$ *ith the person per orming the operation ha"ing no training in me!icine. Let man$ o our management an! super"isor$ positions are ille! *ith "er$ competent technical people *ith little preparation or management or super"isor !uties. /n those cases there are 0asicall$ t*o options. 'ne is to mo"e along an! hope that instinct an! a goo! support structure *ill 0e a!e8uate. 6he secon! option is 0egin accelerate! lea!ership training aime! at !e"eloping the lea!ership s,ills an! ,no*le!ge 0ase re8uire! or a lea!ership position. Six Sigma Plus implementation o ers an alternati"e *hile pro"i!ing maDor impro"ements at the same time. @ea!ership s,ills are hone! an! maDor impro"ements are ma!e in the organi9ation at the same time. 6hose *ho *ish to participate or lea! their organi9ation in the application o Six Sigma Plus are guilt$ o pro essional malpractice i the$ !o not enhance an! continue to !e"elop their personal lea!ership s,ills. <hampions an! =lac, =elts ha"e !irect an! imme!iate lea!ership challenges. 6he <hampions are charge! *ith inter acing *ith Senior &anagement an! the =lac, =elt organi9ation. 6heir a0ilit$ to gather support+ resources an! commitment rom Senior &anagement *ill o ten mean the !i erence 0et*een success an! ailure o a Six Sigma e ort. / the <hampions !o not lea! the =lac, =elt selection+ e!ucation an! !e"elopment o the in!i"i!uals+ o!!s or success !ecrease !ramaticall$. 'ne o the most critical lea!ership responsi0ilities or the <hampion is to assure that =lac, =elts *ho ha"e spent t*o $ears or so *or,ing on impro"ement proDects are mo"e! 0ac, into responsi0le positions *ithin the organi9ation. / this ,e$ lea!ership responsi0ilit$ is not acti"el$ pursue! then the organi9ation *ill 8uic,l$ see the Six Sigma Plus =lac, =elt as a career)en!ing mo"e. 6he organi9ation has se"erel$ limite! the e ecti"eness o an$ Six Sigma e ort i =lac, =elts *ith an increase! s,ill set an! ne* le"el o ,no*le!ge are not mo"e! 0ac, into the line
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organi9ation *here these s,ills can 0e le"erage! e"en more. A short sighte! approach is to "alue o the =lac, =elts in returning "alue to the 0ottom line o the organi9ation in "er$ short perio!s o time an! *ishing to ,eep these people contri0uting in this ashion. An argument is the training *as expensi"e in 0oth time an mone$ an! *e shoul! ,eep =lac, =elts *or,ing as =lac, =elts e"en longer. 6his is a short)term "ie* that *ill e"entuall$ ,eep the 0est an! 0rightest rom e"er accepting a =lac, =elt assignment. /nstea! consi!er the le"erage i a manager has the training+ un!erstan!ing an! experience o 0eing a =lac, =elt. =etter proDect selection+ implementation an! retention o the 0ene its o a =lac, =elt proDect *ill result. Also *hen it is clear that =lac, =elt is a re8uirement or a!"ancement 0e$on! a certain le"el then the 8ualit$ o people see,ing =lac, =elt training an! application *ill increase. =lac, =elts ha"e a !ut$ to increase their lea!ership s,ills *hile *or,ing on proDects. 6eam selection an! 0uil!ing o er the =lac, =elt excellent opportunities to !e"elop lea!ership s,ills. An$ =lac, =elt that is not increasing their ,no*le!ge an! s,ill 0ase in people lea!ership+ proDect management an! un!erstan!ing o the language o management %mone$( !uring in each proDect is cheating themsel"es an! the organi9ation that has in"este! in them. =lac, =elts are not technical experts *ho ha"e learne! some statistics an! other tools. 6he$ are instea! people *ho ha"e 0een gi"en an opportunit$ to a!! to their technical s,ill le"el *ith some "er$ speci ic training an! an opportunit$ to appl$ those s,ills on proDects in a "er$ rapi! ashion. Bhile appl$ing those ne* s,ills there is also the opportunit$ to enhance the lea!ership s,ills. An$ =lac, =elt or organi9ation that has =lac, =elts an! "ie*s them as technical experts onl$ is missing the largest 0ene it o Six Sigma Plus. Senior &anagement that is not selecting its managers rom the ran,s o those *ho ha"e 0een traine! an! practice! the s,ills an! ,no*le!ge o a =lac, =elt !oes not un!erstan! the true 0ene its an! le"erage o a Six Sigma Plus implementation. Bithin Dust a e* $ears a ter starting a Six Sigma application+ no person shoul! 0e mo"e! to a management position unless the$ ha"e complete! =lac, =elt training an! ha"e !emonstrate! the master$ o lea!ership s,ills 0$ success ull$ completing se"eral proDects. Six Sigma Plus must 0ecome the primar$ management !e"elopment program *ithin the organi9ation. / this !oes not happen then the Senior &anagement has ha! an unconsciona0le lapse in lea!ership application. Six Sigma *ill not ha"e the opportunit$ to !eli"er the ,in!s o impro"ements possi0le. :ot 0ecause the Six Sigma Plus process can not !eli"er the impro"ements 0ut 0ecause o a lac, o lea!ership an! misapplication o a "er$ po*er ul approach. &anagement must assure that the Six Sigma lea!ership training an! !e"elopment a or!e! the =lac, =elts is appropriate or the high per ormance expectations. Bhile statistics un!erstan!ing an! application is "er$ important there are lea!ership s,ills that are e8uall$ important. /t is the s$nergistic com0ination o the t*o that pro!uces a success ul =lac, =elt.
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,,- Integration o$ Produ"ts, Ser(i"es and 'istri6ution

&ore !irect controlla0le actors in esta0lishing lo$al customers are $our pro!ucts+ ser"ices+ *or, lo* an! !istri0ution ser"ices. 'ur graphic mo!el inclu!es pro!ucts+ ser"ices+ *or, lo* an! !istri0utions ser"ices an! their relationship to the other elements. 6hese are all the *a$ the$ are 0ecause that is ho* the organi9ational lea!ership *ants them to 0e. / the lea!ership !i!n7t *ant them to 0e ho* the$ are the$ *oul! ha"e change! them or *oul! ha"e an acti"e e ort in place to change them. An$ !issatis action *ith these at the top lea!ership le"el Dust means the pain the$ percei"e re8uire! or the gain is not *orth the pain o the change. As part o the e ort to maintain an! 0uil! lo$al customers pro!uct an! ser"ice per ormance+ *or, lo* per ormance %c$cle time is one ,e$ measure( an! !istri0ution ser"ices per ormance each ha"e an impact. 6hese must 0e consi!ere! 0ase! on the impact on the customer. ?"er$ pro!uct or ser"ice has some per ormance criteria. ?"er$ time that per ormance criteria is not met it is an error+ !e ect+ mista,e+ omission+ o )spec+ non)prime+ secon!+ reporta0le+ etc. *hat e"er the terminolog$ is or $our pro!uct or ser"ice. 6hese hurt customer lo$alt$+ e"en i the customer ne"er sees them 0ecause the$ *ere caught+ correcte!+ o gra!e!+ rec$cle!+ scrappe!+ re*or,e! etc. <hanges the concept an! earl$ !esign phases are much less costl$ than at an$ other time. <ost go up exponentiall$ as a pro!uct is mo"e! rom concept to !esign to protot$pe to iel! trial to ull pro!uction an! inall$ to the han!s o the customer. 6his is not to sa$ that mista,es *hene"er !etecte! shoul! not 0e correcte!+ 0ut rather that e ort in eliminating the mista,es or pro0lems at the ront en! o the process is much more e icient. &ista,e proo ing an! Po,e Lo,e concepts applie! to the engineering an! !esign o a pro!uct pa$ unimagine! !i"i!en!s later in the process. ?arl$ consi!eration on *a$s to ma,e a pro!uct ail can result in more ro0ust !esigns an! 0etter per ormance in the han!s o the consumer as these ailure mo!es are a!!resse!. /t is not unusual or a solution to exist that has essentiall$ no a!!itional cost or complexit$. /n act re!uction o complexit$ *ill generall$ 0e an a!"antage. Eunction Anal$sis can help !isco"er paths to some o these solutions. Eee! 0ac, o Celia0ilit$ ?ngineering !ata rom similar components or pro!ucts in a "alua0le resource. <losing the loop rom !esign to iel! relia0ilit$ shoul! 0e part o e"er$ !esign process. /t is o0"ious that there can 0e an impact on the customer i the customer is orce! to su er *ith less than the per ormance expecte!. Ver$ man$ occurrences an! there is an ?U customer.

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?"en *hen the !e ect !oes not get to the customer it hurts customer lo$alt$. ?"er$ !e ect costs more than the goo! pro!uct or ser"ice at the same point in the process. 6he same *or,+ e ort+ ra* materials an! other resources are consume! $et 0ecause o the !e ect it has less en! "alue. 6his means the goo! pro!uct or ser"ice must carr$ the 0ur!en o the 0a! pro!uct or ser"ice. At the "er$ minimum the customer is pa$ing more or the pro!uct or ser"ice that is goo! or the margin o pro it is less than it coul! 0e. 6he impact o !e ects is much !eeper than this simple explanation. 6hrough put+ in"entor$+ ra* material+ !isposal+ inspection+ energ$ are all impacte! 0$ !e ects. Bith Six Sigma Plus a ,e$ acti"it$ is to ,no* *hat the !e ect rate is an! *hat it is costing. 6his seemingl$ simple measurement can o ten 0e enlightening. ? icient an! e ecti"e *or, processes !o not place unreasona0le !eman!s upon the people that ha"e to use them. 6he steps are natural an! there is little *aste! motion e ort or complexit$. Bhat is nee!e! is !one+ re8uirements are met *ith con i!ence+ an! it Dust ma,es sense. 6oo o ten the restricti"e *or, practices are the result o a pro0lem *ith a "er$ small num0er o people an! to co"er up rather than a!!ress an! correct that issue e"er$one is ma!e to su er. /t seems the larger the organi9ation the more rules an! restrictions are in place to co"er the possi0ilit$ that 1 or 25 o the emplo$ees might a0use an opportunit$ an! all emplo$ees are orce! to su er *ith the #solution#. <$cle 6ime Anal$sis *ill usuall$ sho* *here the unnecessar$ rules an! restrictions are getting in the *a$ o meeting customer expectations. Pe$ *or, processes re8uentl$ can 0e per orme! in 205)305 o the original time *ith no a!!ition o resources an! e*er !e ects 0$ appl$ing the results o this ,in! o anal$sis. A simple example: At a relati"el$ remote location the most con"enient place to ha"e lunch is the compan$ ca eteria. /n or!er to ma,e it eas$ *hen meeting *ith customers on location+ legitimate 0usiness lunches coul! 0e signe! o at the chec,out register. =ecause o a0use 0$ a "er$ e* this *as eliminate! an! no* expense accounts must 0e ile! or all 0usiness expenses at the ca eteria. :ot onl$ *ere the innocent punishe!+ the guilt$ *ere ne"er challenge! an! a!!itional complexit$ *as a!!e! to a simple process a!!ing time an! cost to all *ho use the ca eteria or 0usiness. Bith this ,in! o thin,ing the complexit$ that is a!!e! to the #serious# *or, processes must 0e huge. 6he 0est analog$ / ,no* or an e ecti"e an! e icient *or, process is a large 0all at the top o an incline. /t ta,es *or, to get it starte! 0ut then gra"it$ ta,es o"er an! it is eas$ to mo"e the 0all to the 0ottom o the incline. <ontrast this *ith the *or, process that starts *ith the 0all at the 0ottom o the incline an! it must 0e mo"e! up. -ra"it$ *or,s against completing the process. An$ !istraction+ inattention+ competing priorit$ or Dust a 0a! moment an! it is *orse than starting at the 0eginning. Lou ha"e to go retrie"e the 0all rom *here e"er it stopping rolling an! get it 0ac, to the starting point. Are $our an! those in $our organi9ation helping the 0all !o*n the incline or ighting to push it to the topG
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'ne o the *a$s that man$ ha"e use! to impro"e *or, processes is through =enchmar,ing. /n classic =enchmar,ing the search is to in! the 0est in class at a gi"en *or, process or unction. 6o ,no* *hich Bor, Processes nee! impro"ement re8uires that $our o*n Bor, Processes are un!erstoo! at least *ell enough to 0e a0le to compare them to Borl! <lass Per ormance. &ost people attempt to !o =enchmar,ing *ithin their o*n in!ustr$. 6he common re rain is: #Bho has !one this in the inDection mol!ing 0usinessG# utilit$ 0usinessG insuranceG# health careG People seem to expect the$ can al*a$s in! *hat the$ *ant in their o*n in!ustr$. 6hat Dust ,eeps $ou in the her!. <ompetitors ma$ 0e *illing to share some in ormation 0ut are not li,el$ to share the things that *oul! 0ring $our process up to their le"el. &aDor 0ene its come rom loo,ing outsi!e $our in!ustr$ to in! *ho is Borl! <lass at the process or unction $ou are see,ing to impro"e. &ost organi9ations that *ill share *ith $ou are going to expect something in return. At a minimum 0e prepare! to ans*er a0out $our o*n organi9ation e"er$ 8uestion $ou as, those $ou 0enchmar,. =lin!l$ cop$ing *hat others are !oing *ill sel!om gi"e the ,in!s o gains possi0le rom =enchmar,ing. =eing a0le to trans er concepts an! practices rom one in!ustr$ to another is *here =enchmar,ing has a!!e! "alue. A c$cle time re!uction e ort properl$ applie! is one *a$ to ma,e signi icant impro"ement in an$ important *or, processes. /t allo*s $ou to *or, on $our o*n processes *ith $our o*n people an! pro"i!es a clear per ormance criteria+ time. An a!"antage o"er =enchmar,ing is that $ou !o not ha"e to go out an! in! the Borl! <lass per ormers an! then ma,e the necessar$ arrangements or "isits an! the exchange o in ormation. / the Bor, Process !irectl$ touches the <ustomer+ time to complete a process coul! "er$ easil$ 0e a "er$ important customer critical measurement. Bith Six Sigma Plus $ou *ant to 0e sure that $our process is so goo! that there is less than 3.4 chances per million o not meeting that time measure. /n either case a goo! un!erstan!ing o the Bor, Process as it is currentl$ 0eing !one is re8uire!. /t is not unhear! o to !o 0oth on the same Bor, Process. Distri0ution ser"ices can 0e as important as an$ element in esta0lishing customer lo$alt$. Distri0ution has impact in recei"ing or!ers+ ra* materials+ supplies+ an! utilities as *ell as getting pro!uct to the customer. &an$ a pro!uct has 0een though all the manu acturing process *ith all the potential miscues there onl$ to ail the customer 0ecause o !istri0ution. ?"en i the correct pro!uct+ it can 0e late+ earl$+ at the *rong location+ contaminate!+ !amage!+ *rong si9e+ *rong pac,age+ or ail to meet customer expectations in a "ariet$ o other *a$s. Bith an increase in A/6 %Dust in time( s$stems the !eman!s on the !istri0ution s$stem can 0e a serious customer satis action issue.
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<onsi!er Bal)&art *hen e"aluating ho* important !istri0ution can 0e. 6he$ manu acture nothing+ ha"e no one to *ait on $ou in the store+ treat their suppliers harshl$ an! $et are "er$ success ul in large part 0ecause o the un!erstan!ing an! application o !istri0ution technolog$. :ote: Erom some rien!s in /n!ia. #A <ustomer# attri0ute! in an earlier ne*sletter to Sam Balton *as originall$ propoun!e! 0$ &ohan!as Paramchan! -an!hi or &ahatma -an!hi+ %/n!ian ) Eather o the :ation(. 6his statement o his is !ispla$e! in all the 0ranches o the largest 0an, in /n!ia %o"er 12+000 0ranches(+ State =an, o /n!ia.

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,2- A)ignment 7it& Strategy 3ision, and 3a)ues

'ur graphic mo!el a!!s SB'6 anal$sis+ strategic planning+ "ision statement+ mission statements an! 0usiness plans. /n !e"eloping 0usiness plans an! !oing strategic planning goal setting some "er$ 0asic 8uestions are a!!resse!: Bh$ !o *e exist as an organi9ationG our mission statement. >o* !o *e !o *hat *e !oG core processes. Bhere are *e no*G SB'6 anal$sis. Bhere !o *e *ant to 0eG "ision statement. >o* can *e get thereG 0usiness plans. Bhat *oul! tell us i *e arri"e!G metrics. 6rusting $our organi9ation to gro* an! !e"elop in a hapha9ar! ashion is ta,ing a large chance on the uture. =etter to ha"e at least some general i!eas o *here $ou *ant to ta,e it an! *hat is a !esira0le !irection consi!ering current con!itions %SB'6 anal$sis(. 6his is the un!amental reason or !oing strategic planning. -ui!ance !ocuments inclu!e the "ision statement an! mission statements. Details o ho* to li"e the mission statement an! reach the "ision are capture! in the speci ic 0usiness plans. ?"er$thing in the *orl! is create! at least t*ice. 'nce in the min! o the creator an! then as the actual pro!uct or ser"ice. 6here ma$ 0e accommo!ations or changes o"er time 0ut at some point someone some*here ha! an i!ea o *hat *oul! 0e !e"elope!. 6his "ision o *hat the uture shoul! hol! is essential or an$ organi9ation to control its !estin$. Bithout a "ision that 0rings ocus an! !irection an organi9ation is li,el$ to !ri t an! *an!er !epen!ing upon the ti!es an! currents o e"ents. Eor most that is not an accepta0le alternati"e an! *e pre er to ha"e more control o"er our organi9ation. A "ision statement is that clear uture state or position that o ers the i!eal o *hat *e *ant our organi9ation to 0ecome. Eor most it is something that can ne"er 8uite 0e achie"e! 0ut is still *orth$ to stri"e in that !irection. Eor man$ Six Sigma is part o that "ision. Achie"ing a per ormance le"el that has less than 3.4 ppm !e ect or error rate ma$ seen li,e the /mpossi0le Dream or some+ $et or other7s it has 0een achie"e!. &a$0e not or e"er$ pro!uct or ser"ice 0ut or at least some an! the$ are on an impro"ement path or e"en more. 'ne o the 0iggest hur!les to o"ercome is the reali9ation that no matter
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ho* goo! $our organi9ation is no* it coul! 0e 0etter. ?"er$ !e ect or !e"iation rom the i!eal represents a!!itional costs an! *aste. 6o ha"e a compelling !issatis action *ith those !epartures rom i!eal an! !eci!ing to !o something a0out it is re8uire! or Six Sigma implementation. 'nce that !ecision is ma!e the tools+ techni8ues an! approaches ha"e 0een !emonstrate! 0$ others an! hence can 0e learne! *ithin $our organi9ation. Supporting an$ "ision statement is a set o "alues or an organi9ation. 6hese ma$ or ma$ not 0e *ritten !o*n+ none the less the$ exist an! most emplo$ees ha"e a irm un!erstan!ing o *hat the$ are. Bhen the *ritten an! the actual "alues !i er $ou can 0e sure that the emplo$ees ,no* *here there are !i erences. 6he "alue s$stem *ill ha"e un!amental in luence on ho* customers an! emplo$ees are treate! an! ho* emplo$ees react to management !irection an! initiati"es. Eor Six Sigma to succee! there must 0e a culture o impro"ement. / this is not in place creating it is a maDor implementation step. A mission statement is the purpose o the organi9ation. /t states *ho *e are+ *hom *e ser"e *hat pro!ucts an! ser"ices *e pro"i!e an! ho* *e ma,e those pro!ucts an! ser"ices a"aila0le to our customers+ clients+ or patients. 6he mission statement tells *hat the organi9ation *as orme! to !o. Some li,e to inclu!e le"els or per ormance in the mission statement. / conten! that Dust a!!s complexit$. State *hat $ou are a0out an! let the per ormance spea, to the le"el or 8ualit$. Bith "alues+ "ision an! mission un!erstoo! a strateg$ shoul! 0e !e"elope!. 6o attempt to !e"elop a strateg$ 0e ore "alues+ "ision an! mission are clear+ un!erstoo!+ an! accepte! is a mista,e. Suite simpl$ strateg$ is the o0ser"a0le actions in the mar,etplace that lea! to a competiti"e a!"antage. Pe$s are o0ser"a0le actions+ mar,etplace an! competiti"e a!"antage. / an$ one o these is missing there ma$ 0e some nice soun!ing *or!s+ prett$ pictures an! lo*er$ tal, 0ut there is no strateg$. <ommon *or, in !e"eloping a strateg$ is a num0er o assessments 0oth internal an! external to the organi9ation. Erom e"er$ assessment strengths+ *ea,ness+ opportunities an! threats %SB'6 anal$sis( are e"aluate!. 'nce a clear un!erstan!ing is in place speci ic 0usiness plans are !e"elope!. 6his shoul! 0e !one at the =usiness @e"el. Eor large organi9ations *ith man$ 0usiness units+ su0si!iaries or !i"isions each ma$ 0e allo*e! to !e"elop their o*n 0usiness plan. Bithout some o"ersight this can result in !i"isions o the same compan$ hurting each other. Eor instance ha"ing Pontiac an! 'l!smo0ile competing in a mutuall$ !estructi"e ashion. 'nce a Strategic Direction is set there are some general o0Decti"es that shoul! 0e accomplishe!. Erom those o0Decti"es+ goals are !e"elope! meeting the S&AC6 criteria. %Speci ic+ &easura0le+ Action 'riente!+ Cealistic+ 6ime 0oun!(. ?ach goal shoul! ha"e action plan%s( to assure the$ are achie"e!. Ere8uentl$
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some o the goals rom one le"el 0ecome o0Decti"es or the next le"el !o*n in the organi9ation. Bhen this happens it assures that goal oriente! action plans an$*here in the organi9ation can 0e trace! up the organi9ation to !emonstrate the$ are in support o the top le"el o0Decti"es an! strateg$. Bhen there are gaps in that lin,age it is common to ha"e misun!erstan!ings an! e orts that are not aligne! an! hence not as e icient nor as e ecti"e as the$ coul!. ? ecti"e team 0uil!ing starts at the executi"e le"el+ inclu!es management training at all le"els inclu!ing ront line super"isors an! has a lea!ership s,ills !e"elopment training plan or e"er$ emplo$ee. Six Sigma can 0e an integral part o strategic planning or a 0usiness plan.. Eor a strateg$ in"ol"ing cost lea!ership+ Six Sigma can 0e ocuse! to impro"e internal processes+ $iel!s+ pro!ucti"it$+ eliminate complexit$+ re!uce c$cle time an! in general help gain or maintain lo* cost supplier position or $our particular pro!uct or ser"ice. / $our strateg$ inclu!es 0eing the lo*est price in the mar,et $our costs ha! 0etter 0e the lo*est. Six Sigma also shoul! 0e an integral part o an$ customer lo$alt$ strateg$. 'ne o the ,e$s to customer lo$alt$ is pro"i!ing the customer *ith pro!ucts an! ser"ices that meet or excee! their expectation e"er$ time. ?"er$ transaction an! interaction 0et*een a customer+ or potential customer+ is an opportunit$ to meet or ail to meet that speci ic customers expectations. Ee* s$stems are goo! enough to o er the !esire! le"el o pro!uct or ser"ice on a consistent 0asis to ,eep lo$al customers *ithout some constant attention an! *or,. 6he tremen!ous 0ene its rom ha"ing lo$al customers can not 0e o"erstate!. Aac, Belch has 0een 8uote! as sa$ing that onl$ *hen -?7s Six Sigma e orts starte! ocusing on the external customers !i! the$ 0egin to reall$ see the 0ene its.

,.- Su*er(isor Training

&an$ 8ualit$ managers ha"e rea! a0out an! seen the 0ene its o Six Sigma 0ut are unsure ho* to approach their senior lea!ership a0out the opportunit$ 0ecause the$ !o not ha"e a concise pac,age o in ormation to con"e$. Eortunatel$+ there is a series o trie! an! true steps *hich can 0e ta,en to sell management on the 0ene its o Six Sigma. 6hese are the steps 0la9e! 0$ pioneering 8ualit$ pro essionals *ho success ull$ sol! management on the metho!olog$ an! e"entuall$ !eplo$e! an e ecti"e Six Sigma program.

,5- 8enerates Sustained Su""ess

Aohn <ham0ers+ <?' o <isco S$stem+ the net*or,ing e8uipment po*erhouse thatJs 0een one o the astest gro*ing companies o the past !eca!e+ recentl$ commente! on the tenuous hol! man$ companies ha"e on their success. H6here is the reali9ation that $ou can 0e out o 0usiness in there $earsI. 6he

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onl$ *a$ to continue !ou0le !igit gro*th an! retain a hol! on shi ting mar,ets is to constantl$ inno"ate an! rema,e the organi9ation. 6he Six Sigma creates the s,ill an! culture or constant re"i"al.

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,1- Set a Per$orman"e 8oa) $or E(eryone /n a compan$ o an$ si9e getting e"er$one *or,ing in the same !irection an! ocusing on a common goal is prett$ tough. ?ach unction+ 0usiness unit+ an! in!i"i!ual has !i erent o0Decti"es an! targets. Bhat e"er$one has in common+ though+ is the !eli"er$ o pro!ucts+ ser"ices+ or in ormation to customers. Six Sigma uses that common 0usiness rame*or, N the process an! the customer N to create a consistent goal: Six Sigma per ormance or a le"el o per ormance thatJs a0out as close to per ect as most people can imagine. An$ one *ho un!erstan!s their customersJ re8uirements can assess their per ormance against the Six Sigma goal 22.2227 percent Hper ectI)a stan!ar! so high that it ma,es most 0usinessesJ pre"ious "ie* o HexcellentI per ormance loo, prett$ *ea,. =elo* igure contrast the num0er o pro0lems that *oul! 0e oun! *ith a goal o 22 percent 8ualit$ "ersus a goal o six sigma per ormance %22.2227 percent( the !i erence is prett$ startling.

Per$orman"e 8oa)s 9 %&at :ou;d 8et or e(ery <00,000 )etters de)i(ered = Bith 225 3000 miss !eli"eries Bith 225 4+100 crashes Bith 225 10 &onths *oul! not 0alance Bith 225 1.14 >rs o Dea! air Bith Six Sigma 1 miss !eli"er$ *ith Six Sigma V2 crashes *ith Six Sigma .014 *oul! not 0alance *ith Six Sigma 1.4 secon!s o !ea! air

Out o$ e(ery 500,000 "om*uter restarts =

or 500 years o$ Mont&s and C)osings =

or e(ery 7ee0 o$ T3 6road"asting >*er "&anne) ?

,2- En&an"e 3a)ue to Customers

Bhen -? 0egan its Six Sigma e ort+ executi"e a!mitte! that the 8ualit$ o the compan$Js pro!ucts *as not *hat it shoul! 0e. 6hough its 8ualit$ *as perhaps 0etter than that o its competitors+ Aac, Belch state! that H*e *ant to ma,e our 8ualit$ so special+ so "alua0le to our customers+ so important to their
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success that our pro!ucts 0ecome their onl$ real "alue choice.I Bith tighter competition in e"er$ in!ustr$+ !eli"ering Dust Hgoo!I or H!e ect reeI pro!ucts an! ser"ice *onJt guarantee success. 6he ocus on customers at the heart o Six Sigma means learning *hat "alue means to customers %an! prospecti"e customers( an! planning ho* to !eli"er it to them pro ita0l$.

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,4- A""e)erates t&e /ate O$ Im*ro(ement

&otorolaJs goal o H100U impro"ement in 4 $earsI set an example or im0i0itions+ !ri"en organi9ation to emulate. Bith in ormation technolog$ setting the pace 0$ !ou0ling its per ormance to cost ratio e"er$ 14 months+ the customer expectation or impro"ement gets e"er more !eman!ing. 6he competitor *ho impro"es the astest is li,el$ to *in the race. =$ 0orro*ing tools an! i!eas rom man$ !isciplines+ Six Sigma helps a compan$ not onl$ impro"e per ormance+ 0ut impro"e per ormance.

,9- Promotes Learning And @CrossAPo))ination@

6he 1220s sho* the 0irth o the Hlearning 'rgani9ation+ a concept that appeals to man$ 0ut seems har! to put into action. Allie! Signal lea!ers ha"e commente! that H?"er$one tal,s a0out learningK e* succee! in *ea"ing it into the a0ric o e"er$!a$ li e or so man$ emplo$ees.I Six Sigma is an approach that can increase an! accelerate the !e"elopment an! sharing o ne* i!eas through out an organi9ation. ?"en in a compan$ as !i"erse as -?+ the "alue o Six Sigma as a learning tool is seen as critical. S,ille! people *ith expertise in processes *ho to mange an! impro"e them can 0e shi te! rom+ sa$+ -? Plastics+ -? capital+ not onl$ *ith shorter learning cur"e 0ut actuall$ 0ringing *ith them 0etter i!eas an! the a0ilit$ to appl$ them more 8uic,l$. /!eas can 0e share! an! per ormance compare more rea!il$. -?Js "ice presi!ent or Six Sigma+ Piet "an A0eelen+ has note! that in the past+ a manger in one part o the organi9ation coul! !iscount input+ counter part in another area: HLour i!eas *onJt *or,+ 0ecause / am !i erent.I Ven A0eelen sa$s Six Sigma eliminates those !e enses : H Bell+ cr$ me a ri"er. 6he commonalities are *hat mater. / $ou ma,e the metrics the same *e can tal,.

20- Exe"utes Strategi" C&anges

/ntro!ucing ne* pro!ucts+ launching ne* "entures+ entering ne* mar,ets+ ac8uiring ne* organi9ations) *hat *ere once occasional 0usiness acti"ities are no* !ail$ e"ents in man$ companies. =etter un!erstan!ing o $our compan$Js processes an! proce!ures *ill gi"e $ou a greater a0ilit$ to carr$ out 0oth the minor a!Dustments an! the maDor shi ts that 21st centur$ 0usiness success *ill !eman!.

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'o;s and 'on;ts o$ Six Sigma

Do N =ase $our impro"ement proDect selection on soli! criteria. =alance result+ easi0ilit$+ an! organi9ational impact issues. -oo! proDect section can 0e a ,e$ to earl$ success. Do N =alance e icienc$/ cost)cutting *ith externall$ N ocuse!+ customer "alue proDect. 6he Hcustomer) ocusI theme is a source o Six SigmaJs strength. Putting $our energies into short term sa"ing onl$ sen!s the *rong signal an! re!uces $our chance o 0oosting customer satis action an! lo$alt$. Do N Prepare or an e ecti"e Hhan!o I to the impro"ement team. A techni8ue li,e the proDect rationale can gi"e a goo! start to a proDect !e ining clear issue an! o0Decti"e. DonJt N <hoose too man$ proDect. /mpro"ement ta,es care an! eeling on the part o lea!ers an! HexpertI especiall$ at the 0eginning. /tJs tempting to o"erexten! $our resources an! capa0ilities. DonJt N <reate H*orl! hungerI proDects. ?"en more common than Htoo man$I is Htoo 0igI 0etter to get a too small proDect !one more 8uic,l$ as long as the result are meaning ul than to ha"e a too 0ig proDect !rag on or months. DonJt ) ail to explain the reasoning or the proDects chosen. ?"er$one has pro0lems the$ thin, shoul! 0e top priorit$. ?nsuring support or the one $ou choose means pro"i!ing a goo! rationale or $our priorities.

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Bey Con"e*ts o$ Six Sigma

At its core+ Six Sigma re"ol"es aroun! a e* ,e$ concepts. Criti"a) to Cua)ity= Attri0utes most important to the customer 'e$e"t= Eailing to !eli"er *hat the customer *ants Pro"ess Ca*a6i)ity= Bhat $our process can !eli"er 3ariation= Bhat the customer sees an! eels Sta6)e O*erations= ?nsuring consistent+ pre!icta0le processes to impro"e *hat the customer sees an! eels 'esign $or Six Sigma= Designing to meet customer nee!s an! process capa0ilit$ Six Sigma ocuses irst on re!ucing process "ariation an! then on impro"ing the process capa0ilit$. <ustomers "alue consistent+ pre!icta0le 0usiness processes that !eli"er *orl!)class le"els o 8ualit$. 6his is *hat Six Sigma stri"es to pro!uce. ' SS N %Design or Six Sigma( is a s$stematic metho!olog$ utili9ing tools+ training an! measurements to ena0le us to !esign pro!ucts an! processes that meet customer expectations an! can 0e pro!uce! at Six Sigma 8ualit$ le"els. 'MAIC N %De ine+ &easure+ Anal$9e+ /mpro"e an! <ontrol( is a process or continue! impro"ement. /t is s$stematic+ scienti ic an! act 0ase!. 6his close!) loop process eliminates unpro!ucti"e steps+ o ten ocuses on ne* measurements+ an! applies technolog$ or impro"ement. Six Sigma N A "ision o 8ualit$ *hich e8uates *ith onl$ 3.4 !e ects per million opportunities or each pro!uct or ser"ice transaction. Stri"es or per ection.

,- Cua)ity Too)s Associates are expose! to "arious tools an! terms relate! to 8ualit$. =elo* are Dust a e* o them.
Contro) C&art N &onitors "ariance in a process o"er time an! alerts the

0usiness to unexpecte! "ariance *hich ma$ cause !e ects.

'e$e"t Measurement N Accounting or the num0er or re8uenc$ o

!e ects that cause lapses in pro!uct or ser"ice 8ualit$.

Pareto 'iagram N Eocuses on e orts or the pro0lems that ha"e the

greatest potential or impro"ement 0$ sho*ing relati"e re8uenc$ an!/or si9e in a !escen!ing 0ar graph. =ase! on the pro"en Pareto principle: 205 o the sources cause 405 o an$ pro0lems.
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Pro"ess Ma**ing N /llustrate! !escription o ho* things get !one+ *hich

ena0les participants to "isuali9e an entire process an! i!enti $ areas o strength an! *ea,nesses. /t helps re!uce c$cle time an! !e ects *hile recogni9ing the "alue o in!i"i!ual contri0utions.
/oot Cause Ana)ysis N Stu!$ o original reason or noncon ormance *ith

a process. Bhen the root cause is remo"e! or correcte!+ the noncon ormance *ill 0e eliminate!.

Statisti"a) Pro"ess Contro) N 6he application o statistical metho!s to

anal$9e !ata+ stu!$ an! monitor process capa0ilit$ an! per ormance.

6ree Diagram N -raphicall$ sho*s an$ 0roa! goal 0ro,en into !i erent le"els o !etaile! actions. /t encourages team mem0ers to expan! their thin,ing *hen creating solutions.

2- Cua)ity Terms B)a"0 Be)t N @ea!ers o team responsi0le or measuring+ anal$9ing+ impro"ing an! controlling ,e$ processes that in luence customer satis action an!/or pro!ucti"it$ gro*th. =lac, =elts are ull)time positions. Contro) N 6he state o sta0ilit$+ normal "ariation an! pre!icta0ilit$. Process o regulating an! gui!ing operations an! processes using 8uantitati"e !ata. CTC= Criti"a) to Cua)ity >Criti"a) @:@? N ?lement o a process or practice *hich has a !irect impact on its percei"e! 8ualit$. <ustomer :ee!s+ ?xpectations N :ee!s+ as !e ine! 0$ customers+ *hich meet their 0asic re8uirements an! stan!ar!s. 'e$e"ts N Sources o customer irritation. De ects are costl$ to 0oth customers an! to manu acturers or ser"ice pro"i!ers. ?liminating !e ects pro"i!es cost 0ene its. 8reen Be)t N Similar to =lac, =elt 0ut not a ull)time position. Master B)a"0 Be)t N Eirst an! oremost teachers. 6he$ also re"ie* an! mentor =lac, =elts. Selection criteria or &aster =lac, =elts are

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8uantitati"e s,ills an! the a0ilit$ to teach an! mentor. &aster =lac, =elts are ull)time positions. 3arian"e N A change in a process or 0usiness practice that ma$ alter its expecte! outcome.

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T&emes o$ Six Sigma

Lou are the <hie @earning ' icer at ULW <ompan$. Lou are implementing Six Sigma an! $ouJre rea!$. LouJ"e gone to the experts+ tal,e! to "en!ors+ an! put together a training strateg$ that shoul! ha"e $our ne* =lac, =elts+ -reen =elts+ &aster =lac, =elts+ <hampions+ an! managers up an! running in no time. :ot onl$ *ill the teams 0e traine! in Six Sigma metho!s an! statistical techni8ues+ 0ut the$ *ill also get training in proDect management+ 0usiness anal$sis+ an! team 0uil!ing. LouJ"e loo,e! at mentoring+ sta !e"elopment+ an! change management+ an! ha"e 0uilt these elements into $our training programs as *ell. &onths go 0$. 6he VP o &anu acturing or Asia Cegion recei"es a 3)inch 0in!er *ith the title HSix Sigma Cecommen!ations.I >e scans the report+ canJt in! an$thing interesting an! gets interrupte! 0$ his Director o Sualit$ *ho sa$s that @ine A is !o*n. 6he report sits on the VPJs !es, or a *ee, an! then gets mo"e! to a 0oo,shel . 6*o months later the <'' calls him+ H/ Dust got a report rom the <E' that sa$s that $our plants ha"e ignore! one o the critical Six Sigma recommen!ations outline! in the report that $ou got a long time ago. 6he <?' is urious+ 0ecause it loo,s li,e *e arenJt serious a0out change.I >e *ants to ,no* *h$ the VP o &anu acturing ignore! the report. /n realit$+ the recommen!ation *as hi!!en *ithin the 0in!er. /t *as presente! in a *a$ that *oul! ha"e ta,en him !a$s to igure out an! longer to implement. An! to un!erstan! it+ he *oul! ha"e ha! to also Hun!erstan!I !o9ens o other recommen!ations that he *oul! ha"e oun! *ere totall$ irrele"ant to his area. >e ha! trie! scanning the !ocument an! ha! *ante! to in! the in ormation that coul! help+ 0ut he coul!nJt get through the sea o irrele"ant in ormation. >a! he found it/ (e also 1ould (ave found t(at t(e recommendations for improvement 1ere not presented in a 1ay t(at 1ould permit efficient implementation. So+ *hat coul! possi0l$ 0e missing rom $our Six Sigma training strateg$G 6he chances are $ouJ"e misse! one o the most critical success actors or an$ 8ualit$ or pro!ucti"it$ initiati"e: communication s,ills training. Six Sigma+ li,e /S' 2000 an! 6S&+ *ill ail *ithout a relentless organi9ational ocus on in ormation an! communication.

Adding Six Sigma to t&e Communi"ation Mix

Six Sigma initiati"es *ill re8uire $ou to signi icantl$ increase the 8ualit$ an! 8uantit$ o communication *ithin $our organi9ation. =ut letJs ace it+ most organi9ations are alrea!$ struggling *ith communications that are un ocuse!

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an! !i icult to rea!+ *ith 0urie! ,e$ points in en!less lines o irrele"ant in ormation. 6he num0er o poorl$ *ritten e)mail messages+ reports+ an! proposals that come across their !es,s each !a$ alrea!$ o"er0ur!ens managers. An! *or,ers alrea!$ ha"e !i icult$ interpreting all o the complicate! policies+ processes an! proce!ures the$ are suppose! to ollo*. A!!ing Six Sigma i!eas+ reports+ proposals+ solutions+ proDect up!ates+ an! process changes to the mix *ill onl$ a!! to the pro0lem))unless the$ are presente! in a clear+ e ecti"e *a$ that highlights ,e$ points an! allo*s rea!ers to 8uic,l$ access an! un!erstan! the in ormation the$ nee!. A!opting organi9ation)*i!e communication stan!ar!s+ metho!s+ an! protocols+ an! a!!ing communication s,ills training to the Six Sigma curriculum *ill help Six Sigma teams communicate an! sell their i!eas+ plans+ an! solutions internall$+ *ill ma,e li e easier or o"er0ur!ene! managers+ an! *ill su0stantiall$ increase a proDectJs li,elihoo! o success.

Communi"ation and t&e T&emes o$ Six Sigma

Accor!ing to Six Sigma experts Pan!e an! >olpp in their 0oo, HBhat is S/U S/-&AGI there are six themes o Six Sigma. ?ach o the themes re8uires a relentless ocus on clear+ concise communication.

T&eme One=

o"us on t&e Customer

Sa""$ companies ha"e pro"en o"er the past !eca!e that excellence starts *ith an accurate un!erstan!ing o customer nee!s an! the a0ilit$ an! commitment to meet those nee!s. Achie"ing this o0Decti"e in a Six Sigma en"ironment re8uires strong communication *ith customers+ as *ell as the a0ilit$ o salespeople+ CXD+ an! mar,eting to clearl$ capture an! communicate customer nee!s an! !esires to others *ithin the organi9ation. >o* goo! is $our sales orce at accuratel$ !escri0ing $our pro!uctJs eatures+ 0ene its an! implementation process to customersG >o* goo! is $our sales orce at con"e$ing real customer nee!s 0ac, into $our <ompan$G >o* goo! is $our operations group at communicating out to the customerG / $ou are li,e most organi9ations+ $ouJ"e spent "er$ little time an! e ort thin,ing a0out ho* to impro"e these communications+ 0ut a HEocus on the <ustomerI !eman!s more than H0usiness as usualI communication e ecti"eness.

T&eme T7o= 'ataA and

a"tA'ri(en Management

'ne o the primar$ !i erences 0et*een Six Sigma an! other 8ualit$ initiati"es is the relentless ocus on !ata. &uch o the po*er o the Six Sigma process comes rom its a"oi!ance o speculation an! con"ersation in a"or o tests an! measurements. -raphs an! charts are o ten toute! as the language o Six Sigma N an! the$ are important N 0ut it is e8uall$ important that Six Sigma

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teams *rap their charts an! graphs in clear+ e ecti"e communications that ma,e sense o the !ata an! their interpretations an! solutions. 6his result can onl$ 0e accomplishe! i the people preparing the statistics N an! their managers N can communicate e ecti"el$.

T&eme T&ree= Pro"esses are %&ere t&e A"tion Is

Six Sigma proDects usuall$ ocus on ,e$ processes an! ho* to impro"e them. /n most companies+ process+ proce!ure an! gui!eline in ormation is poorl$ *ritten. Since processes t$picall$ in"ol"e man$ !epartments an! man$ people+ e"en a small change can ha"e a huge impact on an organi9ation. Pro"i!ing clear+ e ecti"e communications a0out *hat is changing an! *h$ is essential to ensuring that proDect o0Decti"es are met an! changes are replicate! consistentl$ throughout the organi9ation. Pro"i!ing communication s,ills training that helps Six Sigma teams an! others throughout the organi9ation learn to communicate ne* policies+ processes+ an! proce!ures clearl$ an! e ecti"el$ *ill help support $our Six Sigma initiati"e an! ha"e a positi"e long) lasting impact on emplo$ee per ormance.

T&eme

our= Proa"ti(e Management

Six Sigma pro!uces man$ organi9ational changes. '0"iousl$+ $ou *ant the right changes to happen in 0oth e"olutionar$ an! re"olutionar$ *a$s. <hange in"ol"es "arious le"els o an organi9ation an! man$ !i erent unctions. 6o 0e success ul+ the nee! or change an! the t$pe o change nee!s to 0e communicate! clearl$. /n short+ there nee!s to 0e a ocus on getting the right in ormation to the right people at the right time in the right orm so that the$ can ma,e goo! !ecisions an! ta,e e ecti"e action. <lear+ e ecti"e communication is essential to success ul change management.

T&eme

i(e= Boundary )ess Co))a6oration

-lo0al corporations ha"e their important acti"ities locate! throughout the *orl!. Processes o ten cross)organi9ational as *ell as geographic 0oun!aries. Six SigmaJs relentless ocus on process an! 0usiness results orces sta to *or, together across !epartments an! organi9ational 0oun!aries. Six Sigma teams are li,el$ to meet challenges an! resistance *hen the$ enter ne* territor$ an! ina!"ertentl$ Hstep on toes.I 6ranslation can 0e a ,e$ issue. 6ranslation e ecti"eness an! cost is impro"e! *ith *ell)structure! communication. 6he *ritten an! spo,en communication s,ills o $our Six Sigma teams must 0e strong enough to 0rea, !o*n organi9ational *alls or $our Six Sigma e ort *ill ail.

T&eme Six= 'ri(e $or Per$e"tionD To)erate

ai)ure

/t ma$ soun! eas$ to H!ri"e or per ection+ 0ut tolerate ailure+I 0ut it is not.

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Eailure is tough. /t is o ten complicate! an! !i icult to explain in a non) threatening *a$. Poor communication aroun! ailures lessens the opportunit$ to pre"ent the ailure rom happening again. 6eams must 0e a0le to clearl$ communicate *hat happene!+ *h$ it happene!+ an! *hat the$ can learn rom the experience to help ensure that the next proDect is a success. 'nce again+ *ithout e ecti"e communication s,ills+ it can 0e !i icult to sur"i"e an! thri"e in a per ection)!ri"en en"ironment. Ser"ice&aster <ase Stu!$: /mpro"e! <ommunication Euels Six Sigma Cesults6he Ser"ice&aster <ompan$ pro"i!es "arious ser"ices to resi!ential an! commercial customers in the ;nite! States *here it ser"es 10.3 million homes an! 0usinesses each $ear. <ore ser"ice capa0ilities inclu!e la*n care an! lan!scape maintenance+ termite an! pest control+ plum0ing+ heating an! air con!itioning maintenance an! repair+ appliance maintenance an! repair+ cleaning an! urniture maintenance an! home *arranties. 6hese ser"ices are pro"i!e! through a net*or, o o"er 3+400 compan$)o*ne! an! ranchise! ser"ice centers an! 0usiness units. /n 2001+ Ser"ice&aster committe! to 0ringing its 8ualit$ an! customer ser"ice to a higher le"el through Six Sigma. HBe *ere ser"ice lea!ers an! *ante! to continue to lea! in our chosen mar,etsI explains Aohn =ie!r$+ Sr.VP o <ontinuous /mpro"ement an! Six Sigma. Be sa* the opportunit$ to !i erentiate our ser"ices 0$ impro"ing the processes that touch our customers e"er$ !a$. Ser"ice&asterJs Six Sigma program is !ri"en 0$ 33 0lac, 0elts an! 1 !eplo$ment champions. 6heir Do0 is to !ri"e each Six Sigma solution across hun!re!s o locations. &ultiple solutions a!! up to thousan!s o replications in Ser"ice&aster an! ma,es or a ormi!a0le communications challenge. Ser"ice&aster *as ha"ing !i icult$ actuall$ implementing recommen!e! process changes+ 0ecause !ocumentation regar!ing ne* processes *as har! to un!erstan! an! !i icult to use. Sta *as rustrate! an! it *as ta,ing too long to reali9e the expecte! 0ene its rom process impro"ement. Bith <?' support an! commitment or the entire e ort+ Ser"ice&aster recogni9e! that e ecti"e communication *as essential or true success. @oo,ing or a solution+ Ser"ice&aster !isco"ere! a research)0ase! metho!olog$ calle! /n ormation &apping that helpe! authors to anal$9e+ organi9e an! present in ormation so that it *as easier to un!erstan! an! use. Ser"ice&aster a!opte! /n ormation &appingJs metho!olog$ as a stan!ar! in or!er to increase the spee! o replication o process impro"ement enhance the sharing o in ormation across !epartments an! geographies impro"e the a0ilit$ o our sta to 8uic,l$ in! in ormation an! a!opt ne* processes+ an! impro"e the rea!a0ilit$ o important !ocuments.

6he result has 0een 8uic,er implementation an! a 0etter return on /n"estment rom our Six Sigma program. /n ormation &apping is no* a core element o the 0lac, 0elt training curriculum an! has 0ecome the stan!ar! or A@@ Six Sigma solutions that *ill 0e communicate! to the iel!.
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T&e Six Sigma /oadma*

6he i!eal Coa!map or esta0lishing the Six Sigma s$stem is as ollo*s. /!enti $ core processes an! ,e$ customer De ine customer re8uirements &easure current per ormance Prioriti9e+ anal$9e an! implement impro"ements. ?xpan! an! integrate the Six Sigma s$stem.

Ad(antage o$ t&e Six Sigma /oadma*

6he Coa!map is not the onl$ path to Six Sigma impro"ementK $ou *ill "er$ li,el$ nee! to a!Dust the or!er o these steps+ or e"en start more than one o the simultaneousl$. /n part *eJll loo, at *a$s to a!apt the Coa!map+ 0ase! on $our organi9ationJs speci ic nee!s an! goal. Bhat ma,es this path Hi!ealI ho*e"er+ is that+ ta,en in this or!er+ these acti"ities 0uil! up the essential oun!ation that *ill then support an! sustain Six Sigma impro"ement. Speci icall$+ the Coa!mapJs a!"antages inclu!e: A clear un!erstan!ing o the 0usiness as an interconnecte! s$stem o processes an! customer. =etter !ecision an! uses o resources+ to get the greatest possi0le amount o 0ene it out o Six Sigma impro"ements. Shorter impro"ement c$cle times+ than,s to 0etter up ront !ata an! selection o proDect. &ore accurate "ali!ation o Six Sigma gains N *hether in !ollars+ !e ecte!+ customer satis action+ or other measures. A stronger in rastructure+ to support change an! sustain results.

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Six Sigma Cua)ity Too)s and Tem*)ates

A init$ Diagram =rainstorming <alculators <ause X ? ect / /shi,a*a / Eish0one <harters <ontrol <harts <ontract &anagement So t*are <reati"it$ / 'ut o the =ox 6hin,ing Design ' ?xperiment Document <ontrol Elo* <hart / Elo* <harting E&?A / Cis, Assessment -lossaries >istogram Pano Anal$sis 'rgani9ing Data 'nline Statistics 6ext0oo,s Pareto Po,a Lo,e %&ista,e Proo ing( Process &ap / Process &apping ProDect <harters Sualit$ Eunction Deplo$ment / >ouse o Sualit$ Scatter Diagram / Plot S/P'< Diagram So t*are Support an! Cestraint Sur"e$s %Y( 6hin,ing 'ut ' 6he =ox Ee* o the a0o"e is as ollo*s

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Is Six Sigma /ig&t $or Es !o7 +

Assessing :our Six Sigma /eadiness
/n its most am0itious application+ Six Sigma can 0e a more un!amental change than+ sa$+ a maDor ac8uisition or a ne* s$stem implementations+ 0ecause Six Sigma a ects ho* $ou run the 0usiness. 6he !epth o impact on $our management processes an! s,ills *ill "ar$+ o course+ *ith ho* extensi"el$ $ou *ant to appl$ Six Sigma tools an! the results $ou are see,ing. 6he starting point in gearing up or Six Sigma is to "eri $ that $ou are rea!$ to or nee! to em0race a change that sa$s H6here is a 0etter *a$ to run our organi9ation.I 6his shoul! not 0e a rote+ num0er crunching 0ase! !ecision+ 0ut there are a num0er o essential 8uestions an! acts $ou *ill ha"e to consi!er in ma,ing $our rea!iness assessment.

Assess t&e Out)oo0 and

uture Pat& o$ t&e Business

A irst step is a general re"ie* o the con!ition o $our organi9ation to!a$ an! its outloo, or the uture+ 0oth in the short an! the long term. Pe$ 8uestions inclu!e: /s the strategic course clear or the compan$G Are our chances goo! or meeting our inancial an! gro*th goalsG /s the organi9ation goo! at respon!ing e ecti"el$ an! e icientl$ to ne* circumstancesG

E(a)uating :our Current Per$orman"e

?"en i the H uture is so 0right $ou got to *ear sha!es+I existing pro0lems increase the potential "alue o a Six Sigma e ort. Six Sigma ma,es it easier to 0e more concrete in an assessment o *here $ou are to!a$K an! the more $ou can use har! !ata to ans*er the ollo*ing 8uestions+ the 0etter: Bhat are our current o"erall 0usiness resultsG >o* e ecti"el$ !o *e ocus on an! meet our re8uirementsG >o* e ecti"el$ are *e operatingG

%&at t&e ans7ers mean +

6here are actuall$ se"eral conclusions $ou can !ra* rom this current per ormance assessment. /s there enough room or impro"ement to ma,e Six Sigma *orth*hileG

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 Bhere are the 0est opportunities or impro"ementG >o* e ecti"e are our customer ,no*le!ge an! measurement s$stemsG

/e(ie7ing Systems and Ca*a"ity $or C&ange and Im*ro(ement

A thir! maDor actor in !eci!ing *hether to launch Six Sigma is the organi9ationJs existing impro"ement processes an! its a0ilit$ to un!erta,e a ne* initiati"e+ Suestions here inclu!e the ollo*ing: >o* e ecti"e are our current impro"ement an! Hchange managementI s$stemsG >o* *ell are our cross) unctional processes manage!G Bhat other change e orts or acti"ities might con lict *ith or support a Six Sigma initiati"eG

%&at t&e ans7ers mean +

6he purpose o this thir! assessment element is to test the timing an! rea!iness o the 0usiness or a possi0le Six Sigma e ort. ?"en i assessment actors 1 an! 2 ma,e a strong case to initiate Six Sigma+ $our 0usiness ma$ alrea!$ 0e capa0le o !ealing *ith the challenges. 'r $our people+ s$stems an! resources ma$ alrea!$ 0e *rappe! up in ma,ing other e orts or changes in *hich case $ouJ! ha"e trou0le ma,ing the commitment o lea!ership+ time+ energ$ an! mone$ that a Six Sigma e ort !eman!s.

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%&en Six Sigma is !ot /ig&t $or an OrganiFation

Six Sigma can 0e applie! as a targete! approach+ so a limite! implementation ma$ al*a$s 0e easi0le. :e"ertheless+ *e can loo, at the lipsi!e o the prece!ing assessment to i!enti $ con!itions in *hich it pro0a0l$ *oul! 0e 0est to sa$ H:o than,sI or Six Sigma e orts. <on!itions that might in!icate a Hno) goI !ecision on Six Sigma inclu!e the ollo*ing: Lou alrea!$ ha"e in place a strong+ e ecti"e per ormance an! process impro"ement e ort. / there are s$stems an! tools in place to support ongoing pro0lem sol"ing an! process !esign/re!esign+ Six Sigma ma$ not a!! much "alue an! might e"en con use people. <urrent changes alrea!$ are o"er*helming $our people an!/or resources. An organi9ation can han!le onl$ so much turmoil at once. @umping Six Sigma on top o one or other maDor 0usiness uphea"als coul! pro"e to 0e the pro"er0ial stra* on camelJs 0ac,. >o*e"er+ 0e*are o ma,ing the H*e are too 0us$I argument N a copout or ne"er !oing the tough *or, it ta,es to 0ecome a trul$ *orl! class organi9ation. 6he potential gains are not there. Six Sigma !eman!s an in"estment. / $ou canJt ma,e a soli! case or uture or current return+ it ma$ 0e 0est to sta$ a*a$ at least until $ou ha"e igure! out exactl$ ho* an! *hen it might pa$ o .

SummariFing t&e Assessment= T&ree Bey Cuestions

At the en! o a re"ie* o $our 0usiness+ inclu!ing its uture an! current state+ an! its organi9ational actors+ the o0Decti"e is to !eci!e HShoul! *e ta,e on or at least seriousl$ consi!er a Six Sigma initiati"e or our organi9ationGJ *e can 0oil all the speci ics !o*n to three 8uestions+ as ollo*s: /s change a critical 0usiness nee! no*+ 0ase! on 0ottom)line+ cultural or competiti"e nee!s. <an *e come up *ith a strong strategic rationale or appl$ing Six Sigma to our 0usinessG

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 Bill our existing impro"ement s$stems an! metho!s 0e capa0le o achie"ing the !egree o change nee!e! to ,eep us a success ul competiti"e organi9ationG / $our ans*ers are Les+ Les an! :o+ $ou ma$ *ell 0e rea!$ to explore urther ho* to a!opt Six Sigma in $our organi9ation.

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Six Sigma Training

Six Sigma 6raining is one o the most important actors that contri0utes to an! helps mo!i $ an! shape an organi9ation7s culture. 6his article *ill help i!enti $ *ho in $our organi9ation is re8uire! to 0e Six Sigma traine! an! *hat t$pe o Six Sigma training the$ shoul! recei"e.

%&o and %&at Ty*e o$ Training + ,- Senior Management

Senior &anagement+ also ,no*n as 7<)@e"el &anagement7 %<?'+ </'+ <E' an! peers(+ are the in!i"i!uals that set+ communicate an! !ri"e the o"erall 0usiness o0Decti"es. 6he$ are also the in!i"i!uals that are re8uire! to incorporate Six Sigma o0Decti"es into their operational plans. ?xamples o o0Decti"es might inclu!e: U5 o emplo$ees through Six Sigma training 0$ a certain !ate L5 re!uction in !e ects or all customer "isi0le processes 0$ 8uarter en! ZW in 0ac,)o ice proDects sa"ings 0$ $ear en! Six Sigma training or Senior &anagement shoul! inclu!e a program o"er"ie*+ 0usiness an! inancial 0ene its o implementation+ real)*orl! examples o success ul !eplo$ments+ speci ic application to 0usiness/in!ustr$+ an! the re8uire! Six Sigma training an! tools to ensure success ul implementation. Depen!ing on Senior &anagement time a"aila0ilit$ an! their !esire to learn the !etails+ =lac, =elt training is also recommen!e!.

2-

un"tiona) 5 Pro"ess Managers

Eunctional an! Process &anagers are the le"el o management !irectl$ reporting to the Senior &anagement. Depen!ing on the si9e o the organi9ation+ the$ might inclu!e unctional managers rom areas such as human resources+ inance an! training+ an! process managers rom areas such as assem0l$+ pro!uction an! call center. 6hese managers are sometimes re erre! to as 7sponsors7 an! 7champions7 0ecause the$ are ,no*n to champion the cause *ithin their 0usiness organi9ation. 6hese champions translate Senior &anagement7s strategic !irections into tactical o0Decti"es an! actions *ith the help o their Sualit$ @ea!er an! ProDect @ea!ers. Six Sigma training or Eunctional an! Process &anagers is more !etaile! than that pro"i!e! to Senior &anagement. 6opics *oul! inclu!e the Six Sigma concept+ metho!olog$+ tools an! re8uirements to ensure success ul
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implementation *ithin their organi9ation. Depen!ing on Eunctional / Process &anager time a"aila0ilit$ an! their !esire to learn the !etails+ =lac, =elt training is also recommen!e!.

<- Cua)ity Leaders

Sualit$ @ea!ers+ also ,no*n as Sualit$ &anagers an! &aster =lac, =elts+ help Eunctional an! Process &anagers set an! lea! the Six Sigma "ision *ithin their speci ic areas. 6he$ maintain rolle! up 0u!gets+ trac, 0usiness cost sa"ings+ ensure training goals are met+ coach Eunctional an! Process &anagers+ ProDect @ea!ers an! ?mplo$ees+ re"ie* proDects at milestones+ share 0est practices+ an! ensure appropriate use o tools an! metho!ologies. Six Sigma training or Sualit$ @ea!ers inclu!es !etaile! in ormation a0out the concept+ metho!olog$ an! tools+ as *ell as !etaile! statistics training an! computer anal$sis tool use. Depen!ing on the instructor+ the !uration is usuall$ 0et*een three an! our *ee,s.

.- ProGe"t Leaders
ProDect @ea!ers+ also ,no*n as =lac, =elts+ implement the Six Sigma metho!olog$ an! tools *ithin the 0usiness. 6he$ lea! the intra) an! inter) unction proDects+ maintain time lines an! 0u!get+ !etermine appropriate tool use+ per orm anal$ses+ an! act as the central point o contact or speci ic process impro"ement proDects. Six Sigma training or ProDect @ea!ers inclu!es !etaile! in ormation a0out the concept+ metho!olog$ an! tools. Depen!ing on the instructor+ the !uration is usuall$ 0et*een t*o an! our *ee,s+ an! ma$ inclu!e one o more *ee,s in 0et*een sections. Statistics is inclu!e! in the agen!a+ 0ut t$picall$ !oes not inclu!e as much !etail as that pro"i!e! to Sualit$ @ea!ers.

5- Em*)oyees
?mplo$ees+ also ,no*n as -reen =elts+ ma$ also ta,e Six Sigma training courses !e"elope! speci icall$ or part time ProDect @ea!ers. Six Sigma training or -reen =elts is similar to =lac, =elt training+ 0ut shorter in !uration 0ecause less !etail on complex tools an! statistics is pro"i!e!. ?mplo$ees are instea! tol! to as, their =lac, =elt or help in speci ic areas.

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Training t&e OrganiFation $or Six Sigma

Six Sigma is essentiall$ a comprehensi"e $et lexi0le s$stem or achie"ing+ supporting+ an! maximi9ing 0usiness pro its. /t is a metho!olog$ !ri"en 0$ un!erstan!ing customer nee!s+ an! the !iscipline! use o !ata+ acts+ an! statistical anal$sis to impro"e an! rein"ent organi9ational processes. So *hat !oes this reall$ meanG >o* is it !eplo$e!G >o* can it 0e 0est emplo$e! or maximum a!"antage *ithin $our organi9ationG 6he Six Sigma 6raining an! Sualit$ 6ool,it is !esigne! to help a!!ress all these issues an! more. /t contains a *hole series o resources to help explain+ simpli $+ an! set $ou on the right path to implementation o Six Sigma.

,- T&e Six Sigma Cua)ity Management Bit

?ach item is o the highest 8ualit$+ tailor ma!e to co"er a !i erent aspect an! issue. /t inclu!es presentations+ 8uestionnaires+ act sheets+ gui!elines.... a *hole range o materials speci icall$ put together to 0oth intro!uce+ an! ta,e $ou through+ Six Sigma. ;nless other*ise state!+ each element is pro"i!e! in &S)Bor! ormat or lexi0ilit$+ control an! ease o use. 6he ,it inclu!es the ollo*ing:

2- A Six Sigma Beginners 8uide

6his is a comprehensi"e intro!uction to+ an! o"er"ie* o + Six Sigma. /t explains the concepts+ the statistical practicalities+ the training regime+ an! much more.

%. A M)*)+,-,*. P/,0,*.).12*
6his Po*erPoint presentation is !esigne! to explain the ,e$ concepts an! 0ene its to management/executi"es an! pro"i!e gui!ance on ho* to a"oi! the common pit alls.

.- T&e Six Sigma Ca)"u)ator

6his simple to use 0ut po*er ul ?xcel 0ase! calculator allo*s $ou to enter "alues into cells an! see the e8ui"alent Six Sigma result.

5- T&e Six Sigma

a"t S&eet

6his is a most concise summar$ o the Six Sigma metho! an! process an! is a han!$ re erence gui!e or e"er$!a$ use. /t inclu!es explanations o : *h$ it

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exists+ the sigma o0Decti"es+ the statistical 0asis %in eas$ to un!erstan! language(+ the certi ications+ an! ho* to use it to impro"e.

1- T&e Six Sigma Training Tutoria)

6his extensi"e !ocument is nothing short o a ull tutorial on the topic. Sections inclu!e: 6he >istor$ o Six SigmaK Six Sigma <osts an! Sa"ingsK Bhat is Six SigmaGK <ritical to Sualit$O<6SK Bh$ is D&A/< Signi icant in Six SigmaGK =ene its o /mplementing Six SigmaK Bho Are the Six Sigma PractitionersGK Design or a Six Sigma Coa!map.

2- A /eHuirements Tem*)ate
'ne o the most important aspects in un!erta,ing an$ maDor initiati"e is to un!erstan! *hat the re8uirements or the initiati"e are. 6his excellent template !ocument is !esigne! speci icall$ to assist *ith this tas,.

4- T&e Six Sigma ITo* 'o7nI !ote6oo0

6his !ocument is !esigne! to explain ho* to approach Six Sigma *ithin an organi9ation. /t o ers gui!elines or a top)!o*n approach+ presente! in a color ul an! pleasing manner.

9- A Six Sigma %or0s&o* Presentation

6his is a ull an! !etaile! presentation+ gi"ing a !etaile! appreciation o Six Sigma or the practitioner. /t inclu!es 0oth spea,er notes an! exercises.

,0- Six Sigma and ITIL >It In$rastru"ture Li6rary?

Bithin /6+ /6/@ has emerge! to !e ine 0est practice through a !etaile! set o processes. As there is sometimes seen to 0e consi!era0le theoretical commonalit$ *ith Six Sigma+ this su0stantial !ocument is inclu!e! or those speci icall$ consi!ering /6. As a 0onus+ an /6/@ assessment ,it is also inclu!e!. 6his comprises a !etaile! ?xcel 8uestionnaire an! scoring mechanism.

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Large organiFations t&at &a(e ado*ted six sigma

6hese are some the large /n!ian an! /nternational organi9ations that ha"e use! Six Sigma. 6here are thousan!s more all o"er the *orl!.
<M AB 'i"0 Ado)*& Coors Ad(an"ed Mi"ro 'e(i"es A))ied Signa) A)"oa Aero*s*a"e Cor* A66otts La6s A**)e Com*uter Ban0 o$ ESA Beatri"e oods Be)) #e)i"o*ter Boeing Bristo) Myers SHui66 City o$ 'a))as Cam*6e)) Sou* C&e(ron Citi"or* C)orox 'anon 'o7 ide)ity Inte) ord 8enera) 'ynami"s 8E #P #oney7e)) Baiser A)uminium In$osys Bra$t 8enera) oods Lear Astroni"s Lo"0&eed martin M"'onne)) 'oug)as Mi"roso$t Motoro)a !ASA !ort&ro* Cor* Pentagon Par0(ie7 #os*ita) /o"07e)) Int /o&m and #aas ICICI #' C %i*ro Seagate Sony Star Cua)ity Texa"o Texas Instruments T/% ES Army ES Air or"e Enited Te"&no)ogies EPS Jerox Airte) B&arti TATA /e)ian"e TCS

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Ese Six Sigma Too)s to Meet ISO 9000 /eHuirements

'ne o the maDor !i erences 0et*een 0oth s$stems is that /S' 2000 is a shell o re8uirements *ithout an$ tools+ *hereas Six Sigma is a metho!olog$ connecting tools an! proce!ures or appl$ing these tools through a #re! threa!.# Ce8uirements o /S' 2000:2000 are+ or example: De ine 8ualit$ management in ormation nee!s <ollect 8ualit$ management s$stem !ata Pro"i!e 8ualit$ management in ormation /mpro"e 8ualit$ management s$stem 6ools pro"i!e! 0$ Six Sigma to meet these re8uirements are+ or example: Dash0oar!s as a set o ,e$ per ormance in!icators to monitor all processes at a reasona0le !egree or all rele"ant managerial le"els. 'perational !e initions to !escri0e exactl$ ho*+ *hen+ *here+ *ith *hich tools+ 0$ *hom+ ho* o ten an! ho* much !ata shoul! 0e collecte!. A!!itionall$+ Six Sigma pro"i!es tools to a!!ress such 8uestions as sample si9e an! precision as *ell as capa0ilit$+ repeata0ilit$ an! repro!uci0ilit$ o !ata collection. Data !ispla$s to help !ra* 0usiness)rele"ant conclusions an! tests to Dusti $ the signi icance o conclusions !ra*n rom !ata collecte!. 'MAIC= De ine)&easure)Anal$9e)/mpro"e)<ontrol as a metho!olog$ or process impro"ement at a proDect le"el+ *hich is ) a ter necessar$ customi9ation ) applica0le to all ,in!s o processes.

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Ese t&e ISO 9000 rame7or0 to Assess a Six Sigma System

@oo,ing at the ne* /S' 2000:2000 re8uirements an! comparing these re8uirements *ith the sel )!e"elope! Six Sigma gap)anal$sis sho*s the possi0ilit$ o connecting 0oth approaches an! s$stems *ith each other. Six Sigma !oes not come *ith the assessment tool per se. 6his tool nee!s to 0e a!!e! a ter a certain time rame in or!er to ,eep the 0all rolling an! in or!er to help Six Sigma get into the compan$7s 0loo!stream. /S' 2000 is !esigne! to assess companies 0ase! on 0oth external an! internal re8uirements an! to help close the gaps on a mi!)term an! long)term 0asis. =$ a!!ing t$pical Six Sigma re8uirements to the /S' 2000:2000 internal au!it 8uestionnaires+ a compan$ can ma,e Six Sigma part o its 8ualit$ management s$stem an! impro"e the e ecti"eness an! e icienc$ o the Six Sigma initiati"e signi icantl$. A si!e e ect is that 0oth approaches get aligne! an! !o not compete or resources an$ longer. Since the goals o the t*o approaches are the same+ there is a greater li,elihoo! o an increase in 0ottom)line an! top) line results on a long)term 0asis to increase customer satis action an! emplo$ee commitment.

Con")usion= Im*ro(e Credi6i)ity and Sustaina6i)ity

/t is a *aste to ha"e a 8ualit$ management s$stem an! process impro"ement approach existing si!e)0$)si!e *ithout an$ integration. Aligning /S' 2000 an! Six Sigma can help impro"e the cre!i0ilit$ o the /S' 2000 8ualit$ management s$stem an! the sustaina0ilit$ o the Six Sigma initiati"e at the same time. /t can sa"e resources an! in"estmentsK an! it enriches the *a$ to manage the 0usiness.

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Six Sigma and Cua)ity Management 8)ossary

&an$ o these terms are "er$ speci icall$ relate! to Six Sigma. 'thers are use! in a general 78ualit$ management7 context an! also in Six Sigma. As alrea!$ explaine!+ Six Sigma ten!s to em0race man$ other metho!ologies. A e* o these terms are 8uite technical since the$ occur in the statistical+ engineering an! mathematical aspects o Six Sigma. 6he more complex mathematical terms an! acron$ms are inclu!e! in this glossar$ not to pro"i!e !etaile! explanations+ 0ut instea! to ena0le initial recognition an! a 0asis or urther in"estigation+ i $ou are so incline!. 6his small glossar$ is not exhausti"e 0ecause it *oul! ta,e a0out ten $ears to compile an exhausti"e Six Sigma an! Sualit$ &anagement glossar$. 6his is Dust a e* highlights+ some points o clari ication+ *or!s o *arning+ items o mil! amusement+ an! terms o special note. 6he reall$ o0"ious S6=' terms ha"e not 0een inclu!e!. / $ou nee! a more !etaile! listing tr$ the one on the Six Sigma *e0site *hich coul! ,eep $ou occupie! or !a$s. / $ou *ish to nominate an item o Six Sigma or Sualit$ &anagement terminolog$ or inclusion here ) especiall$ an amusing or intriguing example ) please sen! to me. Despite 0eing completel$ ascinating o course+ Six Sigma is possi0l$ is one o the !riest su0Dects /7"e e"er encountere! an! so *ill 0ene it rom as much light relie as $ou can suggest. A""e*tan"e, and a""e*ta6)e Hua)ity )e(e) >ACL? ) Acceptance has at least t*o !i erent meanings in Six Sigma terminolog$+ so 0e care ul to un!erstan! *hich one is 0eing re erre! to. Eirstl$+ acceptance relating to 8ualit$ is the 8ualit$ expectation o the customer+ internal or external. Accepta0le Sualit$ @e"el %A<@( means the same 0asicall$+ in more ormal Six Sigma)spea,+ an! *hich *ill re8uentl$ 0e expresse! in terms o percentage !e ects. Secon!l$ acceptance re ers to the 0u$)in or agreement o people a ecte! 0$ propose! actions an! changes+ nota0l$ sta,ehol!ers. Bhile not strictl$ part o the Six Sigma 0atter$ o supporting tools+ / can strongl$ recommen! Sharon Dre* &organJs acilitati"e communications concepts or an$one struggling *ith sta,ehol!er acceptance %an! *holesale organi9ational change as *ell or that matter.( A"ti(ity re*ort A A simple tool *hich ena0les teams an! team lea!ers to manage proDect management tas,s+ responsi0ilities an! timescales. A$$inity diagram A A !iagrammatic metho! o capturing+ anal$9ing an! organi9ing lots o i!eas+ elements+ acti"ities+ etc.+ that together represent or in luence an o"erall categor$+ such as a process or issue. 6he 0rainstorming metho! is central to structuring an a init$ !iagram+ an! 7post)it7 or stic,$ notes are commonl$ use! as a *a$ o generating an! organi9ing !ata. <ommonl$ use! in 0rainstorming solutions !uring the /mpro"e stage o D&A/<.

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Ana)ysis A Anal$sis o all sorts o !ata is a critical component *ithin the Six Sigma mo!el+ *hich in"ol"es using "arious anal$tical metho!s to i!enti $ an! 8uanti $ the causes o 8ualit$ "ariation an! ailure in speci ic processes. Various anal$sis perspecti"es are a!opte!+ or example: 'is"rete ) loo,ing at a particular ailure or pro0lem ) eg.+ using Pareto %740:207( or pie)charts to sho* causes 0$ percentage continuous ) mapping per ormance "ariation an! t$pes+ etc.+ o"er time+ using !istri0ution graphs Pro"ess A creating !etaile! lo*)!iagrams to un!erstan! *hat7s reall$ going on in the process or su0)process A:'VA+ A:<'VA+ &A:'VA+ &A:<'VA ) Despite irst impressions these are nothing to !o *ith Cussian g$mnastics or ice)s,ating mo"es. A:'VA is an acron$m or anal$sis o "ariance+ a speciali9e! "ariation calculation metho! concerne! *ith comparing means an! testing h$potheses+ 0est le t to engineers an! mathematicians. So are the relate! metho!s+ A:<'VA %anal$sis o co"ariance(+ &A:'VA %multiple anal$sis o "ariance(+ an! &A:<'VA %multiple anal$sis o co"ariance(. ;nless $ou are an engineer or a mathematician $ou *ill almost certainl$ ha"e 0etter things to !o than get to grips *ith this le"el o statistical capa0ilit$. 6erms such as these illustrate *h$ *e nee! to *or, in multi)!iscipline! teams. 0alance! scorecar! ) A sophisticate! strategic anal$sis an! impro"ement metho!olog$ !e"elope! 0$ Paplan an! :orton *hich in its o*n right can sit outsi!e Six Sigma+ 0ut *hich can 0e inclu!e! *ithin Six Sigma metho!s+ an! in an$ e"ent might 0e use! or re erence! in the context o 8ualit$ an! per ormance impro"ement. 6he I0alance! scorecar!7 i!enti ies+ correlates+ 70alances7+ measures an! !ri"es impro"ement across a *i!e "ariet$ o actors that are !eeme! responsi0le or o"erall organi9ational e ecti"eness+ an! or meeting customer expectations. 6he tool essentiall$ translates strateg$ into operational metrics+ an! accor!ing to &otorola %ie.+ in a Six Sigma context( t$picall$ eatures the perspecti"es o + "ision+ current initiati"es+ 0usiness processes+ an! 0usiness results. 7=alance! Scorecar!7 0ecame a generic 70ran!7 or 0usiness impro"ement in the 12207s+ rather li,e Six Sigma+ although argua0l$ not on such a gran! scale. B)a"0 6e)t ) A speci ic Six Sigma term to !escri0e a team lea!er an! one *ho has achie"e! accre!ite! 7=lac, =elt7 8uali ication "ia an appropriate training course. B)a"0 noise57&ite noise ) 6echnical terms relating to respecti"el$ non) ran!om an! ran!om causes o "ariation.

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Business im*ro(ement "am*aign ) A &otorola Six Sigma 0u99)phrase+ *hich represents a lea!ership initiati"e to impro"e the 0usiness7s 70ig L7s7. Business *ro"ess management ) A common generic expression in its o*n right+ 0ut also a Six Sigma term or the initial strategic element o Six Sigma. Six Sigma7s strategic irst phase is !esigne! to !e"elop management7s commitment to Six Sigma+ an! also management7s acti"e participation in the Six Sigma process %*hich suggests *h$ a po*er ul 0ran! name or the initiati"e+ ie.+ Six Sigma+ is help ul..(. 6his amounts to i!enti $ing the ,e$ processes *ithin the organi9ation that !etermine e ecti"el$ meeting customer expectationsK then measuring the e ecti"eness an! e icienc$ o the processes %nota0l$ measuring "ariation in 8ualit$ an! anal$9ing the causes(+ an! then initiating impro"ements in the *ea,est processes+ *hich shoul! logicall$ $iel! the greatest results an! return on e ort. CauseAe$$e"t diagram ) Also ,no*n as the ish0one !iagram+ this is a generall$ use! tool or mapping an! anal$9ing causal actors to*ar!s an en! output+ so that contri0uting actors %an! *ea,nesses can 0e more easil$ i!enti ie!(. ;se! especiall$ in Six Sigma as a team 0rainstorming anal$sis tool. <alle! a ish0one !iagram 0ecause the !iagram plots contri0uting actors along parallel !iagonal lines *hich each Doin a central hori9ontal time)line %li,e the 0ac,)0one( *hich culminates at one en! *ith the main issue or 8uestion. CTC ) <ritical 6o Sualit$ ) An element *ithin a process that has a maDor in luence on the process 8ualit$+ an! t$picall$ the 8ualit$ o a critical process+ or it *oul! 0e unli,el$ to 0e recei"ing Six Sigma attention. 'e$e"t ) A "ital an! generic Six Sigma term or an$ ailure in meeting customer expectation %internal an! external customers( ) an$ ailure *ithin the !eli"er$ process. ' SS ) <ommonl$ use! a00re"iation in Six Sigma acti"ities an! communications+ it means Design Eor Six Sigma+ an! !escri0es the metho! o using tools+ training+ measurements+ an! "eri ication so that pro!ucts an! processes are !esigne! at the outset to meet Six Sigma re8uirements. A more speci ic "ersion is D&ADV: De ine+ &easure+ Anal$9e+ Design+ an! Veri $. =oth DESS an! D&AVD are concerne! *ith+ an! emphasise the importance o + using Six Sigma principles in pro!uct/process !esign+ not Dust or reme!ial impro"ements ) rather a!"ocating that pre"ention is 0etter than cure. 6hus+ i Six Sigma capa0ilit$ is 0uilt into ne* organi9ational s$stems an! pro!ucts *hen the$ are !esigne!+ so per ormance *ill 0e 0etter+ an! the nee! or Six Sigma reme!ial e ort *ill 0e re!uce!. 'MAIC5'MAICT ) <entral Six Sigma process an! acron$m to ensure $ou remem0er it: De ine+ &easure+ Anal$se /mpro"e+ <ontrol+ more recentl$ exten!e! to D&A/<6 0$ others in the Six Sigma consulting an! training communities+ to 6rans er %trans er 0est practice an! there0$ share learning(.
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D&ADV ) An alternati"e/su0stitute a00re"iation to DESS %Design Eor Six Sigma(+ an! li,e DESS D&ADV is central to Six Sigma initiati"es. D&ADV more speci icall$ !escri0es a metho! comprising lin,e! stepsK De ine+ &easure+ Anal$9e+ Design+ Veri $+ or ensuring that pro!ucts an! processes are !esigne! at the outset to meet Six Sigma re8uirements. re8uenc$ !istri0ution/ re8uenc$ !istri0ution anal$sis or chec,sheet ) Ere8uenc$ !istri0ution an! the chec,sheets an! other re8uenc$ !istri0ution measurement tools orm an essential aspect o Six Sigma !ata anal$sis. /!enti $ing re8uenc$ o "ariation in processes is central to Six Sigma+ since customers are particularl$ sensiti"e to "ariation+ argua0l$ e"en more than isolate! ailures. 6here ore the sampling an! collection o !ata o"er man$ operations an! exten!e! time perio!s+ an! the use o this !ata to in!icate the re8uenc$ %num0er o times( that a "ariation occurs rather than the si9e o isolate! ailures+ is an essential perspecti"e or trul$ un!erstan!ing *hat7s happening+ an! the causes+ *ithin an$ critical !eli"er$ process. Ere8uenc$ !istri0ution anal$sis is an excellent anti!ote or an$ temptation to respon! to an isolate! ailure *ith a ,nee)Der, 8uic, ix+ such as shooting the messenger or 0olloc,ing the *or,ers *hen something !eeper in the process is a*r$. 8reen Be)t ) A Six Sigma team mem0er *ho has recei"e! -reen =elt training an! *ho *or,s part)time on Six Sigma proDects un!er the gui!ance o a =lac, 0elt team lea!er. Kust in Time >KIT? ) Aust /n 6ime+ commonl$ a00re"iate! to A/6+ !escri0es operational or pro!uction metho!s 0ase! on minimising stoc, le"els+ the aim o *hich is to re!uce capital emplo$e! in stoc,+ *hich also has ,noc,)on 0ene its to re!ucing storage space+ !ecreasing !epen!ence on logistics+ easier suppl$ chain management+ an! 0etter o"erall 8ualit$. Aust /n 6ime is actuall$ a capa0ilit$ arising rom impro"ements *ithin a 0usiness operation+ rather than a cause o impro"ement itsel . /ntro!ucing Aust /n 6ime metho!s *ithout impro"ing e icienc$ an! relia0ilit$ necessar$ to support it is not "ia0le. Since Aust /n 6ime metho!s entail re!ucing stoc, le"els to a0solute minimum or e"en 9ero+ A/6 allo*s no room or error. 6iming an! pre!icti0ilit$ are cruicial. A/6 re8uires total commitment to 8ualit$ an! e icienc$ or the suppl$ chain an! relate! operations 0rea, !o*n+ the costs an! implications o *hich can easil$ excee! an$ sa"ings rom A/6 stoc, re!uctions. 6he term an! metho!olog$ *ere !e"elope! 0$ the Aapanese !uring their post)*ar in!ustrial re"i"al %secon! hal o the 1200s( as a logical progression rom 7materials re8uirements planning7 %&CP(. 6he Aapanese original terminolog$ is 7,an0an7+ an! is important *ithin 7lean pro!uction7 metho!olog$. 6he aim o ,an0an is actuall$ 9ero in"entor$. A/6 eatures in highl$ e icient manu acturing corporations+ an! has more recentl$ 0een signi icantl$ ena0le! 0$ computeri9ation+ especiall$ to anal$se an! manage timings rather than stoc, le"els. :ote! authors to ha"e co"ere! the su0Dect inclu!e ?!*ar!s Deming+ 6aiichi 'hno+ an! Lasuhiro &on!en. 6he acron$ms page contains a more amusing !e inition o A/6.

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Master B)a"0 Be)t ) A highl$ 8uali ie! Six Sigma practitioner+ t$picall$ concerne! *ith o"erseeing Six Sigma acti"ities rom an organi9ational perspecti"e. Materia)s /eHuirements P)anning >M/P? ) pro!uction 8ualit$ management metho!olog$ ocusing on planning stoc, %materials an! components o all sorts( le"els an! a"aila0ilit$ accor!ing to pro!uction sche!ules. Pareto Prin"i*)e, Pareto 'iagram, Pareto Ana)ysis ) 6he Pareto Principle is other*ise an! more commonl$ ,no*n as the 40:20 rule. 6he Pareto Principle *as name! a ter its originator Vil re!o Pareto+ %1444)1223( an /talian economist an! pro essor o political economics at @ausanne ;ni"ersit$+ *ho irst !isco"ere! the 40:20 7rule7 o 7pre!icta0le im0alance7+ that %as ar as Six Sigma is concerne!( pro"i!es a 0asis or ocusing on the 205 o acti"ities that generate 405 o results+ or the 205 o ailures that are responsi0le or 405 o the *aste+ etc. Pareto irst ma!e his !isco"er$ *hile anal$sing *ealth !istri0ution among the =ritish+ in 1427. 6he Pareto Principle is also ,no*n as 6he Parato @a*+ 6he Principle ' @east ? ort+ an! 6he Principle ' /m0alance+ *hich in themsel"es pro"i!e an example o the Pareto Principle in action 0ecause !espite all the options+ har!l$ an$one e"er uses an$ other name than 76he 40:20 Cule7. &ore Pareto explanation an! examples in use. Process ) 6he *or! process is *orth mentioning 0ecause it is a un!amental cause o con usion %an! not Dust in Six Sigma+ 0ut that7s another stor$(. 6he *or! process is use! hea"il$ in !escri0ing ho* Six Sigma *or,s+ an! it7s also use! hea"il$ in re erring to the ser"ice or pro!uction acti"ities %processes( on *hich the Six Sigma metho!s %or processes( are !irecte!. Lou see *hat / mean... /t is 0oth the su0Dect an! the o0Dect. People easil$ get con use! 0$ terminolog$ at the 0est o times+ so it7s *orth ta,ing extra care *hen using *or!s li,e process *hich ha"e at least t*o !istinctl$ !i erent meanings. Eor example a"oi! phrases such as #Six Sigma is a process that uses processes to impro"e processes.# /t7s true+ 0ut its a loa! o 0olloc,s. So+ *hen using the *or! process+ chec, that people ,no* *hat process $ou are actuall$ re erring to+ an! then $ou *ill ha"e a ighting chance o not !isappearing up $our o*n 0ac,si!e. Pro"ess Ma**ing ) !iagrammatical representation o ho* processes *or,+ as coul! 0e use! an! !e"elope! in team meetings on a lip)chart+ or other me!ia+ to ena0le teams to un!erstan! processes+ participants+ an! *here an! ho* impro"ements might 0e ma!e. Produ"tion P)anning ) generic term !escri0ing the o"er)arching metho!olog$ use! in managing the suppl$ process rom receipt %or orecast( o customer re8uirements through to !eli"er$ notes an! in"oicing. Pro!uction planning there ore inclu!es:

interpretation o customer or!ers/re8uirements

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*or,s or!ers sche!ules an! computer programs/ implications parts+ stoc,s an! materials machiner$+ plant+ e8uipment a"aila0ilit$ an! allocation people an! teams 8ualit$ an! other targets ) setting an! monitoring stoc, an! purchasing monitoring an! recor!s or!er processing+ a!ministration an! accounting necessar$ inter)!epartmental liaison %e.g.+ sales+ export+ etc(

Pro!uction planning is t$picall$ highl$ mo!ulari9e! an! computeri9e! since process relia0ilit$ is crucial an! is s$stematicall$ repeate!+ although pro!uction planning must also allo* or "ariation in response to sales or other changing !eman!s an! pro!uct speci ications. Pro!uction planning is generall$ a *ee,l$ an! monthl$ re8uirement+ as *ell as incorporating longer)term commitments an! consi!erations. 6he particular sales en"ironment an! pre!icta0ilit$ o the mar,et an! 0usiness ha"e maDor impacts on pro!uction planning. Volatile mar,ets an! unpre!icta0le sales o0"iousl$ ma,e pro!uction planning more !i icult. <osts an! 0u!gets+ health an! sa et$+ en"ironmental+ an! other in!irect consi!erations or compliances are o course rele"ant to pro!uction+ 0ut not !irectl$+ an! so are not inclu!e! as integral parts o the process. S x A Q ? ) a natt$ little ormula a!"ance! 0$ Six Sigma *riter -eorge ?c,es or emphasising an! assessing the nee! or Six Sigma proDects to eature 0oth strong technical 8ualit$ %S(+ an! strong acceptance 0$ the sta,ehol!ers o the proDect team7s propose! solutions %A(. ? represents the excellence o the results+ although *h$ it shoul! 0e ? an! not C rather !e eats me. Bhate"er+ the i!ea is a soun! one+ in that A is a multiplier an! shoul! along *ith S shoul! 0e assesse! in simple terms at the earl$ phase o a Six Sigma proDect. ?c,es suggests scoring each o S an! A out o 10+ an! that i ? e8uals an$thing less than 10 then the proDect is unli,el$ to succee!+ *ith the implication to return to impro"ing technical 8ualit$ an! sta,ehol!er 0u$)in. Six Sigma ) ho* long ha"e $ou gotG.... at its most 0asic Six Sigma e8uates to 3.4 !e ects per million opportunitiesK at its most sophisticate! %!are one suggest most h$pe!G..( Six Sigma is an organi9ational philosoph$. So$t S0i))s ) s,ills re8uire! or managing people+ relationships+ acceptance an! e ecti"e communications. A potential area o "ulnera0ilit$ in man$ Six Sigma implementations+ 0ecause o the pre!ominance o Six Sigma team lea!ers *ith strong process s,ills an! attention to !etail+ *hich can sometimes 0e at o!!s *ith the a0ilities o intuition+ empath$+ rapport)0uil!ing+ relationship)0uil!ing+ an! other 7so t7 people)s,ills. Sta0e&o)der ) "itall$ important aspect+ this one: sta,ehol!ers are not Dust customers+ sta,ehol!ers are all the people *ho are a ecte! 0$ the solutions
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i!enti ie! *ithin a Six Sigma proDect+ an! all the people *ith some in"ol"ement in implementing the solutions. To))gates ) 0rea,s or re"ie* 0et*een Six Sigma processes *ithin an$ o the D&A/< stages. Tree 'iagram ) pictorial representation o ho* a 0roa! aim is 0ro,en !o*n into !etaile! actions+ an! *hich 0elong to name! in!i"i!uals or !epartments. A mapping techni8ue that promotes creati"e thin,ing to*ar!s !etaile! causes an! e ects an! accounta0ilities. >elps to a"oi! ten!encies or acti"ities an! accounta0ilities to 0e le t too "ague. U7s/0ig U7s ) &otorola Six Sigma)spea, or actors or "aria0les that ha"e the greatest impact on the 70ig L7s7. L7s/0ig L7s ) &otorola Six Sigma)spea, or the most important 0usiness results an! measures that are lin,e! to critical customer re8uirements an! expectations.

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Case Study = Six Sigma Im*)ementation in B&arti Broad6and

=harti =roa!0an! :et*or,s %==:@( is a lea!ing integrate! 0roa!0an! ser"ice pro"i!er operating in the 0roa!0an!+ /nternet an! VSA6 mar,ets. /t pro"i!es customise! an! integrate! solutions to corporate customers. 6he compan$ ha! a goal o !eli"ering error) ree ser"ices to customers 0$ !oing the Do0 right the irst time+ e"er$ time. Bith the 8ualit$ o0Decti"e ha"ing 0een !eci!e!+ an executi"e committee %?<( comprising nine o icials+ inclu!ing the <?'+ *as orme!. 6he committee stu!ie! "arious other 8ualit$ tools an! processes li,e /S' an! 6S& in a!!ition to Six Sigma. 6he choice or Six Sigma *as ma!e as it *as closel$ aligne! *ith the outline! 8ualit$ o0Decti"e. Accor!ing to Asho, AuneDa+ <?'+ ==:@+ #Be realise! that the telecom in!ustr$ is un!ergoing rapi! change an! so are customer re8uirements. Six Sigma met the re8uirements o this changing en"ironment.# 6here *ere alrea!$ se"eral case stu!ies o success ul Six Sigma implementations in large companies li,e -?+ &otorola+ Bipro+ 6<S an! Sat$am.

Ma0ing t&e "ustomer a *riority

>a"ing !eci!e! upon /-? as the consultant+ the Six Sigma initiati"e *as ormall$ launche! in Aune 2003 *ith the tagline: 7Six Sigma)m$ customer+ m$ priorit$7. 6he compan$ has outline! that impro"ing customer satis action is the 0usiness o0Decti"e or irst $ear o the initiati"e. 6he executi"e committee i!enti ie! the processes that *ere in conDunction *ith this ocus area. /n the irst phase+ critical 0usiness processes *ere aligne! *ith 0usiness o0Decti"es. 6he critical o0Decti"es i!enti ie! are customer satis action+ emplo$ee satis action+ impro"ing re"enue an! ree cash. Eirst+ the proDects *ith processes mappe! against these o0Decti"es *ere to 0e un!erta,en. An! then the 8ualit$ impro"ement proDects or existing an! ne* pro!ucts *ere to 0e un!erta,en. Almost 43 percent o Six Sigma proDects at ==:@ are 0ase! on customer satis action. A cross) unctional team *as orme! to tac,le each proDect. 6he team comprises a sponsor+ a lea!er an! our to i"e team mem0ers. 6he lea!er+ also calle! the 7<hampion7 can 0e either a -reen =elt or =lac, =elt. 6he !uration or each proDect can range 0et*een three to our months. Eor the irst phase the team chose 13 critical proDects that o ere! su0stantial gains. =lac, =elts are in"ol"e! ull)time in the 8ualit$ impro"ement process *hile -reen =elts spen! aroun! 4)10 percent o time on 8ualit$ impro"ement. A =lac, =elt can 0e engage! in t*o to three !i erent proDects simultaneousl$.

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?ach proDect ollo*s a i"e)phase metho!olog$. 6hese inclu!e !e ining an! 8uanti $ing the pro0lem+ measuring the !e ect rate+ i.e. the 0aseline. 6his is ollo*e! 0$ the anal$sis phase *here anal$sis is !one on *hen+ *here an! ho* the !e ects occur. 6he ourth step is impro"ement+ in!ing pro0a0le solutions an! appl$ing them. 6he inal step is control in terms o sustaining the impro"ements. ==:@ is appl$ing Six Sigma to processes or timel$ complaint resolution+ timel$ or!er implementation+ timel$ in"oice su0mission an! :'< complaint resolution. Bhen the teams starte! measuring critical 0usiness processes the$ oun! that the 0aseline *as not as per customer expectations. 6here *ere gaps o aroun! 30)40 percent in some processes. 6he 0aseline ha"ing 0een measure!+ targets *ere set or impro"ing the processes. A ter anal$sing !e ects+ process impro"ement ,ic,s in. Simpli $ing the process instea! o changing the entire process 0rings in the impro"ement. 6he tool essentiall$ re8uires ine)tuning the process an! eliminating those that !o not a!! "alue. #Bhen $ou are simpli $ing the proDects pro!ucti"it$ goes up *ithin the same resources+ there0$ lea!ing to optimum utilisation o the resources+# sa$s AuneDa. 'ne o the *a$s o simpli $ing processes is to use /6 or automating processes. 6he executi"e committee continuousl$ monitors the proDects. 6here are monthl$ re"ie*s carrie! out 0$ the <hampion+ Sponsor an! /-?. A 8ualit$ !ash0oar! has also 0een create!+ *herein e"er$ month per ormance is reporte!. 6he <?' an! the <'' monitor *hether the o0Decti"es are 0eing met.

Bene$its
/n six months ==:@ ha! achie"e! timel$ complaint resolution 11 percent rom the 0aseline+ timel$ or!er implementation up 70 percent rom 0aseline+ timel$ in"oice su0mission up 31 percent rom 0aseline an! :'< complaint resolution that *as 42 percent rom 0aseline. 6he Six Sigma process impro"ements ha"e translate! into pro!ucti"it$ enhancements+ impro"e! customer satis action an! process e ecti"eness. ==:@ is targeting an estimate! sa"ing o aroun! Cs 10 crore in the irst $ear o operation. 6he target *as to achie"e 22 percent %i.e. approximatel$ our Sigma le"el( %7Eirst 6ime Cight7( *ith respect to respecti"e set norms 0$ &arch 2004 on all ,e$ critical processes. Since Six Sigma is a continuous impro"ement initiati"e+ the compan$ *ill 0e un!erta,ing another 0usiness o0Decti"e or the next inancial $ear. 'n the uture roa!map are Six Sigma or all processes an! higher ?)SA6 %emplo$ee satis action( an! <)SA6 %customer satis action( in!ex. ==:@ plans to get almost 20 percent o the emplo$ees to 0e -reen =elts 0$ 2003+ *ith almost 100 percent o the emplo$ees to 0e in"ol"e! in the Six Sigma Dourne$ 0$ the same time.

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