Professional Documents
Culture Documents
Does Six Sigma Have A Future The Great Debate
Does Six Sigma Have A Future The Great Debate
Does Six Sigma Have A Future The Great Debate
2
Making knowledge work harder
TALK OUTLINE
• Prelude: How Six Sigma came to GE
• The debate: In “Point-Counterpoint” Format
▪ Six Sigma Bottom Line Impact Exaggerated
▪ Basic Six Sigma Concept is Flawed
▪ There is Nothing New to Six Sigma
▪ Six Sigma adds Bureaucracy
▪ Other Faults of Six Sigma
▪ Six Sigma is already Waning
• Summary
• Your turn
4
Making knowledge work harder
Point: BOTTOM LINE IMPACT EXAGGERATED
5
Making knowledge work harder
Counterpoint: BOTTOM LINE IMPACT
EXAGGERATED
6
Making knowledge work harder
Point: BASIC SIX SIGMA CONCEPT IS FLAWED
Concept of 3.4 defects per million (dpm)
opportunities is flawed:
• Deming: Setting numerical goals results in
search for ways to manipulate measurement
system, rather than to improve process
• All products are not created equal: Jet
engine versus toaster
• Definition of “defect” and “opportunity”
especially manipulatable
9
Making knowledge work harder
Counter Point: THERE IS NOTHING NEW
TO SIX SIGMA
• The goal of Six Sigma is to be effective—not
novel
• What’s wrong with common sense and a
disciplined customer-oriented approach?
• Six Sigma is much more than statistics—it
integrates the most powerful tools available
• Six Sigma is improving quality
12
Making knowledge work harder
COUNTERPOINT: SIX SIGMA ADDS
BUREAUCRACY
So what? Six Sigma works
• Even Jack Welch admitted Six Sigma adds
some unavoidable bureaucracy
• Doing it right the first time is faster in the
long run
• Formal infrastructure is important and a
success factor
• Hierarchy gives responsibility to most
qualified
• In age of specialization, we can’t all be
experts on everything
• MBB provides boot camp for aspiring
managers
• Emphasis on hierarchy is declining
13
Making knowledge work harder
Point: OTHER FAULTS OF SIX SIGMA
• Emphasis on manufacturing
• Focus on addressing individual CTQ’s, instead of entire
system
• Selectivity of tools (those with which developers were
enamored)
• Emphasis on data analysis over data acquisition
14
Making knowledge work harder
Counter Point: OTHER FLAWS OF SIX SIGMA
Evolution of Six Sigma for Manufactured
Products
15
Making knowledge work harder
Counter Point: OTHER FLAWS OF SIX
SIGMA
Asserted Flaws are being Addressed
• Greater recognition of need for “multivariate Six
Sigma”
• Tools like QFD are providing systems focus
• Tools found useful in applications added, e.g.,
simulation, life data analysis, mistake proofing
• Tools training becoming applications-area focused,
e.g., mixture experiments for chemists, survey
sampling for marketeers
• Appreciation of importance of data acquisition
• Recognition not all projects need Six Sigma,
e.g.,equipment installation, upgrading computer
network, cold fusion
16
Making knowledge work harder
Point: SIX SIGMA IS ALREADY
WANING
• Management continues to demand “something
new.”
• Number of newspaper and magazine articles
mentioning Six Sigma dropped off about 10% in
2003 from 1999-2002 peak
(Source:www.google.com)
• 5% drop in number technical articles from peak
• Lean is replacing Six Sigma as top attention-
getter
17
Making knowledge work harder
Point: SIX SIGMA IS ALREADY
WANING: GE
• Precipitous drop in number of Six Sigma mentions in GE
Annual Report
▪ 1995: 0
▪ 1996: 37
▪ 1997: 91
▪ 1998: 64
▪ 1999: 53
▪ 2000: 49
▪ 2001: 69
▪ 2002: 9
▪ 2003: 4
• Less specific in quantifying Six Sigma savings
18
Making knowledge work harder
Counter Point: SIX SIGMA IS ALREADY WANING
19
Making knowledge work harder
Counter Point: SIX SIGMA IS ALREADY
WANING—More Statistics
• Members Six Sigma Forum:
▪ May 2002: 10,598 (first year)
▪ May 2003: 16, 506
▪ May 2004: 20,587
• Six Sigma Forum Magazine
▪ Ad sales: Increased from 9 to 14 pages per issue
▪ Articles: Backlog increasing
• Bill Tony, Publisher ASQ Quality Press: “Customer
interest in Six Sigma continues to grow. We can’t find
enough SS titles based on customer demand—including
those not quality practitioners. We (also) hear that SS is
passé. We just aren’t seeing it.”
20
Making knowledge work harder
Counterpoint: SIX SIGMA IS ALREADY
WANING-Evolution
• Growth of Six Sigma beyond manufacturing
businesses
▪ Financial Services
▪ Health Care
• What’s next:
▪ Government, education, academia, etc.
▪ Globalization
▪ Adaptation by smaller companies
• Integration with Lean strategies (see November
2002, Six Sigma Forum Magazine)
Challenge: Quantifying savings in move from short-
term (DMAIC) to longer term (DMADV) applications.
21
Making knowledge work harder
SUMMARY
• Godfrey: “Of course, there will be something after Six
Sigma…but does this really mean we (should) wait
and not use the best tools available now?”
• Six Sigma has become a more silent partner in GE and
other companies where it flourished early
• Six Sigma is on the upswing in many new application
areas (e.g.,financial, health services) and arenas (e.g.,
globalization, small businesses)
• Six Sigma continues to evolve
▪ Basic concepts are sound--will continue to provide
improvements
▪ New approaches provide healthy refurbishment
▪ Will be important part of whatever comes next
22
Making knowledge work harder
For copies of these slides contact
gerryhahn@yahoo.com,or,hoerl@crd.ge.com
23
Making knowledge work harder
SOME OF OUR CONFERENCE TAKE-AWAYS
• Some key ideas
▪ Processes
▪ Voice of customers
▪ Globalization
▪ Computers, computers, computers
▪ Super-saturation
▪ Examine Six Sigma critically
• And a few further impressions
▪ Almost all talks from computers
▪ Applaud at beginning of talk
▪ How times have changed: Applications paper in Annals
(Box and Hunter, 1957)
▪ Listen to Yogi Berra
24
Making knowledge work harder