The name Six Sigma comes form the concept of a normal distribution or a bell curve. A sigma is one standard deviation from the mean. The goal of Six Sigma is to eliminate all errors or defects within six sigmas or standard deviations from the mean. The errors represent only the absolute extremes of the bell curve. This translates to only 3 defects per million.
Waste Not
The biggest efficiency problem in any company is from waste. Six Sigma can eliminate defective products, which are a waste of workers and materials. With only 3 defects per million this waste is cut to an absolute minimum.
This kind of astronomical quality level is almost beyond belief. This is about as close as you can statistically come to zero defects. Any additional reduction would be prohibitive because of the law of diminishing returns.
More Profits
Profits in any commercial venture are about finding ways to deliver quality products at a minimum cost. This tends to be a balancing act. If you lean too far towards cutting costs, then quality suffers. If you lean too far towards quality then the costs are too high and profits falter. Six Sigma cuts out all of the fat and defines were the balance should be. When this process is established (not finished because it is a continuos process) then the maximum possible profits based on internal efforts are acheived.
The Minuses
The negative side of this picture is that it takes real effort to implement Six Sigma. Don't expect to get something for nothing. It requires commitment from management on all levels. In order to prepare employees to work within the Six Sigma process a significant amount of training is required. People with specific analytical skill sets must be employed. The effort can not be a flash in the pan. Continous effort over 3-5 years is required to obtain the full benefit from these initiatives.
Is Six Sigma worth it? After all there is a heavy commitment of time and resources. The answer is simple. The Six Sigma toolkit can make an organization more efficient than any other method. Companies such as General Electric that have implemented Six Sigma are admired examples of productivity and efficiency. It is an approach that can save a company from disaster in these hard economic times.
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Lean Six Sigma Ppt
A case in point is the sending out of mailings to customers about new products by a certain company. Now, the mail house entrusted with sending out the mail had been cleaning up the mail file of the customer-company for years, without them knowing about it.
During one such mail out, a new employee handling it used the initial address file to send out the mail, which resulted in thirty percent of the mail being returned because of the addresses being insufficient. A query from the customer's side brought to light the file cleaning, which resulted in the inadvertent mistake, which caused mail to be returned. When asked what they would like the customer to do, the suppliers gave a clear-cut response for a fresh address file to be prepared in a way that would help eradicate the problem. Had this been done earlier, it could have saved the wasted time and money for both.
In another case, a printer informed the customer after a long time about the additional charges that he had been applying for converting the three color red, green, blue pieces, which he had been getting, into the 4 color CMYK version.
Customer-Supplier Links
In both the cases, the company was also a supplier. It supplied electronic files, containing the artwork to the printing company, and the addresses to the mailer. This resulted in the printer and the mailer assuming the customer's role. These roles are reversed when the mailing is sent out or printed material is supplied. Therefore, in most instances of such customer-supplier situations, one being unaware of the requirement of the other, they maintain whatever is supplied as standard, even when the change would not require much cost or effort - resulting in loss to both.
In a customer-supplier situation, if you are aware that the product you get will be sub-standard if the raw material is poor, and your supplier relies on you to supply the input/raw material, and check for flaws in the raw material, then it is important to find out the exact requirements of your supplier. Your focus should be to identify everything that would help minimize the chance of error, the time of supply and the cost of your job. If required, make suitable changes in your processes, which would speed up product delivery with minimum risks.
Use A Checklist
A checklist is necessary to know input requirements. In your role as supplier, make sure you have such a checklist. In case you do not have it, determine the input requirements from your customers and create one, keeping the objectives of benefiting your customers, along with the reduction in risks and time required for meeting their needs, and helping them save money. Take your supplier's suggestions on ways to help him do a better job for you, and guide your customers to give feedback on the product, so that it can be designed to suit their requirements.
Mastering the art of switching roles in your dealings with your customers and suppliers allows you to lead and follow according to situational demands. Even though it requires time and effort, it will result in greater profits by generating more business and contributing to savings.
Both Dee Reavis & Tony Jacowski are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.
Dee Reavis has sinced written about articles on various topics from Martial Arts, Business Plan and Debts Loans. Dee Reavis holds a masters degree from Texas A & M in industrial engineering. He is also a registered professional engineer. More Six Sigma information can be found at:. Dee Reavis's top article generates over 8100 views. to your Favourites.
Tony Jacowski has sinced written about articles on various topics from University, Six Sigma and Information Technology. Tony Jacowski is a quality analyst for The MBA Journal. Aveta Solution's Six Sigma Online offers online and certification classes for lean six sigm. Tony Jacowski's top article generates over 90500 views. to your Favourites.
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