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Six Sigma
Methods To Ensure Organizations' Health |
By
Forrest
W. Breyfogle III
Which companies will be around in ten years? The certainty of any
response to this question has probably changed during recent years.
Will your corporation face problems similar to those of Enron or
K-Mart? Many enterprises need to readdress how they measure and make
improvements within their organization. Companies need to seek ways
to replace fire-fighting activities with a focus on fire prevention.
To realize a maximized performance, they now are looking at a new
approach to execute Six Sigma.

Click on the image
to enlarge
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Time-value diagram for developing a bowling ball where
calendar and work times are indicated within each activity
before S4/IEE
deployment. |
Motorola invented Six Sigma in the mid-1980s as
a method to improve quality. It is now a methodology that employs
data analysis and statistics to quantify and maximize an
organization's return on investment through the designation and
removal of "defects" ("Six" Sigma is 3.4 defects/million
opportunities) in manufacturing and service-driven practices.
In the mid-1990s, General Electric took Six Sigma to new heights
when it created "black belts," full-time Six Sigma practitioners,
and "champions," who serve as a liaison between the executive team
and the black belts, helping to define projects and remove barriers.
This approach to implementing Six Sigma involves the use of
statistical and non-statistical tools within a structured
environment for the purpose of creating knowledge that leads to
higher quality products in less time than the competition. The
selection and execution of project after project, which followed a
disciplined Define-Measure-Analyze-Improve-Control (DMAIC)
execution, led to significant bottom-line benefits for GE.

Click on image to
enlarge
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Time-value diagram for developing a bowling ball after S4/IEE
execution, showing a reduction in the overall development
cycle time. |
Many other large and small companies have followed GE's example by
deploying various versions of Six Sigma. More recently, companies
have started focusing on the implementation of Six Sigma in the
development process; this effort is known as Design for Six Sigma (DFSS).
The S4/IEE
approach
In order to take both Six Sigma and DFSS to new
heights, Smarter Solutions, Austin, Texas, developed the Smarter Six
Sigma Solutions (S4)
or Integrated Enterprise Excellence (IEE) methodology. The S4/IEE
approach allows users to get out of the firefighting mode and
provides a structured system to measuring and improving the workflow
through integrating lean techniques, and Six Sigma techniques.
Organizations need to operate in a framework that leads to the right
activities in their day-to-day operations. These activities involve
doing the right things, as well as doing things right. However,
management often unconsciously asks the wrong question of its
employees. When this happens, employees can waste a lot of resources
answering the wrong question.
All managers within an organization need a system that helps them
determine what questions to ask their employees, including the type
of answers the employees should provide. As a result, a system needs
to be created that not only uses data to make the right decisions
for the organization, but also makes meaningful data available in a
form that is useful to divisions throughout the supply chain.
Within an S4/IEE
management system, satellite-level and 30,000-foot-level
metrics are created and tracked. This approach leads to measuring
the organization as a system at different levels, which are aligned.
Long-term improvement opportunities to the overall system can, as a
result, be easily identified and scoped as S4/IEE
improvement projects. Trained practitioners can then follow a
structured roadmap for executing S4/IEE
projects, which can involve quality maximization and cycle time
reduction that minimizes waste within an organization.
At both the satellite and 30,000-foot project levels,
voice of the customer (VOC) issues need to be addressed. At the
satellite-level , a system that captures and tracks the true VOC
is required. This involves more than just sending out survey forms
that people may or not answer. It entails the creation of a
meaningful customer feedback process, which encourages activities
that are aligned with the needs of both internal and external
customers. This information can come from several sources, which can
lead to the formulation of an improvement process, improvement
projects, or new product development opportunities through DFSS.
Producing an efficient system to track the effectiveness of meeting
customer needs at the satellite- and 30,000-foot-levels
is not easy. However, after a VOC scheme is established, systems can
be created to help track and report these metrics, along with other
meaningful metrics, which are aligned with the needs of the business
enterprise as a whole.
Development of a bowling ball
The integration of lean and Six Sigma
statistical techniques within a product DFSS environment can be
illustrated through the development of a bowling ball.
Basically, an eight-month development process of bowling balls is to
be reduced. A time value diagram with calendar times and work times
is constructed, where calendar time and actual work time is noted
within each activity.
An S4/IEE team is
next assigned to reduce the overall development time of this
process, leading to almost a two-month decrease in the development
cycle time. This is achieved by combining two prototype definition
steps through Design of Experiments (DOE) statistical techniques,
where many variables can be considered at one point in time. This
DOE application step addresses the optimization of the bowling ball
core and shell requirements simultaneously. The DOE approach, unlike
the one-at-a-timemethod,dealswithfactor-interaction possibilities.
Furthermore, by considering manufacturing factors within this
development DOE, a ball with less variability is produced.
Becoming learning organizations
Learning disabilities can lead to a corporation's demise before it
reaches a mature age. "Learning organizations" defy these odds by
overcoming these disabilities through an understanding of threats
and recognition of new opportunities. If a complex system is broken
down into its elements, the optimization of each element does not
typically lead to total system maximization. For example, optimizing
purchasing costs by choosing cheaper parts can impact manufacturing
expenses due to an increase in defect rates. One focus of S4/IEE
is to avoid optimizing subsystems at the expense of the overall
system. The methodologies of S4/IEE
offer a roadmap for changing data into knowledge that leads to new
opportunities, allowing companies to become learning organizations.
About the author
Forrest
W. Breyfogle III is president and CEO of Smarter Solutions, Inc.
in Austin Texas. He earned a master's degree in mechanical
engineering from the University of Texas – Austin. Breyfogle is the
author of Implementing Six Sigma 2nd Edition, for which he
received the 2004 Crosby Medal. For more information on Forrest and
Smarter Solutions Inc., please visit
www.smartersolutions.com.
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