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Six Sigma 101

/ Susan Hendrich / 2 Comments

Six Sigma

Six Sigma is the most effective methodology available for improving the performance of any organization by minimizing the defects in its products or services. Every error committed has a cost associated to it in form of losing customers, redoing a task, replacing a part, waste time/material or losing efficiency.

Understanding the Sigma Scale: The Sigma scale is a universal measure of the performance of any business or organization. Sigma (σ) is a statistical term to represent standard deviation which is a measure of variation in a dataset. Higher sigma score indicates better performance or more precise results. In other words, if the output is defective sixty-nine percent of the time, it implies that the performance is One Sigma compliant. On the other hand if it is defective thirty-one percent of the time, it means that the performance is demonstrating Two Sigma compliance.

Table: The Sigma Scale
Sigma Percent Defective Defects per Million
1 69% 691,462
2 31% 308,538
3 6.70% 66,807
4 0.62% 6,210
Six Sigma

5

 0.02% 233
6 0.00% 3.4
7 0.00% 0.019

 

As mentioned in the table above, Six Sigma implies almost perfect output resulting in only 3.4 defects per million opportunities (DPMO).

DPMO: The term ‘defect’ can be explained as the non-conformities present in the output that falls beyond the satisfactory customer limits. The number of defects present per million opportunities (DPMO) is used to determine as to which Sigma scale a particular process corresponds to. Most of the organizations around the world deliver results in the Three to Four Sigma band, which implies that they are losing around a quarter of total revenue due to the presence of defects in their organizations.

Six Sigma Programs

There are several levels of Six Sigma programs and numerous private institutes offer them. Motorola University is one of the best institutes providing versatile Six Sigma programs to the aspiring management professionals.

Basic features of Six Sigma programs:

First of all, the Six Sigma program educates the professionals about the basics of Six Sigma which includes all tools, applications and statistical approaches. The general Six Sigma program includes:

  • Basic mathematical concepts of probability, factorial and exponential terms.
  • The details of various diagrams used in Six Sigma like Ishikawa diagrams, fishbone diagrams, Pareto charts, histograms etc.
  • The methods of analysis like root-cause analysis, Kano model etc.
  • Practical applications of the statistical tools in problem situations.

 

DMAIC Model

The DMAIC model stands for Define, Measure, Analysis, Improve and Control. These are subsequent steps which allow an organization to reach the ultimate goals without failing any of the quality parameters. After identifying the problem areas of a company the objectives are defined. Then the scopes and existing problems are measured skillfully and the probable output of the strategies analyzed. Finally it is all about improving and controlling the process until the desired results are obtained. Here’s how it works:

  • Define the goals for process improvement in coherence with the customer’s demand and the organization’s strategies. Includes scope, the available resources, the possible expectations and the timelines.
  • Measure the current performance and amass relevant data for future. This part of the approach applies a heavy use of advanced mathematical and statistical methods, and actually quantifies the customer’s need and requirements, the company’s goals and objectives, and the present stand of the project. 
  • Analyze the current setting and observe the relationship between key parameters and performance. Involves breaking down the process into details and analyzing it thoroughly to get into the root causes of the problems that may arise.
  • Improve the process based on the analysis to further optimize the process. This is the phase where after understanding the root causes of the problems or defects in the system, the search for the most innovative and fruitful solution is carried out.
  • Control the parameters before they affect the outcome. This is the one of the most important parts and the last one of the approach. It makes sure that the improvement generated is consistent, and sets a new standard for the future.

Selecting A Project for Six Sigma
This is an important part of the whole process. The right project should be chosen for the maximum benefits in the long run. For this reason, it is best to do some research on the current market practices and policies. But such research may not always bring out clear cut guiding rules and tips to choosing a project. So, the Six Sigma Project Selection Criteria Matrix was brought out by the Supply Chain that provides an approximate idea of the project that is supposed to fetch highest gains in the future. It comprises of five selection criteria and on the basis of these criteria, each project is measured and a rough estimate of the highest promising project is drawn. Some of the general tips to remember before selecting a project are as follows:

  • Don’t just think about monetary gains while selecting a project because certain projects are indirectly related to the other processes running in the company and application of the six sigma tactics might not directly result in monetary gains. It can affect the motivation and efficiency of the human labor, the reputation of the company in the market, better functional basis for other processes or such, resulting in better performance of the company in the future.
  • A careful concern is required for the organization and functioning of the six sigma consultants for the project. It is very important how to use the resources properly for the effective application of the six sigma strategy, which results in highest long term investment returns of the company.
  • A project should always be divided into different phases like operational, tactical, and strategic, that will utilize the available tools and methodologies of six sigma program, and will bring a better coordination in the company.

A good six sigma project should have three characteristics:

  • The project must be positively related to the company’s policies and objectives. It must achieve the goals and expectations of the company. It can be either the project itself that brings maximum profits for the company or related to other projects so that its improvement in turn causes significant improvement in the other dependant processes.
  • The project must meet the customer’s needs and requirements. It should aid in the improvement of the processes so that ultimately, it comes out profitable to both the organization and the customers or the consumers. After all, a competent company depends on its level of customer satisfaction.
  • The project must contribute significantly to the Bottom Line, by reducing the expenditure, reallocation of assets to higher value-added projects, strengthening the company’s base for utilizing the market opportunities that might come up in the future.

Once the project is selected, it is the time for the senior management to create a project charter. A project charter is a typical brief but detailed description of the company’s goals and objectives regarding the project. It analyses the project and lists down all the scopes of the project. It lists down all the needs of the project and its effect on the other prospective projects as well. It charts down the trends in the market, the customer’s variable needs and requirements and draws a model of how the project should be. In other words, it chalks out a strict guidance and direction for the six sigma team to work at. These are the basics of a six sigma project which are very important for consultants to know.

Training goes organic

/ Susan Hendrich / 1 Comment

Virtual Whiteboarding

Lately you’ve probably seen an increase in the use of hand-drawn “white boarding” in media and learning spots. Think about the long-haired UPS white board guy…   

…or the ever-endearing “Simon’s Cat” series on YouTube…

Now it’s your turn!

LectureScribe is a program for easily producing animated “whiteboard lectures” from a tablet PC or electronic whiteboard. LectureScribe is written by Brian C. Dean, an assistant professor of computer science at Clemson Univeristy.

On Brian’s website, you can find:

  • The LectureScribe program. To install, download this file and place it on any Windows machine. There is no complicated setup required — just double-click the file to start LectureScribe.
  • An example of output of LectureScribe
  • An animated set of instructions on using LectureScribe. This is slightly out of date (for example, image import is now possible, and magnification mode is now turned off by default). A new version will be posted soon.
  • Brian’s article in the Faculty Directions newsletter describing LectureScribe.

LectureScribe

Thinking With Your Heart

/ Susan Hendrich / 1 Comment

Thinking With Your Heart

The sensory path to your brain has three steps, and the brain in your head doesn’t even process your experiences until they have been through the first two steps — from the gut to the heart, and yet another dimension of hidden intelligence.

Neurocardiologists, scientists in an emerging field, have discovered that the brain in the heart contains more than 40,000 nerve cells called baroreceptors. This heart brain is as large as many key areas of the brain in your head. It also has highly sophisticated computational abilities.

With every beat, a new thought or idea is communicated from your heart to the rest of your body. Like your intestinal intuition, this cardio-communication deeply influences how you perceive your world and how you react to it. The heart pumps out speech after speech and every other part of your body is in constant contact with the heart’s demands. These impulses race through the body many times faster than your blood, and it is up to your head brain to try to catch up to them and understand them. The heart also generates many neurochemicals that influence the way we act. One such chemical, atrial peptide, is a primary force in your motivation and commitment to your goals. As we discovered earlier, we need to believe in order to achieve. Well, the heart has more to do with our sense of believing than any other brain we have.

The Heart’s Sense

The brain in your heart also keeps searching for new opportunities to grow or learn, and cross references its interpretations of what those around you are feeling with its own inner state of values and passions. When people tell you to go for your dreams, no matter how far fetched those dreams may seem, people usually say something like, “Follow your heart.” There is now scientific evidence to support the idea that the heart has a dedicated sensory system perfectly calibrated to sniffing out innovative and creative opportunities.

But that’s not all: the heart’s electromagnetic field is by far the most powerful produced by the body. In fact, it is approximately 5,000 times more powerful than the field produced by the brain.

This is true of everyone to a certain degree. People ten feet away may sense exactly what you are feeling. They can even do it over the telephone, and it makes no difference what you are saying. Words are fodder for the brain in your head. Your heart will believe the feeling underneath the words. This means that those people who are most in touch with their own feelings, and the feelings of others, may be the most attuned to what’s really happening in life. It’s imperative that you focus your attention on what you can do, and what you can contribute, not what you can’t. This is one of the uncommon yet simple ways we can better draw upon the combined brilliance and potential of all three of our brains, not just one.

There is so much more to your gut and your heart than digestion and circulation. People are not machines, no matter how often personal or work relationships make us feel as though we are. It’s no wonder that when people don’t feel cared about and valued, it’s so hard to put their hearts into their life or work.

Gut feelings: Your second brain

/ Susan Hendrich / 1 Comment

Gut feelings: Your second brain

If you haven’t read Blink, by Malcolm Gladwell, please put it on your “must do” list. Until then, consider the following…

Many of us assume that human intelligence is based solely on the brain we all know about — the one inside the cranium. It is not. Intelligence is distributed throughout the body.

Go With Your Gut

Example: Whenever you have an experience in life it does not go directly to brain one — the brain in the head — to be thought about. The first place it goes is to the neurological networks of the intestinal tract: the brain in the gut.

Every interaction you have creates an initial reaction in your gut well before it ever traverses your synapses to reach your brain. The feeling may come across as “butterflies in your stomach” or a “knot” of fear or excitement. Some people have been trained to process everything intellectually, so those people may not even notice their gut reactions.

That’s a pity, because your gut is just trying to communicate with you. It is looking out for your well-being, just as your brain is, and it’s making decisions and asking questions you may want to find out about. How important is this meeting or this challenge or this person? Is there an opportunity here? Is there a threat? Is my happiness or advancement at risk?

Known as the enteric nervous system, this “second brain” in your gut works on its own but also in conjunction with the brain in your head. Scientists who carefully examine the elaborate systems of nerve cells and neurochemicals found in the intestinal tract now tell us that there are more neurons there than in the entire spinal column — at least 100 million of them. This gives your intestine the ability to help tell your body and mind what it may be best to do or not do.

Listening to Your Alternate Brains

Many people view gut reactions as those that have not been well thought out or rationally examined. Does this make them any less reliable? No, because they are unclouded by clutter of information found in our heads. Rational decisions are often influenced by forces outside of your true self. Reaching the peak of your true potential depends on developing and applying an energizing, authentic level of intelligence and bringing it to everything you do. For this to happen, you must combine the perceptions and impressions of the gut, heart, and mind.

Think of a time when you considered all of the options and ended up listening to your gut. Did it turn out to be the best choice? It always has for me.

So, how will you handle your next big decision?  I say, “go with your gut!”

Micro-innovate

/ Susan Hendrich / 1 Comment

Innovations don’t have to be major

Even the most mundane transactions can be turned into memorable experiences. Here’s an example:

Standard Parking of Chicago plays a signature song on each level of its parking garage at O’Hare Airport and decorates walls with icons of a local sports franchise-the Bulls on one floor, the White Sox on another, and so forth. As one Chicago resident said, “You never forget where you parked!”

What is your idea for a micro-innovation?