Business Management Strategy

 

Six Sigma is a term coined by Motorola that emphasizes the improvement of processes for the purpose of reducing variability and making general improvements. It is a meshing of several quality tools into a total quality methodology. When used properly, Six Sigma can provide amazing results to any company’s bottom line.

Six Sigma is a rigorous methodology that focuses on consistently developing and delivering virtually perfect products and services. Six Sigma is also a management strategy in which statistical tools are used to achieve greater profitability and breakthrough gains in quality.

Six Sigma is beneficial by driving data driven decisions instead of “by the seat of the pants” decision making. It has been shown to improve a company’s overall competitive advantage.

For every success story there are many less than acceptable deployments. Six Sigma has been incorrectly used as justification for personnel reduction, and for taking directions where the data was not clearly and concisely supporting the conclusions. Deployment of Six Sigma should be both strategic and tactical for best results. Governance of the process provides benefits as well, so that over zealous practioners do not read into the data something that is not there.

Benefits
Benefits of Following the Strategic Six Sigma Methodology

§ Cost Reductions
§ Defect reductions
§ Market-share growth
§ Product and service improvements
§ Culture changes
§ Productivity improvements
§ Customer relations improvements
§ Productivity improvements

Steps of Certification
Six Sigma Overview

What is Six Sigma?

…It Depends on Your Perspective!

What is Six Sigma from a Senior Management Perspective?

It is a formal, structured Management Process that ensures that resources are focused on achieving breakthrough results that are:

Linked to Strategic Critical Success Factors, and

§ Seen as high value by the customer, and
§ Have a significant, quantifiable benefit that increases stakeholder value How does the Six Sigma Management Process Work?
§ Leaders Lead
§ Charter BB Projects
§ Assign BBs & Teams
§ Monitor Project Progress
§ Project Sponsors – Weekly
§ Senior Leaders – Gateways
§ Remove obstacles
§ Decide course of action from options/solutions
§ Implement Plan
§ Deliver Benefits
§ Belts (MBB & BB) Advise
§ Provide counsel & coaching
§ Lead teams
§ Follow DMAIC / DMEDV Process
§ Provide Status updates
§ Identify obstacles
§ Present options/solutions
§ Provide counsel & coaching
§ Accountants validate benefits
§ What are the Results of Managing using the Six Sigma Process?
§ Six Sigma increases management control of the processes that produce results
§ Managers are able to make bolder decisions
 

What is Six Sigma from a Middle Management Perspective?

It is a process that structures work into Project Charters that clearly define the Business Opportunity, Project Goals and Potential Benefits that directly link to Strategic Critical Success Factors, Customer Value and Bottom Line results
It is a formal, structured problem solving / problem prevention process that strives for perfection

Impact of Defects on Costs

§ Clear “Line of Sight” to customer and stakeholder perceived value
§ Significant contribution to the “Bottom Line”
§ Aligned with Enterprise Strategy

The Project must clearly contribute to achieving the Strategic Objectives of the organization
Projects may support an organization’s function’s Strategic Objectives that, in turn, support the achievement of the Enterprise’s Strategic Objectives

Clear “Line of Sight” to Customer / Stakeholder perceived value
Specific, quantifiable goals are established for the project that are perceived as high “Value Adding” by Customers/Stakeholders

For example: Projects that improve critical internal processes might reduce cycle times resulting in

§ Reduced costs that increase the bottom line or reduce prices to end users
§ Shorter delivery times that increase customer satisfaction
§ Greater product flexibility that produces significant product differentiation
§ Significant contribution to the “Bottom Line” Ultimately, the project’s benefits should result in significant benefits to the enterprise’s “Bottom Line” Three aspects of the benefits
§ Reducing the spending
§ Reallocating assets to higher value-added work
§ Positioning the enterprise to take advantage of future market opportunities
§ Six Sigma Deployment

How can ICMC World help?

Guidance throughout the entire process- including Trainings, Certification

 

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