The book Six Sigma for Dummies cites the nine practices and characteristics common in successful Six Sigma efforts.
First, you need to set stretch goals. For your Six Sigma initiative to succeed, you need to set aggressive goals. In other words, a stretch goal represents a 70 percent improvement over current performance.
For example, if your company’s profit margin is seven percent, you want to aim for 11.9 percent (a 70 percent increase). Or if a certain process or product is producing ten defects per 100 units, you want to reduce that number to three defects per 100 units (a 70 percent improvement).
You can also aim for a stretch target, which is to benchmark yourself against your competition. When you do benchmarking, you evaluate your performance in the same level of performance achieved by the best organizations in your industry.
Toyota, for example, is a company that is benchmarked for the time it takes them to introduce a brand-new vehicle design. Most companies take 36 to 48 months to bring a new vehicle to market; Toyota did it in about 24 for its hybrid car, the Prius, which also presented a technical challenge far beyond those of traditional gasoline-only cars.
Second is to target tangible results. Financial savings and benefits are some of these critical tangibles. Six Sigma projects therefore must be tied to a tangible financial measure of return: dollars saved, new revenue gained, specific costs avoided, and so on. These measured financial returns must be formally measured, tracked, and rolled up. If you fail to do this, your Six Sigma efforts will lose their financial potential.
Third is to determine outcomes. You actively adjust and control the inputs so that you reach your desired outcomes with certainty and consistency.
Fourth, you think before you act. Six Sigma’s DMAIC methodology makes you treat a problem into several steps: defining, measuring, and planning a solution. You then will have a detailed, in-depth definition of the problem and potential solutions. After this, you develop extensive measurements to evaluate current performance of you process or system. Then you analyze the inputs, outputs, conditions, and causes-and-effects. You are now ready to try an improvement solution. The result: the DMAIC approach solves the problem more quickly and with better, more consistent results than other approaches.
Fifth is to put your faith in data. Data allows you to objectively identify and select the truly best ideas and solutions from among the many alternatives.
Sixth, you minimize variation. You have to keep in mind that variation even around low averages or single numbers can often cause more damage than their level itself.
For example, having a high average number of orders is great. But if the day-to-day number of orders varies widely, it requires the company to have excess equipment and staff always on hand, just in case. When the number of orders varies to the low side, equipment and staff sit idle. The company would actually come out ahead if its average number of orders were lower but its day-to-day variation were smaller. That way equipment and staff needs would be steady and costs would be reduced.
Seventh, align projects with key goals.
Eighth is to celebrate success. Small or big successes should be appreciated.
Success is contagious. When the first, small victories are showcased and lauded — with recognition, rewards, praise, and publicity — people develop real interest. They build confidence and trust. They begin to believe in the power and potential of the method. Each successive victory becomes that much easier.
Ninth, involve the owner.
