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Deploying Six Sigma at Small Companies


Posted by: meikah | 27 February 2006 | 3:54 am

Having mentioned the considerations for implementing Six Sigma, we see that large and small companies will be facing the same issues differently.

We’ve already established that all companies big or small can benefit from Six Sigma. A small company with less than 100 employees however may have few resources available to complete projects. They may also have problems with the number of employees who can work on the project at the same time carry on with their tasks.

The main consideration for small companies will be how (and how many) to train employees in the tools and techniques of Six Sigma. The short term costs for training and the length of time to complete projects may take longer because small companies cannot free up too many individuals in a short period of time to make the improvements.

Since Six Sigma initiative is bound by its traditional focus on training people, small companies must refine the deployment model to meet their needs.

We can learn how European companies do it. European companies are relatively small. The average number of employees is six. Obviously, they cannot afford to be undermanned and wait for six to nine months for their three employees to be away and train for Six Sigma Black Belt. In a less complex environment, it is easier to check if a particular idea making a significant difference in the the bottom line. Small companies, therefore can focus more on results than on training.

Therefore a project-based learning is recommended. Small businesses will have Black Belts candidates learn the tools through direct application to a project. Candidates pick a project and learn the tools through a series of workshops that focus only on those tools that can be applied immediately. No more three-day modules on design of experiments when the problem does not require it.

What this kind of learning needs are consultants with practical experience who can consult and coach. Another good thing about this method is that the whole Six Sigma team, not only the Black Belt candidates, will learn from the experience. This reduces the length of the project as everyone is involved in it. Consequently, the organization achieves the desired results faster.

The benefits of this approach are:

* Increases the probability of success dramatically
* Reduces time to complete the project
* Focuses on learning just-in-time instead of all-at-once
* Limits training to what is needed
* Allows adapting to the pace of the team and the needs of the business

Small business may make an initial high investment on Six Sigma projects or they may not. As Forrest Breyfogle says, “It is all about an investment upon which organization and personal existence/excellence depends.”

Sources:
Six Sigma Deployment At Large And Small Companies
Faster Deployment for Europe’s Small/Medium Businesses

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 Filed under: Deployment | |





4 Responses to “Deploying Six Sigma at Small Companies”

  1. Boyette San Diego says :

    Blogs such as yours are very useful sources of information on Six Sigma for small companies. They can also read some more on the web and in books to be able to get a sense of the system. They would then be more familiar with Six Sigma when attempting the hands-on approach with a consultant.

  2. meikah says :

    Thank you! That is the mission of this blog–to be a useful resource for companies that believe in continuous process improvement.And I’m working to live up to that mission.

  3. Tessa San Diego says :

    I think having a consultant could be even better for a company since the consultant could see the actual operations and guide the small staff in Six Sigma applications. The small company may even have an advantage over large companies in this regard.

  4. meikah says :

    Well, hiring consultants has its good and bad sides. But for small companies, yes, they will appreciate the extra hand. Some advise though that it is easier to develop BBs and MBBs within an organization, who have the right personality profile, have already established internal relationships for getting things done, and a better understanding of the organization.


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