Despite the reported good results of other companies adopting Six Sigma, most companies still operate at Three or Four Sigma. To be operating at Three or Four Sigma means dealing with 6,200 to 67,000 defective parts or transactions per million. That translates to 25% of their revenues being used up to fix defects or eliminate wastes. That’s too costly for a company.
Companies therefore will be better off adopting Six Sigma. The approach identifies and eliminates defects with a structured, data-driven, problem-solving method of using rigorous data-gathering and statistical analysis. It differs from traditional quality improvement programs, because it focuses on input variables.
Achieving Six Sigma however is not easy. Here are the three major factors that can make or break a company’s Six sigma programs.
First is leadership commitment. It requires serious commitment in the form of time, effort, and resources. For a company to be successful, such commitment must come first from the top executive leadership of the organization and must be practiced by everyone.
Second, decisions must be made based on data. It is not enough to run a business based on one’s experience or “tribal knowledge.” There’s no room for ?I think?, I feel?, or ?In my opinion.? With a modern information economy, data is available to virtually everyone in the organization, along with the tools for analyzing that data. It is important therefore to use these data properly to Measure, Analyze, Improve, and Control performance. These are the very foundations of Six Sigma methodology.
Third is the willingness and openness to training and cultural change within the organization. Improved performance does not and will not happen automatically. It needs high-caliber training followed by disciplined implementation. People at all levels have to change the way they go about doing their tasks. In short, new ways of thinking, communicating, and operating must pervade the entire organization. That requires a Six Sigma methodology. The DMAIC/DFSS provide a structured problem solving roadmap and tools towards obtaining an almost zero defect.
It sure sounds a lot of work. But the rewards are worth it. Using Six Sigma will steer your organization to:
(1) Improve Customer Satisfaction,
(2) Increase Profit Margins,
(3) Shorten Cycle Times, and
(4) Reduce Costs.
