Questioning Six Sigma Effectiveness, Scale and Alternatives
Author: By Joe Froelich and Cris Del Angel
Six Sigma, LEAN and other similar disciplines of analysis and control have been utilized for decades. Ever since former GE CEO Jack Welch sang its praises in his 2001 book, the Six Sigma process in particular has been widely used by companies looking to streamline their operations and capitalize on opportunities. The process has undoubtedly helped improve the financial results of major corporations such as Toyota, ING and Volkswagen. Six Sigma is often touted as the hero of the organization or blamed as the goat, as evidenced by what transpired at 3M and Home Depot. Given the intensifying scrutiny on Six Sigma, we offer the following perspective on its effectiveness, scale and alternative approaches.
Introduction to Six Sigma
Six Sigma is a cyclical process utilized to identify issues and opportunities within an organization. Each step in the cyclical process is required to ensure the best possible results. This process is a progression from beginning to end.
Six Sigma was first used on a wide scale by Motorola in the 1980s to improve quality through statistical measurements and benchmarking. The process entered the mainstream of public perception in the 1990s when CEO Jack Welch embraced it at General Electric. Since then, Six Sigma has experienced its share of success stories, as noted by the aforementioned companies, as well as its share of failures. Along the way, it has become a fixture in many corporate cultures.
The Six Sigma process does not need to be regarded as a cumbersome undertaking. This process is comprised of five steps. Each step involves a series of actions to be completed before moving on to the next step. Six Sigma team members intimately know this process as DMAIC.
Define the customer, their critical issues and the core processes involved with these issues. Also, project boundaries including the start, mapping of the process flow, and stop of the process must be defined.
Measure the performance of the core business process involved. This step involves data collection to determine defects and metrics in the processes. These results are then compared to results from customer surveys to determine shortfalls.
Analyze the data collected and process map to identify gaps between current performance and ideal performance. This step also involves the prioritization of issues and opportunities for improvement and reasons for observed variations.
Improve the target process by developing innovative solutions using technology and discipline to correct identified issues as well as prevent problems.
Control the improvements by developing, documenting and implementing an ongoing plan to monitor changes and prevent employees from regressing back to their old way of conducting themselves.
