Tuesday, April 24, 2007

How does Six Sigma Works?

Six Sigma can be applied in many fields of business. Design, Services, Sales, Manufacturing, etc have the own six sigma steps and process (DFSS: Design for Six Sigma).

Picture IN.3 Design for Six Sigma Model

In the Manufacturing field usually use the Six Sigma Manufacture with its DMAIC (Define – Measure – Analyze – Improve – Control). The Manufacturing Six Sigma focuses on assuring the quality in manufacturing process, improvement in serious problem, monitoring of CTQ, etc.

R&D with the R&D Six Sigma commonly uses the steps IDOV (Identify – Design – Optimize – Verify) to perform the Six Sigma Projects. This type used for designing and developing new process/products as the fulfilling the customer need. R&D Six Sigma activities involve election of CTQ to fulfill the customer need, determining the tolerance of part spec, cost down product development, quality assurance of products capability, etc.

Beside both type of Six Sigma, the Transactional Six Sigma as the one kind of type that performs in Sales/Services areas. Usually cases in Transactional Six Sigma are Cost improvement, improving cycle time and accuracy of products need by customer, etc.

Key success implementing Six Sigma in the organization must be have a good system and good methodology.

1. Top Down procedure

The Concept Six Sigma working must be known first and directed by the Top Management of the organization. Six Sigma cannot work properly without good awareness by the Top. They must be active in controlling, creating system review (champion review/project review), and awarding system by the Top also good knowledge of Top about Six Sigma content itself. By developing awareness and controlling Six Sigma activities by Top, will be pursue the whole six sigma process activities in the organization (Down activities). General Electric success implementing six sigma because of the Top (Jack Welch) have good knowledge about six sigma and provide good leadership in the six sigma activities. Jack Welch always publicizes the policy periodically. That is the Power.

2. Must be involved all member of the organization

In the organization usually consist of many process of business. In example, Manufacturing process not only has business in manufacture, but also has a services process business. Six Sigma must be implemented in all business process. Its mean that all member must be participate on Six Sigma activities. Involving all member to conduct Six Sigma must be facilitate by organization policies, such as providing training program about concept six sigma regularly, project based on six sigma, evaluation system performance of member. In Some Organization have a system evaluation performance based on six sigma activities that supported certification system.

3. Global Standard of the Organization

To create good and deep awareness of six sigma activities, we must create global standard of the organization. Six sigma must be become the common language of organization process (CTQ, Sigma Level, Capability process, etc…) or all process drawn by variation, or reporting system by six sigma steps is the example how to standardize six sigma in the whole organization activities. Therefore, organization must be often to create the case study. Some company practice the six sigma system by creating project personal, everyone must be creating a project six sigma in their area. Besides it will be culturing six sigma in the organization also will develop the organization knowledge.

Any business uses a number of processes for its operations. Improving many of these may lead to significant measurable gains. However, we must select a small number of these processes for improvement in a Six Sigma project.

A Six Sigma project is a team effort. We create an implementation team and clearly define specific designation as wess as job responsibilities for team members. We should also obtain complete commitment from senior management for allocation of adequate manpower and other resources.

The Six Sigma Project Team

we create a Six Sigma project team by selecting member that have deep process knowledge from all levels of the organization. A Six Sigma project team usually comprises a Champion, a Quality Leader, a Master Black Belt, a Process Owner, Black Belts, and Green Belts. It isn't always necessary to involve all these members, especially in smaller company, or in an initial improvement effort, but the functions of each role should be present and defined. Generally, Role of Six Sigma project Structure is bellow:

Picture IN.4 Role of Six Sigma Activities



The Six Sigma Champion

The leader of the Six Sigma team is referred to as the 'Champion'. The champion acts as the project sponsor and interfaces between user departments and senior management.
These functions require the champion to be a part of the senior management of a company, usually the ECO or a Vice President.

Factor Affecting the Selection of a Champion

There are a number factors we should consider when selecting a champion. A champion should be familiar with the cross-functional issues and their relevance to the existing processes. The champion should have a deep understanding of Six Sigma and be committed to its success in the organization. The champion should also be capable of communicating Six Sigma initiatives at every opportunity.

Understanding the Factors Affecting the Selection of a Champion

The department heads in an organization would not be good candidates for the champion role because of their unfamiliarity with cross-functional issues. However, a Vice President fits well in the role because of his or her deep understanding of cross-fictional issues and access to the senior management of the company.

Champion Attributes

*) Authoritative
To implement a Six Sigma project successfully, a champion must be authoritative, open-minded, and persuasive.
Being authoritative enables a champion to make organizational divisions adopt or 'buy in' to the Six Sigma initiative. The position of authority also enables a champion to make manpower other resources available to organizational divisions.

*) Open-minded
Champions should also be open-minded to view disagreements with a team-member or an employee from that persons perspective. This often requires the champion to understand the problems of team members and other employees and suggest solutions.

*) Persuasive
Implementing Six Sigma often means a change in working methods for all employees leading to resistance to the Six Sigma initiative. The champion needs to be persuasive to increase employee 'buy-in'.
The champion also needs to be persuasive to get management support for the initiative.

Other Six Sigma Team Members

** Quality Leader / Manager

To ensure the success of a Six Sigma project, the champions need to be backed by a motivated team whose members act as driving forces for the implementation of new processes.
The Quality Leader or Manager is responsible for representing the needs of the customer and improving the operational effectiveness of the organization.

** Master Black Belt

another team member, the Master Black Belt, typically provides the technical leadership in a Six Sigma project. This position also involves examining a specific area within the organization and coaching other in the Six Sigma methodology. The area may be a functional area, such as human resources, or a process-specific area, such as order processing.

** Process Owner

Process Owners are the individuals responsible for a specific process. For instance, the Vice President of the Legal department would be the Process Owner of the processes followed in the Legal department.

** Black Belt

Black Belt is technically oriented individuals who lead quality projects and work full time on them. They are usually familiar with computer usage and data analysis techniques.

** Green Belt

Employee trained in Six Sigma who complete projects and provide project status data to the Six Sigma team are called Green Belt. They perform their regular work responsibilities in addition to their responsibilities as Green Belt. They are also capable of taking their projects from concept to completion.

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