Lean Six Sigma Certification? - One Size Does Not Fit All
“Six Sigma” originated as a
set of practices designed to improve manufacturing processes and eliminate
defects, but its application was subsequently extended to other types of
business processes as well. In Six Sigma, a defect is defined as any process
output that does not meet customer specifications, or that could lead to
creating an output that does not meet customer specifications.
The core of Six Sigma was
“born” at Motorola in the 1970s out of senior executive Art Sundry's criticism
of Motorola’s bad quality. As a result of this criticism, the company
discovered a connection between increases in quality and decreases in costs of
production. At that time, the prevailing view was that quality costs extra money.
In fact, it reduced total costs by driving down the costs for repair or
control. Jim Smith subsequently formulated the particulars of the methodology
at Motorola in 1986. Six Sigma was heavily inspired by the quality improvement
methodologies of the six preceding decades, such as quality control, Total
Quality Management (TQM), and Zero Defects based on the work of pioneers such
as Shewhart, Deming, Juran, Crosby, Ishikawa, Taguchi, and others.
Like its predecessors, Six Sigma doctrine asserts that:
· Continuous efforts to achieve stable and predictable
process results (i.e., reduce process variation) are of vital importance to
business success.
· Manufacturing and business processes have characteristics
that can be measured, analyzed, improved and controlled.
· Achieving sustained quality improvement requires
commitment from the entire organization, particularly from top-level
management.
Features that set Six Sigma apart from previous quality
improvement initiatives include:
· A clear focus on achieving measurable and quantifiable
financial returns from any Six Sigma project.
· An increased emphasis on strong and passionate management
leadership and support.
· A special infrastructure of "Champions",
"Master Black Belts", "Black Belts", "Green
Belts", "Red Belts" etc. to lead and implement the Six Sigma
approach.
· A clear commitment to making decisions on the basis of
verifiable data, rather than assumptions and guesswork.
The term "Six
Sigma" comes from a field of statistics known as process capability
studies. Originally, it referred to the ability of manufacturing processes to
produce a very high proportion of output within specification. Processes that
operate with "six sigma quality" over the short term are assumed to produce
long-term defect levels below 3.4 defects per million opportunities (DPMO). Six
Sigma's implicit goal is to improve all processes to that level of quality or
better.
Six Sigma is a registered
service mark and trademark of Motorola Inc. As of 2006 Motorola reported over US$17
billion in savings from Six Sigma. Other early adopters of Six Sigma who
achieved well-publicized success include Honeywell (previously known as Allied
Signal) and General Electric, where Jack Welch introduced the method. By the
late 1990s, about two-thirds of the Fortune 500 organizations had begun Six
Sigma initiatives with the aim of reducing costs and improving quality.
In recent years , some practitioners have
combined Six Sigma ideas with lean manufacturing to create a methodology named
Lean Six Sigma. The Lean Six Sigma methodology views lean manufacturing, which
addresses process flow and waste issues, and Six Sigma, with its focus on
variation and design, as complementary disciplines aimed at promoting
"business and operational excellence". Companies such as IBM use Lean
Six Sigma to focus transformation efforts not just on efficiency but also on
growth. It serves as a foundation for innovation throughout the organization,
from manufacturing and software development to sales and service delivery
functions. Although a cumbersome change to institute, many hospitals and large
healthcare facilities are now adopting this Lean Six Sigma culture, replacing
the even more behemoth Total Quality Management (TQM) "ball and
chain" that has ruled their world in the past.
Six Sigma mostly finds
application in large organizations. An important factor in the spread of Six
Sigma was GE's 1998 announcement of $350 million in savings thanks to Six
Sigma, a figure that later grew to more than $1 billion. Industry consultants
like Thomas Pyzdek and John Kullmann dictate that smaller companies with fewer
than 500 employees are less suited to Six Sigma implementation, or at the very
least should adapt only the standard approach to see if it would work for them.
This is due both to the infrastructure of the training belt hierarchy that Six
Sigma requires, and to the fact that large organizations present more
opportunities for the kinds of improvements Six Sigma is suited to bringing
about.
Also, it is the fact that
smaller companies must truly change their entire culture and every single
employee must be enthusiastic and willing to devote their entire working day
and job tasks to Six Sigma goals; a time-consuming, very invasive and daunting
task. If just one out of 10 employees is not continuously encorporating the
process into their workday, the entire result would be eliminated. We can,
however, take away the lessons learned from Six Sigma and apply them to small
business operations; streamlining their business processes and work-flow.
Time management, carving out excess waste and preserving
the bottom-line pervades the mission of www.HealthcareBusinessManagement.com
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