ISSUE 2 - SPRING 2002
 

Overview - Six Sigma: Creating a Competitive Advantage

Aline Young

 

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Page 2

Measuring and Improving Results

One high tech company represented used best-in-industry benchmarks for current processes as a baseline. This creates a closed loop to measure gains. Using information gathered during a DMAIC project, figure 2 illustrates how the company used Six Sigma to "lean" their engineering costs by 40%, while lowering their backlog from 24 months to 12 months.


Figure 2. Identification of "what to" and "where to"

Key Factors Driving Success

Table 11. Make sure your activities align with your drivers.

  • Top-down sponsorship is mandatory
  • Set aside adequate funding· Recognize that the key to improving business is improving business processes
  • Align improvement efforts with corporate goals· Balance alternative methodologies for the greatest impact
  • Recognize the strengths and limitations of six sigma
  • Use reengineering to transform "big P" "mega processes"
  • Focus improvement first on customer-facing processes
  • Develop and employ a process measurement system· Define and empower the roles of process owner and chief process officer
  • Train and deploy black belts and process champions
  • Map and integrate different improvement techniques· Prevent program of the month syndrome
  • Achieve employee buy-in and leadership alignment· Inculcate new mindsets in managers and the front-lines
  • Manage the changes caused by process improvement
  • Create a customer-centered enterprise
  • Knowledge gained while improving processes is a "sustainable competitive advantage"

Where Now?

Establishing Six Sigma throughout an organization is a long-term program. This journey is an ongoing process of continuous improvement where even the most dedicated company sets goals of achieving transformation over a six to ten year horizon. Process thinking is the battlefield on which the next war of competitive advantage will be won or lost.

Business Excellence Resources

http://www.baldrigeplus.com/
This impressive site from New Zealand presents a library of case studies and best practice examples pertaining to performance excellence. Included are descriptions of the Malcolm Baldrige National Quality Award criteria, worksheets for each of the 19 areas addressed in the Baldrige system, and explanations of how to apply or do a self-assessment.

http://www.benchnet.com/
A site that offers comprehensive information on benchmarking, knowledge management, best practices, and quality and process improvement.

http://www.ebenchmarking.com/
This site provides individuals in large corporations or government organizations means to subscribe on-line to a free monthly e-mail newsletter that can be useful in supporting internal benchmarking efforts.

http://www.asq.org/
Information on all of ASQ's seven certifications (quality engineer, quality auditor, software quality engineer, quality technician, quality manager, mechanical inspector and reliability engineer) and on recertification can be found at this site by clicking on the links to certification and recertification.

http://www.prosci.com/prp1.htm
ProSci's BRP (Business Process Reengineering) On-line Learning Center home page is not specifically a DOE site. It does, however, list 20 key elements of a sound product realization process, many of which address tools of DOE. The site also includes a list of the 56 best practices of the product realization process including testing skills and design and manufacturing analysis.

http://mijuno.larc.nasa.gov/dfc/tm.html
Taguchi methods were developed by Genichi Taguchi to improve the implementation of total quality control in Japan. These methods are based on design of experiments to provide near optimal quality characteristics for a specific objective. The site compares the use of Taguchi methods in Japan and the United States and briefly discusses costs.

http://www.qs9000.com/ubb/Forum10/HTML/000014.html This address leads to one of the many Internet forums about quality and statistics. Postings on such subjects as design control, Six Sigma, process auditing, rating quality system foundations and ISO 14000.

http://web5.whs.osd.mil/bestpraca.htm
The U.S. Department of Defense Quality Management Office's best practices site explains how the department's best practices process works and provides a database search. An online education and performance support resource center was under construction at press time.

http://www.qfdi.org/
QFD Institute was founded in 1993 to advance quality function deployment (QFD) methodology. It features a list of current events, QFD forums and classes, QFD application case studies, QFD bibliographies, and a QFD search.

http://www.zigonperf.com/
This site is devoted to performance measurement and performance management issues. It features links to related sites, sample performance measures for a variety of job functions, and a bibliography of books and articles on performance measurement and related topics.

http://www.isixsigma.com/
This website specializes in the all best in class six sigma tools, templates, techniques, to include virtual chat rooms.

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