How Six Sigma Delivers Value to its Customers

It was in the mid-80s that Six Sigma emerged as an innovative approach towards improving processes and reduce wastage in manufacturing sector. Today, with widespread adoption of Six Sigma across industry verticals, there are many professionals who are trained in various Lean and Six Sigma methodologies to achieve far better results and higher customer satisfaction levels

History of Six Sigma

• It was in 1985 that Bill Smith an Engineer who noticed a correlation of a product’s market performance with manufacturing adjustments

• In 1987, he showcased this to the Motorola CEO Bob Galvin, and both developed a quality program known as Six Sigma which aimed to reach 3.4 DPMO (Defects per Million Opportunities) standard

• It was in 1992 that it gained real attention with Motorola’s tangible results, and this led to the creation of Six Sigma research institute formed by Kodak, Digital, IBM, ABB, and Texas Instruments

• HIn 1996, Jack Welch then took upon himself to promote Six Sigma in a big way with General Electric, and became one of the pioneers in promoting the methodology

• By 2005, close to 53% of Fortune 500 companies and 82% of Fortune 100 companies have used Six Sigma to some extent

• 2010 saw close 53.4% of manufacturing companies using Six Sigma

• 1n 2011, 75% of quality improvement professionals across sectors started implementing Six Sigma

1st Step – Create Six Sigma Culture:

The first step here is to ‘understand and agreeing on what is the customer expectation with regards to cost, quality, and timelines of delivery. Then continuously improve those processes to exceed customer’s expectations.

The 5S system :

As we all know how Lean concepts have seamlessly integrated with Six Sigma, now everybody use these methodologies together to achieve far better results.

1. Sort:Remove unnecessary items from workspace
2. Set in Order:Arrange all the items that are easy to use, find, and to put away with
3. Shine: Keep the work area neat and clean
4. Standardize:Create a consistent approach for repeatable processes
5. Sustain:Create a habit of maintaining correct procedures

Carry out the GEMBA Walks

GEMBAusually refers to a place where value is created in business; in manufacturing the GEMBA is the factory floor, whereas in services GEMBA is your work stations where business critical processes are carried out.

For any Six Sigma implementation to be a success, first you need to go and find the problem areas, and this comes to the fore only through your GEMBA walks. Then embrace scientific problem solving, focus on value streams, and lead with humility.

Identifying 7 Types of Wastes

• Defects

• Inventory

• Over Production

• Processing

• Waiting

• Conveyance

• Motion

Implement Six Sigma to the Entire Organization in

• DESIGN

• OPERATIONS

• IT

• FINANCE

• SUPPLY CHAIN

Benefits of Six Sigma Methodology

Did you know?

1. Process improvement strategies like Lean Six Sigma has save Fortune 500 companies more than 500 billion dollars
2. Nearly 70% of U.S car manufacturers use Lean Six Sigma practices
3. Amazon.com has over 4000 books on Lean manufacturing

Benefits of Lean Six Sigma Thinking for Customers

• 7% Improved accuracy in Freight Management

• 15% Increased Productivity

• 20% Saved by procuring Lean Manufacturing Equipment

• 30% of Shop Floor Savings

• 50% Reduction in Overhead Costs

• 60% Reduction in Time-to-Market (Products / Services)

• 75% Reduction in Inventory