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Six Sigma Strategy

Six Sigma is a term coined by Motorola that emphasizes the improvement of processes for the purpose of reducing variability and making general improvements. It is a meshing of several quality tools into a total quality methodology. When used properly, Six Sigma can provide amazing results to any company's bottom line.

Six Sigma is a rigorous methodology that focuses on consistently developing and delivering virtually perfect products and services. Six Sigma is also a management strategy in which statistical tools are used to achieve greater profitability and breakthrough gains in quality. Six Sigma has been referred to as Total Quality Management (TQM) on steroids.

Six Sigma is beneficial by driving data driven decisions instead of "by the seat of the pants" decision making. It has been shown to improve a company’s overall competitive advantage. Motorola, GE, and Allied Signal have all been tied to Six Sigma methodology with substantial benefits being gained as a result. Companies like Bank of America and Caterpillar are continuing the tradition of Six Sigma strategic deployment.

For every success story there are many less than acceptable deployments. Six Sigma has been incorrectly used as justification for personnel reduction, and for taking directions where the data was not clearly and concisely supporting the conclusions. Deployment of Six Sigma should be both strategic and tactical for best results. Governance of the process provides benefits as well, so that over zealous practioners do not read into the data something that is not there.

Benefits of Following the Strategic Six Sigma Methodology

• Cost Reductions
• Defect reductions
• Market-share growth
• Product and service improvements
• Culture changes
• Productivity improvements
• Customer relations improvements
• Productivity improvements

Six Sigma Overview

What is Six Sigma?
...It Depends on Your Perspective!

What is Six Sigma from a Senior Management Perspective?

It is a formal, structured Management Process that ensures that resources are focused on achieving breakthrough results that are:

• Linked to Strategic Critical Success Factors, and
• Seen as high value by the customer, and
• Have a significant, quantifiable benefit that increases stakeholder value

How does the Six Sigma Management Process Work?

What are the Results of Managing using the Six Sigma Process?

• Six Sigma increases management control of the processes that produce results
• Managers are able to make bolder decisions

What is Six Sigma from a Middle Management Perspective?

• It is a process that structures work into Project Charters that clearly define the Business Opportunity, Project Goals and Potential Benefits that directly link to Strategic Critical Success Factors, Customer Value and Bottom Line results
• It is a formal, structured problem solving / problem prevention process that strives for perfection (3.4 Defects / Million opportunities to create a defect)

Impact of Defects on Costs

Six Sigma Level	Defects Per Million Opportunities (DPMO)	Cost of Poor Quality
2	308,537	Not Applicable
3	66,807	25-40% of Sales
4	6,210	15-25% of Sales
5	233	5-15% of Sales
6	3.4 (World Class)	<1% of Sales
Each sigma shift provides a 10% net income improvement.

What Makes a Good Six Sigma Project

"Where the Tire Meets the Road"

A defined, quantified objective that is to be achieved using the Six Sigma Structure / Processes.

Three Critical Factors

• Directly aligned with the Enterprise's Strategy
• Clear "Line of Sight" to customer and stakeholder perceived value
• Significant contribution to the "Bottom Line"

Aligned with Enterprise Strategy

• The Project must clearly contribute to achieving the Strategic Objectives of the organization
• Projects may support an organization's function's Strategic Objectives that, in turn, support the achievement of the Enterprise's Strategic Objectives

Clear "Line of Sight" to Customer / Stakeholder perceived value

• Specific, quantifiable goals are established for the project that are perceived as high "Value Adding" by Customers/Stakeholders
• For example: Projects that improve critical internal processes might reduce cycle times resulting in
  • Reduced costs that increase the bottom line or reduce prices to end users
  • Shorter delivery times that increase customer satisfaction
  • Greater product flexibility that produces significant product differentiation

Significant contribution to the "Bottom Line"

• Ultimately, the project's benefits should result in significant benefits to the enterprise's "Bottom Line"
• Three aspects of the benefits
  • Reducing the spending of real "Green Dollars"
  • Reallocating assets to higher value-added work
  • Positioning the enterprise to take advantage of future market opportunities

Six Sigma Deployment

Quality Associates International has deployed unique strategic Six Sigma initiatives for many large and small companies. These initiatives range from providing the training and certification path for black belts and master black belts or the content and training materials. Our 20 plus years in business will give you the confidence you are working with an industry leader in Six Sigma.

QAI Implementation Model

The QAI Six-Sigma Implementation model is based on a mentoring, and hands-on approach. The system depends on three distinct implementation elements:

• Six Sigma Online Training for each participant
• Classroom followup and team leadership
• On-site mentoring with actual projects.

This approach is both cost effective and more efficient requiring less time away from the job. Download the complete QAI Six Sigma Implementation Model document.

Computer based training, when coupled with our experienced Six Sigma experts provides successful and cost effective approach to blended learning. This is another example of QAI innovation bringing value to our customers. Contact us to discover the value of blended learning and Six Sigma.

Six Sigma Online Training

We now offer electronic versions of our Six Sigma training courses. These courses are offered on the World Wide Web and are Web-Based, which allows users to access their course(s) anywhere that has an internet connection, anytime.

 

Learn more about our Six Sigma White Belt Online Training course

Learn more about our Six Sigma Yellow Belt Online Training course

Learn more about our Six Sigma Green Belt Online Training course

Learn more about our Six Sigma Black Belt Online Training course

If you are interested in obtaining a corporate-wide license for multiple users, click here for Online Training enterprise ordering information

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