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An Introduction to the next generation of Six Sigma




                                 SigMax-e
Six Sigma Limitations


    Robert Nardelli, used Six Sigma to take Home               A Balanced
    Depot to # 1 Retailer. Profitability soared  but at a     approach,
    cost. Gradually, worker morale drooped and               taking account
    customer sentiment followed. His successor, Frank          of all stake
    Blake (also GE) is dialing back giving more lee way         holders is
                                                               important!
    to Store Managers.

    Ann Fudge, (also GE), CEO, tried to sell Six Sigma
    to ad executives at Young & Rubicam  and flamed
    out quickly                                                Six Sigma
                                                                teaches
    Dave Carter is going slow with Six Sigma in its
                                                              selling the
    application to innovative processes at Raytheon.           idea  not
    Most Six Sigma practitioners are very strong on         steam rolling!
    the left brain, innovation very much starts in the
    right hemisphere
Moving away from its roots


  Initially designed for
   improvements in
   manufacturing environments,
   Six Sigma now reaches well
   into every industry, from
   Financial Services to Health
   Care to Tourism.
  Initially on the assembly line,
   Six Sigma is now
   implemented at every level,
   from VPs to quality managers
   to software engineers, and in
   every process, from
   Customer Service to Human
   Resources to Accounting.
Moving away from its roots

 While companies like GE have used six sigma
  almost like a strategic tool, many enterprises, both
  big and small, and especially the super successful
  companies of the internet, are not known to have
  adopted six sigma with the same passion, despite its
  many, well published benefits.
 Some of the key reasons for six sigma failing to
  conquer a larger market share  or even mind
  share are:
    Eliminating defects is not the holy grail of the
     knowledge economy
    Innovation is; and six sigma needs strengthening here
    Customer delight is; and six sigma needs
     strengthening here too
    It is generally accepted today that while VOC is good
     for feedback, it is not as good for product / service
     development. We need to anticipate customer needs.
    Service and knowledge sectors do not generate as
     much of defect data, and definitions of various terms
     are not as sharp as six sigma would like.
Time for change?

                                                               "did not fully
  What this is telling us is that Six                         meet our
   Sigma as practiced today, faces       "there was a strong
                                                               requirements
   resistance form some customer                               ",
                                         resistance to the
   segments (VOC  feedback).            extreme numbers /           "did not have
                                                                     enough of
  Careful changes to some of its        statistics focus",
                                                                     content on
   features  whether originally                                     innovation".
   intended or not  can make it much
   more relevant for todays Manager.                 ?                         ?
  We all know that the very
   complexion of business is changing
   today. Globalization, the internet,
                                           ??                                        ?
   social media, more competition,
   greater emphasis on innovation
   and rising customer expectations
   are just a few of the signs we see
   everywhere.
Where to?


  We believe, there is immense
   power in the core DMAIC / DMADV
   methodology of six sigma. It has
   the openness as well as the rigor
   to adapt to the changes in todays
   market place.
  The key areas requiring such
   change are:
     A greater focus on process 
       where numbers are not (readily)
       available
     Introduction of a strong kit of
       innovation and brainstorming
       tools
     Shift focus away from defect
       reduction to Customer Delight
        beyond customer
       expectations, beyond the VOC!
Six Sigma 2.0


    Six Sigma is a
      Disciplined,
      Data-driven, and
      Team-based
       approach to solving problems.
    Its aim is to enhance customer satisfaction by
     understanding the customer, defining their
     requirements and giving them a superior
     experience.
    The purpose of Six Sigma is to do things
      Better,
      Faster, and
      Cheaper.
    It can be used to improve
       Any Product,
       Any Process,
      and in every facet of business, from production, to
      human resources, to order entry, to technical support.
The 'Process' Approach to Problem Solving


            Four Powerful Methodologies
          (Cross business & Cross functional)

           Understanding, Measuring &       BPMS
           Reporting Work
           Improving Work                   DMAIC

           Designing New Works              DMADV

           Changing The Way We Work          CAP
The 'Process' Approach to Problem Solving



                                                    Practical     Statistical     Statistical        Practical
                                                    Problem       Problem          Solution          Solution


                                         Observations            Themes             Opportunities         Solutions        *
                                          (Particular          (Generalised          (General            (Particular
                                           Problem)              Problem)            Solution)            Solution)
                                                          The Approach to Problem Solving

      Employees across the Organization need simple tools (and
      Handymen with more powerful tools) to perform these underlying
      processes.
      There are well-known, specific tools that employees can use for
      each of these processes:
Adapted from Ideo http://www.ideo.com & "TRIZ
Russian acronym for the "Theory of Inventive Problem Solving." G.S. Altshuller and his colleagues in the former U.S.S.R.
developed the method between 1946 and 1985.
Exploiting Six Sigma 2.0



                            Six Sigma
       No                       2.0

     Got
  Problem?           No
       Yes
                Know the                   Project
                solution?                Management
                                   No
                     Yes        Can                      Have       No
                             implement                 Capability
                                 ?                        ?

                                  Yes                       Yes
                                         Kick Action
New elements of Six Sigma 2.0



  Generic problem solving
  Performance Management:
      Processes
      Projects
      People
    Creative thinking
    Change Management
    Moments of truth
    Automation                 You may as well call me Swiss Sigma
Contact:



           For more information

                       Srikrishna Vadrevu
                       www.sigmax-e.com
                     Email: sri@sigmax-e.com
                      Tel: +603-8313-8135
                      Mob: +601-2221-2553

                            Srikrishna Vadrevu

                    Blog    http://asciance.blogspot.com/

More Related Content

Six Sigma 2-0

  • 1. An Introduction to the next generation of Six Sigma SigMax-e
  • 2. Six Sigma Limitations Robert Nardelli, used Six Sigma to take Home A Balanced Depot to # 1 Retailer. Profitability soared but at a approach, cost. Gradually, worker morale drooped and taking account customer sentiment followed. His successor, Frank of all stake Blake (also GE) is dialing back giving more lee way holders is important! to Store Managers. Ann Fudge, (also GE), CEO, tried to sell Six Sigma to ad executives at Young & Rubicam and flamed out quickly Six Sigma teaches Dave Carter is going slow with Six Sigma in its selling the application to innovative processes at Raytheon. idea not Most Six Sigma practitioners are very strong on steam rolling! the left brain, innovation very much starts in the right hemisphere
  • 3. Moving away from its roots Initially designed for improvements in manufacturing environments, Six Sigma now reaches well into every industry, from Financial Services to Health Care to Tourism. Initially on the assembly line, Six Sigma is now implemented at every level, from VPs to quality managers to software engineers, and in every process, from Customer Service to Human Resources to Accounting.
  • 4. Moving away from its roots While companies like GE have used six sigma almost like a strategic tool, many enterprises, both big and small, and especially the super successful companies of the internet, are not known to have adopted six sigma with the same passion, despite its many, well published benefits. Some of the key reasons for six sigma failing to conquer a larger market share or even mind share are: Eliminating defects is not the holy grail of the knowledge economy Innovation is; and six sigma needs strengthening here Customer delight is; and six sigma needs strengthening here too It is generally accepted today that while VOC is good for feedback, it is not as good for product / service development. We need to anticipate customer needs. Service and knowledge sectors do not generate as much of defect data, and definitions of various terms are not as sharp as six sigma would like.
  • 5. Time for change? "did not fully What this is telling us is that Six meet our Sigma as practiced today, faces "there was a strong requirements resistance form some customer ", resistance to the segments (VOC feedback). extreme numbers / "did not have enough of Careful changes to some of its statistics focus", content on features whether originally innovation". intended or not can make it much more relevant for todays Manager. ? ? We all know that the very complexion of business is changing today. Globalization, the internet, ?? ? social media, more competition, greater emphasis on innovation and rising customer expectations are just a few of the signs we see everywhere.
  • 6. Where to? We believe, there is immense power in the core DMAIC / DMADV methodology of six sigma. It has the openness as well as the rigor to adapt to the changes in todays market place. The key areas requiring such change are: A greater focus on process where numbers are not (readily) available Introduction of a strong kit of innovation and brainstorming tools Shift focus away from defect reduction to Customer Delight beyond customer expectations, beyond the VOC!
  • 7. Six Sigma 2.0 Six Sigma is a Disciplined, Data-driven, and Team-based approach to solving problems. Its aim is to enhance customer satisfaction by understanding the customer, defining their requirements and giving them a superior experience. The purpose of Six Sigma is to do things Better, Faster, and Cheaper. It can be used to improve Any Product, Any Process, and in every facet of business, from production, to human resources, to order entry, to technical support.
  • 8. The 'Process' Approach to Problem Solving Four Powerful Methodologies (Cross business & Cross functional) Understanding, Measuring & BPMS Reporting Work Improving Work DMAIC Designing New Works DMADV Changing The Way We Work CAP
  • 9. The 'Process' Approach to Problem Solving Practical Statistical Statistical Practical Problem Problem Solution Solution Observations Themes Opportunities Solutions * (Particular (Generalised (General (Particular Problem) Problem) Solution) Solution) The Approach to Problem Solving Employees across the Organization need simple tools (and Handymen with more powerful tools) to perform these underlying processes. There are well-known, specific tools that employees can use for each of these processes: Adapted from Ideo http://www.ideo.com & "TRIZ Russian acronym for the "Theory of Inventive Problem Solving." G.S. Altshuller and his colleagues in the former U.S.S.R. developed the method between 1946 and 1985.
  • 10. Exploiting Six Sigma 2.0 Six Sigma No 2.0 Got Problem? No Yes Know the Project solution? Management No Yes Can Have No implement Capability ? ? Yes Yes Kick Action
  • 11. New elements of Six Sigma 2.0 Generic problem solving Performance Management: Processes Projects People Creative thinking Change Management Moments of truth Automation You may as well call me Swiss Sigma
  • 12. Contact: For more information Srikrishna Vadrevu www.sigmax-e.com Email: sri@sigmax-e.com Tel: +603-8313-8135 Mob: +601-2221-2553 Srikrishna Vadrevu Blog http://asciance.blogspot.com/