SIXSIX SIGMA
Courtesy : Simplilearn
Six Sigma basically is a Management philosophy which aims at Customer Satisfaction. If a corporation produces a product or delivers a service which is not up to the Customer’s Satisfaction, then it will have a tough time being Competitive or Profitable for that matter. Reworking on a Product or Service due to inefficient processes means loss of not only Cost of Material, Labour and Time but also of Customers and its Reputation.
It is important to involve the Customer to define what is important to them as, retaining a Customer is as important as gaining a Customer. With appropriate understanding of consumer’s expectation, Corporation should go back and work on their processes to improve the Product or Services on the basis of customers’ requirements. Once these required improvements or changes are identified, and then there should be an objective, numerical approach to evaluate Current Practices as well as its Future Goals. While Six Sigma has many process and steps involved, these are not the only things involved to improve the System it also involves lots of Statistical measurement to do this.
The ultimate goal of Six Sigma is to advance the processes to ensure that only 3.4 defects are there in one million opportunities. “Sigma” is used to quantify and define the spread or distribution about the average or mean of any procedure/process. The Sigma capability or the Z-value for a process is a metric that specifies how well that process is performing. The greater the Sigma capability, the better the process can be assumed to be. Hence, the Sigma capability primarily measures the capacity of the system to produce defect-free Products or Services. A defect can be defined as anything that affects the Product Quality and may result in Customer Dissatisfaction.
Six Sigma has over a period of time, developed as a systematic evolution in business to maximize profit by reducing the defects.
The modern business environment now demands and rewards creativity more than ever before due to:
- Higher Customer expectation
- Technological advancement
- Market Fragmentation
- Fierce global as well as Local Competition
Six Sigma involves a few key concepts which are:
• Critical to Quality: Customer or ultimate consumer feature in top priority for Six Sigma
• Variation: What the customers see and feel
• Defect: unable to fulfil the customer’s demand
• Process Capability: what the process can deliver
• Stable Operations: Ensuring steady, predictable processes to improve Customer Satisfaction
• Generates sustained Success
• Enhances value for Customers
• Sets performance Goal for everyone
• Promotes learning across Boundaries
• Executes Strategic change
• Accelerates rate of Improvement
When practiced as a Management system, Six Sigma is a ultimate high performance system meant for executing Business Strategy.
Six Sigma is a top-down solution which helps organizations in following ways:
• Mobilize teams to attack high IMPACT projects
• Align their Business Strategy to critical Improvement efforts
• Govern efforts to ensure Improvements are sustained
• Accelerate improved Business Results.
Six Sigma and other Quality Control tools can be implemented to every process and department of an organization, which clearly insinuates that scope of Six Sigma is much broader then what it is today. In near terms, Six Sigma is very likely to remain as one of the key initiatives for enhancement and improvement of the Management and Industrial process.
Six Sigma specializing companies and professionals are trying to integrate Six Sigma along with other current existing Management practices to ensure that Six Sigma methodology is even more attractive. Integrating Six Sigma with ISO 9000, ISO 9001, Lean Production, Human Resource Functions, Total Quality Management, and the capability maturity model is one of the primary areas of interest for practitioners and researchers to maximize the output of the Six Sigma method.
Where to LookWhere to Look - HR
When reviewing a Human Resources organization, it becomes clear that a number of business processes have an impact on the effectiveness of employee efforts in delivering Services or Products to Customers. An effective HR organization can balance the financial needs of the Company while attracting and retaining the most appropriate personal to become part of the organization.
The table below offers a logical grouping of HR functions with a sample of Six Sigma project opportunities. The list can be used to kickoff a brainstorming session with stakeholders and team members.
Payroll Administration
Job Evaluation
The data is kept absolutely Confidential.
Time and Attendance Management
Medical/Dental Benefits
Leave time eligibility, application, and administration
Merit pay design
Stock option
Profit-sharing
Examples of Projects
OT authorization Compliance
Faster Performance review for merit recommendations
Benchmarking profit sharing with Competitors
Automatic paycheck deposit
Eligibility for Employee Stock Option Plan (ESOP)
New acquisition Integration
HR information Services (payroll information, employee dependents, etc.)
Examples of Projects
Process Mapping and Risk Management of acquisition integration process
Consolidation of Employee information Databases
Integration of multiple payroll systems for Remote Locations
Absenteeism
Conflict dispute
Resolution
Discipline/termination/dismissal
Harassment
Health
Interpersonal communication
Outplacement
Safety
Union negotiations
Drug and alcohol
Examples of Projects
DFSS process design for discipline/termination/dismissal
Job design and negotiation for outplacement
Website development for executive communication with employees
Discrimination and harassment compliance audit and monitoring
Firing
Privacy of personal information
Family Medical Leave Act (FMLA)
Americans with Disabilities Act (ADA)
Employee handbook publication
Examples of Projects
Accurate tracking of FMLA eligibility with secure internal website
FAQ section of employee handbook for answering common queries
Design and development
Delivery
Training evaluations
New employee orientation
Management training and administration (internal certification)
Compensation for external education
Examples of Projects
Improved learning module design with self-evaluation sections
Catalogue of available modules for self-learning
Occupational Safety and Health Administration (OSHA)
Insurance claims
Drug expenses
Examples of Projects
100% use of off-site safety audits
Approved generic drug list