Six Sigma has emerged as a method of identifying, classifying and solving problems that affect the overall productivity of a business. Large industrial names such as GE and Motorola have proved the efficacy of utilising Six Sigma over and over again. …
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For example GE announced in 1998 that it had managed to save some $350 million as a result of Six Sigma initiatives. Subsequently this figure eventually reached more than $1 billion. (Dusharme, 2001) However, not all companies utilising Six Sigma have ended up saving money or making substantial gains. Fortune 500 reported that ninety one percent of fifty eight large companies that established Six Sigma regimes have been trailing the S&P 500 index ever since. (Betsy, 2006) One major reason for this phenomenon is that Six Sigma is less understood and more employed in businesses often in ways that make little or no sense. In essence, Six Sigma is a statistical technique and the lack of data, its analysis, proper presentation and follow up can all lead up to its demise. Amongst other things attempted through Six Sigma, RCA (Root Cause Analysis) is a major application. The contention behind RCA is to locate and subsequently rectify problems in a business operation. However, the application of Six Sigma to RCA in inappropriate methods often causes less than desirable outcomes. Often Six Sigma is used to “create” evidence in order to justify some kind of process or business hypothesis. This text attempts to delineate clearly defined methods to tackle Six Sigma along with RCA within a lean approach. The external customer’s perspective as well as the VOP (Voice of Process) perspective will be utilised to explain the application of lean Six Sigma to RCA. Differentiating the VoC and the VoP Approaches Any business process will always possess an external customer who receives the finished good. If the business process spectrum consists of multiple processing steps then the external customer might be a secondary processing department. On the other hand if the business is small enough or based on a single process, then the external customer will be someone who gets the final product. However, the size of an organisation is critical to the implementation of Six Sigma. Hence this text will take implementation within a large business context as small businesses can seldom afford Six Sigma initiatives. Therefore the external customer in question will be an allied business processing unit or function. Using the customer’s input as the guideline within Six Sigma is better labelled as VoC (Voice of Customer). The customer specifies their requirements using surveys, discussions, focus groups, comment cards etc. (Curious Cat, 2009) In comparison, the VoP (Voice of Process) depends on the process capability. The contention is to measure the best performance that a system could deliver. This is often described statistically using a control chart. Historical performance statistics may also be used to analyse the situation better. The most differentiated aspect of the VoP approach is its reliance on hard statistical data to take decisions. However, there is a great chance of leaving large gaps in collecting data through misreporting as well as omission. (Mann, 2006) VoP is also reliable in discerning the stability or instability of any given business process or operation. Statistical quality records are utilised to create control chart models and this will be discussed below. Lean Methodology for VoP The methodology for a lean Six Sigma RCA will be analysed by following it step wise. Strengths, weaknesses and vulnerabilities will be discussed in an attempt to introduce the sources of error in such systems. Data Collection and Processing Data collection is the single most important part of any RCA treatment. If data is flawed by any given definition then there is no chance that the entire analysis and its subsequent follow up will yield any favourable results at
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“Six Sigma Essay Example | Topics and Well Written Essays - 3000 Words”, n.d. https://studentshare.org/statistics/1390726-lean-six-sigma-for-supply-chain-management-theme.
A number of researchers and authors have presented definitions on six sigma. Interestingly, their understanding of the concept is expressed in different words but the meaning is standardized. We can say that six sigma is a tool employed for the measurement and improvement of operational performance of an organization.
Nowadays, companies, whether manufacturing or non-manufacturing, are seeing the benefits that Six Sigma offers to them. Surprisingly, though, Six Sigma is just a fairly modern invention. This paper explores and examines the definition, methodology, corps of experts, and criticisms attributed to Six Sigma system.
Six Sigma uses a variety of quality management procedures and groups the workforce into a special infrastructure that is based on the employee’s skills (Pande & Holpp, 2002). Every Six Sigma project follows a specific sequence of steps which has its own objectives.
The precursor of Lean Six Sigma was the Six Sigma which was first developed by Motorola in the 1980s. “Six Sigma is primarily a methodology for improving the capability of business processes by using statistical methods to identify and decrease or eliminate process variation.
While the essentials of the methods were initially invented by Bill Smith at Motorola in the year 1986, Six Sigma was profoundly enthused by six previous decades of excellence development strategies, such as quality management, TQM, zero defects, etc.
In specific, emphasis has been given on the following matters by the Six-Sigma method.
Let us consider four stages of evolution of production quality approaches.
First of them is a stage of rejection (till 20th years of the last century). According to this approach in order to provide a consumer products congruent to accepted standards, special attention should be paid to elimination of rejects.
Six Sigma is initially developed by Motorola in mid 1980s for various systematic improvements and eliminating certain defects. It is a registered trade mark of Motorola which is being adopting by number of companies
Statistically, its purpose is to decrease process variation to enable virtually all the services or products provided satisfy or exceed the client’s expectations.
Motorola formulated the methodological particulars of Six Sigma in 1986, though it can be traced
ly developed to improve manufacturing processes, it has also been used by many organizations to improve other areas of their business” (Guarraia 2009). Lean on the other hand had its roots back to production system of Toyota Production System which was “traditionally