Six Sigma 2-0

SigMax-e

An Introduction to the next generation of Six Sigma

Six Sigma Limitations

� Robert Nardelli, used Six Sigma to take Home

Depot to # 1 Retailer. Profitability soared – but at a

cost. Gradually, worker morale drooped and

customer sentiment followed. His successor, Frank

Blake (also GE) is dialing back giving more lee way

to Store Managers.

A Balanced

approach,

taking account

of all stake

holders is

important!

Six Sigma

teaches

“selling” the

idea – not

steam rolling!

� Ann Fudge, (also GE), CEO, tried to sell Six Sigma

to ad executives at Young & Rubicam – and flamed

out quickly

� Dave Carter is going slow with Six Sigma in its

application to innovative processes at Raytheon.

“Most Six Sigma practitioners are very strong on

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.

• 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.

Moving away from its roots…

Time for change?

• What this is telling us is that Six Sigma as practiced today, faces resistance form some customer segments (VOC – feedback).

• Careful changes to some of its features – whether originally intended or not – can make it much more relevant for today’s 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.

"did not have enough of content on innovation".

??

???

"there was a strong resistance to the extreme numbers / statistics focus",

"did not fully meet our requirements",

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 today’s 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 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.

Six Sigma 2.0

The 'Process' Approach to Problem Solving

Four Powerful Methodologies

(Cross business & Cross functional)

CAPChanging The Way We Work

DMADVDesigning New Works

DMAICImproving Work

BPMSUnderstanding, Measuring & Reporting Work

� 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:

The 'Process' Approach to Problem Solving

The Approach to Problem Solving

Observations

(Particular

Problem)

Opportunities

(General

Solution)

Solutions

(Particular

Solution)

Themes

(Generalised

Problem)

Practical

Problem

Statistical

SolutionPractical

Solution

Statistical

Problem

*

•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

Got

Problem?

Six Sigma

2.0

Know the

solution?Project

Management

Can

implement

?

Kick Action

Yes

No

Yes

No

Yes

No

Have

Capability

?

Yes

No

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 ☺☺☺☺

Srikrishna Vadrevu

www.sigmax-e.com

Email: [email protected]

Tel: +603-8313-8135

Mob: +601-2221-2553

Contact:

http://asciance.blogspot.com/

Srikrishna Vadrevu

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