November 16, 2010

Getting to grips with Six Sigma

Prior to last week's work, all I knew of Six Sigma was that if you were a consultant brought in to apply it, you were probably making a LOT of money. I'm glad to say I have a much greater appreciation for it now, as a useful process improvement and problem fixing tool. I like the logical, methodological, DMAIC approach (the PMI material has been great in demonstrating it to me, though I find a lot of the voices very annoying!), and wouldn't hesitate to use it in the future if I felt the situation was right.

The assignment regarding Deming's System of Profound Knowledge was really important in understanding this, and I found it quite interesting. It became clear that while Six Sigma has scope for improving an organisation, it has very little designed to help true, groundbreaking innovation occur, in my opinion. It lacks that in its inherent philosophy, as it is largely meant to make existing processes better, ie. bringing them up to levels of expectation, rather than taking them to the next level (of excitement, if we are to use Kano's model of customer satisfaction). Also, it is a very slow process from what I can see (at least a few months), and knowing when to use it, and when to just simply employ an obvious solution would be a very useful skill to have as a consultant. I take the point that you shouldn't try to mess with a system until you understand it and can account for it, but in business, it's often the quickest response to a problem that is rewarded.

The variation session was great at helping to understand this. I've always hated statistics with a passion, so seeing standard deviations used in a practical and meaningful way helped me to create knowledge out of a lot of information I knew, but never had a use for.

Generally, I really enjoyed the work of the past week. There were some longer hours involved than I would have liked (or even had time for, considering that there is a PMA, project, PMI e-learning, PIUSS pre-module assignments, and FACS pre-work to juggle, and I'm sure we will end up doing more than the 'required' 60 hrs of pre-work and module time), but the extended group discussions were often fantastic - we really got into it and had some great ideas I think. I'm certain that the amount we put in will be rewarded next week when we do the module.

All in all, it is clear that Six Sigma is an important, though not comprehensive tool, and it is highly regarded by many. I see its uses clearly, but feel that I know enough to know that it is not enough in itself to drive excellence into an organisation. As Graeme said, one thing Jack Welch (former GE CEO) said that is often overlooked by advocates, is that you must cultivate an organisational learning environment.

"An organization's ability to learn, and translate that learning into action rapidly, is the ultimate competitive advantage."

Otherwise, in my opinion, you run the DMAIC cycle once, forget that it is based on PDSA which is about going round and round the cycle, and end up with some short-term improvements that soon fade away. Which is what a lot of organisations do, and of course, if they use it badly, it's not going to work is it?!

- 2 comments by 1 or more people Not publicly viewable

  1. I will agree with you my friend. Before that week I didn¢t have a lot of appreciation for six sigma but now I can see that it can be very useful to improve your processes. As you said it takes a lot of time to be implemented so we have to put it into practice only for the main processes that are crucial for your performance.
    It is also had the drawback that you said. It is not the best tool to pioneer…. Also I would like to say that it is not giving the ability to manage a company. It is only a great tool that can be very useful.

    16 Nov 2010, 21:53

  2. Thanks for your comment Vagelis. I agree, it’s a great, useful tool, but not much more than that – it’s only a tool. It certainly isn’t the revolutionary business changer that some pretend it is.

    I’m curious about what you’ve been doing this week, how are you guys finding the module and all the improvement exercises?

    17 Nov 2010, 16:00

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