6 Sigma Online

SIPOC is an acronym, a six-sigma tool that stands for suppliers, inputs, process, outputs and customers. Six-sigma a business management strategy was developed by Motorola in 1986 to improve production and minimize mistakes. The basic idea was to create a format for the improvement of quality process, by creating an infrastructure for companies to follow.

Six-sigma projects follow a specific series of steps, SIPOC is no different.The idea is simple enough-review and analyze all steps in a process then find ways to improve it. This tool can be(and is) used in a wide variety of industries seeking to optimize performance, lower production costs, etc; or in other words create a better business model.

This method breaks down business to a science all while leaving room for improvements and alterations.

As technology and ideas shift forward so will the business model and SIPOC will accommodate those shifts in thinking. The beauty of the model is that as companies grow, so does its design. Open-ended with room for advancement the tool is primarily used to identify all relevant issue associated with a process improvement project before work begins.

The six-sigma tool SIPOC was designed to help understand the purpose and scope of a process.This is achieved by stakeholders at every level of the process. From conceptualization to completion every facet is considered by stakeholders.When starting a new process the order to follow is: customer backwards to supplier, however if an existing model is used the opposite is true.

SIPOC

• Suppliers-Provide inputs
• Inputs-define the material, service and/or information used
• Process-the series of activities that add value to inputs
• Outputs-the product, service or information
• Customers-the receivers of the outputs

Within the realm of the business world, this model is applied numerously and significantly by every type of business imaginable. The outline works because it covers all bases and seeks ways to improve upon the established methods currently in use. This benefits both consumer and supplier by fine-tuning the process until it becomes both time effective and cost-productive. Customers receive a polished product/ service, while suppliers save time and money doing what they do best- supply the demand.

SIPOC is simply a birds-eye view of the overall process and its recipients. The process views what works, what doesn't and creates ways to make the process more reliable and efficient. Tried and true the method is simple yet complex,satisfying and beautiful in its vast simplicity.

Categories: Six Sigma Success Stories

Six Sigma is a practice that has been around for several decades and while many of the top companies in the world not only know what it is but subscribe to its principles whole heartedly. This is very simply because they know they work. On the other hand there is an entire sect of the world that doesn’t really understand 6 Sigma or where it came from.

When it comes to understanding Six Sigma it must first be understood where it came from. Back in the 1980’s the Motorola Company knew they needed something more, something that could help propel their company to further success and so they offered their employees the opportunity to become creative and try to come up with a management methodology that worked to increase the profitability of their company. Through this process Six Sigma was developed as a culmination of some new concepts and some that were already in existence in other formats.

Ultimately Six Sigma is a management program that began in the 80’s and has continued to work well for businesses throughout the past several decades and for those businesses who have placed emphasis on not only the training and certification programs but on the implementation as well success has been relatively easy not only to obtain but maintain. As long as the process is initially put into place correctly and monitored the improvements to your business will be exceptional and beyond comprehension.

This is very simply because Six Sigma is so thoroughly comprehensive and offers businesses the ability to not only make significant changes that can improve their customers experience, their products, and of course their bottom line but do so in a measurable format that encourages team work and solidarity throughout the company’s structure. Taking the time to create a win-win structure in the business is what Six Sigma does best and since it is so comprehensive and provides measurable and predictable outcomes it is a methodology that suits many in the business world.

Six Sigma is widely used in the largest and most successful businesses in the world today and when you have a methodology that offers so much to a variety of different businesses with consistent results it is easy to comprehend why leaders in many of the top industries subscribe to Six Sigma and the ways in which it can improve a business. They have seen first hand the success of the program and have therefore embraced it in their daily business practices.

Categories: Six Sigma, Six Sigma Success Stories

A master black belt has been trained to become a master of six sigma. They understand how to use statistical tools, and they are capable enough to train other black belts and green belts. As with any industry, healthcare has its own set of unique factors to contend with. It will be the master black belts in healthcare who will design the future of the industry. They guide businesses and organizations in the industry through problems that can be resolved used statistical analysis.

A master black belt has led many previous projects through to completion, and done so in a way that had a lasting impact. They assist healthcare organizations in identifying strategic goals, and are skilled at presenting their findings in a way that motivates and facilitates effective change.

Ideally, a master black belt should act not just as a teacher, but as a mentor, coach, and planner. Their fundamental goal should not only be to create or lead change, but to shift the cultural perception of the organization in a way that embraces the methods of six sigma.

What a Master Black Belt of Healthcare Does

They manage the selection of processes, ensuring that the projects are focused on items that are critical to quality. If the team gets confused, the MBB should be able to clarify the issue. If conflict arises, they should be able to mediate it. They should be able to effectively monitor project teams, and guide them when key measures and data collection is not being undergone effectively.

An MBB should also help build teams, assisting in the resolution of conflicts. When the project is completed, it should be reviewed for efficacy. They tend to focus on projects that are wider in scope than those undergone by black belts.

Role

The actions of an MBB should not be about "rank" or "status." Instead, the focus should be on skills, desires, and behavior. Black belts who work in middle management or "on the front lines" often show the most promise to become an MBB. Some of the roles of an MBB are as a project manager, an integrator, and a relationship coach.

An MBB helps identify workforce criteria that improves meaningful accountability based on standards of excellence. They also introduce methods of performance measurement that can be used to set targets. Clear efficiency goals are also established. When the workforce has clearly defined performance criteria, they become more motivated.

Categories: Six Sigma Success Stories

In six-sigma methodology, the individuals with the highest level of problem solving skill sets are called a “Black Belt”. A Black Belt is the most highly trained expert in the complexity of six-sigma methods and tools. A Six Sigma Black Belt is delegated to encourage continuous improvement projects using their six-sigma training, innovative ideas, analytical skills, and to mentor others in the organization in the application of the six-sigma problem resolution methods.

A black belt project starts out by addressing a problem that is adversely affecting an organization or business. The goal of a black belt project is straightforward, to resolve problems with effective solutions.

Every six-sigma project follows a standardized system known as DMAIC (Design-Measure-Analyze-Improve–Control). The DMAIC problem solving method can be used to enhance any process while improving an organization's overall efficiency and effectiveness.

A typical definition of a six-sigma project is a method of transferring a practical business problem into a path to resolution and improvement. Using this approach, any black belt project must be viewed as an agent for change. The eventual selection and management of the right project is essential.

Any organization can overreact by starting numerous black belt projects at the same time. For the eventual success of project implementation, it is imperative that black belt projects are prioritized using the following criterion. First, they must have a high probability of success, while also requiring a minimal use of internal resources. The following statement of “separating the trivial many, from the vital few”, is a perfect comparison for this approach.

As part of the selection process for a six-sigma black belt project, the tasks must be qualified by using documented methodology. A basic project summary would include the following:

1.Purpose

A clearly defined objective and intention to move forward.

2.Objectives

What metrics will need to be met to consider the project a success?

3.Benefits

What are the rewards in meeting the goals of the project?

4.Teams Members

Identify what individuals have the knowledge and skills to complete the project.

5.Schedule

Real time tracking of the project by outlining critical paths, individual responsibilities, and time management.

6.Potential Risks

What contingency plans are required to prevent, or react to, possible changes to the project?

The successful implementation of a Black Belt project is more than just having a plan, but in the planning itself. Projects can be a rigorous endeavor, but all the effort and consideration has limitless value.

Categories: Six Sigma Success Stories

A Six Sigma Black Belt project manager is a business consultant who specializes in achieving cost-efficient processes and procedures that will streamline production and increase a company's profitability. Some of the attributes necessary for this career field include an attention to detail, an analytical mind, an ability to communicate effectively with employees at all levels and the ability to get along with others.

Although the training programs for Six Sigma Black Belts are not as abundant as they are for other career fields, they are available. There may be additional certification programs required, including teaching or mentoring at a Green Belt level. Additionally, successful completion of a few Six Sigma projects, including one or more at Black Belt level, may be required to receive Black Belt certification.

However, once the Six Sigma Black Belt certification has been attained, the financial rewards will have made the efforts worthwhile. Six Sigma Black Belt project managers earn a base salary from the mid $50,000 to an upper end salary in excess of $120,000. Adding incentives and bonuses can easily increase that amount by a third, making the Six Sigma Black Belt project manager a very lucrative career field.

The percentage of female Six Sigma Black Belts to male vary, depending on their years of experience, but on the average, female salary ranges tend to be several thousand dollars less annually than their male counterparts, and the difference increases substantially with more years of experience. The highest discrepancies are found in those with twenty or more years of experience.

The highest Six Sigma Black Belt salaries are in New York City, at more than $149,000 and Houston at more than $130,000. Chicago, Dallas, Seattle and Minneapolis are not far behind with top salaries of more than $120,000.

Houston also has the highest of the low range, at more than $66,000 for a starting salary; Minneapolis is over $63,000 and Dallas starts at about $60,000.

Six Sigma Black Belt project managers in information technology services earn the highest overall salaries, followed closely by the insurance and the aerospace fields. When a Six Sigma Black Belt adds the lean certification to their resume, their earning potential increases dramatically.

Categories: Six Sigma Success Stories

Business management is something that is a skill for many but even those born with the know how to manage a business need to keep up with the latest developments in the business world and there is no better way to do so then by taking an occasional seminar or class to make sure that you are fully on top of all that is available when it comes to knowledge. Even though the essence of business management is the same as it has always been the latest technology as well as the changes in the economic climate have led more businesses to need innovative solutions.

When looking for options and business management strategies it is very easy to become overwhelmed with the many different management classes, techniques, and philosophies that are available on the web. While you can spend a lot of time online researching the different options available to you and information gathering, ultimately it can be easier to read current periodicals and business literature as a way of navigating through the many options available to you. It is imperative that you find a way to sift through the many options and find the program that is best for your situation, field, and specific business structure. Even the best management methodologies are not best for every single company.

An even better way to gather information about which management techniques are most effective when in practical use is to ask around to other business owners in your area. Many business owners join professional organizations that afford them the opportunity to talk to other small business owners and managers about the techniques that are working best in the practical business world. Getting information from those who are running successful businesses is the best way to make sure that you are choosing from the best of the best that is available on the market.

Categories: Six Sigma Success Stories

Getting a leg up in corporate isn’t easy but it is important to make sure that you find a way to make yourself and your business stand out.  The corporate world can be a bit complex but ultimately as a business owner or manager there are two main things that you need to be concerned with.  The very first is customer experience and the second is profitability and these two things usually go hand in hand.

In just about every business across the board there is a consumer, someone who is relying on the product or service that a company is producing and these customers need to be satisfied.  As a matter of fact this aspect of business is essential to ensuring that a business is a profitable venture.  After all, a decrease in customer satisfaction will be directly proportionate to the profits that a company is making as long as the company is running effectively within a good management structure. 

A change in the social or economic climate can significantly impact how customers or clients receive a product or service and how they feel about it.  For instance in the car industry with the cost of everything including gas on the rise and the social concerns about the ozone layer and everyone focusing on going green if a car company wants to succeed they best put the Hummer on the back burner and begin focusing on those things that will make a leaner more customer friendly car. 

In business it important that you are constantly revising your product to meet the growing needs and concerns of your customers.  This is the best way to ensure that your business remains profitable.  Profitability can only come from providing your customers with those things that they want and need from your company.

Categories: Six Sigma Success Stories

The leaner the economy the more a company needs to reinvent who they are and what they are about.  While many companies see a downturn in the economy as a setback for growth, other companies use this as a unique opportunity to expand and grow.  Down time can be a time of growth and expansion when utilized correctly.

Many companies see a slower economy as a good time to reinvent their purpose.  It is a time to look at your bottom line to make cut backs and to create a leaner and better functioning business.  A good company will be able to keep its head above water no matter what the state of the economy. 

Good managers and business owners realize that change is the key to running a successful business and one of the best times to implement changes is when the market demands them.  Of course, many companies also try to stay ahead of the competition and the public demand by introducing changes early on and these companies are usually those that are the most successful.

Running a leaner company does definitely have its benefits.  When you reduce the costs of running your business and reduce your overhead in a leaner economy you learn that many times leaner is better and that the company that you are running actually works better.  Many companies intend on reducing their costs solely because of the economy but in the end find that this is a better way to improve their business in the long haul as well. 

Most companies find that revising their business in this way out of necessity has its benefits and although they may not intend to this leaner business structure helps them to select their most valuable and hardest working employees and use them to the company’s benefit.  When profits again begin rising even though they have the ability to consider adding back some of the help that they let go, most find little need to do this being that they kept the very best of their workforce on hand.

Categories: Six Sigma Success Stories

Business is an ever dynamic field and when it comes to business management you have to be willing to change your game plan if you are going to get the job done. More so than any other thing change is key to getting ahead in the business world. One mistake commonly made by business owners is not realizing the need for change until it is too late.

The best way to really stay ahead of the curve as a manger or business owner is to stay up to date with current events, the economic climate, and trends that are expanding in the business world. This can be done by taking classes, seminars, and following the lead of those who are most successful in the business world.

It can be easy to get off track but there are so many wonderful resources available out there through a variety of different universities and organizations and there are even many that are free or really inexpensive. There are classes that can help you to learn better communication, help you better manage your finances, or even ones that can teach you how to run a leaner or greener business. Depending on what you are looking for you will probably find that there are many different resources available to you in just about any area of business that you seek more knowledge in.

As a matter of fact these types of informational seminars and classes are not just available to you but can also be extended to your co-workers and staff as well and can provide a good way of ensuring that everyone in your company is on board with goals and working together for a common cause. Training together can also help to create a more cohesive business structure and a team like atmosphere. Whether you choose on site training, online training, or have the entire staff take classes together there is a lot to be said for using the latest and most accepted techniques to carry your business further while helping to stick your individuals together in a team formation.

Categories: Six Sigma Success Stories

Six Sigma by far one of the best processes around but many people still fail to realize the significance of this process to their business or very simply think that it is too complicated for them to grasp. Six Sigma is a concept unlike many others and some feel that Six Sigma implementation is just too difficult but when they see it broken down into simple steps they are enlightened to the fact that this is something that every business can benefit from.

1. IDENTIFY WHAT YOU CREATE – In order to assess what you need to accomplish first you must identify what you produce. Whatever you provide to others is your product. Whether you provide a product or a service you must start by determining what your product is to help you improve your customers’ experience.

2. IDENTIFY YOUR CUSTOMERS – Who are the individuals that benefit from what you produce? Identifying the group of people who use what you produce will help you to improve their overall experience.

3. WHAT YOUR BUSINESS NEEDS – In order to improve customer experience you must determine those things that you need in order to provide the best product for your customers. These could be more manpower or even a larger variety many times if you perform customer feedback surveys you will be best able to figure out what issues your customers have with your business.

4. DEFINE YOUR PROCESS – There may be flaws in the process you are using to get the products to the customer, looking more closely at the process by which you not only produce but deliver the products to your customers will help you to find these flaws. Remember, if your customers are not 100% satisfied then there is probably a problem somewhere.

5. REFINE YOUR PROCESS – Working to make the process error free will help you to make the most of your business. Making changes will help you to refine the process to near perfection over time. Eliminating waste is just one way to refine the process.

6. CONTINUAL GROWTH – The purpose of Six Sigma is not just to run through these steps once but to analyze and continually assess the process to come up with leaner results as you go. This process requires constant measurement of results and adaptations to the process.

Categories: Processes and Methodologies, Six Sigma Success Stories

When you are looking for a way to make your business boom with some out of this world results then you should look to the bigger companies who are creating their own success. Looking towards some of the most successful companies in the world, the big companies like GM, 3M, and Bank of America you will very quickly see they all have one thing in common and that thing is Six Sigma.

Six Sigma is a business management technique that sets the tone for success and just looking that the many companies and businesses that are using this to get the results and run a more successful business can help you to truly understand that no matter what business you are in you can adjust these principles and put them to work for you. It is not only a system that improves the bottom line and improves customer experiences and quality of the products and services that are being offered but also provides you with measurable results.

Six Sigma is unique in the fact that it involves employees at all levels and helps to bring everyone on board with the training and support they need to make success out of their business goals. The more successful a business is the better for all the employees within that company.

Taking a look at your future, what can you anticipate from your business? If you aren’t exactly sure where your business is heading or how to get it moving in a more successful direction then Six Sigma may be the program for you. Do the research and look at the facts. Millions of larger companies and smaller ones as well have integrated the Six Sigma principles with much success. If you want more success for your business then you should follow the techniques of those that are already successful. Knowing before you start that you can achieve the kind of results you are looking for from Six Sigma will help you find greater success then you ever thought possible.

Categories: Case Studies, Six Sigma Success Stories

Companies such as Ford and American Standard also applied Six Sigma processes in order to achieve significant results. Though neither of these companies was a recipient of the Malcolm Baldrige Award, they constantly worked to achieve Six Sigma high quality standards within their organizations. Both companies are reputable and dedicated to continuous improvement within their respective companies. Each company will be explored to determine how Six Sigma processes have affected their companies growth and productivity.

Ford

Ford held the number one position in sales for several years in American history. Part of their success was attributed to adopting Six Sigma processes in their company. In 2000, nearly $52 million was added to their bottom line. In 2001, the company reported a $300 million increase. By adopting Six Sigma standards, the company eliminated wasteful spending and reported a savings of $350 million in 2002. They improved half of their “Things Gone Wrong” items on the check list. Consequently, the Ford brand is producing products in 2010 that are making the Top Five rankings for best vehicles in their class. Ford Fusion is one such vehicle that has remained competitive in its class. Six Sigma processes work and allow companies like Ford to produce products that consumers desire and rank high in terms of consumer satisfaction.

American Standard

American Standard also adopted the Six Sigma processes within their company. After adopting Six Sigma processes, the company doubled their production capacity on one of their assembly lines. Additionally, they reduced costs by more than $300,000 at one of their plants. Six Sigma experts reviewed their expenditures and realized they could cut another $500,000 at another plant. This was a significant savings for the company. The company’s experts also realized they were losing money on castings for faucets. After these expenditures were reviewed, they were able to save an additional $2.1 million for American Standard. After applying the principles of Six Sigma in the organization, the company increased the quality and efficiency of its processes. At this point, they were able to save $35 million. Because of the Six Sigma standards, the company attained great savings and improved processes.

Summary

Case studies such as American Standard and Ford prove the relevance of Six Sigma processes within organizations. Each organization that has adopted these programs have significantly improved their company’s processes and saved their company money. As a two time recipient of the Malcolm Baldrige award, Motorola has proven that the Six Sigma process is replicable and relevant in many different business models. Motorola has implemented Six Sigma processes in Sales and Marketing, Product Design, Manufacturing, Customer Service, Transactional Processes, and Supply Chain Management. Several other companies that have adopted these standards have also won the award as well. Honeywell was another recipient of the Malcolm Baldrige Award that proved the Six Sigma process can work in the company if upper management and employees are dedicated to the process. The investment that companies put into adopting these standards has proven worthwhile.

Categories: Six Sigma Success Stories