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Six Sigma is a Strategic Decision


Six Sigma is the right strategy for those organisations who wish to accelerate their progress making process to become more profitable.

It works when the CEO decides that six sigma is the way for him.

It worked this way for Jack Welch in GE.

 

By running a six sigma program a number of things happen. Besides reduction in rejection and improved customer satisfaction, your own work force becomes more productive and work becomes hassle free. Reduced rework and elimination of routine unexpected surprises makes life more comfortable for everybody. Job satisfaction goes up. Absenteeism goes down. Managers have more time to think about new ideas to make more money.

 

Here is how one organisation benefitted one SigmaGuru client. The company was growing at 30% a year. Profits were falling ( as percentage of sales). Had been implementing 5S.At this point CEO decided that six sigma is the way.

 

SigmaGuru Consultant spent only one week, every month at the client site.

 

Week /  month 1 -  First group of 20, including CEO trained in basics of six sigma principles and philosophy. 20 projects assigned and started.

By end of day 5, first project to improve the most critical business process yielded significant clues for improvement.

 

Week /  month 2 -  Second group of 20, including those in top management team who missed the first session, are trained .

20 more projects assigned and started. 

First project gave significant results.

40 projects are in the area of manufacturing , maintenance, quality, finance, marketing, accounts, HR, planning, MIS.   

Projected benefits of 40 projects  - US$ Equal to 7% of annual turnover     

                             

Week /  month 3 -   Breakthrough a few more projects, projects 2,3 and 4.

Training and project support continues.           

                            

Week /  month 4 -   Success spreads to other similar, parallel  projects.    

Training and project support continues.                                       

                                  

Week /  month 5 -    Most Projects nearing completion.  

Retraining and project support continues.                                       

                                       

Week /  month 6 -    Gains of implemented projects. US$ Equal to 3.5% of annual turnover

All Projects closed.

Out of 40, 3 gave very good results, 12 gave good results, 20 gave moderate results and balance 5 gave no result.

Success celebrated.    

All except last 5 project teams were recognised and rewarded.              

                    

Week /  month 7 -    Fresh batch of 20 projects started…..   the journey continues. Gains accelerate as more and more teams and projects become successful.

 At another SigmaGuru client, the Cpk has improved by a factor of 6  within a year.

Gains -  US$ 0.5 MN a year.

                                                   
If you too will run the program for one year, with 12 / 24 consultant weeks, how much will you gain? Well, you can figure out yourself!

 

As one CEO remarked, it will be stupid not to go for a SigmaGuru  program.

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