If six sigma could bring in significant benefits in an organization, why don't all organizations deploy six sigma? There are many companies who didn't opt to deploy six sigma even at the time when they faced huge issues. For Example Mico. Can Anybody help me on this?

Regards,

Chandrakumar.

There are many reasons for this. Before I answer this question, let me split this question into two parts for more clarity.

• Why don't all organizations deploy Six Sigma as a Management System ? (Six Sigma Management System - A Management system that ensures that all seemingly complex organizational goals shall be converted into structured projects to be carried out by a senior-management-supported competent team of professionals specifically trained with methodolologies like DMAIC, DMADV etc.)
  

• Why don't all organizations deploy Six Sigma techniques?
  

Let us answer them one by one.

• The answer to the first question - Although 75% of forune 500 companies do use Six Sigma as some form of management system, there are several who do not. The reasons for non usage are one or combination of those mentioned below.
  

• Senior Management is happy with an existing Management System that includes many elements proposed by Six Sigma.
  
• Management has decided to consciously not use the term Six Sigma or may have customized it to their own benefits.
  
• Management is content with a fire fighting mechanism that provides short term gains and may not have the vision required for extra-ordinary results or growth.
  
• Management is threatened due to various reasons like inability to understand statistics, fear of attrition, inability to attract and retain talent etc. (In reality most of such fears are superficial and cause more damage than benefits)
  
• Senior Management is not exposed to Six Sigma.
  

• The answer to the second question goes like this - Large majority of successful professional organizations including Mico and Toyota use Six Sigma techniques. These companies may or may not believe in several elements of Six Sigma Management System. Techniques covered under Six Sigma management system like Root Cause Analysis, Statistical Process Control, Pareto's analysis, Experimental Design, Measurement System Analysis (including calibration), Data Driven Decision Making (with tools like hypothesis testing) are used worldwide. It is impossible to imagine excellence in business without the use of such tools.
  

This leads to just one conclusion. Irrespective of managment belief, it makes a lot of professional sense for an individual to learn Six Sigma techniques (which are used by almost 100% of successful businesses) and be aware of the Six Sigma Management System (which is also highly popular with about 75% of Fortune 100 companies using it to their advantage)

Best Regards,

VK

Note - I am aware that I have twisted your original question to some extent to drive home an important point. Please feel free to revert with more questions on the subject if your query is not completely answered.

Taking this discussion further, I feel the urge to jot down an important definition of Six Sigma which I personally use quite often. Here it goes -

What is Six Sigma?

Six Sigma is a wonderful compilation of world best management techniques (developed and refined over centuries) woven in a time tested roadmap that multiplies the business impact of each individual technique.

Dear Chandrakuma

Well. Going for Six Sigma requires indepth and expertise knowledge and experience.Correction is not important but corrective action  that matters. It should be implemented on continual basis and not once for all.

Secondly, the organisation as a whole need to go for Six Sigma in all  functional areas and bring about a change in the system management. Hence there is a need for training to the staff  and requires a sense of feeeling from deep within  to work with Six Sigma concept. The Top Management should shoulder the responsibility.

TJRAO

Dy.Manager-Inventory Control

Co-ordinator-MR for ISO 9001:2008 QMS,

Ratna Infrastructure Projects Pvt. Ltd.,

Hyderabad

9440701805

Dear Mr. Rao,

You have made a valid point. Top Management should shoulder the responsibility. However, the original question posted by Chandrakumar was - why do certain managements do not opt for it?

It will be good to see your viewpoint on this.

Regards,

 

 VK

I think everybody in Business including The Top management knows Six Sigma generally.Some of the enlightened management may be differing on the Tools and Deployment Strategy to be used.

The Real Problem is not Fear of Failure , but What if Six Sigma is Success driven by somebody who is Not liked?

I think It is Owner or CMD who should initiate and Demand Results thru Six Sigma.Thanks

 

 

dear mr. khatri,

I welcome your response. The topic is that why do certain managements do not opt for Six Sigma. right.

It is nothing but mere lack of interest and confidence not in the Tools and Technics of SS, but in thier own approach to the concept with regard to application in their organistion. Perhaps this view is somewhat confusion and not clear. In simple, you( here it is Management in our topic) pray GOD but do not believe in GOD.

Hope now it is clear

Hi:

I have been talking to various people at different levels of management. Some of the points I like to share here:

1. Even though every one has heard the term 6-Sigma, they still are not completely aware of its benefits, if practised

2. "I am happy with what I have and my system works as per our organizational requirement". If I implement 6-Sigma and if it fails...?

3. Top management acceptance?

4. Statistics knowledge. How much should I know?

I feel that managements should conduct more in house trainingin these organizations to get them know the advantages and benefits of 6-Sigma, before thinking about practising.

 

Amrith Sivaraman

 

Sir,

Though Six Sigma is widely known as a lean tool to continuous improvement in process and system, many CEOs are not willing to implement SS in their concern. This is because, they dont have the measurable parameters in their processes and systems. Moreover, the measurable status they dont want it to be transparent. Again, the growth of the firm itself they dont want to be known to all their employees. Finally, they dont know how to implement SS in their product specifically. This need an SS expert, but their compensation is much so that they (CEOs) immediately withdraw the plan of deploying SS. Any objections, please....?

My openion:-

1) Management is not giving priority for deployment of six sigma

2) It si wrong thought that six sigma is only GB's entity. everybody forgetsSix sigma is a team work .

3) Some thinks that there are no problems, whatever we are doing is the best.

4) concept is not clear to management. It si very difficult to deploy- awrong thought.on the basis of perception.

5) Thinking as atime waster activity.

Anybody want to add???

 

 

I agree with the second comment.Everything depends on the organisational culture.There will always be some companies who will be doing better without six sigma than those who use six sigma.We always forget the power of R&D which can only raise the gradient of improvement curve.Six sigma forces the companies to be type-cast and do not support innovation that well,the same problem as ISO-9000.

Dr.Rajkumar P Singh

Dear Mr Chandrakumar,

I have agreed the points given by Mr VK. If we conclude this discussion topic, only two points are primarily considered.

1. The 'Incubator' period for the implementation of Six Sigma will be a little tough time (during knowledge sharing by employees and create a culture), which the managment dont want to wait.

2. There is no ownership on the organisation they are working (even for the top executives). There is no vision.

OK Sir ?

K Venugopal

JM (World Class Manufacturing),

SPB Ltd, Erode.

Tamilnadu

Sir,

I do not agree as all org do not apply 6S, org may not have  the concept application , all most all the org do apply not  as 100% but in fragmented form. The associates may not have the formal training on the subject , we all use it.

Air Commodore Dr HSR Arora

AS I had experienced it ..

• In SMEs organisations, it has to be driven by the top
  

• Choosing the organisation for training on 6S is also important.
  

• SMEs tend to choose individual consultants to save money(??).
  

• Many Individual consultants fail to train effectively, some train and don't implement!
  

• Most of the SMEs send people for orientation and that's it, show it as more training hours!!, they dont train up GBs, BBs, take up projects, The owners in the meanwhile think that people are trained, it will happen! No reviews from top,Middle management is missing or weak structure!!
  

• SMEs, they don't even maintain ISO forget ^S, No continuity in training, No training effectiveness process is present, benifit the ORG or the added perfomance of individual, has no measures..
  

• Very pathetic to know these, I have experienced this coming from a Corporate culture joining the SME as a CEO,,Did contribute a lot to correct this also, the most difficult part is to convince the owners on the benefits.They only look for Tangible benefits most of the time and look for immediate benifits after training.
  

Sripathy

Implemening Six Sigma is Long term strategic descision, It has long term benifits. Implementing Six Sigma required lot of efforts from top management. If any company wants to improve the process performance and improve the customer satisfaction, then Six Sigma is the right Tool to apply.

Change in org is difficult people in Top Management are apprehensive to take such descion, in Middle lavel if some one has been exposed to the rich concept 6S he can start exposing to the immediate peer group/subordinates it will spread , & create talent group its like if you have 100 people you train 10 people you see the effect another example you just hold the fingers of your 8-9 month old baby then he will rise & shall never stop walking/running try this?.Regards.

Air Commodore Dr HSR Arora

Dear Hari,

Well. Your expression is Ok. But here the question is Why. Give your openion.

Six Sigma Requires lot of commitement from Top management, Many times top management is not enough commited to improve the process and reduce the cost, and they have other priorities, Then also they do not go for six sigma. Sometimes TOP is not exposed to six sigma tengible benifits, so they do not focus. But I belive every organisation uses sixsigma tools by knowingly of unknowingly. Applying sixsigma is more organised way to use statical tools in proper manner in practical situation.

Dear Harish,

Good. Thank You

1. lack of knowledge of power of 6sigma

2. fear of exposure of shortcomings/ lack of courage to face it

3. unwillingness to change

Dear All, 

I read the opinion posted by most of the blogger , and here I would like to enlighten the issue  and my opinion for the no use or apathetic towards six sigma or uninterested approach towards six sigma in few companies. 

I worked for about 3 companies as consultant and in operations role.

The key to deploy six sigma is that top management must be aware of its benefits . Perhaps , the CEO , CFO, VP, AVP , MD these people must be a certified black belt i.e they must have mentored at least 1 Black belt project to know its significance in practicality. It is just like you read lot about six sigma , statistical tools but you have not done any project , then you must not be fully aware of its real benefits 

Companies like GE has made it mandatory qualification for every one to be certified as BB /GB before promotion .

In my role with GENPACT (Erst while) GE Capiltal International Services ) which was earlier a fully owned subsidary of General Electric , I saw each operational head , AVP ,VP a must certified person with BB role. Infact a site administration head was into MBB role for about 18 months before joining as COE head (VP) . Every FLM (Front Line Manager) is required to work on GB, BB Project after training . The organization was quite focussed to inculcated the habits of perfection and smoothness in its operations after coming through the benefits of Six Sigma. The basics was that there leaders are aware of SS benefits and company has made huge benefit from it in the past. 

The key is that - If the Top Management is well aware of Six Sigma ,has implemented the practice , methodology and generated benefits . Then it is quite easy to adopt practices of SS easily and implement them .

However ,it is note worthy that  mere awareness is not enough. The key is certification and working in a role with Process Excellence and applying the principles of SS by Management people. 

Now another question - Why companies do not apply SS even if they speak about SS , Have roles like BB and function - Quality in place ? 

The key is time value of money , and urgency for results  . E.g if you are hungry and want food and you have little money to spend then you would go for buying food and eat it . There would not a second thought in you mind to invest money somewhere to generate results .  Now,  in another scenerio you have enough money and you are not in dire need for food,  then you can invest your little money somewhere to get return.

The conclusion is  SS needs investment, and return long term results. It is not short term gain technique. While , In business sometimes you need to go for short term gains as per demand and sometimes long term for business . This is the key for business . 

Hope my point is clear. Please write to me about your opinion . 

 

Regards,

Rahul Dwivedi 

 

 

Dear All

             I agree with lot of aspects which have been told inside to out side and out side to inside and also one should take into consideration the companies which practice the six sigma concepts are corporates and some other professional companies.

But if the concept is to reduce cost with the process then the companies have other tools such as the tax system and other polishing concepts which are tested tools with large number of companies, and for this the law governing system also responsible.

Dear Shaik,

Manipulating accounts does not reduce cost in the real sense. It only results in manipulation of profits and taxes (and therefore this is an entirely different topic). 

In my opnion there is no sound reason for not making an effort to reduce costs. It is about short term thinking versus long term thinking as explained by others in previous posts. Any organisation that understands the feasibility of great ROI through improvement projects would find it hard to avoid Six Sigma (or similar approaches).

Regards,

VK

 

  

This is the best way to get things horribly wrong. One of the first things you need to remember is that the leadership in the teams you create, should work with an improvement expert. Next, ensure that these two elements are in place: a line graph showing defects over a period, and Pareto charts showing the probable reasons for the problem areas identified in the line graph. Don't bother trying to collect new data - you must work with the data that is already available or you will delay the deployment of the Six Sigma process.

 

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I feel that cost incur for adopting the Six Sigma in the many of the companies. The other factors are

1. People should be adopted to new changes

2. Training across the company needs to be done

3. Time consumed

4. Late result delivery etc.,