As I began to think about this month's column, I thought it might be useful to explore why Six Sigma is so hot anyway. All the reasons are varied, diverse and beyond my knowledge, I'm sure, but I could think of four that made solid sense to me. The Six Sigma approach can:
reducewasted resources;
improve employee work life;
provide a competitive advantage;
help an organization survive.
Let's discuss each in a little more detail.
Most organizations consume enormous quantities of natural resources. These may be the materials that make up the final product, chemicals and gases that are used to aid the manufacturing processes, fuel, electricity, water, and even air. Whenever those resources are not converted directly into a final product or service, an opportunity to reduce the use of these natural resources emerges. Six Sigma techniques can help reduce even the amount of resources delivered directly to the customer without sacrificing value. In a finite world with a growing population of people who desire a better quality of life, more efficient use of natural resources makes sense.
Properly implemented, Six Sigma can make the voices of everyone heard and the employees' work lives better and more effective. Since I first entered the work force more than 35 years ago, one thing has remained the same: the frustration that employees often feel working in a system in which it is difficult, if not impossible, to do a good job. One of my first jobs was to use a paint scraper to clean production fixtures used to fill refrigerators with urethane foam. When I suggested to my boss how the fixtures might be changed to eliminate the operation, I was invited to keep my big mouth shut and just keep scraping! Being a bright young fellow, I did.
Just last week, I overheard production operators from an entirely different industry commiserating about recent problems their company had been having in making production. New operators had not been peer trained how to handle assembly fixtures that never had worked properly. As a result, they struggled all night and never did make schedule. Defective materials, improper tools, unreliable machines, uncomfortable environment, unreasonable demands, and no voice: Sounds like a recipe for frustration and an opportunity for work life improvement to me.
In l987, Robert Buzzell and Bradley Gale (The PIMS Principles, New York: Macmillan) pointed out in their landmark book that relative perceived quality is, perhaps, the most powerful differentiation in the marketplace. If customers believe you have the best offering by a significant margin, they will stick by you. They will even spread the word. A Six Sigma approach can help identify and target what your customers care about. That same approach can help you hit the target more consistently. Now that's a competitive edge.
Survival. By now, nearly everyone knows the Ford story. In the early 1980's, the Ford Motor Company was on the ropes-about to go out of business because Japanese imports were taking away market share. Big doses of participative management, employee involvement, and continuous improvement were what it took to achieve survival and, in fact, turnaround. Although the sigmas were different (2-4 rather than 6), the approach was the same. Today, of course, Ford is doing just fine, thank you very much.
The common thread here is, of course, profit. Business people have been taught to focus on that bottom line. Here's where Six Sigma fits in. If you have outstanding quality in the eyes of your customer, you will experience increases in sales. If you listen and respond to your employees, they work more effectively and efficiently. If you use all your resources efficiently, you reduce your costs. If you increase your sales and reduce your costs, you make a profit and survive. Not rocket science, but powerful medicine.
David R. Schwinn
David R. Schwinn, an independent consultant in Jackson, MI with experience in automotive-related industries and community quality training. Future columns will respond to user questions, challenges, and comments. Address these to Schwinn via PQ Systems, at support@pqsystems.com.
