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LessonsLessons LessonsLessons Lessons inin inin in Six SigmaSix Sigma Six SigmaSix Sigma Six Sigma Debashis SarkarDebashis Sarkar Debashis SarkarDebashis Sarkar Debashis Sarkar 72 Must-know T72 Must-know T 72 Must-know T72 Must-know T 72 Must-know T ruthsruths ruthsruths ruths for Managersfor Managers for Managersfor Managers for Managers Response BooksResponse Books Response BooksResponse Books Response Books A division of Sage Publications New Delhi l Thousand Oaks l London LessonsLessons LessonsLessons Lessons inin inin in Six SigmaSix Sigma Six SigmaSix Sigma Six Sigma Copyright © Debashis Sarkar, 2004 All rights reserved. No part of this book may be reproduced or utilized in any form or by any means, electronic or mechanical, including photocopying, recording or by any information storage or retrieval system, without permission in writing from the publisher. First published in 2004 by Response Books A division of Sage Publications India Pvt Ltd B-42, Panchsheel Enclave New Delhi 110 017 Sage Publications Inc Sage Publications Ltd 2455 Teller Road 1 Oliver’s Yard Thousand Oaks, 55 City Road California 91320 London EC1Y 1SP Published by Tejeshwar Singh for Response Books, typeset in 10.5 pts Palatino by Innovative Processors, New Delhi, and printed at Chaman Enterprises, New Delhi. Library of Congress Cataloging-in-Publication Data Sarkar, Debashis. Lessons in Six Sigma: 72 must-know truths for managers/ Debashis Sarkar. p. cm. Includes index. 1. Total quality management. 2. Quality circles. 3. Six sigma (Quality control standard) 4. Project management—Qual- ity control. 5. Industrial management. I. Title. HD62.15.S26 2004 658.4¢013—dc22 2004003805 Six Sigma is a registered trademark of Motorola, Inc. ISBN: 0-7619–9843–8 (US-PB) 81–7829–367–6 (India-PB) Production Team: Roshni Basu, R.A.M. Brown and Santosh Rawat In the memory of my late father Shri. Subhendu Sarkar Who led a life of Six Sigma Excellence. This book is dedicated to the following people who worked silently to make me a better human being Fr Joseph Lombart Dr R K Patel Mr Ashok Mittal Contents Preface xvii Lesson 1 Six Sigma is a structured problem-solving methodology which is a powerful lever for business improvement 1 Lesson 2 It’s the CEO and only the CEO who can make Six Sigma successful in an organization 5 Lesson 3 Take the members of the senior management team on board with a champions workshop 8 Lesson 4 Precede Six Sigma deployment with an organizational assessment 11 Lesson 5 Create a deployment platoon for the execution of Six Sigma projects 14 Lesson 6 The responsibility for the success of Six Sigma projects lies with the champions 18 Lesson 7 Improvement with Six Sigma entails finding and working with critical X’s in a process 21 Lesson 8 Build solid infrastructure pillars to support Six Sigma in the organization 24 Lesson 9 Appoint a marketing manager for selling and marketing Six Sigma as a product to the employees of the company 28 Lesson 10 The quality council should drive Six Sigma Implementation across the organization 32 Lesson 11 Bolster Six Sigma projects with a solid Review Framework 35 Lesson 12 Becoming a master Black Belt requires a practical demonstration of adeptness in coaching, teaching, facilitation, consulting and mentoring 38 Lesson 13 When hiring a Consultant for Six Sigma deployment, ensure that all laid down criteria are met 42 Lesson 14 Beware of the Consultant who gives a Proposal to improve an Organizational viii LESSONS IN SIX SIGMA Business Process all by itself, without the involvement of employees 46 Lesson 15 Continuously evaluate the effectiveness of Six Sigma teams 49 Lesson 16 The composition of the Six Sigma project team is critical to its success 52 Lesson 17 During the First Year of Six Sigma implementation, focus of deployment should be on Value and not Volume 56 Lesson 18 Appoint a Dashboard Manager who is entrusted with the responsibility of tracking process metrics 59 Lesson 19 Six sigma deployment should precede with the identification of Core Business Processes 62 Lesson 20 Do not take up Improvement Projects in the cafeteria during the early days of Six Sigma journey 65 Lesson 21 Black Belts should not carry out small improvement projects (read: Green Belt projects) in the garb of those being Black Belt projects 68 CONTENTS ix [...]... solutions from getting Force-fitted into a Six Sigma methodology without any data analysis 187 xiv LESSONS IN SIX SIGMA Lesson 60 The Human Resource Department cannot be a sleeping partner in Six Sigma deployment 190 Lesson 61 Six Sigma framework does not act at cross purposes in an organization’s journey towards achieving business excellence 193 Lesson 62 Once processes are improved using Six Sigma methodology,... implementing Six Sigma solutions 214 CONTENTS xv Lesson 67 Be ruthless if Six Sigma objectives are not met 217 Lesson 68 In case control charts are not being used by process team members, replace it with pre-control charts 220 Lesson 69 Six Sigma is not an off-the-shelf solution to organizational pains 223 Lesson 70 Statistical thinking should be a way of life in a company working towards Six Sigma deployment... differentiates Six Sigma from other quality methodologies is its measurements orientation, rigorous training scheme, process centricity and stakeholder involvement The tools in Six Sigma are not new but its direct linkage to business objectives and priorities, makes it a powerful strategy in business However there is a word of caution…… Six Sigma is a great methodology but often fails to deliver sustained benefits... Establish clear long-term objectives at a business level wherein Six Sigma methodology can be leveraged (as 10X improvement in quality levels) LESSONS IN SIX SIGMA l l l l l l Lay down clear expectations from the senior management team on their deliverables from Six Sigma Hold oneself and the senior management team accountable to Six Sigma deployment Ensure that Six Sigma process improvement projects are... is training and development decided upon? The objective of the exercise is to ascertain business units which would be votaries of Six Sigma and businesses which would face resistance It shall also throw up business units where Six Sigma should be piloted or taken up For example, process improvement 12 LESSONS IN SIX SIGMA through DMAIC rigour cannot be carried out if processes are not well defined (This... powerful lever for business improvement Six Sigma is a data driven structured problem-solving methodology for solving chronic issues facing a business It is a breakthrough management process that is used to improve a company’s performance by variation reduction The method encompasses breaking down the customer’s requirements into steps to pinpoint pains in a process This results in the reduction of defects... behind agreed objectives 4 LESSONS IN SIX SIGMA Lesson 2 Its the CEO and only the CEO who can make Six Sigma successful in an organization Six Sigma should not be launched if the CEO does not have the time for it or does not think it to be important Six Sigma should also not be launched because the CEO feels it is the latest from the quality stable It should only be launched when the CEO is convinced... focusing on primary metrics do not forget to keep the secondary metrics on the radar 174 Lesson 56 Six Sigma deployment may be a mirage for small sized companies but there are ways to go about it 177 Lesson 57 Do not get perturbed if data points in your Six Sigma project have a non-normal behaviour 181 Lesson 58 Deployment of Six Sigma does not come cheap Keep this in mind before setting out on a Six Sigma. .. who drive Six Sigma and have the responsibility of making it a success Six Sigma Takeaway Till Champions are not convinced with the power Six Sigma, it makes no sense to go ahead with deployment 10 LESSONS IN SIX SIGMA Lesson 4 Precede Six Sigma deployment with an organizational assessment After the CEO and the senior management have undergone a Six Sigma alignment workshop (also called: champion’s workshop),... Lesson 27 While executing DMAIC projects do not take short cuts Follow all the steps 86 Lesson 28 It is imperative that all Six Sigma projects provide Real Time Savings 90 Lesson 29 Just by calculating the potential benefits in the beginning and accrual benefits at the end of a project, will not get the ‘wow’ from either the CFD or his team members 93 x LESSONS IN SIX SIGMA Lesson 30 Six Sigma methodology . LessonsLessons LessonsLessons Lessons inin inin in Six SigmaSix Sigma Six SigmaSix Sigma Six Sigma Debashis SarkarDebashis. l Thousand Oaks l London LessonsLessons LessonsLessons Lessons inin inin in Six SigmaSix Sigma Six SigmaSix Sigma Six Sigma Copyright © Debashis