Posts Tagged ‘six sigma basics’

5 Laws Of Lean Six Sigma

08.10.10

Posted by Sam  |  No Comments »

imageThinking about how Six Sigma and Lean Manufacturing work well together despite being distinct, independent and complete tools? The combined principles gel so well that they compliment each other and progress parallels to each other on a well-defined path. The paths are defined by the 5 Laws of Lean Six Sigma as we know today.
5 Laws of Lean Six Sigma
The 5 laws have been formulated in order that efforts on improving quality and business process aimed at improving customer satisfaction and ROI as primary concerns. The 5 laws have evolved over time and are a collection of key ideas derived both from Lean Manufacturing and Six Sigma.
1. The Zeroth Law: The first law is called so because all other principles are built upon this fundamental one. It States that “The Law of the Market – Customer Critical to Quality defines quality and is the highest priority for improvement, followed by ROI (Return on Investment) and Net Present value.”
2. The First Law: This is called as The Law of Flexibility. It states that “The velocity of any process is proportional to the flexibility of the process.” Interpretation: the more the process is receptive and flexible to adopt changes, the better the progress of the project implementation is.
3. The Second Law: The second law is known as The Law of Focus – it is defined as “20% of the activities in a process cause 80% of the delay.” This can be interpreted as main causes of delay of activities originating from just 20% of activities thus enables a faster refocus during the reorientation phase.
4. The Third Law: The Law of Velocity as the third law is known is stated as “The velocity of any process is inversely proportional to the amount of WIP. This is also called “Little’s Law”. This explains how the inertia of WIP, ‘Work in Progress’, bears heavily on the velocity of project implementation. Higher the number of works in progress (read unfinished tasks) the lower is the speed of progress due to various ground level handicaps
5. The Fourth Law: The Fourth Law, which is the last of the 5 laws of lean Six Sigma, is defined as “The complexity of the service or product offering adds more non-value, costs and WIP than either poor quality (low Sigma) or slow speed (un-Lean) process problems.” The bulky nature of products is against the foundation of Lean Manufacturing principles. The bulk, complex manufacturing process and product and service specifications contributes to render the offerings redundant. As an illustration to this 4th Law of lean Six Sigma, you can try and reason out why passenger cars are more and more becoming driver friendly despite their complex engineering features and functions.
You can revisit the definitions of Six Sigma and Lean Manufacturing principles which emphasize eliminating process errors and variations. It also concentrates on efforts to invest less human labor, inventory, and time for product development.

Why Six Sigma?

06.25.10

Posted by Sam  |  No Comments »

imageThe advantages of Six Sigma do not exactly lie in huge cost benefits that can be realized by its implementation. The glaring examples of many corporations having saved billions of dollars are true benefits but the intangible results, such as having met the expectations of customers, and being able to improve employee relations are also paramount. Because some corporations have experienced its failure to meet stated goals, some critics often raise questions about the feasibility of implementing Six Sigma, while still others are dismissing it plainly.
Benefits of Six Sigma
Obviously, in almost all cases, the reasons for Six Sigma failure have been external factors such as wrong or misguided selection of the tools, lack of application and lack of support from upper management. It is important to keep in mind that the successful implementation of Six Sigma requires a top down approach and perseverance throughout. Also important to the process is proper and thorough Six Sigma training.
Six Sigma Is All About Eradicating Business Problems.
Problem solving involves rational thinking. Somehow, companies always found themselves compromising quality with problem solving, which is the main reason why companies decide to implement Six Sigma and support Six Sigma training.
The top-down approach of Six Sigma requires dedication and application at all levels of the organization and on a continuous basis. The statistical methodology of Six Sigma sheds light on existing flaws and their causes after thorough analysis. Emphasis is placed on experimentation following analysis and redefining the processes and their goals. This is unlike other quality assurance methodologies. The benefits of supporting Six Sigma training for company professionals are apparent.
Financial Benefits: Cash flow increases due to creation of additional revenue. Through this process although cost decreases and increased profitability can be seen. It is important that all professionals involved in Six Sigma implementation have proper Six Sigma training. Although Six Sigma training is relatively expensive, the financial benefits of supporting it greatly outweigh the upfront costs.
Operational Benefits Of Six Sigma Training: employee satisfaction due to improvement
in work flow, reduction in process times and steps, better usage of work space, etc. result from implementation of Six Sigma. One major operational reason for choosing Six Sigma is its success in waste reduction and redundancy. Waste reduction is measured in terms of improving time, product movement and decreasing material consumption.
Conceptually, the benefits of implementation of Six Sigma emerge from breaking the
mindset that product processes are invariable. Benefits also emerge as a result of interconnected activities. The result of this methodical approach to quality management is evidenced by reduced fluctuations in processes. Stability of this kind triggers a series of positive chain reactions within organizations.
Success stories of Six Sigma training are evident in all fields of business. Since Six Sigma methodology encompasses the entire process of doing business, it is likely to show a flaw here or there, such as companies that embraced Six Sigma have found out. Howsoever small in number the failures may be, they are all due to differing reasons. However, any negative results can probably be traced back to either improper implementation or incomplete Six Sigma training.

Top Reasons For Small Businesses To Have A Web Presence

05.14.10

Posted by Sam  |  No Comments »

imageShould a small business have web presence? Perhaps some quick facts should convince you that your small business needs a website. The Internet has more than a billion surfers every day and the purchases and payments done over the Internet each year crosses the $200 billion mark worldwide. Not a small amount at stake, considering the overall cost of Internet Marketing. Need more answers? Please read on.
Top Reasons for Small Businesses to Have A Web Presence
Here are the top reasons why you must not ignore having a web presence for your small business:
1. Immediate Access To The Largest Customer Base: The Internet shows your
website to whoever requests it. With about a billion surfers online at any given time, having a web site clearly announces your business to all of them at the same cost that you would incur for a far less number offline. With high visitor turnout, you need not worry about conversion rates, at least initially.
2. Lower Marketing Costs: All you need to do to market your site is optimize it for the search engines before submitting it to them. Search engines are the biggest source of traffic to websites. Top rankings are sure to boost visitors to your site, thereby reducing your need for further expenditures.
3. No Need To Have Showrooms, Offices And Inventory, Etc: Save big on real estate, office purchases, and recurring costs due to them. You don’t need to keep inventory or merchandise. Purchase and sell as you receive orders. This conserves your crucial cash for better utilization.
4. No Sales Staff Required: Sales are automated; hence, no sales staff is required. Your web presentation and online payment solutions are enough to make sales, as long as your sales message gets across effectively. So you will save big on salaries and other employee-related expenses. You will also save yourself the headache of managing personnel.
5. You Enjoy The Same Opportunity As The Biggest Player: The Internet, like time, is a great field leveler. It treats all sellers the same. You can enjoy the same kind of opportunities as that of larger companies, as long as getting the right customers to your website. How you make sales is up to you.
6. Your Competitors Already Have Plans For A Website: Who is actually your competitor? If you thought it was a company in your city or town, you may want to rethink that belief. Your main competitor could be any company across the globe, until you start localizing and target marketing. If you don’t have a web presence, know that someone somewhere is walking away with your customers.
7. Generate Side Income To Compliment Your Main Revenue Stream: You can partner with global ad content providers for both content as well as additional income opportunities. There are a variety of such programs that pay very well. The most popular ones are text ads (Pay-Per-Click ads) and affiliate programs.

Six Sigma And The Small Or Home Based Business

04.24.10

Posted by Sam  |  No Comments »

imageAlthough Six Sigma was originally devised as a quality improvement technique for the manufacturing industry, it is now increasingly being adopted by the services industry as well. The basic concepts and methodologies are more or less the same in the services sector where they are applied to both operational and non-operational processes.
 
About - Contact - Privacy Policy - Terms of Service