Posts Tagged ‘six sigma overview’

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.

Six Sigma Process Simulation And Modeling

08.02.10

Posted by Sam  |  No Comments »

imageSix Sigma has become a buzzword in industry circles since its introduction in the 1990’s. The methodology is based on a disciplined and data driven approach and is used for eliminating defects and achieving near perfection by restricting the number of possible defects to less than 3.4 defects per million. It is being used effectively for managing processes of both, manufacturing and services industry. In the manufacturing industry, it is used for limiting defects in the goods produced whereas in the services sector it is used mainly for reducing transactional errors.
What Is Process Simulation And Modeling?
Simulation software based on Six Sigma methodologies can be used for simulating a wide range of processes in order to eliminate common industry problems related to defects, wastage of productive resources, and quality control. The basic idea governing Six Sigma process simulation is to provide an accurate system of measuring defects in a process, so that these can be eliminated during the actual production. The emphasis is on measurement and statistics for ensuring that the process is properly set up and measured. The methodology is also used for measuring baseline performance, which helps predict the effects of any improvements made in the process. Proper application of Six Sigma methodologies leads to tangible improvements effected by decisions that have been explored and proven in detail.
Scope
The Six Sigma philosophy covers different aspects of industrial processes ranging from pure defect management to process performance improvement. With the increasing use of Six Sigma methodologies, it has become widely accepted that process simulation and modeling techniques can be used for improving almost any type of manufacturing or transactional process. Most of the process simulation and modeling techniques are based on DMAIC (Define, Measure, Analyze, Improve, Control). In the ‘Define’ phase, the process simulation techniques are used for identifying the changes that would have made the most impact on the outcome. This helps in making the most appropriate changes. Various simulation tools are used throughout the other phases for providing detailed statistical data on the effect of any proposed changes related to throughput, utilization, delays, service levels, and any other factors related to the process.
How The Simulation Model Works
-The simulation software coverts numerical data into graphic representations, which are relatively easier to understand.
-Commercial companies that specialize in providing Six Sigma services offer customized services, wherein the simulation model is an exact replica including all the elements used in the actual process such as machines, labor, conveyor and belts.
-All these elements are represented by icons and once they are in place, one can define the link between these elements, establish the process flow, and add as much detail as possible for simulating the actual process more accurately and more effectively.
-After setting up the simulation, one can simulate an infinite number of hypothetical scenarios both positive and negative that might affect the process. For example with the help of simulation, a manager can know exactly what will happen if a crucial machining tool breaks down or half the labor force does not turn up for work.
-All these factors can severely affect production. However if the extent of potential damage is known beforehand, appropriate contingency plans can be put in place for restricting or even eliminating the possible loss of production.
Process simulation and modeling techniques help executives make informed decisions. The data generated by the simulation tools empowers decision makers with a deep insight about the process and procedures, allowing them the ability to make the necessary changes.

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.

Effective Online Six Sigma Training

03.21.10

Posted by Sam  |  No Comments »

imageSix Sigma training is beneficial to employees as well as the organization as a whole. However, since 6 Sigma training is expensive, many organizations stay away from it. Online training is the best answer to all these problems. It is cost effective and flexible.
 
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