Six Sigma Benchmarking Details


By Jacquelyn Donner

The Six Sigma methodology focuses on the drastic reduction of process variation and product defects. The result is processes which are very robust, which make very efficient use of resources and assets, and which result in highly efficient organizations. Achievement of Six Sigma process capability will result in processes which yield less than 3.4 defects per million opportunities. Ultimate results will include reductions in Cost of Poor Quality, increases in market share, reduced cycle times and inventory levels and increased product reliability.

Successful implementation of Six Sigma is achieved through careful planning and program control, benchmarking of all processes and the application of the Roadmap. It is vital to focus on the few processes where advantage can be taken of the Leverage Effect to yield maximum results. Rigorous control and management of business metrics and designing products and processes for Six Sigma are also vital. Six Sigma is implemented by achieving total management and employee support, instituting rigorous program controls, assuring proper training and coaching, and ensuring projects are properly scoped to achieve most efficient use of resources.

A Manager is reflecting on the fact that we are in business to make money, and that we make money by satisfying the needs of our customers. Recognizing that customer focused organizations align their activities with their customers requirements, the manager notes that the needs of the customer can be defined in terms of quality, delivery and price.
Benchmarking in industry over the last decade has shown that the average company is in the range of three to four Sigma. Sadly, many of these companies are firmly set in their ways, complacent in the knowledge that they are at least as good as their competition.

Profitable and growing, Market prices declining, Competitors increasing, Have a quality assurance program, Spending 10-25% of sales dollars on repairing or reworking product before it ships, Unaware that world-class companies have similar processes that are greater than 100X more defect-free, Believe that a zero-defects goal is neither realistic nor achievable, Have 10X the number of suppliers required to run the business, 5-10% of the firm's customers are dissatisfied with product, sales, or service and will not recommend that others purchase products or services.

History has shown that there are a number of major differences in philosophy, policies and procedures, actions, behaviors, and beliefs, between companies which are at Four Sigma capability and those which are at Six Sigma.



 
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Jacquelyn Donner, Master Six Sigma Black Belt from http://www.ContentHere.com


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