Most companies contemplating Six Sigma implementation have most of the costs worked out beforehand. This follows the assumption that taking additional work means involving more people. You either hire people on fee base or recruit them on your payroll at a cost. Well, then there is the cost of implementation above this, which can run into quite a few thousands of dollars depending upon the project on hand.

But is that the cost of Six Sigma? There are several schools of thoughts and arguments about how to arrive at the cost of Six Sigma and one of which advocates an interesting theory. This appears to be the closest of all the definitions of Six Sigma.

Cost of Six Sigma

The cost of Six Sigma is the cost of lost opportunities due to errand processes or procedures which could have been saved had the procedures or the processes been corrected at the expense of a fraction of the cost.

Cost Consideration Before Project Selection

While contemplating the deployment, one needs to think about the composition of the team as well. The composition of the team can be so organized to as to contain the cost of hiring. The big question however, is whether the project team be placed within the purview of the QA department or be kept independent. Should the task force you are considering to form be composed of consulting Black Belts with select internal employees or should you purely consider only the freshly trained internal Black Belts? Consider whether cost of training will help save the cost of consultation and time, keeping in mind the future projects.

Some Realistic Points Of View

The truth about Six Sigma certification is no one is going to certify your organization after the implementation, as there is no such certifying standard just yet. This implies that both the implementation and achievement are relative, although measurable in terms of cost saved. But there not yet one single universally accepted standard barometer to tell whether the cost saved is absolute.

Let’s just accept it; it is within the reach of the best employees of an organization to pull off wonders for their employer. They can be trained in-house or they can be asked to study ‘how to’ books and tools by attending a seminar or two. The next best step towards saving cost of Six Sigma is piggy backing on forums and discussion groups. This is absolutely possible, considering that many small enterprises have done this with great a degree of success.

Continuous self-education, forming of the team and introduction to not just Six Sigma tools and procedures but to the tools of management and cost give a broader picture. Six Sigma is no magic wand; it takes a excellent analytical and reasoning ability with dedicated and sustained efforts towards cost reducing (i.e; when we say problem solving.)

The cost of a Black Belt could run from $100,000 or more depending on the project at hand. The number of Black Belts is not something which is entirely decided by you if you are hiring Six Sigma consultants.



By: Tony Jacowski

About the Author:

For years, many have held that conventional wisdom dictates that Six Sigma is most appropriate for implementation in large multi million dollar companies.  Massive companies all over the globe have used Six Sigma to save millions of dollars by using efficiently managed processes to cut costs and increase profits.  The general thought has been that Six Sigma is best confined to huge companies that employ thousands.  But this is not necessarily so.  The very nature of the Six Sigma orthodoxy is to implement efficiencies and control them.  That measure can be applicable to any sized business, including new startups.

Considering employees, new startup managers who earn Six Sigma Black Belt certificates while at new companies with just a few employees will continue to grow as their careers progress and they eventually move on to larger companies.  Six Sigma is a method of teaching how to increase profits by controlling costs, certainly two things that will never go out of style.  The advantage of a startup company having managers with Six Sigma certification gives the employer the comfort of knowing that the manager is dedicated to running the company with a sharp eye toward the bottom line.

Startup companies are also plagued by lack of process control and optimization, a skill that is honed through six sigma training. 6 sigma certification can teach start up managers to scrutinize what processes they do have in place and identify areas where new processes need to be constructed. This type of 6 sigma training can help start up companies diminish their burn rates, increase their cash flows, and, ultimately, become profitable — which is the entire goal of six sigma training in the first place.

Good startup managers have a good rapport with their employees, but they sometimes become so distracted by the socialization that they overlook the processes that are becoming money losers for the company.  Six Sigma training trains the manager to focus on the operations with an eye toward the profitability of the project.  More than managers of any other segment, startup managers need to be focused in this way, because it can literally make or break a young company’s ability to become successful.

Six sigma training also allows the startup manager to become a medium-sized company manager as the company leaves the incubation stage. In many cases, when the startup grows, the management team doesn’t — it’s either acquired or the business goes public, and in both cases the management team is often replaced by professionals with impressive management backgrounds. 6 sigma certification provides the start up manager with professional mettle — and, sometimes, a job.

If you are beginning a startup company and are looking for managers and employees, you would be wise to choose those with 6 Sigma certificates. The internet’s highest regarded source for Six Sigma training is www.SixSigmaOnline.org. They specialize in the vaunted Six Sigma Black Belt training.



By: Craig Calvin

About the Author:

However, since achieving such high quality levels is often easier said than done, businesses will have to follow the prescribed guidelines while implementing Six Sigma.

Explained below are some of the essential requirements of Six Sigma implementations.

Identifying Business Processes That Can Be Improved

Six Sigma implementations are certainly not easy and this is why it is often not feasible for businesses to implement Six Sigma in each and every business process that might exist. The right thing to do is identify processes that might hold the most potential for improvement and implement Six Sigma only in those selected processes.

Such identification should be based on the existing overall value that a process might be contributing to the end product and also on how much it can contribute in the near future after the Six Sigma implementations are over. However, since the identification process is itself quite complex, it’s recommended that businesses rely only on statistical tools and techniques rather than depend solely on the gut feelings of employees, managers and implementation team members.

Getting Professional Help

Since even the basic concepts, tools, techniques used during Six Sigma implementations are quite different from what the employees and the team members might be using while performing their day-to-day scheduled tasks, businesses should always opt for professional help right from the start of the implementation process.

Depending on the exact needs, businesses can get professional help by hiring the services of Six Sigma professionals such as Black Belts and Master Black Belts. For best results, it’s recommended that businesses select only those professionals who might have experience in executing Six Sigma implementation projects that are similar to the one being planned by the business.

Considering Other Cost-Effective Options

However, since not all businesses can afford the relatively high pay packages demanded by most of these professionals, it is recommended that businesses, especially those that are already facing a resource crunch, consider other cost-effective options that might be available. One such option is to finance the professional training of some of the existing employees who can then apply for Six Sigma certification exams.

This way, businesses will be able to develop an in-house talent pool of Green Belts, Black Belts and Master Black Belts, who can then take care of the implementations. They will also never again have to worry about paying the enormous amounts of money required for hiring Six Sigma professionals from outside.

Apart from these, businesses also need emphasize providing continuous support and guidance to the implementation team members as well to all those employees who might be directly related to the Six Sigma implementations. Incentives and other motivational schemes can also be launched to boost the performance of all the stakeholders associated with the implementations.

Businesses that use these effective techniques will be in a better position to successfully complete the Six Sigma implementations and consequently derive the associated benefits.



By: Tony Jacowski

About the Author:

If you wish for a dramatic improvement in your business, what can be your best course of action? Perhaps, it would be moving towards a streamlined process that is based on a precise understanding of customers’ needs and eliminating defects in the existing processes. Six Sigma is one such tool that helps you embark upon a process to achieve or exceed such objectives.

Six Sigma offers your organization a significant benefit and a positive impact on the organization. It primarily helps to improve the processes of production and service and business processes so as to exceed the expectations of the customer. The main reasons for obtaining Six Sigma certification are firstly to display proficiency in the Six Sigma Body of Knowledge, secondly to increase the desirability by employers, and lastly to increase your productivity and salary.

Six Sigma Green Belt course trains a person to lead small project teams. It equips the person undertaking the Six Sigma Green Belt course to use basic problem solving tools, DMAIC, and aspects of DOE and SPC at the basic level. The key responsibility of a ‘Green Belt’ includes data collection along with analysis of action items.

A Green Belt workshop training generally lasts one to two weeks as compared to a black belt training, which can extend up to four weeks. The main function of Green Belts is to successfully deploy the basic Six Sigma techniques and also guide small scale improvement projects.

The Green Belts can also help in gathering data as well as performing experiments in support of Black Belt projects. A six sigma black belt trainee is trained in team building activities and in the statistical tools in more detail. The Six Sigma problem solving methods along with statistical tools help to contribute largely in an organization’s success. Six Sigma statistical methods can be successfully applied to healthcare, finance, manufacturing, government, or any other type of service or product based industry. The trainees can employ various methods for business process improvements, such as:

• Learning the Six Sigma metrics

• Integrating the lean manufacturing method with other improvement methods

• Applying the DMAIC improvement process

• Choosing successful Six Sigma teams and projects

• Execution and planning of projects

• Increasing the profitability of the organization through Six Sigma projects

• Selecting the right statistical tools

• Reducing the variation and defects

Qi2 has a computer based Training and Online Certification Program based on the Body of Knowledge formed by American Society for Quality (ASQ). The Green Belt Six Sigma training under this program offers two modules, with a two week onsite workshop or a computer based training program. Each module ends with a test, the answers of which are emailed by the candidate to the course author and instructor. We grade the results and offer answers and explanations by the turnaround email. Visit the site www.sixsigma-qi2.com and get more information about the courses offered by the company.



By: Mike White

About the Author:

Project plans show the why and how of a project, while the Gantt chart shows the relationships among project tasks. A proper project plan is a key factor in the success of any Six Sigma project.

What a Plan Includes

The dictionary meaning of project is a plan, proposal or an undertaking. A plan is defined as a scheme or a program or a systematic arrangement of important tasks. A project brings the plan into actual implementation; it is the bridge between planning and doing.

The plan will generally include a goal statement, a timeline for completion of various tasks and the description of various resources required for the project. It also includes the measures of evaluation for the study of the effectiveness of the proposal.

Establishing Estimates

The goals of a Six Sigma project plan are to establish estimates for the overall project as well as the smaller constituents. It is a model of the project that is being proposed. This helps in bringing about timely changes in the project if any drawbacks are identified. Therefore, it helps in understanding how the various components of the project fit in place and the coordination of the various activities to achieve the project objectives.

Six Sigma project plans also detail the roles and responsibilities of the participants involved directly or indirectly in the different processes and stages of the project. In case of any deviations, the plan can be referred to for reference, so that the project does not continue to go off track.

If anything needs to be changed which can bring other things under the scope of the project, the project plan can be reviewed and appropriate changes made for any further changes that may be required.

Cost-Benefit Analysis

A good project plan for any Six Sigma project will cover the entire why and how of the project. It will not only have the goal statement, but will also detail the cost- benefit analysis. A cost-benefit analysis is important in a project plan as it proves the profitability of the project being undertaken.

An overall feasibility study, if included, provides support to the claims of practicability of the project. This helps in making a good case for the need of the project with the concerned stakeholders, such as top management and the shareholders.

A timetable for the various steps sees to it that the project remains on the right track and does not take too long to complete. If any task is lagging behind the schedule, steps can be taken to provide additional resources for its timely completion. A timely completed project will ensure that the participants do not lose interest in it.

In short, a project plan defines the entire Six Sigma project life cycle. It establishes a budget for the costs and resources. In some cases, if the pan has been made with due care and research, it can help identify risks of the project and eliminate them.

On obtaining a commitment for the project plan from the top management, Six Sigma team leaders can undertake the project activities that have been developed based on it.



By: Tony Jacowski

About the Author:

Many questions arise in the minds of six sigma certification candidates. These questions range from the most strange to the most genuine concerns. There is a compelling need to explain things regarding the exam for the benefit of those who have questions but don’t know where to find the answers. Here is brief outline of a few fundamental questions that are frequently asked about Six Sigma Certification.

What Is Six Sigma Certification?

Six Sigma Certification is documented proof that a person has acquired certain standardized capabilities with regard to the quality management technique that, when applied, works towards error/defect elimination and prevention. However, the certificate does not guarantee that a candidate has implementation skills, but only certifies competency in the subject matter. One can attain certification in any of the key roles (Master Black Belt, Champion, etc.).

Basis For Six Sigma Certification

Six Sigma Certification typically involves studying the related subject matter and passing an exam. Training institutes or companies provide certification tests and six sigma training courses. It is not unusual for new companies to have their employees test on a training institutes’ tests. This completes the first part of the written test in the candidate’s proficiency in the subject matter. Now comes the real test! Once having passed the written test, The candidate must work hands on a project or two in a practical environment. In this situation, the candidate must demonstrate that he or she is competent enough to implement the knowledge acquired in classroom six sigma training.

During the practical part of the exam, there is no benchmark for what passes or not. Not just this, but some companies may accept just one project and some others may not. This means that out of the three critical aspects of six sigma certification training, the written exam and the practical competency demonstration, a crucial third one may be said to be lacking seriously or non-existent, unless it becomes standardized. To complicate matters, there is no one single body to regulate or standardize all the critical aspects of six sigma certification.

Do I Need A Six Sigma Certification?

This is any individual’s professional decision. Anyone wanting to get six sigma certification will need to think seriously about it. Sometimes candidates are chosen (or compelled) by their employer to take six sigma training and thereby attain six sigma certification. But many times, it is the other way around. Someone may decide to pursue six sigma certification for reasons such as attainment of a raise or promotion. Another may be prompted by the fact that six sigma certification will enhance their marketability. While each reason is an individual one, candidates must be result oriented, highly motivated in order to be successful.

What Will It Cost Me?

Again, this is a highly subjective question. It could cost you anywhere from $0 to $30,000 per person, depending on where you receive six sigma training. Again, the decision as to the trainer, location, and online or offline six sigma training method are other considerations as to cost.

What worked for one person may not work for another. When contemplating six sigma certification, there really are no generalizations that can be made. It all depends on who individual capabilities, location, and to some extent, your position in the corporation (or lack thereof).



By: Tony Jacowski

About the Author:

Six Sigma is a methodological strategy by which errors in a company’s current processes and plans are identified and strategies to rectify the same are formulated. It is fact-based technique, involving a lot of data handling, which provides scientific results for cost cutting and reduction in waste of resources. Today, many organizations, large and small scale, are applying Six Sigma to ensure improved, faster and cheaper services to their consumers without compromising on the quality quotient.

Various Levels

Implementation of Six Sigma requires professionals who have been trained in the program and have had exposure to practically applying the concepts in different organizations across industries to know how to go about its application on the job. There is a Six Sigma certification program that has to be undertaken for gaining knowledge about this particular quality measurement practice. Six Sigma certification is similar to other professional courses in that after having cleared specified guidelines and followed the required procedure, individuals are certified as capable of employing the gained knowledge in their respective field. There are several stages of the program and with each qualifying level, certain tests that have to be cleared. These levels are labeled in the same manner as a martial arts certification grade. There are various belts such as green belt, black belt and master black belt awarded to professionals who complete corresponding stages of the course.

Green Belt

The first level is completed when an individual finishes two weeks of training and passes the qualifying exam. This level is termed Green Belt, which teaches all the essential methodologies. The curriculum for the Green Belt involves DMAIC, which stands for five interrelated phases: Define, Measure, Analyze, Improve, and Control. It defines customers, their needs, recommended products and services, the assignment limits and plotting process flow to improve current methods. It measures performance by developing and collecting data from numerous sources and scrutinizing it for flaws by comparing it with surveys. The Analyzing phase bridges the rift between present methods and targeted results. Improving stage works out various solutions to redefine the earlier processes and deploys implementation plans. The Control stage teaches how to maintain the new changes that have been introduced and maintain the documentation and contemporary systems in accordance with the goals.

Black Belt

The Black Belt is awarded to a professional who completes four weeks of training, which involves Green Belt curriculum as well. This phase’s curriculum covers Green Belt subject matter as well. Black belt certified personnel usually train other Six Sigma aspirants and Green Belt holders, and in the process improve their abilities and skills as well. The Black Belt level enables individuals to master the Six Sigma roadmaps, extensive arithmetical methodologies and cross-functional process improvement. Black belts usually take up responsibility as Six Sigma team leads.

Master Black Belt

A person who has undertaken more than the required four weeks training and implements it in an organization as a Six Sigma program manager is awarded the Master Black Belt. These personnel are responsible for imparting knowledge to help Green Belt level and Black Belt level learners in improvising on their projects. They apply their skills in an organization by coaching other employees and helping them achieve the Green Belt and Black Belt certification without the company having to spend on training separately.



By: Tony Jacowski

About the Author:

Lean manufacturing combined with Six Sigma have been combined to form Lean Six Sigma. Both are basically techniques to improve business. The concept of Lean manufacturing comes from Toyota Production System while Six Sigma owes its origins to Motorola. Both concepts when combined, can transform organizations.

Elimination of waste and reduction in the time cycles are the goals of Lean while Six Sigma focuses on improving quality and reducing variability. The goal of any business is to maximize shareholder value. This can be achieved by reduction in cost, increase in quality, increase in process speed, a better return on invested capital and improved customer satisfaction.When Lean Six Sigma is applied to businesses, there are significant benefits in terms of improved lead time, reduction in costs and enhancement of quality.

The US Army has adapted the Lean Six Sigma to its growing needs to eliminate waste in time, money and material. To this end, the US Army Installation Management Command or IMCOM for short has drawn up a training program for enhancing productivity and reducing costs.

IMCOM has a training program for bringing about transformation in the US Army through Lean Six Sigma. The curriculum includes awareness and conceptual training on how the concept of Lean Six Sigma fits into the overall strategy of the US Army to make it efficient and productive. Hands-on understanding of the process is given; participants are imparted knowledge on how to identify projects and select them for the purpose of applying Lean Six Sigma. The roles and responsibilities of a Leader are highlighted. The curriculum also includes training in tools and skills necessary for effective and efficient implementation of Lean Six Sigma.

Personnel have divided into Green Belts and Black Belts. Green Belts are taught to be effective team members. They are taught the DMAIC concept of six Sigma. DMAIC is the acronym for, Measure, Analyze, Improve and Control.Black Belts are those who will use the processes and tools required to implement DMAIC methodology. Black Belts are taught through simulation, case studies, exercises and examples.

The application of Lean Six Sigma in the US Army has resulted in reduction of expenditure and improvement in productivity through contracting, manufacturing, administrative services and recruiting.

The Red river Army Depot at Texas in one such example. The US Army was able to save $30 million on the production of Humvees. The unit upped its production from 3 Humvees a week in 2004 to a whopping 32 mission ready Humvees in a day by 2006.

The Regional Readiness Command at Utah has been able to reduce   the cycle time from 90 to 21 days in awards processing. Previously, the deployment preparation time for a battle-rostered unit was 30 days. On account of Lead Six Sigma this time period has been brought down to just 3 days!

LEADS, the system through which army starts the recruitment   process of prospectives, has improved on account of Lead Six Sigma. The steps have been reduced from 32 to 11. This has brought down the time taken for the recruitment by 40%.

The repair cycle time at the Pine Bluff Arsenal at Arkansan reduced by 90%. The production of M-40 protective masks increased by 40%, on account of Lean Six Sigma.

There was an $11.9 million reduction of cost in Patriot air defense missile system recapitalization.

At the Corpus Christi Army Depot in Texas, the time taken to rebuild the UH-60 Blackhawk decreased from 256 days to around 70.

In the backdrop of fiscal constraints that the US Army is facing, these cost savings have come in as a morale booster. While, undoubtedly there have been a number of examples of costs savings and improvement in productivity on account of implementation of Lean Six Sigma, more profound has been the impact of the common US soldier. Despite the initial resistance, wherever it has been implemented in the US army, it has met with success.

Peter Peterka is the President of SixSigma.us. For information on Six Sigma, Six Sigma Certification or Online Six Sigma programs contact Peter Peterka.

 



By: Peter Peterka

About the Author:

Although Six Sigma has its roots in manufacturing, it works just as effectively in service industries. It’s no secret that service environments, such as financial organizations, healthcare providers, retail companies, and hospitality organizations have a harder time applying Six Sigma principles. However, the core principles of Six Sigma allow it to cost-effectively translate manufacturing-oriented Six Sigma tools into the service delivery process.

Service organizations have different root causes of problems and a unique set of processes and metrics. Thus, the tools and methodology required to achieve the improvements of Six Sigma are significantly different. While problems in the manufacturing setting may lie within a process, the issue in a service environment often is the process itself. Service industries are full of waste–and ripe for the benefits of Six Sigma. It is easy to apply relatively simple statistical and lean tools that will reduce costs and achieve greater speed with less waste in service processes. There are numerous case studies that demonstrate how Six Sigma can be used in service organizations just as effectively as in manufacturing-and with even faster results.

In a service organization, the critical factors in quality and efficiency are flow of information and interaction between people, especially interactions with customers. Transforming the process of these flows will yield quality results. At the heart of every service business are the opinions, behaviors and decisions made by people. Analyzing and modifying human performance in service environments is as complex as any manufacturing situation. Six Sigma achieves documented bottom-line strategic business results by initiating an organization-wide culture shift. Until a process focus-rather than a task focus-is developed, the scope and endurance of improvements will be limited. Analyzing and modifying human performance in these environments is complex, but Six Sigma provides the tools and methodology required to achieve significant long-term improvements.

Service managers trained in Six Sigma become skilled at advanced process analysis and problem solving techniques relevant to the “real world” of service environments. They learn to identify and eliminate poor decision-making processes, standardize practices, reduce cycle times and manage the risk of the extensive changes required for breakthrough process improvement in people-oriented transactional processes. Successful Six Sigma services projects will lead to improved customer satisfaction, increased profit margins, reduced costs, and lower turnover. Six Sigma tools can be used in many service environments, even service areas within a non-service industry. Areas such as procurement, call centers, surgical suites, government offices, R&D, and many more will all receive benefits from implementing Six Sigma process improvement.

Six Sigma will help a service environment become a customer-centered organization, gain control over process complexity, and improve response time on signature services. Peter Peterka is President of Six Sigma us. For additional information on Six Sigma Green Belt or other Six Sigma Certification programs contact Peter Peterka.



By: Peter Peterka

About the Author:

Dealing with a Six Sigma company means that a customer can count on receiving the same high quality experience each time there is an interaction.  Six Sigma was begun by Motorola Corporation as a method of eliminating variance in production methods.  This increases quality.  If a compny employs the Six Sigma discipline, it has learned to identify and reduce the causes of product variety.

For someone seeking a quality control or waste reduction position at a company, the advantages of Six Sigma Certification are obvious, but far too many job seekers overlook the value of this certification when seeking positions outside quality control.  Whether or not the actual job title or the company’s description of a given position contains the phrase ‘quality control’, every position can benefit from Six Sigma methods. Let’s say that again, “EVERY position can benefit from Six Sigma methods.”

Companies are well aware that paying a little more to get a job done right is more cost effective than paying to get the job done wrong, than paying for the mistake to be corrected. Whether it’s lost time, material costs, or customer satisfaction, doing a poor job costs far more than just the salary of the employee who performed the task.  Sitting at an interview table with someone who is Six Sigma Certified tells a Human Resources professional that this aspiring employee is someone who has been trained to do a job correctly. We’re not talking about someone who can do a specific task, we’re talking about someone who can examine his or her processes on an on-going basis to maintain and improve job performance. The Human Resources professional can infer that the Six Sigma Certified job seeker he or she is interviewing would be an employee who would not be likely to create those extra costs associated with doing a job incorrectly or in an inconsistent manner.

Like being multi-lingual, being Six Sigma Certified is a true advantage. Even if the job does not require it, employers know that the situation could arise where it’s needed. It’s a skill that can augment and support any job related skills and experience. Actual certification is absolutely necessary to gain this crucial advantage because the certification is proof for the employer, just like a college degree is proof. A job seeker is an unknown quantity to a certain extent. The more documented evidence of the quality of the person being interviewed, the better the chances of that particular person being hired.

Even in the event that the position in question becomes unavailable, many employers will make an effort to find a different position for a Six Sigma Certified job seeker because they recognize the value of such an asset.  Whether seeking a position at a new company or just a new position at their current company, Six Sigma Certified applicants enjoy an advantage over their non-certified competition. This advantage could be the crucial difference in today’s tight job market.

If you are seeking to strengthen your employable skills, the professionals at www.SixSigmaOnline.org can help you achieve your Six Sigma Certification. The Six Sigma Black Belt training is the most desirable business course in its industry.



By: Craig Calvin

About the Author: