Monday, 24 August 2009

Lean Versus Six Sigma


Six Sigma is problem focused with a view that process variation is waste. Lean Thinking, on the other hand, is focused on process flow and views any activity that does not add value as waste. Six sigma uses statistics to understand variation. Lean uses visuals: process mapping, flowcharting, and value stream mapping, to understand the process flow.


Taiichi Ohno is credited with creating the Toyota Production System (TPS), which is one of the better known implementations of Lean Thinking anywhere in the world. The concepts of lean were born out of the severe resource constraints in postwar Japan, which leads us to next week’s process improvement program - Theory of Constraints.

Lean Thinking is ideal for mature (energy), slow growth (automotive), low transaction industries (small business) or an organization where mathematical tools are not common. Lean begins to use systems thinking and considers all of the process interactions.

But lean is still a reductionist approach focused on eliminating waste (cutting costs). What is needed is to balance the resources released through Lean or Six Sigma improvement programs with an increase in throughput and need for resources. Otherwise you enter a cost cutting, job losing cycle and your process improvement program will grind to a halt.

If you are in a mature, slow growth, low transaction, or non-math business then Lean Thinking will work real well for your organization.
So what’s left? Six Sigma and Lean use two different approaches to get the same end result – process improvement. The Theory of Constraints (throughput improvement) takes the concepts of Lean Thinking to another level of systems thinking.

Thursday, 20 August 2009

Four Qualities That Identify a Successful Six Sigma Belt Candidate

Six Sigma is a process that needs the human element to exercise. To bridge the gap between mediocrity and excellence there are four critical characteristics to look for in potential candidates who will take the process and execute to a level of performance that will drive dramatic, sustainable results. These are learning ability, leadership, desire and determination. Let us break each of these characteristics down and provide some factors to consider.

Learning Ability

This particular characteristic has been the primary focus, and at times the only one considered for many organizations choosing their Six Sigma Belt candidates. To compound this issue, the focus is generally geared to only those having prior experience with statistics. While this quality is important, it is not the determining factor. A candidate must be able to understand instructions and underlying principles with the ability to reason and make sound decisions possessing an analytical mindset. The ability to gather, analyze and summarize data in order to draw rational, fact-based conclusions is needed. A Six Sigma Belt candidate will be placed in a learning environment where mathematical science is discussed and instructed. Statistical reasoning is needed for proper understanding and execution of the Six Sigma DMAIC method.

Leadership


A candidate must have demonstrated leadership in a team environment with the ability to mentor team members to achieve a level of knowledge that fosters cultural growth and individual project success. The candidate usually knows what must be done and how to get it done, but genuinely involves others and listens to their concerns and ideas. He or she is willing to change course as a result in order to achieve greater results. This person can convince others to follow his/her lead despite skepticism, and is generally able to win the hearts and minds of others to achieve breakthrough objectives. The candidate works collaboratively with fellow employees at all levels of the organization and is able to maintain a blameless environment by focusing on issues and facts rather than seeking who is at fault. This quality to lead and inspire others to achieve a common goal is paramount for Six Sigma success.

Desire

Strong intention or aim for excellence is another characteristic to be considered. A candidate must possess the trait of motivation that has been demonstrated in past performance. The ability to be proactive with foresight to undertake strategic actions aligned with organizational goals is important. The ability to plan and execute work that is accurate, complete, timely and reliable while never compromising integrity shows that the candidate takes pride in all that he or she does. This personal desire for excellence is a good indicator that the candidate will apply the same for anything he or she undertakes. As a company searching for the right Six Sigma Belt candidate it is necessary to communicate the positive education in this continual improvement methodology and the personal growth experience that the candidate will receive. This understanding will help to stimulate the already existing desire and help facilitate the continuing aim for excellence.

Determination


Once a candidate has been selected and embarking on this Six Sigma journey it is crucial that they are devoting full strength and concentrated attention to achieving results in the short and long term. This focused results orientation will keep the candidate moving toward breakthrough objectives while potentially undergoing immense pressure from outside influences to forego the Six Sigma process and fall back into the traditional methods of operation. The ability to adapt effectively in an environment of change, uncertainty and ambiguity is required. The candidate will implement creative solutions that fall outside of the current paradigm, thus challenging the current standard. This will prompt a strong reaction within the status quo and steadfast determination from the Six Sigma Belt candidate is needed to ensure successful implementation and sustainable results.

In Conclusion: Six Sigma Belt Candidate Must Possess All Four Characteristics

Each of these characteristics discussed are crucial for choosing a candidate that will be successful in completing the rigorous Six Sigma training and certification process. The more important aspect is the continued return that a company receives from this individual as a change agent within their continual improvement journey. To ensure that this takes place the Six Sigma Belt candidate must possess all four described characteristics. Six Sigma is a commitment to a management philosophy that drives for total customer value creation. This commitment is not guaranteed by focusing only on the attribute of possessing an analytical mind. The combined characteristics of learning ability, leadership, desire, and determination are paramount for selecting a successful Six Sigma Belt candidate.