Posts Tagged ‘Six Sigma Success’

Is DMAIC needed in Lean Six Sigma

Tuesday, May 4th, 2010

In an earlier article I wrote about DMAIC as the roadmap to a successful Six Sigma projects[i]. I implied that DMAIC was “the” method for Six Sigma, but it is not and does not have to be. Over the years I have seen adaptation of the DMAIC process to fit a companies culture. But a good proven method or approach is needed to be successful. In “6 Sigma’s Five Key Elements to Success[ii] I talked about to have success you need an established method.

“An Established Method to improve. Many time people are told to go fix something and sometimes that works, but when the solution is not obvious you need a method to develop and implement a workable solution. In our case Six Sigma IS that method. A five step method (process) based on facts and data focused on your customer’s value to solve the need and grow your business. What happens if you don’t have a method?  You will have false starts. Put another way, have you ever been in a meeting where once again an issue comes up that was suppose to be solved last week, last month or last year? Those are fixes that were done with no method to the solution. When you see this during your project step back and look at your six sigma methodology and see if you have to refocus the team. An Example of this is trying to fix the problem from what was learned during or at the end of the Measure step. This leads to skipping analysis were we do a “Deep Dive” for the real root cause of what we see.”

Thomas Pyzdek said it this way, Six Sigma‘s …”focus is on doing. But how do we know what we are doing is correct?”[iii] He goes on to say that we know from gaining the knowledge through learning. DMAIC is one good method for learning and if you do not have one it is an excellent starting point. Remember that Six Sigma is focused on continuous process improvement. In a company I worked for they took the DMAIC process and expanded it to six steps instead of five. They did this to put more emphasis on some steps and less on others. Why change it? Because their culture understood how to do some of the steps of DMAIC very well but they felt that some steps needed extra attention to insure everyone did it right the first time.

By the way DMAIC was not the first learning approach used in the quality arena were Six Sigma roots are from. I believe Shewhart  came up with what is know as PDCA or Plan, Do, Check, Act. Deming refers to PDCA as the PDSA or Plan, Do, Study, Act. I believe that DMAIC’s root come from these. Can you see the progression?

DMAIC comparisonVCPCIA is another companies adaptation of DMAIC. In the Design arena we have DMADV or Define, Measure, Analyze, Design, and Verify.

Well there you have it. DMAIC is not cast in stone but it is a good starting point. Don’t leave anything out but adjust and clarify to make it work for you and then follow it! If you have comments or questions you can post them here or contact me.

Bersbach Consulting
Peter Bersbach
Six Sigma Master Black Belt
http://sixsigmatrainingconsulting.com
peter@bersbach.com

1.520.829.0090

________________________________________________________________


[i] The Roadmap to a Successful 6 Sigma Project, By Peter Bersbach, Oct. 8th 2009, http://www.sixsigmatrainingconsulting.com/uncategorized/the-roadmap-to-a-successful-six-sigma-project/

[ii] 6 Sigma Five Key elements to success, by Peter Bersbach, May 14th 2009, http://www.sixsigmatrainingconsulting.com/leading-six-sigma/6-sigma-five-key-elements-to-project-success/

[iii] Thomas Pyzdek, The Six Sigma Handbook (New York 2003), pg241

The Impact of Six Sigma

Tuesday, April 20th, 2010

There is a lot of talk about Six Sigma today, as there has always been, and many time companies fail in implementing Six Sigma because they just do not believe enough to make that commitment up front. They do not understand what “Six Sigma” means to their bottom line. Or even how to translate what they currently do into Six Sigma savings.

So lets talk about Six Sigma the metric. What does it really mean in terms of your business? The average company out there that has not embraced Six Sigma is running just below four sigma. If you took that average company and created a Six Sigma Culture in it you would see[i]:

  • 20% margin improvement
  • 12-18% capacity improvement
  • 10-30% capitol reduction

Can not believe these numbers? They are true, over an over I see these types of impact in companies that embrace a true Six Sigma culture. Lets look at some numbers, although they maybe not be what is really happening out there. Let’s look at four areas that most everyone has to deal with on a regular basis; the mail system, drinking water, electrical service and prescription drugs. If you were in the United States here is what these services would look like at a 3 sigma level:

A 3 Sigma World

 

Service

Defect Rate

Postal System

20,000 lost pieces per hour

Drinking Water System

Unsafe water for 15 minutes per day

Electrical Service

No electrical service available for 7 hours a month

Prescription Drug Services

8 wrong prescriptions per minute

Where you live maybe better or worse than what you see above. In the US I do believe it is better than this in all cases. How would these services look in a 6 Sigma World?

A 6 Sigma World

 

Service

Defect Rate

Postal System

2.5 lost pieces per week

Drinking Water System

Unsafe water for .2 seconds per year

Electrical Service

No electrical service available for 1.1 seconds every 5 years.

Prescription Drug Services

3 wrong prescriptions per year

I’d guess that in most everyone’s case most of these service would not be today at this level. So how bad are things out there. Well that depends on what you are talking about. Below is a chart[ii] that show how the average company in several areas are performing. These areas are:

  • In the US, getting tax advice from the Internal Revenue Service. – They are better in collecting taxes then giving you or I advice on doing our taxes.
  • Order write-ups – This is when you go into a store or even on-line an place an order.
  • Doctor Prescription Writing – This is the actual process of your doctor writing your prescriptions. We, in the US, are lucky that there are Nurses, Pharmacy techs, and Pharmacists that check these and correct them before you get them. But this is one reason medical cost are so high.
  • Restaurant Bills – Ever gone to a restaurant and got the bill only to find it was wrong. Hmmmmm!
  • Airline Baggage Handling – Ever traveled and found your luggage damaged or lost totally? Even if they find it later and return it this is what this level of Sigma feels like.
  • Domestic Airline Fatality Rate – This rate is lower than the rate of deaths due to mistakes made in hospitals. Hmmmm

Real World Sigma

How does this happen? It is due to variations that happen all the time in everything we do. A Six Sigma approach (culture) make you work at understanding and addressing the day to day variations in your processes that you now compensate for, which costs you money. It looks at the variations and looks for patterns to discover and interpret the errors (variations) seen.

Lets take a simple task (a step in a process) that almost everyone can understand because at one time you have tried this; shooting free throws (step)  in basketball (a process). Now to make a free throw there are a lot more factors or thing that can make one miss ( I know because I miss all the time). But for this example we will look at only five; Vision, Grip, Stance, Reflex, and Rotation. Lets say for everyone of these factors 95% of the time you do any one of them right. That means that 5% of the time you get any one of them wrong. BUT to make the shot you have to get them all right at the same time. So if making a shot only required these five factors and you feel you are at that “95%” level that means that you will make it, get all 5 factors right at the same time, only 77% of the time. By the way this is about a 2 sigma task or step (2 sigma would give each factor 95.45% and an overall result of 79.23%). If you were 99.73% (3 sigma) you would make the shot 98.66% of the times you tried. IF you were a 6 sigma shooter (99.99999998%) you would make it 99.99999990% of the time.

But this is for each time you step on the line to shot a free throw. In the NBA during an average game there are 26 free throw shots attempted. This means the total number of opportunities for nonconformance ( or missed shots) is 5factor X 26 shots = 130 opportunities to make it or not. That changes things a bit. This means that making every shot in the game is as follows for the sigma level you are shooting at:

  • 2 Sigma = .2%
  • 3 Sigma = 70.08%
  • 6 Sigma = 99.99997%

Now that puts me at about a 2 sigma level and a definitely not an NBA level player. Where are the best professionals? Where are the worst  professionals?

As you can see by these number failure rates increase at a very high rate as the number of products (shots) and factors (vision, grip, stance, reflex, and rotation) increase. This is why it is so important to use Six Sigma to keep the competitive edge in your company. Most companies processes have more than 1 step (just as basketball is more than just shooting free throws) and each step has several factors where you can make a mistake. All of these steps and factors drive the defect rate up. Just think every time you touch the thing you are working on you can do it right or wrong. For example picking up a glass, you can grip it firm or not and drop the glass. This is were those improvement come from.

Well there you have my short summary of the impact of Six Sigma on a company. If you have questions or comments please leave them or send me an Email.

Bersbach Consulting
Peter Bersbach
Six Sigma Master Black Belt
http://sixsigmatrainingconsulting.com
peter@bersbach.com

1.520.829.0090

______________________________________________________________________________________


[i] Tom Pyzdek Presentation Managing for Success; ASQ QMD 2000

[ii] Source: Milt Williams, Freudenberg Non-wovens, presentation to management May 6, 1999

2009 Malcolm Baldridge Award Recipients

Friday, February 5th, 2010

Created by Congress in 1987, the Baldrige National Quality Program
exists to help organizations like yours improve their performance and
succeed in the competitive global marketplace. We are the first and
only public-private partnership and Presidential award program
dedicated to improving U.S. organizations.

This Website shows the latest winner of the 2009 Malcolm Baldridge Awards.

Manufacturing – Honeywell Federal Manufacturing & Technology

Small Business – MidwayUSA

Health Care – AtlantiCare and Heartland Health

Nonprofit – VA Cooperative Studies Program Clinical Research Pharmacy Coordinating Center

Check them out and Congratulations to all !!



Bersbach Consulting

Peter Bersbach

Six Sigma Master Black Belt

http://sixsigmatrainingconsulting.com

peter@bersbach.com

1.520.829.0090

Article Review – Where Process-Improvement Projects Go Wrong (WSJ)

Monday, January 25th, 2010

Today a friend sent me this article “Where Process-Improvement Projects Go Wrong” from the Wall Street Journal. The author seems to feel that most Lean Six Sigma projects fail, but has some very interesting lessons learned.

I agree with your article when it comes to how weight-loss and Six Sigma fail. They both do fail just like a spring, But I disagree with how often they fail. I have seen and read hundreds of successful projects that show Six Sigma successes[i]. I have not read them but I feel there are probably just as many in weight loss success as well. Yes some are successful in several projects before the “fad” wears off, but what really makes them fail. Both Weight Loss and Six Sigma, failure is due to a lack of  commitment to a cultural change not just a few projects. I think you found that out too in your lessons learned[ii].

Lets look at your four lessons learned:

  1. “…the extended involvement of a Six Sigma or other improvement expert is required of teams are to remain motivated.” This is very true. IF the Expert is pulled on any improvement project usually it means failure. Where you have a company that has committed to a Six Sigma cultural change, pulling the expert means closure of the project and an explanation from top management (not a lower level) of the reason it is no longer a viable or priority project. All Six Sigma project should be a high priority project.
  2. “…performance appraisals need to be tied to successful implementation of improvement projects.”  This also is true. Every project, in a company committed to a Six Sigma cultural change, has a sponsor who insures that the project is aligned to company goals and objectives that directly impact his or her departments performance. This means failure of the project is failure to meet the goals that they have committed to and YES their performance appraisals are tied to the success of those goals and the perforance of their department.
  3. “… improvement teams should have no more than six to nine members and the timeline for launching a project should be no longer than six to eight weeks.” Since every project should be aligned to key company goals, it would mean that top management would what this project done NOW and not later. Delay would only cost the company money. If that is not the case the project should be dropped. By the way the “DEFINE[iii]” step helps insure this IF it is done right. Also in Define not only is the start decided but also the expected completion date and team membership. People, the most important resource of a company, need to be allocated to maximize their skills. In Six Sigma teams need to be small (5-10) so that the rest of the company can meet its customers demands. Even that many has a big impact on a department. So each team has to be carefully selected to represent all that will be impacted, but large enough to accomplish the task in the time allotted. This is all done in DEFINE with the “expert” and the Sponsor.
  4. “…executives need to directly participate in improvement projects, not just “support” them.” When a company has truly committed to this cultural change and deployed Six Sigma properly you will find every project has a director-level sponsor identified, duties specified, and sufficient time committed and scheduled in advance. Here the sponsor is part of the project team. That is how important the project is to the company.

If Six Sigma is implemented right as a business cultural change in the way they address issue and problems that hold them back from achieving their goals, then everyone get the idea and a voice. It becomes an improvement method everyone is focused on, understands and likes because they have an input into the process.

Peter Bersbach

Bersbach Consulting

peter@bersbach.com

1.520.829.0090


[i] Six Sigma Forum Magazine, ASQ Six Sigma Forum Division, www.sixsigmaforum.com

Quality Progress, American Society for Quality, www.quality progress.com

Patient Safety & Quality Healthcare, Lionheart Publishing Inc., www.psqh.com/digital

Quality Digest, Quality Digest, http://www.qualitydigest.com/content/six-sigma

Quality in Healthcare, ASQ Healthcare Division, www.asq.org/qhc

The Quality Management Forum, ASQ Quality Management Division, www.asq-qm.org 

[ii] Where Process-Improvement Projects Go Wrong, Wall Street Journal | Business, January 5, 2010, http://online.wsj.com/article_email/SB20001424052748703298004574457471313938130-lMyQjAyMTAwMDIwNTEyNDUyWj.html 

[iii] The First step of DMAIC – Define, Peter Bersbach, Bersbach Consulting, October 27, 2009, http://www.sixsigmatrainingconsulting.com/uncategorized/the-first-step-of-dmaic-%e2%80%93-define/


Starbucks Recent Success using Lean 6 Sigma

Tuesday, August 4th, 2009

This recent article show how a service organization can be successful appling Six Sigma to their processes. Here Starbucks focused on just one of the seven types of waste “Motion” of the operator. I bet that this did not only impact the bottom line by decreasing the wait time for each customer but it let the employee focus on the customer more giving better service.

Healthcare of the Future Conference To Be Held in Tucson on October 13, 2009

Wednesday, July 8th, 2009

Bersbach Consulting LLC provides Six Sigma training coaching and support across Arizona, including the Tucson, Phoenix, Scottsdale, and Glendale areas. At this time we would like to thank our friends and clients for their support. If you have landed here looking for our Six Sigma training, coaching or support services in Tucson, then please follow this Six Sigma Training link.

The American Society for Quality (ASQ) will sponsor a one-day conference to provide Arizona-based healthcare organizations with a forum to learn about and discuss the vast number of changes impacting the healthcare industry today.  The conference “Healthcare of the Future – Are you ready?” will feature presentations by healthcare and business experts including: Brad Tritle, Executive Director of the Arizona Health-e Connection, David Dexter, CEO of Sonora Quest, Andres Theodorou, MD of UMC, Daisy Jenkins, VP Human Resources, Raytheon, Thomas Pyzdek, noted author of the Six Sigma Handbook, and many more. The conference will address the following key topics:


  • Update on the current state of Arizona’s strategy and progress for Health Information Infrastructure and government stimulus funds
  • Electronic  medical records with a focus on  the financial and operational improvements,  and clinician user adoption strategies;
  • Patient safety strategies from the National Quality Forum (NQF)
  • Advanced applications of lean systems thinking
  • Key concepts in engaging medical entities for rapid deployment
  • Financial impacts on business concerns of providing healthcare to their workforce
  • Numerous regional examples of successful clinical and operational success stories in medical quality improvement.

“Health care reform is front and center as healthcare costs continue to soar,” Says Thomas Pyzdek, a member of the organizing committee and a consultant on process excellence. “The quality, Lean and Six Sigma professions have a proven approach to reducing costs without sacrificing quality.” Peter Bersbach, Six Sigma consultant and conference chair for ASQ says, “There are many examples of local healthcare organizations making great strides at improvement.” This conference will provide a way for them to share their success stories with others.”


The conference will be held at the Hilton East in Tucson, Arizona on October 13, 2009 from 8 AM to 5 PM.  For additional information contact the conference organizer, Peter Bersbach. [peter@bersbach.com] or visit healthcareofthefuture.org

If your business is located anywhere in the World including the US, Tucson, Oro Valley , Oracle, Phoenix, Glendale, and Scottsdale, Arizona or beyond and you would like to learn more about our Six Sigma training, coaching and support services please call Bersbach Consulting LLC at 1-520-829-0090 or SKYPE me  Now!

The Honeywell Experience*

Friday, June 26th, 2009

Bersbach Consulting LLC provides Six Sigma training coaching and support across Arizona, including the Tucson, Phoenix, Scottsdale, and Glendale areas. At this time we would like to thank our friends and clients for their support. If you have landed here looking for our Six Sigma training, coaching or support services in Tucson, then please follow this Six Sigma Training link.

At a chemical plant in Europe, Honeywell was losing profits at approximately $900,000 per year. The problems appeared related to a need to simplify the process flow.The problem studied and a new process implemented.

This led to a reduction of cycle time from 12 to 10 days plus a significant reduction in product travel distance from 300 to 14 Kilometers. Through these changes, the loss was reversed into a profit of $3.4 Million per year.

* William J. Hill and Willie Kearney, “The Honeywell Experience,”  Six Sigma Forum Magazine, February 2003, 34-37

How much are these problems costing you each year? Would you like to be able to cost-effectively deal with these issues and move more money to the bottom-line while also improving employee morale, customer service and customer satisfaction? Contact us!

If your business is located anywhere in the World including the US, Tucson, Oro Valley , Oracle, Phoenix, Glendale, and Scottsdale, Arizona or beyond and you would like to learn more about our Six Sigma training, coaching and support services please call Bersbach Consulting LLC at 1-520-721-2077 or SKYPE me  Now!

Process Improvement at BOC Edwards*

Friday, June 26th, 2009

Bersbach Consulting LLC provides Six Sigma training coaching and support across Arizona, including the Tucson, Phoenix, Scottsdale, and Glendale areas. At this time we would like to thank our friends and clients for their support. If you have landed here looking for our Six Sigma training, coaching or support services in Tucson, then please follow this Six Sigma Training link.

During economic downturns, chip manufacturers must walk a fine line between balancing costs and providing high quality product. In this industry, sophisticated processes use specialty gases and chemicals to fabricate semiconductor devices that must be consistently pure to avoid costly yield failures. BOC Edwards, a supplier of these gases, wanted to decrease costs while still maintaining high quality product.

They assembled a Six Sigma team to deal with this issue on one of the gases they produce. The results led to a dramatic reduction in the costs due to defects, and at the same time delivered improved gas by reducing the amount of impurity in the final product by 15.5%.

*Brian Zievis,” Process Improvement at BOC Edwards,” Six Sigma Forum Magazine, February 2003, 38-42

How much are these problems costing you each year? Would you like to be able to cost-effectively deal with these issues and move more money to the bottom-line while also improving employee morale, customer service and customer satisfaction? Contact us!

If your business is located anywhere in the World including the US, Tucson, Oro Valley , Oracle, Phoenix, Glendale, and Scottsdale, Arizona or beyond and you would like to learn more about our Six Sigma training, coaching and support services please call Bersbach Consulting LLC at 1-520-721-2077 or SKYPE me  Now!

The Bug and the Slurry: Bacterial Control in Aqueous Products:*

Friday, June 26th, 2009

Bersbach Consulting LLC provides Six Sigma training coaching and support across Arizona, including the Tucson, Phoenix, Scottsdale, and Glendale areas. At this time we would like to thank our friends and clients for their support. If you have landed here looking for our Six Sigma training, coaching or support services in Tucson, then please follow this Six Sigma Training link.

Warren/Amplex Superabrasives had a problem at one of its Asian customers—a high capacity manufacturer of data storage disks. Their customer reported a problem in the polycrystalline diamond (PCD) slurry they were being supplied was clogging the filtering processes. To compound the problem, a film of unknown origin was appearing after the clean-up step from texturing.

Their customer had no time to send back any samples. They had three days’ worth of texturing slurry left, before the product line would have to shutdown.

After working with the customer and another division at Warren, they trace the problem to bacteria in the slurry and found that they could quickly resolve the problem by pasteurizing the slurry.

In less than three days, they ID identified the problem, found a solution, produced a 400-bottle order of new pasteurized polycrystalline diamond slurry, and shipped it overseas and where it was received in time to keep their customer running

*Ron Abramshe, “The Bug and the Slurry:Bacterial Control in Aqueous Products,” American Society for Quality: Making the Case for Quality,
September 2007, www.ASQ.org

How much are these problems costing you each year? Would you like to be able to cost-effectively deal with these issues and move more money to the bottom-line while also improving employee morale, customer service and customer satisfaction? Contact us!

If your business is located anywhere in the World including the US, Tucson, Oro Valley , Oracle, Phoenix, Glendale, and Scottsdale, Arizona or beyond and you would like to learn more about our Six Sigma training, coaching and support services please call Bersbach Consulting LLC at 1-520-721-2077 or SKYPE me  Now!

Other Healthcare Successes:

Friday, June 26th, 2009

Bersbach Consulting LLC provides Six Sigma training coaching and support across Arizona, including the Tucson, Phoenix, Scottsdale, and Glendale areas. At this time we would like to thank our friends and clients for their support. If you have landed here looking for our Six Sigma training, coaching or support services in Tucson, then please follow one of these links  Six Sigma Online Training or Six Sigma Classroom Training.

SSM Health Care*

This St. Louis-based nonprofit health care system increased its market share to 18% over three years while three of its five competitors lost market share.

Saint Luke’s Hospital of Kansas City (SLH) *

Financial performance steadily increased for three years, and client satisfaction scores ranked Saint Luke’s 35th out of 4,500 hospitals nationwide.

Thibodaux Regional Medical Center*

At this Southern Louisiana acute-care facility, an accounts-receivable project increased cash flow by $2 million per year, inventory reduction achieved annual cost savings of $450,000, and a medication-management project decreased defects by 42%.

Baptist Hospital, Inc.*

Overall patient satisfaction for this Florida-based health care provider rose into the 99th percentile for several years; staff satisfaction rose from 47% to 84% over five years.

* Information from American Society For Quality (ASQ)
http://www.asq.org/healthcare-use/why-quality/case-for-quality.html

How much are these problems costing you each year? Would you like to be able to cost-effectively deal with these issues and move more money to the bottom-line while also improving employee morale, customer service and customer satisfaction? Contact us!

If your business is located anywhere in the World including the US, Tucson, Oro Valley , Oracle, Phoenix, Glendale, and Scottsdale, Arizona or beyond and you would like to learn more about our Six Sigma training, coaching and support services please call Bersbach Consulting LLC at 1-520-721-2077 or SKYPE me  Now!