The House of High Quality Articles for Everyone in the World

Showing posts with label Lean six sigma. Show all posts
Showing posts with label Lean six sigma. Show all posts

Apr 11, 2015

6 Benefits of Using Statistical Process Control (SPC)

Statistical process control is a method that uses statistical approach to achieve the monitoring and controlling of manufacturing processes, particularly. This will ensure the processes under monitor are able to achieve their full potential and produce the highest rate of conforming products. Real-time statistical process control means instance or near instantaneous data acquisition from measuring equipment or tools to give input to the statistical process control system software. The data can be immediately plotted onto the control charts and tested toward the control limits that are set for the charts. Real time statistical process control software system will provide immediate data update from the shop floor. It gives the operation crews the alert of "out of control" incidence when the upper or lower control limit for the control chart has been violated. The alert can also be triggered by various kind of rules such as trending towards out of control situation, so that immediate action can be taken from the operation crews before it is too late. When statistical process control system is implemented properly, there are tremendous benefits that can be achieved. In this article, 6 benefits are highlighted and these benefits are very crucial to improve the competitiveness and profitability of an organization. The 6 benefits of implementing real time statistical process control software are: The company can achieve a very fast return on investment from the software. Usually this can be achieved in less than a year depending on the processes and the results can be justified by data. Real time statistical process control system is highly acceptable by customers owing to the reliability of data and faster feedback. This is definitely going to improve the customer satisfaction. It will help the operation team to respond to the problem quickly during situations of "out of control", thus it will reduce waste, scrap and rework in the manufacturing processes. It will eliminate human error in the data entry step, as compared to the conventional method that the data is entered by operators. This system will improve the product and process quality tremendously by closely monitoring the performance of the process. Real time statistical process control software enables audit-ability across the processes. This will enables the company to cost effectively meet ISO, TS, FDA and USDA requirements. A real time statistical process control system will have a reporting tool to summarize the data and present it according to the user's requirements. The reports can be used by the process engineer to identify the root cause of process deviation. Proper actions can be taken by the process owner for a short-term and also long-term remedies. Other than this, the data also can be used to calculate the process capability. Once the process is stable and under control, the process capability can be measured to understand how good is the capability of the machine and other process. Continuous process improvement can be carried out by the process department to strive for higher process capability rating. Real-time statistical process control system can help to prevent problems and save the companies millions of dollars that otherwise would have been paid for lost in scrap, rework, warranty, litigation, and market share decline.
read more »

Mar 17, 2015

Can you use Six Sigma in Supply Chain ?

A Manufacturer can provide a quality which is highly dependent on - 1- The Suppliers and the suppliers of suppliers (reaching some times up to mining or extraction of a natural product) 2- Clients and clients of clients. (going through value addition by clients, and moving through Distributors, Stockists and Retailers finally reaching the end user) Somebody who is managing the supply chain has to manage the issues of quality and delivery across supply chain. This means he has opportunities if doing DMAIC and DFSS projects involving suppliers and intermediaries. Some industries impose certain certification programs on suppliers - for example an automotive component supplier needs to have TS 16949 certification and his suppliers need to be ISO 9001 certified. Similarly some other companies (as in electronic industry) have supplier approval and supplier assurance programs. Some other industries are keen to know about labor practices, ethics, environmental and safety consciousness of their suppliers (example - pharmaceutical industry) All such programs can be complemented by Six Sigma because Continual Improvement is a requirement in all such programs. Six Sigma has now become synonymous with continual improvement. Big improvements happen when we convert improvement opportunities into well defined projects, assign the right team members, have the right management support and approval and use a structured methodology (like DMAIC) After tasting success with Six Sigma and setting their own house in order, many companies induce/ recommend/ suggest Six Sigma implementation in upstream and/or downstream companies. Many Companies induced many suppliers to use Six Sigma. Similarly automotive companies are training and developing their suppliers on usage of Six Sigma techniques, Banks are forcing their service providers to use Six Sigma in their BPO environments. Common projects taken up are - Reduce cost without increasing delivery time. Reduce delivery time without increasing cost. Improve quality without increasing delivery time. Reduce delivery time without reducing quality.
read more »

Sep 8, 2014

Why You Want to be a Six Sigma Master Black Belt ?

The Sigma level of a process describes the performance of a process or product characteristic when compared to a customer specification. A Six Sigma process exhibits no more than 3.4 defects per million opportunities. Very few business processes achieve this level of performance and consequently most organizations endure very high costs and poor quality. Most company processes produce in excess of 6000 (approximately Four Sigma or less) defects per million opportunities which is often simply not good enough for today's competitive environment where customer demands increase exponentially. Achieving a Six Sigma level of performance requires that a systematic customer focused methodology and disciplined project selection and execution framework be deployed throughout your company. To achieve such a deployment people at all levels of the organization must be trained in Six Sigma. Six Sigma identifies Five Key Roles for its successful implementation. These are Executives, Champions, the Six Sigma Master Black Belt, Six Sigma Black Belts, and Six Sigma Green Belts. While all these roles are important the Six Sigma Master Black Belt plays a pivotal role in your companies Six Sigma deployment. A Six Sigma Master Black Belt will coach managers, partner with Champions and guide Black Belts and Green Belts as they work to complete their projects. Master Black Belts possess a unique combination of soft (people) skills and hard (technical) skills. Successful Six Sigma Master Black Belts are your future business leaders. They have advanced knowledge and experience applying Lean, Six-Sigma and Lean-Sigma methods and tools. They can help your company fully internalize your Lean Sigma Deployment and reduce or remove your dependence on outside consultants and suppliers. They consistently solve your toughest business problems. They are able to share their expertise effectively with others and generate infectious excitement around your Lean Six Sigma program. Six Sigma Master Black Belts also facilitate project selection and project reviews. They mentor, teach, coach and lead Black Belts and Green Belts to successful project completion. They consistently deliver exceptional bottom line savings and top line growth for your company. Sigma Breakthrough Technologies offers a comprehensive and challenging Six Sigma Master Black Belt training program for the development of Six Sigma leaders. It is the benchmark for continuing development of Six Sigma training and deployment resources. SBTI's Six Sigma Master Black Belt core training program provides a powerful and unique combination of advanced hard and soft skills training. Early in a Six Sigma Lean deployment a great deal of a companies success results from "picking the low hanging fruit". The tools required to solve these problems typically include a Project Charter, Process Mapping, Cause and Effect Matrix, FMEA, a few simple statistical tools and a Control Plan. These projects are typically localized and are fairly easy to lead and manage. Once the "low hanging fruit" begins to dry up companies are left facing the big chronic business problems that have been plaguing them for years. These business problems often require a combination of advanced statistical skills and superior leadership and people skills. Fifty percent of SBTI's Six Sigma Master Black Belt program focuses on advanced statistical skills. These advanced skills enable the Six Sigma Master Black Belt and the belts they coach to deal with the complex data structures that often underlie a company's toughest business problems. But hard skills are only half the formula to success. The remaining 50% of the SBTI Six Sigma Master Black Belt program focuses on soft skills like managing the Six Sigma Lean program, leadership, leading change, communicating with passion and connection and teaching Six Sigma. The soft skills arm the Master Black Belts with the skills required to lead large multi-functional and/or global teams that are required to solve the tough problems. The combination of advanced hard and soft skills is the success formula that will enable your Master Black Belts to yield large financial returns. Based on a sample of 25 Master Black Belts trained and certified by Sigma Breakthrough Technologies the average savings per Six Sigma Master Black Belt personal project is $2,000,000. In addition, the average annual savings realized from the Black Belts and Green Belts who have been coached by SBTI's Master Black Belts is $7,000,000. This provides a hefty return on investment in excess of 200X for SBTI's Six Sigma Master Black Belt program!
read more »

Apr 22, 2014

Lean Six Sigma vs Six Sigma

There is always a debate in the business world between lean six sigma and six sigma what is the best suitable process to implement when it comes to organizing processes pertaining to business and eliminating wastes. Both these systems have their supporters, claiming theirs to be the best. For clearly understanding the debate, it is essential that the differences between the two systems should be understood. Let us figure out and get deep into this: Six sigma fundamentals: The main objective of Six Sigma is the elimination of wastes and defects for ensuring that efficiency and quality improvement is possible by streamlining processes. Initially, even though it was designed for use in manufacturing, it was quickly identified that it can be useful when applied to all aspects of a business; right from introduction of product/service to providing the appropriate support to customers post sales process. Nowadays, it plays a critical role in leadership and large-scale implementation of this system will be helpful for a company to achieve measurable results. What is Lean Six Sigma? This methodology is also used by companies in production and other processes. The purpose behind its usage is cutting down any unwanted steps in the process of product manufacture in such a way that steps that can directly add value to the products. When the unwanted processes are removed, the production can be quickened as well. When it comes to the lean approach, the only ideal method for determining if something has value or not is to find out whether a customer will be ready to pay for it. Combining both: Both have the same objective. Both of them try to eliminate waste and aim at creating the most efficient system possible. But, different approaches are taken by them for the achievement of the goal. The important difference is that they discover the fundamental reason behind the waste in a different manner. It is believed by lean practitioners that wastes arise out of unwanted steps in the process of manufacturing. These unwanted steps do not even add value to the product. On the other hand, it is pointed out by Six Sigma supporters that wastes can differ based on the variations taking place within the processes. The fact is that both of them can be highly helpful and this is the reason behind many businesses using them and is suggesting their employees to join in six sigma green belt certification and black belt programs. Experts suggest that these training programs can be very helpful in quality management for businesses. They suggest the following reasons as to why this tool should be used. When the employees are provided with the appropriate training, they can make use of statistical data for ensuring optimum profits to their employers. The usage of data can also help in meeting the satisfaction of customers with respect to quality of products. It will also be possible for them to compare each and every process within the organization. This will ensure better assessment. The training can enable efficient use of working force and their abilities. Differences between lean six sigma and six sigma: Wastes can be eliminated when both the techniques are applied. The team of personnel trained under the lean technique can focus on improving the speed of the process by effectively reducing wastes. On the other hand, team working on six sigma can focus on eliminating chronic problems. Both these teams can implement DMAIC and DMADV in an efficient manner and prove to be valuable assets to their companies. To conclude based on comparison, it purely depends on the requirement of the employer whether they provide training to their employees in six sigma or lean. Even though, removal of unwanted wastes is essential, unwanted problems arising in the processes can create issues in the whole process itself. So, many employers prefer six sigma certification over lean training. In today's education scenario, since the online learning or e-learning became popular, professionals need not travel all the way to the venue of the training institutes and straight away pursue online training for this kind of course. Care should be taken whether the institute is accredited to ASQ examination body or not. Any registered institute is termed as ATO.
read more »

Jul 14, 2012

Lean Six Sigma and Productivity

Lean Six Sigma is all about improving quality and minimizing errors. It can help to speed up manufacturing and most any other business process. This is mostly because it creates an infrastructure of people in an organization that are experts at their given level of Six Sigma knowledge. They have a specific job, know how to carry it out and will help reduce cost and increase profit. This is their main mission. Since 1986, this method has been working. There are six steps to the process that have to be carried out exactly for it to work properly. These steps concentrate on getting more out of less work and eliminating the defects that exist in product development. It basically accelerates the decision making process within the company. In today's economy, that is priceless. Most companies these days could use more production with less pay. With big companies like Toyota adopting this philosophy, its success is easy to recognize. By identifying waste, transportation issues, inventory issues and equipment failures, companies can significantly cut costs and speed up production. Many times it can cut costs by 50%. In this economy, that is amazing. It can actually help to eliminate layoffs. Employees find that adopting this methodology a much better solution to declining sales, especially when they get to keep their jobs. Since Lean Six Sigma focuses on management, it works. The employees will not only accept the changes but will be less frustrated in the end. They will be able to do their job and do it much easier. In fact, using the Six Sigma process will end up creating stronger communication between management and the employees. When tensions are very high, this can really be a blessing. No company really likes to have problems with communication between management and employees. The strategies are simple. They include defining, measuring, analyzing, improving and controlling for process improvement. This is otherwise known as the DMAIC method. When these elements are attended to, they can be powerful tools for identifying and eliminating waste in process and productivity. This method minimizes inputs and wasteful outputs, and will result in overwhelming inventory at lower cost. When productivity is low and stagnate, a new way of management needs to be developed. That is just the way manufacturing works. Changing things up can accomplish a lot and sometimes be so vital that the future of the company may be in jeopardy without it. Having the proper training and implementing a new process can take time and money, but in the end it is very much worth it.
read more »

Jul 9, 2012

Steps to Improving Cycle Time

Step 1-Define the Needs of the Customer Any customer or client-based business should understand that the overall success or failure of their endeavor relies almost entirely on how well they can satisfy the needs of the customer or client. One of the many goals of the Six Sigma Methodology is a happy client. Whether a business is product or service based, all customers have expectations about how they should be serviced or how their products should be manufactured. Defining the needs of the customer is important when trying to improve cycle time as nothing should be compromised that is necessary to meet customer requirements. For example, it would be unwise to skip a specific manufacturing procedure to save time when the procedure itself is what brings an item on an assembly line within the target specs designated by the customer. Step 2- Identify Problem Areas Once you have a clear understanding of which areas of a process are absolutely essential for meeting customer demand, you probably also have a general idea of which parts of a process might not be as important. Granted, every stop on an assembly line serves some sort of constructive purpose, but it is often the case that two or three steps in a procedure can be abbreviated or combined to save time and cut back on costs. Step 3-Eliminate Undesirable Aspects of Production Once the problem areas have been identified, considerations can begin being made about removing these problems from production. As previously stated, it isn't uncommon for tasks to simply be combined or altered in some minor way. However, it is of great importance that attention is paid to how removing or changing any aspect of production will result in a change in the overall efficiency and output variation of the process in question. An improvement in cycle time is important to achieve, but not at the expense of the entire company! Step 4-Test for Efficiency After actual Six Sigma changes have been put in place, steadily monitoring the process is crucial. Even with modern day dashboards and data processing, it is possible that a change in production methods - even if intended to be beneficial - could result in a higher percentage of defective finished products. As soon as it can be determined that the process is indeed stable, monitoring can become more casual.
read more »

May 25, 2012

Six Sigma Mistake Proofing

Mistake Proofing (or Poka-Yoke as it is known in Japan) is one of several control concepts where the solution is not dynamic by nature, as is the case with a closed loop feedback control system. It should be noted that poka-yoke is very consistent with the fundamental aims and philosophy of Six Sigma and has wide applicability in manufacturing, engineering, and transactional processes. It involves actions designed to eliminate errors, mistakes or defects in our everyday activities and processes. The methodology involves complete understanding of the cause and effect relationship and identification of the simplest remedy that can be applied to eliminate the occurrence of that particular error in the future. Sometimes this involves an addition of a simple feature, the creation of a check list, a change in the sequence of operation, a highlighted field on a form, a software message that reminds the operator, or some other way of helping to ensure that mistakes are going to be totally eliminated or substantially reduced. Often, Mistake-Proofing focuses on errors produced by humans, whether it is the machine operator, the person filling out a form, or someone packing materials, etc. While this source of error can be large, it is also possible to apply Mistake-Proofing methodology in many other aspects of our business. The emphasis should be put on modifying processes so those mistakes are impossible to make, instead of blaming employees for making mistakes. The point is we must improve all aspects of our Business to be robust to mistakes or errors, no matter what the source. The traditional application of Mistake-Proofing is in a production environment where a change is made to an assembly sequence or a tool to prevent an error from being made. Examples include: o A stop is added to a drill press o A hydraulic ram is added to align a component during assembly o A lever is designed into an assembly fixture to index the part o A pin is added so the part cannot be installed backwards Mistake Proofing is the primary form of Control for transactional procedures in that it can be used to prevent a process from going out of control or to bring a process back into control. Some examples include: o Fields on a data entry form are highlighted as being critical o An authorization procedure is introduced to control spend o A check list is created to ensure all items are taken into account when planning a training session o A new policy is developed to ensure that expense claims are completed properly
read more »

Apr 9, 2012

Qualifications of a Six Sigma Project Manager

Some people have worked in their business positions without a higher education. However, to obtain and keep a managerial position, you will need to make yourself a better candidate than anyone else. Getting a four year college degree is a start. However, a graduate education will put you even further ahead to start.

You cannot work in the Six Sigma field without some level of certification. How will you know the practices and procedures to follow if you are not trained properly? When you enroll in Six Sigma Training, you get the total amount of information necessary to take it to your place of business in order to succeed. You know how to solve problems and come up with solutions for your employer or clients.

If you have experience on an actual Six Sigma Project in any capacity, you can put that on your resume. Sometimes a training provider will allow you to work on sample cases during your training. But in the real world, people want to know that you can affect change on actual business processes. If you have the experience and can demonstrate a marked improvement, this is another way to increase your advantage.

As a project manager you will be required to work with a team and even supervise it. If you have any managerial experience, it will help to fortify that you can do the job. Every team needs a leader. If you do not currently have leadership experience, try to take leadership enrichment courses and ask for leadership responsibilities at your current position.

It may seem obvious, but you will need to know how to effectively use a computer. You will need to know more than just basic operating procedures. It is good to understand all computer software that will be used to document and report your quality findings. You do not just need to be computer literate, but proficient.

There are many manufacturing industries that you can work in. Even if you do have certification and managerial experience, you will not get hired if you do not understand the industry that the job is in. Try and stick within one or similar industries to improve your chances of gaining employment.

One cannot simply get certified and expect to obtain a Six Sigma project manager job. There are many attributes that are needed to get the position. These are managerial skills, computer knowledge, higher education and degree, industry experience and project experience. It is important that you stand out to the person doing the candidate selection. These qualifications will get you noticed. If you have them, you are one step closer to getting hired.


read more »

Mar 28, 2012

Six Sigma Benchmarking

There are different types of scaling used to propel growth. Most people use it to increase the visibility of their businesses. These days, most businesses have websites which they use to interact with their customers.

Through the websites, customers stay informed on new products, improvements, expansions and changes in management. It helps create loyalty among customers as well as penetrate deeper into the market.

Six Sigma Benchmarking, however, is a very complicated concept and can only be performed by trained professionals. The process helps companies understand the main perspectives in their business industries. They include visibility, market effectiveness and website design. If implemented properly, the business will dramatically project new growth and remain competitive in the market for a very long time.

The concept works in review of ten practical steps. Understanding these steps can help companies understand the benefits and drawbacks of the benchmarking initiatives they utilize. Doing this helps businesses identify the best approaches to realize bigger profits. The main aim of this concept is to measure the company's products or services against the most recognized ones in the world.

It is important to understand that the entire Six Sigma methodology is a continuous process. The information, operations and market penetration are measured against those of big companies. Through this, companies learn the best business practices in the world. Having an insight of practices of established companies enable small businesses to understand where they need to put more attention.

An in-depth analysis of performance helps add value to working processes eventually. It is a tool that endeavors to instill professionalism with the belief that the company can also lead while following others. The steps are very systematic and one cannot be done without each other. The benchmarking process can only work perfectly if it is implemented by trained and dedicated Six Sigma individuals. All the steps must be followed to ensure that all aspects are analyzed adequately.

There are normally four important steps the methodology addresses. This includes strategizing, analyzing, integration and actualization. Under these phases are ten practical steps which can help streamline the operations of any business seeking to realize growth. The planning phase is actually the most important. In this phase, businesses identify opportunities and create priorities. The second phase is the analysis phase and, as the name suggests, it consists of analyzing data collected in the planning phase. The integration phase provides the framework that will help implement the recommended plans. The final phase is the actualization phase where everything that the business comes up with is implemented and improved upon. Six Sigma benchmarking is quite beneficial because it helps small businesses learn practices. It helps companies to discover new ways of improving operations to realize bigger growth.

read more »

Feb 25, 2012

Design Risk Assessment In Six Sigma

The title ?Design Risk Assessment in Six Sigma? beckons to be likened with Poka Yoke or ?Mistake Proofing?. But without going deeper into the comparison part of it, what we can say is that both of these don?t have any similarities whatsoever, even though Poka Yoke appears to be the next logical step of Design risk Assessment in Six Sigma.

So What Is Design Risk Assessment In Six Sigma?

As the name suggests, design risk analysis is the procedure to determine potential risks in designs and design processes. In Six Sigma, the assessment for design risks is not a ritual that is done at the end but it is an inherent step in the design process itself. It begins from the point of conceptualizing designs where the evaluation exercise continues throughout the designing till the prototype is tested.

The design assessment for potential risks involves design simulation testing at steps including testing the detailed design and sub-assemblies (subroutines for software, etc) with a view to completely eliminate possible risks and cut down the shocks of design failures. For once, the design risk assessment in Six Sigma goes beyond the CTQ technique providing the design process the much needed broader evaluation.

Ensuring Reliability Of Design

The need for reliability of design can?t be overemphasized. The potential hazards of a faulty design extend beyond VOC and ROI parameters. Design risks can?t be overlooked even for service offerings even though manufacturing needs to take extra care of this aspect.

What ensures a systematic and rigorous scrutiny in the dependability of the design also allows capturing system-level hazards.

Design Risk Assessment Methodologies And Tools

PHA, ?Preliminary Hazard Analysis? is a qualitative assessment of hazards, constituents of the associated functional system and event successions that could potentially result in avoidable consequences. The study includes possible incidents and possible remedial actions. But significantly, this is a qualitative study whose efficacy is applicable only for initial studies.

DFMEA, an implementation methodology, serves as a quantified appraisal of the criticality of internal failures of CTQ & CTC together with performance components. The typical FMEA form may be used also for design assessments and transfers of know-how.

On the performance front, meeting customer expectations infers using CTC's, design parameters which assist meet all of the requirements. It also takes care of the manufacturability requirements. One might think of calling this CTQ.

The Need For Documentation

Results of risk analysis tests needs to be documented and then updated as the product or service moves in its cycle onto production phase, based on real time failure statistics, which serves as true risk-management and feedback document on design for future reference.

The most interesting application of the concept can be found in Bank of America?s assessment for credit products? inherent risks which ultimately helped eliminate potential fraud elements.

There are multiple instances where FMEA has served as main mast in design and failure evaluation.

read more »

Feb 22, 2012

Process Simulation And Six Sigma

Six Sigma has become one of the most commonly used quality management techniques since its introduction in the 1990's. The importance of Six Sigma has continued to increase ever since companies like GE began implementing it's various concepts and techniques in their business processes. This has helped the company in saving billions of dollars since the time when the concepts were first implemented.

The Simulation Process

Process simulation is one of the various techniques used in Six Sigma, involving the use of a computerized model of an actual business process. The computerized model used in process simulation is designed by inputting all the critical components of a business process such as process inputs, process flow, and the various sub-systems used in the process. With the help of the computerized process simulation model, process managers can easily view the whole process within a few minutes that would have normally taken days or even weeks to complete in the real world. Process simulation helps in collecting large data samples, which can be further analyzed and used for predicting the effects of changes made in real business processes. This allows analysts to simulate all the possible changes that can be made in a business process and analyzing the effect of such changes on the end result. Changes that are most helpful in improving the quality can be selected and put through more rigorous simulation processes for confirming the potential benefits of such changes. Once this is done, the changes can be applied in the real process as by now it is quite certain that the changes will be successful in improving the quality of goods manufactured or services rendered.

When And Where To Use

Although process simulation is a powerful tool, it must be used in the right manner and only in appropriate business processes. If the necessary information is not inputted correctly, the computerized simulation model will not be able to predict the effect of changes made in the business process. This can seriously affect the quality of end products if such changes are implemented in the real process. Process simulation is most effective when a business process is complicated and difficult to visualize. For less complicated processes, it is better to use process mapping in combination with brainstorming techniques for generating innovative quality improvement ideas. Process simulation is helpful in simulating business processes that require managers to make informed decision at every stage of the process. Process simulation is used for improving the logistics of a manufacturing company by mapping the exact flow of materials from the time they enter the factory floor to the time when they reach the final consumer in the form of finished goods.

Risks And Drawbacks

Although process simulation is very beneficial, it can also create problems for an organization if not used properly. Companies very often make the mistake of employing process simulation in every business process in the hope of improving quality. This can create confusion among the employees, especially when the company and its workforce are new to the concepts and philosophies of Six Sigma. If a process is too long and involves various sub-processes, it is better to concentrate on sub-processes that affect the quality of the end product. Companies often try to simulate the whole process, which leads to the wastage of both time and effort. For realizing the full potential of process simulation, organizations need to simulate only on those processes that are critical to the quality of goods manufactured or services rendered.

read more »

Feb 19, 2012

How to Choose a Six Sigma Black Belt Project

Selecting the most appropriate Six Sigma Black Belt project is the most common problem faced by students who enroll themselves in a Six Sigma training course.

The project is necessary as it helps students learn the practical aspects of Six Sigma implementation programs. The project is conducted either before the commencement of the training program or during the first week.

Identifying A Problem

Before starting a project, students first need to identify a problem, similar to real life implementation problems faced by business organizations. The problem that is identified and its possible solutions form the base of the project. For ensuring the successful completion of the project, students need to select a problem about which they have a basic level of understanding. Selecting a complex problem based on a case study published in a management journal is not recommended, as the project requires students to practically solve a given problem.

The information given in the management journal will only help students in preparing the project report and not in evolving practical solutions to the problem, which students will have to do on their own. The main reason why use of case studies are not recommended is that the resources that might have been used in solving the real life problem may not be the same as provided by the organization where students are receiving their training. Training instructors also encourage students to opt for a project that is relevant to their domain or qualifications.

Select Manageable Projects

Every Six Sigma Black Belt project needs to have a defined objective. Many students make the mistake of opting for a project having multiple objectives, which is often not achievable within the stipulated timeframe. Even after giving it their best shot, most of these students are often unable to make progress in their quality improvement projects. The only option left for these students is to either reduce the scope of their project objectives or opt for a completely new project, which will mean more hard work and time. In most cases, these students opt for the first alternative in order to allot adequate time to theoretical training as well.

No doubt, there are students who have completed even the most complex projects, but going by statistics, the number of failed attempts is a lot higher than the number of successful attempts. Students who are not sure of their abilities should not try to achieve everything at the first go. Instead, they should try to concentrate more on learning the basics involved in Six Sigma programs. There will be plenty of time in their professional career for solving the most complex of Six Sigma implementation problems in an organization.

During the course of the project, the primary objective of students should be to develop insights, which will help them a lot when they become true professional after the completion of the training program. Concentrating their efforts just on achieving the objectives may not help them, as by doing so, they are most likely to miss the basics of Six Sigma. The scope of objectives in a Six Sigma Black Belt project does not matter as long as students are able to develop a thorough understanding of their individual projects and are able to assess the impact it will have on the quality of the outcome.

read more »

Feb 18, 2012

How To Manage Six Sigma Teams

Six Sigma is a continuous procedure, which can help companies reduce the over all expenses and expenditures, and increase profits by streamlining operations, improving quality and eliminating all the problem areas.

Not only does 6 Sigma benefit an organization, but also the organization can benefit Six Sigma by managing it. Management must be led by highly qualified and trained individuals.

Managing a 6 Sigma team is not an easy task and it is fairly impossible for a single person to manage a 6 Sigma project on their own. 6 Sigma is a team process that requires teamwork at most levels. Managing a Six Sigma team starts from the uppermost levels of the organization. The company's leaders must provide resources to the teams and the authority to apply these 6 Sigma concepts in their day-to-day activities. Company leaders must also ensure that the company goals are associated with 6 Sigma projects and they must see to the removal of any obstacles that might stand in the way of 6 Sigma deployment.

Selection And Training Of Six Sigma Team Leaders

6 Sigma team leaders need to be properly selected and trained, as they play a crucial role in the management of the entire team. Not only are they responsible for managing the team, they are also the main change representatives for the Six Sigma process. 6 Sigma team leaders are directly responsible for managing their teams. A 6 Sigma Black Belt is the team leader and the responsibility of the Black Belt is to facilitate 6 Sigma as part of the culture.

Black Belts need to be trained in Six Sigma methodology and they must have prior experience in leading teams. The 6 Sigma team leader or the Black Belt must have leadership qualities, they should be able to understand the team dynamics and should be able to assign to each team member their individual roles and responsibilities. They help the teams achieve and sustain noteworthy results.

Important Aspects Of Managing A Six Sigma Team

Leading and mentoring are the two most important aspects of managing a 6 Sigma team.

As the leader, the Black Belt should be willing to adjust to circumstances. They should be able to recognize and manage occasional setbacks. By directly being involved with the team, the Black Belts help implement improvements in a quick and efficient manner. The main role of the Black Belt includes minimizing group conflict and handling out-of-control meetings. 6 Sigma includes practices that substitute hasty, imprudent habits with a dynamic, open and practical method of management.

It is important for the team leader or the Black Belt to be a mentor to everyone on the team. After their training, new candidates must be given proper guidance. This ensures the timely completion of projects and regular corrections being made in the course. 6 Sigma supports teamwork and the Black Belt should work towards creating a healthy and productive team environment. The Black Belt should arrange the team in such a way so as to best utilize the individual knowledge and techniques of the individual team members. Black Belts should help improve and increase members' morale. Every circumstance should be regarded as an opportunity by the Black Belt to help guide and instruct the individual team members and to improve the organization as a whole.

read more »

Feb 16, 2012

Future Of Six Sigma

Since its introduction in the 1990's, 6-Sigma has become the buzzword in both the manufacturing and service industries. The various methodologies used in 6-Sigma are based on a disciplined and data driven approach that help in eliminating defects and achieving near perfection by restricting the number of possible defects to less than 3.4 defects per million.

The methodologies are effective in managing business processes of both the manufacturing and service industries. In manufacturing industries, the concepts and methodologies are used for reducing the number of defects whereas in service industries, they are used mainly for reducing transactional errors.

Although many companies have been successful in reducing the number of defects through Six Sigma projects, the arguments raised against the efficacy of 6-Sigma in all aspects of business processes still do not seem to die down. Some management experts think that Six Sigma is inherently flawed, as it does not take into account the flaws that might be present in the system itself. They are of the opinion that the analytical and statistical tools used in 6-Sigma only expose flaws in the execution and do not account for a process that itself is riddled with defects.

Supporters of Six Sigma offer a different viewpoint. According to them, quality management tools such as Total Quality Management (TQM) and 6-Sigma are conceptually quite similar except for their labels. Business organizations may use any of these for improving overall quality. However, they often give preference to 6-Sigma as they believe that Six Sigma is more than just a process improvement program and is based on concepts that focus on continuous quality improvements. They have the opinion that 6-Sigma concepts combine statistical measurement tools with contemporary management techniques for achieving extraordinary results.

The Limited Use Of Six Sigma

6-Sigma gained prominence as an effective quality improvement technique after it was successfully implemented in Motorola. Since then, many large organizations have implemented 6-Sigma programs and improved the quality of manufactured goods or services rendered. However, the full potential of 6-Sigma has not been realized so far because many competent small to medium level enterprises have still not implemented Six Sigma programs. These enterprises have all the resources to implement such programs, but are often wary of the final certification, as they believe that it is meant only for large organizations. These companies often do not realize that 6-Sigma delivers the same benefits to both large as well as small business enterprises. The only difference may be in the volume of goods manufactured or services rendered.

The Future Of Six Sigma

6-Sigma may appear similar to other quality management tools such as TQM or Kaizen Events, but in reality, it is quite different. Other quality management programs often reach a stage after which no further quality improvements can be made. 6-Sigma, on the other hand, is different as it focuses on taking quality improvement processes to the next level. This means that 6-Sigma has the potential to outlast other quality management programs in the future.

The scope of 6-Sigma is also much broader than other quality management programs as it can be applied to every business process of an organization. The future is bright for 6-Sigma programs with the growing awareness in small and medium enterprises about the potential benefits that can be derived from implementing such programs.

read more »

Jan 21, 2012

Some Facts About Six Sigma SIPOC

Here are some things you should know about Six Sigma SIPOC. The acronym SIPOC (Suppliers, Inputs, Processes, Outputs and Customers) is a high caliber method of doing business that shows how the current process of taking care of the customer actually works. It breaks down exactly what needs to be done and how it needs to be done.

Suppliers will provide inputs into your process. The Inputs will define the service and the material, as well as information that is utilized in order to produce any outputs. This Process will be a defined series of activities that typically adds value to the inputs to make outputs for customers. The Outputs will be the services, products, and/or information which are of value to consumers.

Customers will be the users of these outputs which are produced by these processes. What Six Sigma SIPOC essentially is, is a map of the highest caliber. When a company is going through the motions of improving quality, they will implement this method with great success. It helps the company better understand that what they are implementing is to become more streamlined, which in turn, makes it happen.

The making of a SIPOC diagram is going to be a team activity for you which involves brainstorming in order to find the hard to see details. The team will consist of the stakeholders and other pertinent parties involved with all of this. When implementing SIPOC for new processes under design, it would be a good idea if you start from the customer and go backwards to the supplier. There is a different way though existing process. For this scenario, start with process definition then follow with the identification of your outputs, your customers, your inputs and then suppliers.

Making a process map will take the description of the process to a new level of comprehension. While verbal descriptions can provide the nuts and bolts of this process, a map makes clear the flow of every event in the process. A team will then see if there is a good path for the process or if any obstacles are there in the way of bottlenecks, rework, etc.

One aspect of making a Six Sigma process map within an organization is the expectation that the process within one department can be described in different ways. This might be the outcome of incorporated organizations, and not so much the merging processes. It could simply be the variety of the employees carrying out the process.

One way to document the process is to perform a walk-through with others. Getting together other associates who will perform the process gives them an opportunity to work together in order to provide input into what exactly the steps currently are. It helps builds the variety of the Six Sigma Team.




read more »

Jan 3, 2012

Six Sigma and Value Stream Mapping

Business processes are similar to a river flowing in a natural direction and carrying information from point A to point B.

Value Stream Mapping (VSM) is one of the techniques used in Lean Six Sigma for identifying areas of waste that need to be avoided in both manufacturing as well as office business processes. Aside from identifying areas of waste, VSM also helps in streamlining business processes for achieving higher productivity. VSM is based on scientifically proven methods, making it necessary for organization to employ profession Six Sigma consultants (VSM specialists) during the implementation stage.

The Initial Process

Implementing VSM is a long drawn process where the first step involves mapping the current flow of materials or information in key business processes of an organization. The mapping is done with the help of flowcharts that depict the flow of goods or information from one end to another. The flowchart also contains information about the average time taken for the completion of various sub processes. For generating a comprehensive flowchart, consultants often gather inputs from business heads, floor managers or factory workers. While creating the flowchart, key sub-processes are highlighted using specific icons. This helps in pinpointing areas where waste and inconsistencies are happening. The flowchart also helps in understanding the complexity of a business process, which needs to be simplified for increasing efficiency.

Future State Of Value Stream Mapping

In the next step, VSM consultants discuss each step depicted in the flowchart with the management for finding out ways that would streamline and optimize the whole business process. In Six Sigma terminology, this is referred to as Future State Value Stream Mapping (FSVSM). A number of methods can be used during FSVSM process but only those need be selected that help in streamlining processes without affecting the day-to-day operations of an organization. One such method is Cellular Manufacturing, which can be used during FSVSM. Although it is a simple concept, it requires adequate planning on part of the consultants as well as the management. Takt Time is another method that is used for evaluating 'lead-time' of manufactured goods or services rendered. This method is commonly used in organizations where the main objective is to deliver goods or services in time, for e.g. courier companies. Another method is known as Kanban, which forms a part of Just In Time (JIT) manufacturing system. It helps in maintaining low inventory levels and work in progress without affecting the quality or volume of manufactured goods.

Effectiveness In Automotive And Other Manufacturing Industries

VSM has proven to be very effective in organizations that make use of large and complex assembly line manufacturing processes. Automobile manufacturing companies are probably the best examples as far as the effectiveness of VSM is concerned. Top automobile companies such as Ford and Toyota have successfully implemented VSM in their business processes, which has in turn helped these companies in manufacturing high quality products while reducing costs at the same time.

Although concepts of VSM are applicable in all types of manufacturing organizations, companies other than automobile companies may find it a little difficult to implement VSM word for word. Some consultants also feel that benefits associated with VSM are sometimes over-hyped when it comes to implementing VSM in non-automotive companies. Personal opinions may vary but what is certain is that VSM does help in reducing waste if implemented properly.


read more »

Nov 15, 2011

Improve Quality by Using Six Sigma Method

Businesses rely on repeat customers and word-of-mouth to get their products and services out there. They want to sell as much as they can so that their business is considered a success. When customers receive poor quality service or products, not only will they not return, but they will also make sure other people do not support the company. This is a good way for a company to fail. In today's cyber-driven world, it is very easy for one satisfied customer to reach millions through online reviews. This means it is more important than ever to keep customers satisfied through high quality products and services as well as great customer service.

The reason for poor quality within a company could be due to one of many things. It could even be a combination of several things put together. The job of a Six Sigma professional is to find out where the flaws are in quality and suggest solutions for change. Sometimes business owners will have worked with certain processes and procedures for so many years; they are uncomfortable changing their ways. They might even be too close to the process to be able to realize where the flaws exist. Six Sigma professionals try to encourage these business owners to advance with the times and change their procedures as technology dictates. The Six Sigma professional can only suggest and recommend these changes. It is up to the business owner to implement the Six Sigma suggested new plan of action and to notify any and all employees that will be affected so that they can adjust accordingly.

Employees must be happy to be willing to put their all into their job. It is never good for employees to be showing up on the job just for a paycheck. If they do not care about the quality of their work, the business' quality overall will suffer. Productivity will also suffer which greatly affects the quantity of products or services sold. Employees who are unhappy also tend to call out more often, which directly affects productivity. Six Sigma professionals often see employee dissatisfaction as a reason for flaws within the processes and procedures. When employees, managers, even executives, become complacent about their job and what is required of them, they will not spot the problem areas as easily. They may be resistant to change and do not want to see what could be done to improve the company. If they do not want the company to fail, however, they will allow someone to come in, analyze the processes, report back with flaws, and suggest improvements. It is always good to get a second opinion or a fresh look at a problem.

Business owners should always be willing to try the advice of a Six Sigma Professional. These professionals are trained, qualified and certified to assist in improving company quality from entry level positions all the way to upper administration.


read more »

Oct 27, 2011

The Principles of Lean Six Sigma

When a company needs a Lean Six Sigma Professional, they may be having a problem with low job satisfaction among employees, creating a low morale and poor work production as a result. They may need to streamline their company processes, reducing and eliminating much of what they were doing wrong.

The Six Sigma professionals would then use these methods to help them eliminate waste and streamline their processes while improving their output quality.

The training involved in learning the lean methods will provide a good overview of the tools that are used and how to apply them to Six Sigma projects. Some of these tools include process maps, affinity diagrams and value stream mapping. This process can be applied to any business or organization, no matter the size or the type of industry. Whether the business in question is in the manufacturing industry or it is a service provider, the processes can be used to streamline the procedures used within the company.

In lean Six Sigma, there are five principles that are used:

• The first of these is the law of the market. This signifies that the customer is always to be put first. The company must implement this immediately and make sure that all employees adhere to it. The company wants the employees to understand that without the customers, there would be no business.
• The second of these principles is the law of flexibility. If a process is easily maneuverable, it is easier to work with. A method of business that cannot be changed for any reason can cause problems.
• The third principle is the law of focus. This is meant to keep the focus on the problems within the company and not the entire company itself. Executives and employees should concentrate on just the portions of the company that are causing problems and fixing those problems, dismissing distractions by other areas of the business that are not having problems.
• The fourth principle is the law of velocity. This means that if a process has many, many details that have to be performed, it may be slowing down the process. The work put into the process should be proportional to the results the company sees.
• The fifth principle in Lean Six Sigma is the law of complexity. Simply put, keep it simple. When a process is complex and difficult, it may have elements that are not necessary. More complexity does not necessarily mean more valuable or more important. In fact, it could mean just the opposite.


read more »

Oct 24, 2011

Six Sigma Roadblocks

There are many issues to deal with when it comes to Six Sigma Roadblocks including issue of speaking to the employees about change; otherwise known as change management. Implementing this type of management methodology can result in resentment from those who have been on the job for a long period of time.

This resentment will lead to resistance from employees. Many times, change is hard for people to accept especially when they have grown used to one way of doing things.

If the Six Sigma process and it's goals and benefits are not properly explained to the employees, they will do everything in their power to work against the change. The process is much more difficult without cooperation from everyone, so this is a major roadblock that must be addressed and overcome when considering Six Sigma Implementation for your business.

This entire methodology is centered on finding flaws in a business system and correcting them in order to produce a high quality product using as little space and time as can possibly be managed. The processes used by this methodology to define a roadblock can be changed to fit any type of business or industry. That is why the program is so unique and popular among businesses.

When learning to identify problems within a production system, it is important that every detail be accounted for. This means even the slightest problem that could occur right down to the very last sticker that is used must be defined. It is important to discover every issue that could result in a quality concern. Then, you will develop a system of rating the various issues to be worked on in priority order along with the help of some very special Six Sigma Tools.

Once the various issues are determined and prioritized, the Six Sigma Team can begin to decide on the best ways to resolve the problems and arrange for the production lines to provide the maximum efficiency and best possible quality output. As the system is streamlined, the progress can be charted and monitored for improvement in the various areas.

Many different industries today are using Six Sigma Training and Certification to produce better products, while saving money and time as well as simultaneously improving customer satisfaction. Using a system that tracks the progress of improvement and quality throughout the industry tends to cause any business to thrive overall.

With any type of business change of this nature, there will be many problems or roadblocks that will need to be dealt with along the way. In addition to lack of cooperation from various areas, there will be issues with products that will need to be worked through. Eventually, however, all of the issues with the program itself will be worked out and the savings can begin.

Initially, upon Six Sigma Implementation, there might be an increase in costs as the necessary tools and changes are made to the production line. These initial costs should be looked at as an investment, because they cause the process to run much more smoothly, thus, creating a better quality product and an even bigger eventual cost savings. Although there are issues, using the process of identifying issues with Six Sigma will prove to be a wise investment once all roadblocks have been dealt with.


read more »

Jul 7, 2011

Ten Practical Benchmarking Steps with Review Points

Ten practical benchmarking steps and a number of review points (in the form of questions) can help any Lean Six Sigma practitioner involved in measuring of a company's products, services or processes against those recognized as the best in the world.


In a continuous process improvement program, benchmarking is the regular, systematic measuring of an organization's own products, services or processes against those of the recognized best practitioners in the world. The information collected about a company's own processes analyzed in relationship to the best-in-class practices provides insight into the actions the company can take to improve its performance. Indeed, benchmarking analysis can even provide metrics by which an organization can measure its success in adding value to its business and work processes.

Benchmarking is a management tool for process improvement that takes into account an organization's performance measurement. It also is an internal learning and sharing tool that continually improves processes by motivating culture change based on the idea that the company can be among the best in the world.

The Benchmarking Steps
In any benchmarking process, it is essential to follow a systematic and structured approach. It is best if the project is carried forward by trained and dedicated cross-functional teams so that all aspects of the process are properly discussed at all phases and analyzed for any opportunities, and improvement actions can be initiated.

Four phases are involved in a normal benchmarking process - planning, analysis, integration and action. And in the four phases are 10 practical steps that can help any Lean Six Sigma practitioner involved in a benchmarking a process.

1. Planning Phase
Being the initial phase, this is a most important phase. Any mistakes, errors or incompleteness in this phase generally affects the rest of the phases. Sufficient time and attention has to be devoted during the phase to ensure that planning becomes as error-free as possible, and hence makes the rest of the phases more effective and efficient.

Step 1: Identify Opportunities and Prioritize (What to Benchmark) - The involvement of top management in this particular step is crucial. Top management must decide which processes are critical to the success of the company. This should be the top down approach of selecting the projects from the processes. Once a shortlist of processes to be benchmarked is ready, the processes need to be prioritized as per a predetermined set of criteria to fulfill the requirements of all customers, especially the end customer. Customers' ciritcal-to-quality (CTQ) requirements are studied properly to prioritize the processes.

Step 2: Deciding the Benchmarking Organization (Whom to Benchmark) - The next step in the process is to decide the organization whose processes will serve as the benchmark. Obviously some companies, such as direct competitors, will not be available as places to gather certain types of benchmark data. Several organizations should be selected for study. Information on their processes should be gathered from various sources and the most suitable organization selected. It is always important to ensure that more detailed information about the selected organization will be accessible and that comparison with the organization's process will be relevant and useful.

Step 3: Studying the Superior Process - This step is perhaps the most important, most difficult and most time consuming activity in the total process of information collection. Many times the information on processes and procedures followed at another company are confidential, and it is not always easy to gather authentic information, even after making a planned and approved visit at another organization. The preparation for collecting necessary information has to be planned in such a way that either one visit or a proper authentic data collection source can provide all the details, within a reasonable time period.

The following questions can be asked to review the planning phase of a benchmarking effort:

What are the key business processes?
Where exactly are the greatest improvement potentials?
What are the functions where improvements are most essential?
Are all members of the benchmarking project team familiar with the vision, mission, and long-term goals of the organization, as well as its prevailing business environment and the competitive situation?
Have the critical success factors for the organization been identified?
Do all processes require benchmarking, or only the most critical?
Can all or some of the processes be improved without benchmarking?
Have the ways of measuring the process been decided?
Have the owners of the processes to be benchmarked been involved in the project?
Have the processes been prioritized based on the scope of improvement?
Have the set of predetermined criteria for prioritizing the processes been decided in advance, based on the company's success factors and the competitive business environment?
Has a level of benchmarking been decided?
Has the team compiled a list of possible organizations having best-in-class standards to be used for comparison?
Has the information about all possible organizations to compare been collected?
Is the method of collecting information systematic?
Will it be possible to access information about a chosen organization's best-in-class process?
Is the organization's best-in-class process likely to be innovative?
How has it been decided to collect data on the best-in-class process?
How superior are the results of the process of the chosen organization?
To what extent are the practices of the organization with the best-in-class process different?
Are there basic differences in the structure of the process?
How effectively can the process be adapted?
What would be the cost of changing the company's current process and what resistance can be expected?
What are the potential benefits if the process is modified as per the best-in-class process?
2. Analysis Phase
This phase, comprised of two steps, involves the analysis of all the information and data collected in the Planning phase. All the people closest to the process selected for benchmarking should be deeply involved in this phase.

Step 4: Finding Reasons and Devising Improved Processes - The project team should find out the reasons for better results from the benchmarked processes. This has to be done after the information from the best-in-class organization has been collected and analyzed. Based on the analysis, an improved process should be developed.

Step 5: Goal Setting for Improved Processes - The project team's next step is to set goals for the improvement of the company's existing process. These goals can, and probably should, be stretch goals that will result in a process even better than the other organization's best-in-class process.

The review points for this phase are:

Do the project team's members have both analytical skills and creativity and innovation?
Has a gap analysis been done between the performance of the company process and the benchmarked organization's process (look for effectiveness, efficiency and responsiveness)?
Have the performance gaps in the company's process as compared to the benchmarked process been identified and analyzed?
Have the reasons for better performance been brainstormed?
Have the process definition documents for both companies been compared?
After comparing the descriptive process documents, have the flowcharts of the two processes been compared and analyzed?
Have the work processes at benchmarked organization been studied and compared with the company's processes? Have they been observed at the operator level?
Have the impact of the differences in work practices been fully studied?
Does the team have proposals for making changes in the processes?
Has the team been able to develop an improved process?
Have senior management and/or interested parties in the organization been convinced by the project team that the superior benchmarked process should be adapted by the team company?
Has the revised process been tried to ensure the adaptability?
Have the successes of the revised process been documented properly for any horizontal deployment or to replicate it in other processes?
To get senior management's commitment, have the improvements been converted to financial gains?
Has the cost-benefit analysis been conducted on the proposed revision of the process?
Has the team proposed new performance goals, which can be attained with the revised process?
Has senior management confirmed its knowledge and agreement about all of the above?
3. Integration Phase
This phase also comprises two steps. This phase is a connector between the earlier two stages, planning and analysis, and the final phase, action. This phase moves forward only if the results of earlier phases have been accepted by management. This phase also secures the commitment of the management on the recommended action plan. Because acceptance of proposed process revisions by the company is necessary for the success of the project, this phase is obviously important.

Step 6: Communicate Findings and Gain Acceptance - The proposals for the improved processes should be presented to senior management and the head of the departments to gain approval of the proposed changes. Unless total approval and commitment is secured, there will be hindrance in the implementation of the actions plans.

Step 7: Establish New Functional Goals - When the proposed revisions to the processes are accepted, the acceptance of the revised functional goals is the next big logical step.

The questions to be asked in this phase are:

Has it been decided to whom findings are to be communicated?
Have finding been communicated to senior management so that its approval can be obtained for the implementation of the recommendations?
Have finding been shared with all the departments involved in the process so that they understand and accept the proposed changes in the process?
Have all suppliers of the inputs to the process been informed?
Has the impact of revised quality of the output of the process been communicated to the customer?
Have different types of communication for different audiences been decided upon?
Is there an effort to ensure that the communication will be understood properly by all concerned and that it has been accepted by all?
Have the revised process and the proposed performance goals been approved by senior management?
Have sufficient steps been taken to find out the gaps in every department that holds reservations or is concerned about difficulties in implementation?
Have all the issues raised been addressed properly?
Has there been any amendment in the proposed process that has been accepted by all?
Have the performance goals been converted to operational goals which are SMART (specific, measurable, aggressive [yet achievable], relevant, timely)?
Have operational goals been prioritized and the direction been set for implementation?
Has the impact of change on those elements prior to and those subsequent to the process been studied properly?
If there are any changes in the requirements of inputs from prior processes, has proper care been taken to change the process to meet the requirement needs?
Has senior management approved of all the points mentioned above?
4. Action Phase
The last phase in the process has three steps. This phase is where the improvement parts have been taken into consideration. Ultimate benefit to a company from benchmarking is judged by how well this particular phase has been carried out. The last step of this phase, "Keep the Process Continuous," implies this.

Step 8: Develop Action Plan for Implementation - After the improved process is accepted by all concerned or likely to be affected by it, a detailed action plan is drawn with all key activities taken as inputs. The detailed action plan should carry the important things like a time line, individuals responsible for carrying out the tasks, any short-fall in the completion of tasks and what stretch targets are taken to compensate the short-falls. Those responsible should be committed enough to ensure that the tasks and assignments are completed on time.

Step 9: Implement Specific Actions and Monitor Progress - While those who must complete assignments on schedule have a responsibility, so does senior management. They must be committed enough to ensure proper coordination of various activities, monitor the progress of implementation of the plan and work as a barrier-remover in the implementation process. When the revised process is in place, a complete report has to be prepared, showing the benefits of the revised process compared with the expectations at the time of approval of the proposed revision of the process.

Step 10: Keep the Process Continuous - The successful completion of one project can lead to an important milestone for the organization. The next step would be bringing in additional and more ambitious projects and benchmarking with the best approach. While carrying out the total activities, a mechanism or a system has to be built in to review the performance of the improved process periodically to ensure that the benefits are retained. The process has to be a continuous one and should move at a constant speed and should never be neglected.

The review points for this phase are:

Has the team developed an action plan to implement the changes proposed?
Has the team written down the changes required for implementing the new process and work practices?
Has the team arranged the activities in sequence and decided the sequence as per the order of priority based on the importance?
Have the tasks and assignments been made to the right people in the organization?
Have commitments from the team members, their superiors and all who will carry out the assignments been secured?
Are there different teams for implementation and analysis of the changes (people good at analysis are not always good at implementation)?
Has the new process been ensured by updating all directional documents, such as specifications, standard operating procedures and work instructions?
Does everyone know that the improvement is permanent?
Has the team or senior management developed a mechanism to review the competitive positions periodically in the total implementation process?
One of the biggest advantages of benchmarking is the extent of improvements the organization makes by learning from the processes of others. A better and proven process can be adapted, with suitable modifications for company requirements, with less time invested for inventing new methodologies. Benchmarking also uncovers new ways of improving a company's own processes by motivating actions learned from studying and experiencing those organizations with best-in-class processes.


read more »