MBA Journal June 2011

Targeting Your Business To The Right Demographic

When it comes to selling your business you need to be careful in your approach to your business marketing. Some companies feel that saturation of the market is going to get them what they are looking for but in many cases this type of advertising simply falls flat because it doesn’t have a true target.

Whether it is a product or a service that you are peddling it is important to figure out first and foremost who your intended customer is. You want to narrow them down as much as possible either to a specific type of individual including race, age, gender, and need or at least to a larger encompassing group. Once you have landed on this specific demographic it is then time to begin thinking about how what you are selling will benefit them.

Some companies know right away which aspects of their products or service they tend to play up for a specific audience. If you aren’t really sure which aspects of your products are the biggest sell points to a group of individuals then you are best off asking them either in person or via a questionnaire. Getting feedback from your current customer base will help you to really understand the customer’s perspective on the products and services that you are offering. This will make you better able to highlight the assets that are most important to those actually supporting your business.

There are of course certain aspects of a business that can serve as excellent sell points. These include the running of an environmentally friendly business, the ways in which your business can save a customer time and/or money, or a customer service orientated business slant are for the most part the things that a customer is looking for. Taking one of these approaches to your business is a safe bet but when you use some of the specifics gathered from studying a particular group of individuals you can really make sure that your advertising hits home.

Advertising is not the only aspect of your business that is important because although a good advertising campaign can really improve the profitability of your business it won’t take a bad business very far. Many business owners think that just getting customers in the door is the most important part of their business and they will say and do anything in their advertising campaigns to do just that. When push comes to shove however, customers will not be fooled by empty promises. They want to see what they were promised when they walk through your door and if they don’t you best expect that they will turn around and walk back out.

Difference between DMAIC and DMADV

The Six Sigma philosophy is used by companies to improve customer satisfaction with their products. When six sigma has been employed successfully, companies have succeeded at bringing the numbers of defective items down to 3.4 defects out of 1,000,000 products. These companies accomplish this goal with either DMAIC or DMADV.

Companies that need to determine how to make their processes more effective under the six sigma philosophy will use the DMAIC methodology. DMAIC stands for Define, Measure, Analyze, Improve and Control, and it is used for products that are already in existence. DMADV stands for Define, Measure, Analyze, Design and Verify, and it is used to help a company create new products that will be a part of the six sigma philosophy from the beginning.

Both processes have something to define, but they are defining two different things. With DMAIC, what needs to be defined is the issue that the company needs to fix. With DMADV, the company will define what the customer’s expectations are for new products. These two ways of doing business will also Measure something. DMAIC measures current processes and gathers data related to them. DMADV measures the possible processes that will be performed to create their new products and any risks that may result from these processes.

They both also analyze data gleaned from the measurements they have taken. For DMAIC, analysis of the data leads them to discover what causes the defects. For DMADV, analysis helps conduct them toward the best new design for the company to manufacture. Analysis leads followers of DMAIC to then improve their products by making the changes they learned they need to make. DMADV analysis helps companies to optimize their new design and prepare it for testing.

After everything has been completed, with the DMAIC methodology it is time to exert control over the continuing process. After a company has decided to implement the six sigma philosophy, the intention is to keep these processes running forever. Control means that the company will watch over the processes to ensure that this is what happens. At the end of the DMADV methodology, the new product is verified by testing it and finding out if it works well enough to satisfy the customers. Upon discovery that the product is a good one, the company then places it on the market.

So Many Management Systems So Little Time

It seems like as a business owner there are constantly companies trying to bring you on board for their latest training seminar or management technique. It can get a bit overwhelming at times, especially when you are really looking for something that is going to give your business the little shot of adrenaline that it needs without going overboard or overhauling your own business.

The current economy has a lot of individuals and businesses scrambling. They don’t want to make a move but if they don’t they will surely fail. They look at the endless lists of advice on the web and in business journals and they realize that making the right decision can push their business towards profitability once more but the wrong decision could send their business spiraling downward, never to return again. It can be that touch and go and for many businesses today it really is life or death.

If you are the person in charge and trying to make the best possible decision it is important to take the time to do a bit of research and even get some feedback from those in the business world that you know and respect. It may seem as if you must act immediately but it is imperative that you weigh the pros and cons of each possibility before proceeding so you don’t have any regrets down the road.

Finding out more information about the different six sigma seminars and classes available for not only your upper management people but for your entire staff can be as easy as picking up a few books from the library. Taking a look at business management resources can help you decide on the right direction to take your business in without stress. When you are making a logical decision based on research and user experience you will feel much less tentative about your decision.

Doing something is probably necessary at this juncture and no matter what management technique you choose to use to improve your business just make sure it is one of the ones, like Six Sigma, that has shown marked success in a variety of different industries. Knowing that you have a winning technique on your side will help you and your staff proceed with implementation without hesitation but with the confidence of knowing that you are using a management system that has a well proven track record of success that spans for decades.

Moving Forward with Six Sigma

Once an organization gets past the initial employee resistance to implementing Six Sigma processes, the actual work of defining the company's strategic direction, measuring key statistical information, analyzing that data, identifying improvement opportunities and controlling the process to avoid future concerns begins. It often is at this moment, when the organization seems to be proceeding full steam ahead and benefits are starting to become apparent, that the largest hurdle appears. Simply stated, it can be difficult to maintain a committed, organizational focus on Six Sigma.

Six Sigma is not a one-time process. It is a continuous improvement process - with the emphasis on 'continuous'. Long-term results can only be seen with long-term effort. The best way to implement a Six Sigma program that endures is to place the control in the hands of the front-line employees whose work is most influenced by the quality assessments and improvements. Too often, management is caught up in collecting, measuring and analyzing data to drive change, without considering the employees that the change will affect. Change is scary - and scared employees are not in the frame of mind to make a personal investment in the Six Sigma concept.

The key to organizational buy in is to be sure the front-line employees understand why the data is being collected, what the data actually means to them and how that data (and the changes driven by the results) will affect the processes and procedures that define their work day. This can be accomplished through company-wide training, to include an understanding of the Six Sigma process, an overview of what the company hopes to achieve by implementing Six Sigma and tutoring on how to decipher the data that is being collected. If Six Sigma data is posted in an accessible area - and employees understand what the data means to them - the employees will have more reasons to make a personal investment in both the process itself and in driving results.

6 Sigma: A Safety Line During Economic Hardships.

Six Sigma has been around since the 1980s, and managers have relied on these tools to weather several downturns. However, it's common knowledge that our current fiscal downturn is harsher then what we're used to by an order of magnitude. So how are lean thinking businesspeople doing in the current, quite frankly stark economy? Much better than we could have expected. Lean thinking is a lifeline that has kept countless organizations in the black, even as their lumbering competitors slip into insolvency. With the wealth of Six Sigma resources available on the Web, most of it highly affordable or free, you can enter this "elite" group of people. And when we say "elite," we're referring to the effectiveness of their methods, not to their exclusivity. The information you need to succeed is available at the click of a mouse.

We're not going to speculate on when our current downturn may end--let's leave that the politicians and economists, not to mention the psychics. Instead of waiting for better days, we're interested in boosting our revenues and profits right here, right now. We'll use whatever tools we can to achieve that, and right now Six Sigma is the most powerful and versatile tool we have. Whether you are an owner, manager, or lower on the totem pole, lean thinking is likely the solution to your most vexing business problems. Over the years, we've made an informal study of the psychology of business. Positive outlook seems to have nearly as much power to improve your business as new methods. That's why Six Sigma training can make a difference in your life today, even before you make big institutional changes to reflect lean principles.

Once you start learning about Six Sigma and how dramatically it can change your work, you'll likely feel a new sense of resiliency and confidence. And once you do start making those institutional changes, you may feel like an unstoppable boulder, barrelling over the pitfalls and obstacles that once impeded your progress. We encourage you to learn for yourself just how empowering it is to have access to a management system that really works. Downturns are inevitable, but discouragement and disillusion are not, and should be avoided by the plague. We invite you to join us in exploring the myriad ways that lean principles can buffer your business from temporary economic problems.

When should six sigma be used?

Companies that are not currently using six sigma are wondering whether they should begin to do so or not. The answer to this question lies in how the executives in the company think the manufacturing of their products is going. If they believe that there is room for improvement in that area, six sigma may be the set of principles that helps them.

Motorola is where the philosophy of six sigma was born. It came to the executives’ notice that their products were not of the best quality. In order to improve the quality of their products, they needed to make major changes within their organization. Part of those changes was to discover where the problems began, and seek to fix those issues. A company that sees itself in this description is one that could benefit from six sigma.

Six sigma is the philosophy that seeks to improve the quality of the products that a company makes at the same time that they increase their profits. Major changes may need to be made before a company can switch over to practicing six sigma principles. If the executives at a company believe that they need to improve their quality, and would like to increase their profits with six sigma, they will have to examine their company’s culture.

Implementing six sigma principles means that the company’s entire culture will have to change. Changing a company’s culture requires constant attention to its detail, and this is done by upper management called Master Black Belts. These Master Black Belts can be hired as consultants or someone from within the company can be sent to be trained to become a Master Black Belt who will help to guide the entire company in the direction of six sigma. A company that can devote itself to abandoning their existing practices for those of six sigma can begin to become a six sigma organization.

The people at Motorola were under the impression that if they worked to improve the quality of their products, it would cost them a lot more money and diminish their profits. What they discovered instead was that making a product that did not break down as quickly encouraged profit-earning and decreased production costs. A company that is currently experiencing high production costs that they would like to lower may find that six sigma would be helpful.

Six Sigma For A Changing World

Nothing in the world is static and this can be said of all aspects of the world including business as well. The one guarantee is that nothing will ever remain the same and that is the concept that has kept 6 Sigma methodologies on top in the business world for so long.

It is a program that has built itself on solid concepts on a foundation that is one of good solid concepts such as team work, statistical analysis, and improving customer satisfaction but one that is not willing to sit by while the world passes it by. Some think that just because Six Sigma was developed back in the 80’s it is old or outdated and not valid in the current business world but nothing could be farther from the truth.

In actuality Six Sigma was a program that was if anything ahead of its time and while it was originally developed for use in manufacturing based companies it has done quite a bit of branching since its inception to allow it to be used successfully in many different realms of business to include but not limited to customer service based businesses as well as health care facilities. Today there are even several branches of the military that have incorporated 6 Sigma principles.

And now these principles have expanded even further to include things like lean six sigma and green six sigma looking at not just different types of businesses but also at the different aspects of running a business as well. There are many different businesses out there and 6 Sigma is helping companies of all different types to improve their bottom line and increase sales in their business regardless of their goals or the type of business they are running.

So while some business managers and owners may think that using Six Sigma principles means reverting to something old fashioned, those who are on top of their game know that Six Sigma is not only the best way to get results for their company and to improve their bottom line but that it is easily adaptable to each individual business as well. It is a program that has been proven time and time again in a variety of different business forums and one that has earned the respect of many businesses globally. Sometimes it is those things that have stood the test of time that prove to be the most valuable to your business.

Six Sigma Terms

Six Sigma grew out of the problems the cell phone company Motorola was experiencing during the early 1980s. A quantitative research and quality control program, Six Sigma attempts to quantify the occurrence and prevention of product defects. Everything depends on how the term 'defect' is defined. Within Six Sigma, a defect occurs when a product fails to satisfy or meet customer expectations, even in seemingly insignificant ways. Defects are anathema to a company that adopts the Six Sigma philosophy and methodology.

When defects occur, Six Sigma traces them back to opportunities. An opportunity is the total number of chances for a defect to occur during a particular step of the production process. The opportunity is measured by taking three factors into account. The number of defects that occur on a single part of a product, the number of places on that part where a defect could occur and the number of steps in the production process that could cause a defect are all carefully measured.

Multiplying them together yields the total number of opportunities for a defect to occur. Six Sigma measures product quality by measuring defects per number of opportunities. The relative quality of a product is divided into abstract levels denoted by the Greek letter sigma. The highest level is six sigma, which gives the methodology its name, Six Sigma. The six sigma level is achieved when a product exhibits only 3.4 defects per million opportunities.

The level of six sigma, defect and opportunity are the basic terms of this program. They encapsulate the entirety of the Six Sigma philosophy and point in the direction of achieving the goal of level six sigma quality. Six Sigma, like all bodies of knowledge, must be taught to employees and managers. Six Sigma introduces terms to organize teachers and practitioners of Six Sigma into a distinct hierarchy: Black Belt, Green Belt and Yellow Belt.

Black Belts are team leaders. They organize and direct teams of Green and Yellow Belts. Green Belts are trained to solve the majority of problems that arise with Six Sigma. Green Belts handle most projects; Black Belts are only called in for complex projects. Yellow Belts represent everyone else on a team that is not a Green Belt. Green Belts work with Yellow Belts to accomplish Six Sigma goals.

How Six Sigma Can Reduce Labor Costs

In these difficult economic times, business people should look for every opportunity they can to cut costs and make money with the time they have available. It's for this reason that every change they can make to maximize profits should be taken. One methodology that has proved itself in doing this is Six Sigma.

The Six Sigma method is a business management strategy that seeks to eliminate errors and ineffective variables from production processes with continual analysis of working methods. This analysis is generally the job of one group of people, but recently these tasks have been given more and more to individual workers along the work process, regardless of the industry.

The Six Sigma process originated with the manufacturing industry, but in recent years it has been adapted for use in many different businesses with great success. Whereas businesses generally consider errors in the production process inevitable, with the Six Sigma method, errors and other production inefficiencies are virtually eliminated with production improvements.

It stands to reason that one of the most important results of improved efficiency and less time in correcting mistakes is reduced labor costs.

Consider it. Instead of allowing workers to produce products and services using inefficient methods, with Six Sigma methodology management can stop unproductive waste of time, often before it occurs. And instead of having a worker replete a process (which in turn doubles the cost of that action), that same time is used to create a second product instead of replacing the first.

The Six Sigma process isn't new. It's been around since the 1970s, but unlike a lot of management systems, Six Sigma has proven itself as a reliable system for streamlining operations to make them work more efficiently and with fewer errors and other production problems.

Six Sigma is not a cure-all either. Fortunately, Six Sigma is a method of creating not only a more efficient method of increasing a more quality production, but it will also generate a greater feeling of worker participation in the production process, especially in light of improved worker performance and reduced production/labor costs.

Early adopters of Six Sigma methodology have reported great success, with these including Honeywell, GE, and others, who reported significant savings of time and labor costs.

The Benefits of Test Optimization

Testing of industrial processes, whether of software code or the performance of a product under varying physical circumstances, is a key component of quality control that needs to be done for every product batch, every software update. Testing allows for the control of certain variables to test product performance under realistic conditions and provide for a margin of security in case part of the production or code writing process allowed problems to creep into the final product. Of course, simply testing every conceivable scenario the product may be expected to face is impossible in an environment of lean budgets and tight timelines. Optimized testing is key to profitability and productivity.

Benefits of test optimization are manifold but must be conducted from a particular frame of mind that emphasizes what is of immediate importance and sets aside lesser concerns for the sake of focused examination of key performance related components. Many testing scenarios simply throw one challenge or another at a product and see how much it can take before failing. Code testing takes a similar approach - a high volume of tests designed to determine how much the software can take before crashing. The problem here is that such testing effectively focuses on longevity prior to complete failure - but this is not necessarily the most important thing to a customer. A customer wants to know how reliable the product will be when asked to perform its core functions. Optimized testing needs to determine what processes or components support core functionality and then target them to see if they're reliable.

So determine exactly what components or code strings are fundamentally important - what piece, if it is missing, makes all other operations impossible? List those components and develop a testing plan that aims to examine the performance of these pieces one at a time. Try to break them - determine exactly what sort of scenarios will guarantee failure or severe degradation and catalog them. Then, after testing is complete, see what conditions of failure various components have in common and perform a risk analysis to determine how likely these conditions are to confront the end user.

Such an optimization of testing can save time and money - rather than utilizing volume and stress as the primary metrics develop scenarios that will cause major failure in vital components. It may seem counter intuitive to spend time focusing on particular scenarios and conditions, but over time a movement towards a more focused testing process can be more effective than utilizing stress scripts. With a better idea of what components are vulnerable and what demands a user will likely place on them optimized testing can provide benefits up and down the development cycle and reduce support overhead in the long run.

Indiana Considers Six Sigma Reviews of Public Teacher Performance

Public education in Indiana has been undergoing an overhaul since Mitch Daniels took the governance in 2004. Indiana public school teachers have historically received wage increases based upon years of service and level of education. However, a new bill has set aside 15 billion dollars for 2012 and 2013 for teacher merit pay. Where teachers will receive raises based on performance. School districts will need to make decisions by October 1, 2011 on how those funds will be distributed. Rated teachers will be placed into one of four categories: highly effective, effective, improvement necessary or ineffective. Teachers in the last two categories will not receive wages increases the following year.

Six sigma reviews is being considered to meet this need as Indiana pushes to school districts to become more business-like and less emotion-driven. While not always considered for use in education, in 2008, Adams County School District 12 in Thornton, Colorado began training and applying six sigma principals in their classrooms. Six sigma methods have improved teacher communication with students and supervisors, and processes are being implemented to improve consistency across courses being taught by different instructors and also improving textbook ordering in the school district.

Six sigma reviews will bring a full circle review guidance to help improve Indiana public schools.

1. Project progress will be monitored which will allow for future changes in the very non-static world of education.
2. Non-threatening guidance will be provided to school districts from consultants who are not emotionally tied to the school district.
3. Activities will be aligned across schools and curriculums which will create fair and consistent reviews across the district and state.
4. Displaying support, especially for those teachers who need improvement will be an important part of six sigma teacher reviews.
5. Knocking down barriers will be a goal of the teacher reviews. Schools are notorious for being static and resistant to changes. Teacher reviews will bring to light these barriers and the efforts being taken to make needed changes.
6. Finally a key component of the six sigma reviews will Recognize and Reward teachers for the improvements they implement.

Communities, school districts, and the whole state will benefit from improving the educational system. Six Sigma will be key in improving teacher reviews using scientific and proven methods.

Six sigma marketing

Originally developed to improve quality for manufacturing companies, Six Sigma has begun to expand into other avenues of business, including marketing and sales tactics. One of the most important characteristics of Six Sigma is the emphasis on quality and improving relations with customers by meeting their demands and needs directly. Pinpointing needs while reducing wastes can be a beneficial tactic that even marketing departments and industries can benefit from, gaining the attention and loyalty of clients by re-examining customer retention practices.

Customer Loyalty: Using Six Sigma To Improve Customer Retention

Marketers spend countless percentages of company budgets seeking new customers and clients, highlighting the value of attained consumers and the imperative task of retaining them. Although companies and corporations may gain the stewardship of the audiences they seek, retaining those customers can be as vital as ever gaining their business in the first place. When applied to marketing concepts and departments, Six Sigma principles can:

• Improve Marketing Efficiency
• Distinguish Growth
• Develop Proactive Responses For Improvement
• Spark Modifications With Defined Measurements

Six Sigma Ideologies Applied To Marketing Principles and Efforts

One of the most productive aspects of Six Sigma is the customer centered focus, with relies heavily on improving and maintaining customer satisfaction. When applied to marketing, Six Sigma highlights the importance of identifying customer needs and desires when developing communication and effective messages. Deeply comprehending an audience can be vital to distinguishing their needs and, therefore, boosting company chances of meeting those needs and desires. Marketing should be focused on what consumers find value in and what provides their satisfaction.

In the Six Sigma implementation into the marketing industry the diverse needs of departments are resolved by focusing on the input and suggestions of the consumers, gaining inspiration from customer needs rather than simply trying to provoke a desire within them. Marketing efforts based on Six Sigma become reliant on the needs and desires of consumers and the input provided by audiences becomes a vital necessity for marketing efforts. Rather than focusing on the end result of attaining consumers, marketing efforts become increasingly focused on customer need. Gaining new customers while retaining previous buyers can be obtained by focusing on the feedback received and the direct deficiencies expressed.

Improvement is a principle touted within the Six Sigma principles, constantly challenging companies to benefit from the feedback of consumers by advancing efforts suggested by them. Consumers are constantly expressing needs, desires and even negative aspects of their experiences. Shifting focus from simply attaining new customers to meeting their changing needs can reduce waste and create definitive loyalty among users and audience members alike.

Business Management Training Doesn't Mean A Four Year Degree

There are many ways to become a manager within a company. You may be recruited for the purpose of managing and if so you were probably hired with a four year degree in business management or an MBA but a degree doesn’t always mean an effective manager and many companies have discovered over time that hiring from within usually produces better results for the company as a whole.

When you hire an individual with a degree, they come in as someone who knows better very simply because they hold a piece of paper which doesn’t hold too much weight with established employees within the company. Let’s face it no one wants to dedicate 15 or 20 years to working for an employer, just to find out that someone with a fresh face and a piece of paper now out ranks them. This may be a great way to breed animosity but doesn’t do much good for the person in charge or the morale of the other employees.

Managers that are hired from within from the lower rankings of the company not only have more respect from their co-workers as being hard working and individuals of integrity but they also have a much better knowledge of the company itself and the inner workings of it. They know that they have what it takes to get the job done and they know the strengths and weaknesses the lie within the company and the staff. They truly understand the inner workings.

Of course, hiring from within doesn’t always go smoothly and even this method of hiring can sometimes take a few months to get running smoothly. Even though this new manager may have been a valued employee with the company for many years the other employees will scrutinize them in their new position and it could take this new manager a few months to begin to really command the type of respect and authority needed in a management position.

Those who are hired from within usually work out better for the company that they work for very simply because they are a part of the company and feel an attachment to it and their fellow employees. This arrangement is one that works well and when the right employee is chosen for the job the company can send them for many different types of outside training and help them work on enhancing the skills that they have and gaining the additional training that they need to be a more effective manager.

Having a four year business degree is great but with so many different hands on and online training programs out there it is simply not a necessity if business management is where you are heading. There is literally no reason to look outside the company when you can hire those who are working well for your company, provide them with the training they need, and have them in management positions in no time flat.

DFSS six sigma certification

Design For Six Sigma (DFSS) is the process by which six sigma companies create new products and improve existing ones that are free of any defects. The customers’ input is of utmost importance, and the company has the goal of meeting the customers’ expectations at 4.5 sigma or more. Emphasis at this point is on the design of products that meet the customers’ needs to a high degree.

People can become certified in DFSS in all different types of businesses. Companies that create products for industrial uses such as tractors and companies that create products for use in the household such as mops benefit from the use of DFSS principles. Everyone who works at the company in any area of the business also has the potential to gain from DFSS certification, and those programs that cater to all different types of industries are the best programs to consider attending.

Within a DFSS certification program, managers will learn what it takes to put their DFSS plans in motion when they are creating new products. They also learn how to maintain the good ideas that have been implemented at the beginning of the process, and they learn how to keep everyone who is working under them on track with the project. They learn how to recognize when a project would be a good candidate for DFSS treatment. They also learn what software exists to help them create these new projects and how to use it.

DFSS uses the DMADV methodology which stands for Define, Measure, Analyze, Design and Verify. Those who embark on training in DFSS learn what these terms mean and how to use these principles in their businesses to create or improve production.

DFSS training can be done within a classroom setting, but it can also be done within the company with a consultant. DFSS certification schools separate their programs by the type of business that their students are in. For example, DFSS training for industrial companies is broken down further into certification training programs for Master Black Belts, Black Belts, Green Belts, Champions and Executives. People can also receive supplemental training for Black Belts and the voice of the customer. They also have the choice of becoming trained in Lean Product Development.

DFSS training certificate programs are many, and every type of company that needs to have their employees learn how to become part of the Six Sigma program will be able to find the most appropriate program fo

How Six Sigma Will Change Logistics Forever

Since the 1980s, the Six Sigma system has shown it's potential to improve nearly every aspect of a business, especially logistics. Six Sigma can be used to eliminate the waste that can hold a business back from its true profit potential. And we're talking about all kinds of waste--wasteful inventory, time, and costs. Six sigma and lean logistics have the potential to revitalize companies that are stuck in a wasteful, self-destructive pattern.

From manufacturers to retailers, suppliers to wholesalers, every business that is part of the supply chain has to deal with the consequences of poor logistics. This is especially true of those companies that operate in the global supply chain. After all, the longer the supply chain, the more opportunity there is for needless waste of resources. In recent years, some business journalists have written articles entitled "Japanese Auto Companies Continue To Dominate World Market," as if Japanese companies have an intangible quality that is impossible to imitate. While Japanese auto companies have certainly showed splendid business sense, they have done it by applying lean logistic principles that can easily be learned and followed by any business in the world. Lean manufacturers who use Six Sigma have a proven ability to skyrocket past competitors. Logistics is a challenging field, particularly for global companies that have to wait long periods of time for deliveries.

Additionally, the longer your supply chain is, the more parties you have to deal with. According to some reports, as many as sixteen parties can be involved in a single shipment. While not everyone in your supply chain is likely to have Six Sigma training, Six Sigma gives you the skills that you need to identify solid business partners. Truckers, customs brokers, rail lines--all of these parties can and should be evaluated using Six Sigma principles. "Thinking lean" is no longer a trendy catchphrase. This is how we do business in the 21st century. In the competitive business climate we see today, you simply can't rely on creaky, old-fashioned logistics practices. Although technically separate, Lean practices and Six Sigma can fit together perfectly to give you a new philosophy of thrift. Using Six Sigma, it's easier to improve your logistics, no matter how complicated or daunting the task may seem at first. If you embrace Six Sigma, it will be impossible to remain a passive player, or a victim to an inefficient supply chain.

Six Sigma Failures Due To Misinterpretation

Many feel that the occasional shortcomings of Six Sigma stem from problems that lie within the system itself but when you look at the bigger picture you can very easily see that one of the biggest problems lies within the human interpretation and implementation of the principles and not the strategies themselves. Whenever, even the best of practices and principles are taken literally and without consideration for all the factors involved this doesn’t disprove the quality of the principles but the lack of flexibility on behalf of the manager using the program.

This exact problem occurred within a large company that was utilizing 6 Sigma and was attaining results. This company was a very large company known as the Home Depot. Most have heard about the failures of Six Sigma within this company because it was one of the only companies on record that had difficulties with its implementation and eventually the manager in charge of 6 Sigma for the company had to be let go, however, it is important to note that the program was actually working effectively and was improving profits for the company. And the success of the program can also be documented in the fact that after hiring on someone new to manage the company they still opted for someone who could run the business according to the principles of Six Sigma.

In this case the manager didn’t keep tabs on how the implementation was occurring and it was taken to the extreme, which in the end left the employees with too much responsibility and feeling frustrated. In any business no matter what management technique you ar4e using you want to make sure that your front line employees are happy and that things are running smoothly from all aspects and not just from the aspect of customer satisfaction or profitability. It is important if you are going to have a successful company to make sure that all aspects of the business are running well and are contributing to your overall profitability. Success that comes at the expense of your employees is short lived because without satisfied employees the customer satisfaction will definitely be impacted.

It is always best to make sure that everyone is trained and certified before 6 Sigma implementation occurs but it is equally as important to make sure that there is a system of checks and balances in place to make sure all aspects of the business are in alignment. An overzealous manager and an over achieving CEO may simply believe that just because their bottom line is improving that everything is just fine but in essence there is more to creating a successful business then just more money coming through the door it also includes the ability to stand the test of time.

Perfection through "Six Sigma" in Education

Education is more than just a driving force for humanity. It is the mechanism prescribed by the stalwarts to build a future equally proficient and adept in aptitude. The role of the Six Sigma in education complies with this urgent need in the education sector for a change in this rapid demand for perfection. With the rampant use of variations in the education market one factor that stands out in its conceptualization and vision is the six sigma concept that had initially revolutionized the business sector. The education sector not only demands such a prompt technique which can harness the young minds from the very beginning to cut down on their mistakes but also to honing their skills to match those of the very best and furthermore belonging to that elite class of the very best. The customer, the student or the parents, are thus seeking a qualitative management of the resources that can build a potential for the student upon which a foundation can be developed upon.

The Six Sigma concept adheres to the technique of reducing the mistakes made by the students by creating study techniques as well as teaching techniques that enhances the proficiency of the students. With the advent of Six Sigma concept in education, the customer is not only satisfied by the improvement in the performance but rely heavily on the new techniques that are implemented to get those results. Quality is one of the basic parameters upon which the Six Sigma concept dwells on. The basic aspect of this concept is to improve on the mistakes generally made by the students, the process is to chart them together and bring about a technique through which these anomalies can be removed from the system, leading to a proficient set up for development. The teaching as well the whole approach thus dwells on the moderation of such a technique and to develop it through innovative case studies and comprehensive discussions into an aperture for increasing productivity in the students. Six Sigma concepts not only heralds a new beginning in the education system but creates a highly competitive atmosphere conducive of sharpening of the intellect and in the development of a highly productive state of being.

Why Effective Metrics Are Important For Business

It isn't possible for a business to effectively control business processes that are not adequately measured. It is only through measurement that a business can determine what strategies are working, and what ones are not. This is why developing process metrics is such an important part of Six Sigma.

The Purpose of Metrics

Metrics allow a business to identify what things are most important and what strategies are working to improve them. An enormous range of metrics exist, going all the way from mandatory legal metrics up to advanced metrics that report on the status of efficiency, help reduce customer complaints, reduce costs, and increase savings.

Some businesses make the mistake of thinking that metrics belong to only one category of business. In reality, measurement is crucial to all aspects of business, including everything from marketing to finance, competitors to customers, and standards to expectations.

In short, metrics tell a business where it was, where it's going, if something's wrong, and what goals have been reached.

Usefulness of Metrics

Metrics should be as simple as functionally possible. The more difficult they are to explain, the less effective they become. It should be straightforward to explain a metric to employees and executives. Only then will they be motivated by the metric and understand how it relates to them.

A metric should aim to propel the strategy of a business, allow individuals and teams to focus more effectively, assist with decision making, motivate performance, be flexible and adaptive to change, and produce beneficial public relations both inside and outside the company.

Five Steps for Using Metrics

1. Definition - Metrics should be precisely and clearly defined so that all parties know what they mean and how to measure them. They should be specific, measurable, achievable, relevant, and time-based. Metrics should also be carefully chosen so that they don't lead to cut corners or reckless behavior.

2. "Sell" the Metric - The usefulness of the metric needs to be "sold" to company executives and then the employees themselves. Bonuses for employees can help with this.

3. Determine How to Collect the Data - Lack of tools, and outright self interest, can be obstacles to data collection. Self-reporting can lead to dishonesty, and imprecise tools can lead to inaccurate measurement. Investment in new measurement methods may be necessary.

4. Share the Results - Obvious as this step may seem, many businesses get buried in more metrics than they know what to do with. The results of the metrics should be effectively shared and used to plan for the future and incentivise.

5. Rinse, Wash, Repeat - Metrics should be continually measured, and they should periodically adjusted to meet the changing needs of the business.

Deploying Six Sigma The Right Way

The quantitative system and philosophy known as Six Sigma allows inspiration and ideas to come from any department or area of an organization. Problems can quickly develop, arising primarily from a failure to plan ahead when deploying Six Sigma. Only business ideas with excellent execution will succeed and become profitable. Six Sigma can take good ideas and make them into worthy models, but the planning and groundwork must be done. Failure to plan can lead to overfocusing on the goal and not taking the steps necessary to achieve it.

Six Sigma uses quantitative analysis combined with statistical data to weed out deviations from the mean, or defects. A defect is defined as any aspect of a product failing to meet customer expectations or requirements. Defects derive their significance from the concept of opportunities. An opportunity is the total number of chances for a defect to occur during production. Six Sigma is heavily statistical. It uses standard deviations from a data-obtained mean to gauge the quality level of a product and suggest methods of improvement.

"Six Sigma" is the highest quality level a product can achieve, with only 3.4 defects per million opportunities. This is the biggest reason why deploying Six Sigma can be so difficult. The highest level of quality is the ultimate goal of Six Sigma, and without planning ahead, the goal can never be reached. Six Sigma demands that every participant know the role they are playing, and that they play it to the best of their ability. Having a strategic goal in mind as Six Sigma is deployed within an organization is essential to success.

Aside from a strategy, another key element is having the right people in leadership positions. Six Sigma groups people into "belts", such as Green Belt, Yellow Belt, Black Belt and so forth. A Black Belt is the highest position with a Six Sigma group. Black Belts have the most experience and the most leadership ability. Green Belts are below Black Belts, and Yellow Belts are below Green Belts. There are other Six Sigma belts, but these are the most common.

Having the right people in each of these positions is critical to the success of a Six Sigma strategy. Leadership is a tricky thing. Someone either has it or does not have it. Six Sigma depends on group leadership to implement the strategy and achieve the desired goal. It uses belts as organizing tools.

The Evolution Of Quality At Motorola

A company known as Motorola was having a hard time during the 1980s. The 1982 recession could have finished them off, and the threat of another recession hung over their heads like the Sword of Damocles. Today, Motorola is one of the most recognized cell phone brands in the world with global market share and consistent profitability. Not many people know that Motorola left another legacy besides cell phones. Professionals, business executives, technical geeks and policy wonks are grateful to Motorola for a quantitatively-based quality management system called Six Sigma.

Motorola was suffering from poor quality products, which threatened, not just profitability, but the existence of the company itself. Their cell phones had many errors that resulted in low-to-nonexistent customer satisfaction. The chief executive Robert Gavin and engineer Bill Smith decided to change this. They wanted a product that was completely error-free 99.9997 percent of the time. This effort led to the formulation of Six Sigma. At the time, this was a revolutionary approach to business.

Six Sigma focuses on reducing the number of defects present in a given product. A defect is any aspect of a product that fails to meet customer requirements or expectations in some way. Defects are given meaning within the context of opportunities. An opportunity is the total number of chances for a defect to occur during the production process. Six Sigma aims for only 3.4 defects per million opportunities. This was almost an unheard-of quality level. That commitment to such high-quality products resulted in Motorola's cell phones dramatically improving over the course of just two years, from 1986 to 1988.

The cell phones improved so much that Motorola won national recognition in 1988 for their quality improvements. Today, Six Sigma is still helping Motorola achieve their high quality levels. The name "Six Sigma" derives from the Greek letter sigma, which is used in statistics to measure standard deviations from the mean. Six Sigma is the highest level of quality for a product with the lowest number of deviations.

The true advantage of Six Sigma is its ability to coexist with right-brain, creative productivity methods. This has allowed a fusion and synthesis of quantitative and holistic ways of thinking that still serves Motorola today. This culture has resulted in a focus on constant dissatisfaction with current productivity and quality. The result is a drive towards greater quality and even more efficient productivity.