Six Sigma Blog

PowerSteering and BMG Team Up to Develop ProjX

PowerSteering Software Inc has teamed up with BMG Inc. to develop the software program ProjX.  The program is designed to give real-time access to executives allowing for much greater control in preformance enhancement initiatives.  In addition, the two companies have made a marketing agreement allowing both to offer a wider variety of one anothers products.  Business Wire Reports:

"PowerSteering's acquisition of ProjX is a significant step in its corporate growth, as it firmly establishes itself as the undisputed leader in Six Sigma software solutions," said Steve Sharp, president and CEO of PowerSteering.  "In addition to adding mature, proven solutions to the PowerSteering software suite, a strengthened VAR relationship with BMG dramatically increases the company's global reach.  PowerSteering and BMG customers will benefit from this deal with access to a host of new services and solutions."

Read More: PowerSteering Software Acquires Software Assets from Breakthrough Management Group

Popular Advice Column Spreads Six Sigma Knowledge

The popular customer service advice column "Ask Mr. Lee," is now headed for wide distribution, fueled by demand.  The column is known for the straight-forward, easy-to-comprehend tips for business process improvement, call center performance, and data analysis application.  Unsurprisingly, the single author, Roger Lee, credits much of his business acumen to his Six Sigma Black Belt training.  Business Wire Reports:

"It doesn't take a PhD to improve call center performance," said Roger Lee, a Six Sigma Black Belt. "As Deluxe demonstrates, the most important thing is a true commitment to the customer and a drive for improvement. My job is to provide tools to help companies reach their goals and keep getting better."

Read More: Customer Response Sends etalk's ``Ask Mr. Lee'' into Wide Distribution; Popular Advice Column Tackles Tough Call Center Questions at www.etalk.com

After Losing Ground Albertsons Will Implement Six Sigma

The nation's #2 grocer has had a disappointing year. After this week missing financial targets set only one month before, the company's stock has slipped 4.3%  to its lowest level since 2003.  In response, the company has vowed to cut $250 million in overhead for 2006, a cut driven in part by the expansion of its Six Sigma program which was originally brought to the company by CEO Larry Johnston, formerly of GE.  Newsday.com Reports:

"We plan to focus on our consumer demand chain initiatives, coupled with savings generated through our recently launched Six Sigma program," said Danielle Killpack, and Albertsons spokeswoman.

Read More: Albertsons profit tumbles after hurricanes, sluggish business

Voltaix Inc. Incorporates Six Sigma to Improve Customer Relationships

With the profits attainable through Six Sigma becoming ever more apparent to companies in a variety of fields, Voltaix Inc announced this week that some fifteen employees have recently attained Six Sigma Green Belt Certification.  Voltaix Inc., a leading manufacturer of chemicals and gasses, believes that their investment in training will reap dividends through improving customer support relationships and product solutions.  In addition, the company, like most Six Sigma implementers, hopes to attain greater product consistency and thus profitability.  mysan.de Reports:

"Six Sigma will enable the Voltaix team to deploy problem-solving tools to improve product consistency and usability, which translates to yield and throughput improvements for our customers," commented Dr. Matthew Stephens.  "Yield and throughput are more important than ever, given the high capital equipment expenditures associated with 300mm wafer processing.  Further, new technology integration issues drive the need for closer customer-supplier relationships.

Read More: Voltaix Undertakes Six Sigma Initiative to Enable Deeper Customer Relationships

BusinessWeek Discusses Six Sigma Benefits and Limitations

Six Sigma can't preform miracles.  That's the lesson from BusinessWeek, who argues that while the business approach can help create a company that is conducive to generating excellent products, services, and customer experiences it cannot create the actual products.  While this news will certainly not come as a revalation to most American companies, it does mean that as Six Sigma and other cost and quality control programs are implemented internationally, domestic companies must utilize cultural connections to provide themselves with a competitive edge.  BusinessWeek Reports:

Indian and Chinese engineers and manufacturers are doing more and more of the old cost- and quality-control Six-Sigma stuff (you haven't seen anything yet in outsourcing), leaving U.S. corporations to build new business models around customer culture. America's customer culture is a divide that foreigners have a hard time penetrating -- which gives U.S. companies their best, and perhaps only, shot for growth.

Read More: The Empathy Economy

Godfrey Phillips Implements six Sigma to Counter Rising Costs

Cigarette maker, Godfrey Phillips has recently seen its costs increase because of a duty increase set forth in the newly unveiled budget.  The company counters, however, that these costs are being partially compensated for through the implementation of Six Sigma and other production efficiency systems.  Moneycontrol.com Reports:

The reason our profitability has been going up is because for the last two-three years, we have laid a lot of emphasis on our productivity, organising our plants, reducing our cost of production, putting into practice the principles of Kaizen and Six Sigma.

In the absence of major topline growth for the past few years, our emphasis has really been on increasing productivity and efficiency.

Read More: Godfrey Phillips sees a 5% cost push

10 Qualities to Look for in Six Sigma Black Belt Candidates

Selecting candidates for Six Sigma Black Belt Candidacy is a task vital to the prolonged health and growth of a company. Selecting the wrong candidate can not only mean that both time and money is wasted in the training, but that your company will not reap the benefits that such training can provide. Consequently, Charles Waxer of iSix Sigma has compiled a top ten list of the most important qualities to look for when selecting a candidate. iSix Sigma Reports:

Technical Aptitude. The Black Belt candidate need not be an engineering or statistical graduate, but in some cases this is beneficial -- provided the other top ten qualities listed are also present. In all cases, a Black Belt is required to collect and analyze data for determining an improvement strategy. Without some technical aptitude (computer/software literacy and analytical skills) the Black Belt will be frustrated in this role.

Business Acumen. Black Belts are business leaders, not the quality managers of the past. As such, they should have business knowledge and the ability to display the linkage between projects and desired business results. How is a project making the company stronger competitively and financially? You can ask questions during the interview to determine if the Black Belt candidates have made this connection in their prior roles.

Read More: Top Ten Six Sigma Black Belt Candidate Qualities

Survey Shows Six Sigma Delivers Profits

While the value of Six Sigma implementation is already widely known, the monetary benefits for a single company to train an individual are rarely quantified.  A recently released survey entitled The Customer Dashboard, however, attempts to rectify this gap.  It indicates that 86% of Six Sigma Black Belts contributed $500,000 to annual performance goals, while almost one in three (32%) contribute $5 million.  The survey also touts the benefits of Six Sigma on an anecdotal basis, allowing the effects of the program to be seen within a single company.  PR Newswire Reports:

Six Sigma implementation enabled a top company to save $400 million in costs- translating into a profit of $100 million. The long-run annual goal is to save $7 to $10 billion, resulting in an earnings increase of $5 billion.

Read More: Lean & Six Sigma: From the Top to the Troops - Case Studies in Excellence

Six Sigma Training Pays Dividends

A recent study by iSixSigma Magazine reveals that companies both large and small will reap significant benefits by having their employees trained in Six Sigma.  The median savings delivered per project implemented under the guidance of a Six Sigma Black Belt is $188,000.  For companies with annual revenues in excess of $1 billion the median savings was $335,000, while companies with revenue of less than $100,000 see savings of $117,000.  This survey indicates that savings can be had, not only by the largest companies, but by medium and smaller companies as well.  iSixSigma Reports:

Erin Ducceschi, editor of iSixSigma Magazine, also noted, "Significant financial results can be achieved at any stage of a Six Sigma initiative. There is no statistical difference in financial benefits based on the number of years a company has been using Six Sigma, meaning that a return on a company's investment can be achieved within a short timeframe."

Read More: Ignoring Six Sigma Can Cost You Money: Black Belts Deliver $188K Hard Financial Savings Per Project

Tyco Re-establishes Credibility Through Six Sigma

It has been more than two years since the Tyco management scandal, but for CEO Ed Breen and the rest of Tyco's executive staff, the challange of re-establishing credibility is a long road.  After replacing the senior corporate management, Breen has been hard at work trimming and restructuring the ailing company.  While outsourcing some management work has certainly yielded benefits, Breen credits his existing managements increased operating excellence, achieved through Six Sigma, for much of the company's rebound.  IndustryWeek.com Reports:

The second area is what I would call the operating excellence or operating intensity area.  And under that falls Six Sigma, strategic sourcing, the rationalization of our real estate footprint and our focus on improving working capital.  [Operating excellence] is really a catalyst, and what I would say is a culture of how we want to run this company for continuous improvement.

Read More: Restoring Credibility

Six Sigma's "Fishbone" or Ishikawa Organizational Diagram Explained

The Six Sigma "fishbone" or Ishikawa diagram, originally designed to generate a comprehensive list of possible causes for steel manufacturing problems and defects, is now being applied to a wide variety of management structures.  Kent Bauer of DM Review explains the cababilities of the diagram, and how it can be applied to your business model.  DM Review.com Reports:

Read More: KPI Identification with Fishbone Enlightenment