#7 – THE DEATH OF SIX SIGMA – KARL SCHULTZ

Google “Is Six-Sigma Dead?” and you’ll get 11,700 responses in 0.40 seconds!  Certainly a big topic.  Why?  And why is it even a topic?

As most everyone knows, the term six-sigma is statistically based on 3.4 defects per one million occurrences (DPMO).  But it is much more than that.  It is actually based upon a strict discipline called Define – Measure – Analyze – Improve – Control (DMAIC).  So, is the concern over the need to get all processes to 3.4 DPMO or pursue the DMAIC process?  Most six-sigma supporters would say the DMAIC process is the important ingredient of six-sigma, not just the 3.4 statistic.

So what’s the risk of implementing six-sigma?  If you are sitting in one of the ‘C’ offices and hear good and bad news about six-sigma, what would you do?  Certainly the ‘C’ office decisions are based on Return On Investment (ROI).

For startup, there is the training of the workforce of 30-40 hours each in Statistical Quality Control (SPC). The hiring of a Black Belt(s) at probably $150,000. The training of other individuals for Green Belt.  And you haven’t even started a six-sigma project yet!  It took Jack Welch at GE 11 years to transform 300,000 employees at a cost of nearly $17,000 per employee.  And his focus was on cost reduction and not “delighting” the customer.

A study by QualPro in 2007 showed that 53 of 58 companies that use six-sigma trailed the S&P 500 since implementing it.  And this was before the Great Recession.

And there are many other reasons why six-sigma has struggled to be a part of the business culture.

However, Google “Six-Sigma Success Stories” and you’ll get 21,300 responses in 0.19 seconds!