Supply Chain Manager! It is your job to never ever shut down a car assembly line with 15,000 parts. It is your job to keep inventory as low as possible – lean. It is your job to anticipate the risk involved – earthquakes, tsunamis, snowstorms, union strikes, manufacturing issues, and the list goes on. And to source globally for the best-cost producer.
Key job skill – masochist! Continue reading
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!