Sunday, September 21, 2008

Quality Management

Maximize Your Profits

I Show You How to Maximize Your Profits!

To improve your business processes and to maximize your profits I'll take the DMAIC (Define, Measure, Analyze, Improve, Control) Six Sigma approach.

But ... what is Six Sigma? Six Sigma has at least three different meanings depending upon the context. There is not one answer to what is Six Sigma.

The first answer to what is Six Sigma is that it is a management philosophy. Six sigma is a customer based approach realizing that defects are expensive. Fewer defects mean lower costs and improved customer loyalty. The lowest cost, high value producer is the most competitive provider of goods and services. Six Sigma is a way to achieve strategic business results. Another answer to what is Six Sigma is Six Sigma is a statistic. Six Sigma processes will produce less than 3.4 defects or mistakes per million opportunities. Many successful Six Sigma projects do not achieve a 3.4 ppm or less defect rate. That just indicates that there is still opportunity. A third answer to what is Six Sigma is that Six Sigma is a process. To implement the Six Sigma management philosophy and achieve the Six Sigma level of 3.4 defects per million opportunities or less there is a process that is used. The Six Sigma process is Define, Measure, Analyze, Improve and Control (DMAIC). When answering the question what is Six Sigma understand that Six Sigma is not a set of new or unknown tools. Six Sigma tools and techniques all are found in total quality management. Six Sigma is the application of the tools on selected important projects at the appropriate time.

These steps are the most common Six Sigma approach to project work:

Define
Define is the first step in my six sigma approach of DMAIC. I first ask leaders to define their core processes. It is important to define the selected project scope, expectations, resources and timelines. The definition step in the six sigma approach identifies specifically what is part of the project and what is not, and explains the scope of the project. Many times the first passes at process documentation are at a general level. Additional work is often required to adequately understand and correctly document the processes. As the saying goes "The devil is in the details".

Measure
Many think when they start a journey the most important thing to know is where they are going. While I agree knowing where you want to go is very important, I believe some of the first information you need before starting any journey is your current location. The six sigma approach asks the Black Belt project manager to quantify and benchmark the process using actual data. At a minimum consider the mean or average performance and some estimate of the dispersion or variation (maybe even calculate the standard deviation). Trends and cycles can also be very revealing. The two data points and extrapolate to infinity is not a six sigma approach. Process capabilities can be calculated once there is performance data.

Analyze
Once the project is understood and the baseline performance documented and verified that there is real opportunity, it is time with the six sigma approach to do an analysis of the process. In this step, the six sigma approach applies statistical tools to validate root causes of problems. Any number of tools and tests can be used. The objective is to understand the process at a level sufficient to be able to formulate options for improvement. I should be able to compare the various options with each other to determine the most promising alternatives. As with many activities, balance must be achieved. Superficial analysis and understanding will lead to unproductive options being selected, forcing recycle through the process to make improvements. At the other extreme is the paralysis of analysis. Striking the appropriate balance is what makes me highly valuable.

Improve
During the improve step of the six sigma approach ideas and solutions are put to work. I have discovered and validated all known root causes for the existing opportunity. The six sigma approach requires me to identify solutions. Few ideas or opportunities are so good that all are an instant success. As part of the six sigma approach there must be checks to assure that the desired results are being achieved. Some experiments and trials may be required in order to find the best solution. When making trials and experiments it is important that all project associates understand that these are trials and really are part of the six sigma approach.

Control
Many people believe the best performance you can ever get from a process is at the very beginning. Over time there is an expectancy that slowly things will get a little worse until finally it is time for another major effort towards improvement. Contrasted with this is the Kaizen approach that seeks to make everything incrementally better on a continuous basis. The sum of all these incremental improvements can be quite large. As part of the six sigma approach performance tracking mechanisms and measurements are in place to assure, at a minimum, that the gains made in the project are not lost over a period of time. As part of the control step I encourage sharing with others in the organization. With this the six sigma approach really starts to create phenomenal returns, ideas and projects in one part of the organization are translated in a very rapid fashion to implementation in another part of the organization.

Implementation Strategy
My ultimate goal is not simply to implement a quality system or provide training as an end in itself, but rather to derive the long-term organizational successes such a system can yield. The training, consulting and management systems I offer are vehicles that can be used to help an organization achieve that goal. My objective is not simply to provide training and consulting services, but rather to transfer my knowledge and experience to you so you can create excellence from within. In this regard my training and consulting practices are aimed at a participative approach. I want you to become first hand practitioners of the process, capable of instituting the infrastructure necessary to internalize your Quality System and thus derive long-term success. Determining the best way to improve the quality system you have in place is a difficult one and can be very costly - let me help you make the best decision - unlike many of my competitors I am not married to a particular strategy and can help you determine the best one for you!

Quality Management
With many years of experience with both established companies as well as with start-ups I'm in unique a position to offer hands-on management for Quality Management and all aspects of IT Management.

I offer an international breadth of experience, having worked with some of the largest companies in the world.

Pricing: Please contact me at +43 681 10529517 in Vienna, Austria for more information regarding preparing your company a Quality Management Plan today.

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