What Makes Six Sigma Work?

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By Kim Niles

There are two ways to increase profits: One is to provide breakthroughs in product or service; the other is to reduce mistakes. Six Sigma is about virtually eliminating all types of mistakes, waste, and rework. To do this, a focused structure is implemented as follows:

Six Sigma Structure
Leadership and Commitment Responsibility
1. The CEO adopts Six Sigma publicly through a company wide training effort and assigns someone from top management to be the 'Executive Champion'.

2. The Executive Champion assigns Deployment Champions and Master Black Belts (also called Project Champions) from the next highest levels of management. The Master Black Belts oversee Six Sigma Projects. Master Black Belts are usually consultants for new initiatives. They pick the projects and people, and teach, coach, and monitor them. Improvement projects usually last between four and six months. The Master Black Belts assign the Black Belts and Green Belts to help lead and contribute to the projects.

Problem Solving
3. The Black Belts are problem solving super stars that do the real work of improving processes via the projects and oversee Green Belts that take data and assist the Black Belts. Black Belts are trained for four weeks in both management and technical skills. The average Black Belt is said to save the company $150,000 to $175,000 per project. Master Black Belts and Black Belts are the only team members that work full time on the projects.

For another view of the Six Sigma business organizational structure, please read Charles Waxer's article entitled Six Sigma Organizational Architecture.

In conclusion, Six Sigma really is different than other Quality management methodologies and we all should study it at the very least because it presents new opportunities for improving the way companies operate and the output of the products and services delivered.

References
While there are many comprehensive books on Six Sigma, the book I most recommend is:
1. Chowdhury, Subir. 'The Power of Six Sigma'. Dearborn Trade. Chicago, IL. 2001. This book is a fictional story of two friends having lunch. One friend is explaining his success as a result of Six Sigma to the other.

Other useful references:
2. Breyfogle, W., Forrest. 'Implementing Six Sigma: Smarter Solutions Using Statistical Methods'. John Wiley & Sons, Inc. New York. 1999.
3. Harry, Mikel, Ph.D., and Richard Schroeder. 'Six Sigma: The Breakthrough Management Strategy Revolutionizing The World's Top Corporations'. Doubleday. New York. 2000.
4. Harry, Mikel J. 'The Nature of Six Sigma Quality'. Motorola Publishing. AZ. This book is likely the book that started Six Sigma as it is today.
5. Pande, Peter S., Robert P. Neuman, and Roland R. Cavanagh. 'The Six Sigma Way: How GE, Motorola, and Other Top Companies Are Honing Their Performance'. McGraw Hill. New York. 2000.
6. Pyzdek, Thomas. 'The Six Sigma Handbook: A Complete Guide For Greenbelts, Blackbelts, & Managers at all Levels'. McGraw-Hill Quality Publishing. New York. 2000.

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