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How to start?

Six Sigma – iSixSigma Forums Old Forums General How to start?

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  • #39760

    Srinivasan
    Member

    Hi All,
    I have joined an org (fin sector) recently and my top mgmt wants me to complete a BB project to reduce cost at the earliest. Its an internal process and there has been no proper metrics derived for this process so far. There is some junk data available and no one has a clue on what could be the right target, specification limits nor a defect.
    I donot have time to set the process right thru a BPMS way or anything for that matter. I have come up with some metrics and CTQs from my own understanding but I donot have a proper baseline.
    Can someone tell me how to go about it?
    Rgds
    Uma

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    #121694

    BTDT
    Participant

    Uma:If you have received training, then you know how to execute a project. If the company has a Six Sigma infrastructure, then talk with your Quality Leader or MBB.If you have neither, then you are on your own.I faced this situation with a CFO who kept on asking how to cut costs rapidly and was not interested in Six Sigma as a project management exercise.I finally suggested a project to fire 10% of the employees at random and book the cost savings. When he objected, I asked him why. He started to tell me what he understood of Six Sigma (very little), but it started a dialog centered around my concerns about finding the best projects and his concern of hitting a financial target given to him by the board of directors.If there are no proper metrics, how do they know it is a problem? Start there and see where it leads you.BTDT

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    #121717

    HandthatFeeds
    Participant

    To BTDT,
    At the risk of sounding a bit a crass, why would one need training to fire personnel?  HR could very well do that and have minimial to no understanding of Six Sigma.
    My contention is this – termination of personnel is not that answer to an organization’s financial issues but a band-aid. Reallocating personnel to more value-added positions is far more beneficial to the organization, and to the employee. 
    Unfortunately, there are certain individuals, who, by virtue of completing a course believe they can improve an organization by eliminating personnel – anyone can do that. And you don’t even need a Greenbelt.
    Peace,
    Dubya

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    #121718

    Paul Gibbons
    Participant

    As much as I hate to defend Btdt, I think you may have mis-interpreted his post.
    Paul

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    #121719

    BTDT
    Participant

    Dubya:You are exactly right – we are making the same point. Elimination of people is an extremely short sighted ‘solution’ to deeper problems. Peter Senge calls it ‘fixes that backfire’. The CFO in this one company was completely focused on cost savings on a quarterly basis during strategic planning and project selection meetings. He finally asked me why I kept on suggesting that we should randomly fire 10% of the staff. I asked him why that was not a good solution.He told me that having cost savings as a single target for Six Sigma would drive behaviour that was going to have a bad effect on the company.It forced him to make the point that we should have other metrics for Six Sigma besides just cost savings, but it came out of his mouth instead of mine.BTDT

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    #121720

    BTDT
    Participant

    Paul:We’ve all have had opportunities to try to find an “Unpost Message” button every now and again. The typed word doesn’t always come off as witty as we’d like sometimes.No worries!BTDT

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    #121724

    indresh
    Participant

    metrics if don’t exist need to be designed, BTDT gave a small but valuable example as to how to make the management pause and understand that there needs to be structured methodology for improvement or achieving business goals
    my suggestion get the bosses come out with some vital metrics which measure costs in business and then start working on the critical ones identified
    rgds

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    #121782

    Srinivasan
    Member

    Thanks for your inputs all of you. I guess am going in the right direction then. But luckily my management do understand the importance of six sigma.
    If am in trouble, will contact again. Thanks.

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