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To measure how well a company is doing 6S

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  • #34710

    Ashman
    Member

    Hi, everybody! We recently discussed calculating a company-wide Sigma level and decided it was too difficult, so I want to find other ways to check how well a company is doing Six Sigma. I’d rather not do a company-wide COPQ metric. Do you have any ideas about how to do this?

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    #96021

    Lu
    Participant

    Steve-My company has a company-wide initiative to assess compliance to behaviors of six sigma. It was nicely developed by a corporate six sigma green belt. Baseline assessments are conducted at the business/sector-levels. Each behavior’s comprised of varying levels of compliance. Weaknesses are prioritized & action plans developed.  Consider your company’s values & associate levels of compliance relative to six sigma thinking.

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    #96725

    Singh
    Participant

    Hi ..
    You can devise a company wide measurement system for engagement as well as effectiveness..different companies have different way of measuring it…some companies measure it with % number of people trained, % persons certified(GB/BB)…financial savings and some critical measurements of business being driven thru Six sigma…
     

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    #96730

    Damodaran
    Member

    Steeve
    Effectiveness of six sigma can be done by following methods apart from calculating company wide COPQ numbers
    1..Savings got in $ per project.
    2.Number of green belts tranined,use of basic statistics in process  for a  data driven decision.
     
     

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    #96742

    Lehigh
    Participant

    Lu:
    Sounds like an interesting lesson in organizational development and staffing…..are there headlines [topics] that you can share?
    How did you go about mapping behaviours with 6s and then how did you go about calculating compliance…..i.e., how were data measuremetns applied?
     

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    #96747

    Friends of SS
    Participant

    Steve: great question and Lou I like the drift. I think any measurement metric developed should include three things — approach (process driven, fact based), Behaviors ( attitude and altitude), and Results – revolutionary v/s evolutionary. However, credit should be given even if a minor improvement was made by using SS process. 

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    #96759

    Ropp
    Participant

    We don’t have a company-wide Sigma level either, but here’s something to keep in mind:  If you’re going to measure “how well” your company is doing, you may want to define what “doing well” is.  Does this mean you’re executing a lot of projects?  Does it mean the methodology is well saturated in your culture?  Does it mean you’re saving a bunch of money?  No matter how you define it, I would be sure that your measurement is linked to the bottom line.  If you report that you’re knocking it out of the park, but can’t relate your measurement to dollars, one may ask what good it does to use Six Sigma.

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    #96775

    EH
    Participant

    Does anyone have a copy of assessment?  I’d be interested to see more information on this thinking?

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    #96779

    Jonathon L. Andell
    Participant

    Interesting discussion thread. I would advise you to forget trying to come up with a single score. It would likely be meaningless, and is highly subject to gamesmanship.
    Instead, conduct a Baldrige-based evaluation, and use the findings to prioritize strategic improvement goals. If your top management won’t go for that approach, Six Sigma will end up as a huge disappointment for them, just as TQM was blamed for management’s failures prior to Six Sigma.

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    #96784

    Ron
    Member

    Check out Eckes’ book, “Making Six Sigma Last” for a good measure.  To see it in action, check out our company web site at http://www.bama.com.  “People Helping People Be Successful”

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    #96797

    Amit Agrawal
    Participant

    I believe a process approach should be followed.ie
     Input —{Process}—-Out put.
    Input in case of six sigma is Training, Time spent by top management in reviews and 6 sigma activities , Training sessions ,% age of people black belt , Green belt….
    Process will include No. of projects running;  %age of belt holder,employees invoved in project; Adherence of project to time line; Attendance of champion and members in team meeting and reviews;
    Out put: increase %age of bottom line realised in project; Awards given
    A weightage shall be decided for each head (depending on organisation) and by total calculation a rating can be reached.
    Happy 6 sigma practicing
    amit
     

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    #96802

    indresh
    Participant

    hi
    is it possible to share across the various six sigma behaviors and parameters
    drop a mail at [email protected]
    thanks

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    #96873

    Rakesh
    Participant

    Company wide six sigma measurement is really complex but measureable. Like in reliabilty calculations, one has to measure each of the smaller processes and find out higher level process sigma by determining the series or parrallel relationship and then move on to company wide 6 sigma calculations.

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    #96875

    KLF
    Participant

    Aggregate monetary benefits of realized process improvements is the best metric to represent the effectiveness of Six Sigma implementation in an organization.
    All other metrics (customer satisfaction, reduced defects, increase in employee morale, training effectiveness, etc) can be translated into this one.
    I see too much effort put forth by businesses trying to calculate sigma values. Why bother?
     

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    #96965

    John J. McDonough
    Participant

    KLF
    I agree that, at the end of the day, the only metric that matters is what you deliver to the shareholders.  Business leaders should be paying attention to that one.
    But I can’t agree completely with your statement “I see too much effort put forth by businesses trying to calculate sigma values. Why bother?”
    In order for a Six Sigma program to be effective, it needs to be supported at the organization’s highest levels.  If the leaders are paying attention to their sigma level, it sends a message throughout the organization.
    –McD
     

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    #96978

    KLF
    Participant

    McD,
    My frustraion with sigma values is at the core of this thread. Assuming that you buy that the long-term 1.5-sigma shift applies to all proceesess, how do you measure a sigma value for the whole business? what if specifications change with improved performance?, etc.
    Sigma values tend to lead organizations to “play with the numbers”. I believe it is more useful to spend time characterizing processes before and after improvement and work on translating the process shift into monetary terms that the leadership can undoubtedly support.
    I would go further and say that sigma values and Cpk suffer from common problems that may lead the organization in the wrong direction. I am not saying that they are never useful as metrics. All I’m saying is that they are generally overused by practitioners.
    KLF

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    #97008

    John J. McDonough
    Participant

    KLF
    I agree that sigma values are often overused, and I strongly believe that, especially on a company wide bases, dollar results are more meaningful.
    But on the other hand, it is very important for business leaders to walk the walk.  So there is something to be said for both sides.
    –McD
     

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    #105502

    SME
    Member

    The best practitioners of any discipline, are those that are sceptical.  Anyone who sees a solution as definitive or all encompassing are unlikely to be able to be objective – it depends upon what you are trying to achieve.  If you want to know how well an organisation is doing then SS is a tool in the armoury, if you want to know how well an organisation is doing against SS criteria, then obviously SS is the way to go. No thing (sic) is definitive, it depends upon individual aims
     

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    #105516

    Charmed SIX
    Participant

    I agree with you as you should not go  for  total  SS  Score measurement.I prefer to perform a SWOT analysis first,and the to apply  the  sigma score for the weak points ,establishing  an Action Plan and see the improvements after that.  regards

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    #105517

    Charmed SIX
    Participant

    In practice how you would perform the “diagnosis”? as I could not  see many references,indicating  how to establish this vital mechanism at first.Do you have any prepared form,or suggest any parctical one??thanks and regards.

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