This one action is very basic, yet companies today would rather ask artificial intelligence than actually go to their own customers for their opinion, regardless of the method taken. Whether through customer ratings, surveys, market research or calls/interviews, getting the voice of the customer (VOC) is critical for feedback and improvement. Luckily, many large Fortune 500 companies have taken the leap and have proven that some things never change — the customer is always number one! 

View our infographic below for some basic steps on VOC!

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What are the Metrics?

Within the  Six Sigma methodology, metrics tend to focus on one or a combination of three vital factors.  Namely: quality, schedule, and cost. These metrics are particularly useful as they often serve as the root drivers behind an organization’s Six Sigma transformation.

• Critical to Quality. Quality metrics (CTQs) involve measuring process performance and operational performance. One of the oft-used methods for doing this is via Process Capability Indices. This is when a process is broken down to determine if it meets the demands of the customer. 

• Critical to Schedule. Schedule metrics (CTSs) generally deal with cycle times and scheduling proficiencies and deficiencies. There are four key concepts that link to CTSs: process cycle efficiency, process lead times, process velocity, and overall equipment effectiveness. 

• Critical to Cost. Cost metrics (CTCs) calculate, render, and compare data that can inform business opportunities. These include such metrics as Net Present Value and Internal Rate of Return. They are designed to be equally critical to both schedule and quality, as cost often impacts on almost every other area of a business’s infrastructure.

How to Use Metrics to Deliver Strong Leadership

The first thing you need to know about being a good leader is how to provide meaningful direction to your team. Remember, you are someone they look to for guidance, and example, so be prepared.

One way to do this is by defining objectives in terms of your Six Sigma and/or business strategy. Demonstrate how these goals are to be met, break it down into manageable data chunks, for easy absorption. Be clear, be succinct, and your team will thank you for it. This will also help strengthen Critical to Quality metrics, in turn providing a strong picture of how their work benefits the project.

Monitoring results is another important factor. By acknowledging and recording achievements, your team will acquire a stronger sense of direction for it. By completing each goal, they will feel the project drive towards its ultimate objective. Critical to Schedule metrics will play a role here, as they can help set out effective timelines.

Moreover, drivers and processes are essential to Six Sigma, and you should identify them quickly and effectively to make your objectives actionable. Techniques such as Pareto Charts and Driver Trees can help break processes down to determine their drivers. This level of detail is important for you to be comfortable with, as your team may struggle to have faith in you as a leader, if you offer only vague advice and a basic understanding of the key issues at work. An in-depth understanding of the processes will also enable a thorough understanding of the costs involved. This will help you direct workers in line with budget goals.

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Kaizen, when practiced daily, can create a sense of unity with the workplace. With this method, no one employee is overly worked, nor is one superior in their knowledge of the same system. The Japanese methodology shows how employees can perform their tasks using a scientific method, eliminate waste, and improve process efficiency. Through discipline and practice, you can use the five steps of Kaizen to improve performance, reduce waste, and solidify your company’s foundation.

What Is ‘Straighten’?

The second step to improving your business processes through Kaizen is ‘Straighten’. Straighten is the practice of arranging the components that go into your business processes. For example, if working on an automobile assembly line, this step allows you to place each part required for manufacturing to be precisely labeled and placed in its appropriate place. Not only does this create an easier way for personnel to find the parts they need, but also prevents wasting time by searching for misplaced components. As a result, Straighten allows your workflow to be smoother while also increasing the time efficiency. Another byproduct of this step is an increased in company safety. When employees spend less time looking for parts and items for their process, they are able to stay focused on the task at hand. This lack of distraction ensures fewer accidents occur, especially along a high-frequency production and manufacturing process.

Another byproduct of this step is an increased in company safety. When employees spend less time looking for parts and items for their process, they are able to stay focused on the task at hand. This lack of distraction ensures fewer accidents occur, especially along a high-frequency production and manufacturing process.

Implementing Straighten

The key to this step, along with the other 4 S’s of Kaizen, is proper implementation. Since Kaizen follows a strict, disciplined approach, the best way to integrate Straighten into your workplace is by making it a part of your corporate culture. Following a systematic approach, the method can be integrated into almost any business process you have. With the help of project leaders, managers, and supervisors, your company can distill this step into your employees. Like most methodical practices, the more you do it, the easier it becomes! Start small and focus on the quality of your implementation. As your employees accept Straighten, it becomes easier to stay disciplined, checking on systems periodically.

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Any retail organization that practices Six Sigma methodologies will understand that customer service is critical to a smooth operation, and ultimately great sales.

What’s So Special About Valentine’s Day?

Usually it’s the one day when couples decide to surprise one another, and a retail organization’s participation in their little escapade will delight the customer and make their experience a memorable one.

When couples decide to surprise one another, it’s customer service heaven. Why is this? Mainly because the customer is selfless in their actions, since they just want the perfect gift to show their other half and show how they feel about them.

What If Your Customer Doesn’t Know What to Buy?

Not everyone is gifted in the art of gift giving, especially if they’re in a new relationship. For those employees practicing outstanding customer service, here is where you need to ask the right questions. Here some questions to ask:

• Where were you when you both had a great time together?
• What’s the feature/characteristic that you love about him/her?
• Have they lost any item that is of sentiment recently (or ever)?

Based on their answer, suggest the least obvious item because it will have the most impact. Be a good, active listener and attend to the customer’s needs. Outstanding customer service is why people will return to your establishment and pay your prices.

This practice goes beyond Valentine’s Day! Understand how customer service plays into the practice of Six Sigma. For more information on our Six Sigma courses or services, please visit our class schedule. Check out our Green Belt classes coming up for Spring!

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If the perks mentioned above aren’t enough, we have the added benefit of receiving tailored recommendations and emails — it’s almost as though they know us personally! When we have an issue with an order — say they send us the wrong item, for our inconvenience they let us keep the item! The representative will even suggest we donate it to charity.

The reason they are so successful is that their approach to sales is “Know your customer very, very well,” and they do. This is a core fundamental concept of Six Sigma!

All of Amazon’s efforts seem to be geared towards customer satisfaction. They seem to be constantly defining any problems that need to be solved. They analyze their data when a mistake was made, by asking the customer to fill out a survey to share their experience.

Amazon is constantly improving and controlling future forecasts based on past experience and current situations, as well as through VOC, the voice of the customer.

It’s in the Cookie

Amazon’s customer tracking is done by a simple cookie. Once that cookie makes its home inside your hard drive, consider yourself part of the family. You will be getting recommendations and emails forever.

Amazon has made it their business to constantly be improving features and developing new ones. Amazon has four software development centers worldwide that are constantly developing new features for their current software. Constant improvement…sound familiar?

Whether Amazon knows it or not, the spirit of Six Sigma is encrypted inside their software and in their mission statement — to know their customers very, very well.

Sign up for one of our Six Sigma training courses available across the United States. Also be sure to check out our fundamentals of Lean Six Sigma.

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The Challenges of Business Aren’t Small

It is no secret that if you want your business to run effectively and efficiently, implementing Six Sigma methodology is the answer. While Six Sigma was orchestrated originally for the Fortune 500 companies, recent studies have shown that both small businesses and medium businesses can prosper as well.

With that being said, there is a caveat, which could easily be turned around. To paint the picture, let’s do some comparing.

First of all, both sizes of companies require the same exact procedures. Smaller businesses do require scaled down versions of manpower (according to respective size).

Basically, in large companies, top management sets the tone by taking the initiative, communicating with mid-management for the sole purpose of developing templates of specific tasks designed to improve efficiencies. All of this stays within the main objectives of the company.

A Scale of Size

The larger company has the resources to hire a Six Sigma Black Belt team that can take them through the DMAIC improvement cycle in order for the business to reach the specific goal. This is set to be achieved by a given period of time, usually 3-6 months.

After the goal is achieved, a mature organization using Six Sigma has 1% of their workforce in the Black Belt capacity ensuring all is being constantly implemented and monitored.

Small Business Rises to the Challenge

The situation is a lot different in a smaller company. Since financial resources usually aren’t as plentiful, company employees usually wear many hats and are more nimble. This can actually make team efforts easier, so there wouldn’t be a need to have a separate Six Sigma team to deploy changes.

Since the smaller businesses may choose not to have an onsite Black Belt to keep everyone on task, communication must be plentiful, and correct usage of Six Sigma methods and tactics must be implemented.

So for the small and medium size business, success can be large, as long as Six Sigma’s continuous, results driven, organizational development plan is at their helm.

Whether you’re interested in our Six Sigma courses or hiring a team, visit our website.

Learn more information about 6Sigma.com’s Lean Six Sigma training coursework, available as classroom, onsite, or online options.

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Cost of Poor Quality (COPQ): A 6 Sigma Tool

Also known as cost of waste, COPQ measures the costs incurred by an organization due to defects and poor quality in an existing process. It is not strictly a part of a Lean Six Sigma project itself, but rather is a Six Sigma tool commonly used to evaluate potential projects and prioritize the order in which they will be conducted. COPQ is a very effective way of identifying non-value adding activities associated with a process, making it easier to then eliminate those activities to generate cost savings.

COPQ analysis is not an exact science because accurate measurements are often not available prior to initiating a Lean 6 Sigma project. Skilled practitioners, however, can use COPQ analysis effectively and thoroughly enough to produce estimated measurements that are accurate enough for effective prioritization of Six Sigma projects.

The Purpose of COPQ Analysis

COPQ is an estimation tool, not an exact measurement tool. It is used to help identify Lean Six Sigma projects, determine their likely financial viability, and set priorities among potential projects. It can help an organization identify those projects where the Six Sigma effort will produce the greatest return on investment.

The primary purpose of COPQ is to determine the financial costs of waste/poor quality in an existing process. These costs are generally referred to as failure costs, and they fall into four primary categories:

• Internal Failure Costs
• External Failure Costs
• Appraisal Costs
• Prevention Costs

While not all failure costs can be captured with 100% accuracy, it is usually possible to capture enough of them with enough accuracy to have a good level of confidence in the results.

Let’s look at each of these categories in more detail.

Lean 6 Sigma Tool: Internal Failure Costs

This category contains costs incurred by an organization due to defects that are found before the product or service reaches the customer. Examples of internal failure costs are things such as:

• Scrap: Material generated from not maximizing the use of raw materials or from products/services that are sent to scrap because they are not fit to go out to the customer.

• Rework: Activities that are required to correct defects in products and services, or to produce new products and services to replace those that are sent to scrap.

• Failure Analysis: Time and effort needed to analyze defective products or services, especially when defect levels are high and a great deal of analysis is required.
• Re-Inspection and Re-Testing: Costs associated with repeat inspections or tests necessary to ensure defects have been properly corrected.

Lean Six Sigma Tool: External Failure Costs

This six sigma tool category contains costs incurred by an organization due to defects that are found after the product or service reaches the customer. Examples of external failure costs are things such as:

• Warranty Charges: Costs to the company for honoring the warranty on defective products and services; may include everything from shipping to repair to outright replacement of the product or service.

• Adjustments for Complaints: Reductions in retail charges or addition of added value items/service as a way to resolve customer complaints.

• Returns: Costs associated with refunding money on returned items, re-furbishing and/or re-stocking of returned items, and labor costs associated with the returns process.

• Allowances: Typically given to distributors or other parts of the distribution chain as credits against defective products or services

Lean 6 Sigma Tool: Appraisal Costs

This category contains costs incurred by an organization to inspect and measure a product’s or service’s adherence to quality specifications and requirements. Examples of appraisal costs are things such as:

• Inspection: All regular activities associated with inspecting products or services, whether during development, manufacturing, delivery, etc.

• Testing: All regular activities associated with putting products and services through testing procedures to ensure quality levels.

• Quality Audits: Periodic but generally random audits conducted to assess all or some quality aspects of a product or service.

Six Sigma Tool: Prevention Costs

This Lean Six sigma tool category contains costs incurred by an organization to conduct all forms of defect prevention for a product or service. Examples of prevention costs are things such as:

• Design Reviews: Assessment and evaluation of product and service designs to look for defects or problems prior to production.

• Policies and Procedures: Development, enforcement and review of the rules and standards that affect the incidence of defects; may include quality of materials, labor requirements, etc.
• Training and Education: Those activities related to training and education of employees with the goal of increasing skill levels and decreasing the likelihood of defects.

Lean 6 Sigma Tool: The Seven Deadly Wastes

Another approach to COPQ analysis is to include evaluation of the so-called Seven Deadly Wastes. These are areas where waste is most common and organizations have a great deal of potential for improvement.

• Overproduction: Making more than is necessary or called for in the schedule of production.

• Waiting: Down time due to lack of work balance, leaving operators and others standing or waiting to perform their tasks.

• Transportation: Moving materials and components during production, such as from one process to another, stacking, picking up, and putting down.

• Processing: Preparation, protection and packing of components for transport to another area or part of the production process.

• Inventory: Too much raw material on hand too far ahead of production needs

• Motion: Range of movement required during process, such as steps to reach parts, distance between work stations, etc.
• Defects: Points at which material and/or labor are wasted, creating bottlenecks in the overall process.

Lean 6 Sigma Tool: Putting it All Together

When you take the sum of costs from the four categories of failure along with the costs from the Seven Deadly Wastes, you can produce a generally accurate estimation of the costs an organization incurs due to poor quality and waste. This lean six sigma tool estimate can then be used to determine appropriate lean Six Sigma projects and prioritize which projects will provide the maximum return on investment. A solid COPQ is critical, then, to lean Six Sigma planning and should be an integral part of every organizational Lean 6 Sigma initiative.

Learn more information about 6Sigma.com’s Lean Six Sigma training coursework, available as classroom, onsite, or Six Sigma training online options.

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Key Element #1 – Create a Diverse Lean 6 Sigma Team

Creating a diverse team is more than just balancing gender, race, or any other factor. It is about putting together a team of people who can work together in a way that encourages active participation by all members and open discussion of all perspectives.

The best strategy is to look at the process to be addressed and select people from several perspectives related to that process. For example, a typical lean 6 sigma team might include:

• Someone who uses the process
• Someone who is a customer of the process
• Someone who is a supplier for the process
• Someone who is an expert on the process
• Someone who is unfamiliar with the process
• Someone who is objective and can facilitate

Depending on the size of the lean 6 sigma team, there may be multiple people from each category. Remember, too, that most process problems are due to human issues rather than technical issues, so the lean 6 sigma team should be balanced in terms of technical and non-technical members.

The following table provides more detail about each team member category.

Key Element #2 – Create the Right Lean 6 Sigma Team Size and Structure

Most lean 6 Sigma Teams experts will tell you that the best size for a project team is somewhere between three and twelve people. Be sure to take into consideration the advantages and disadvantages of small vs. large team size.

Regardless of lean 6 sigma team size, a core structure of roles is necessary. Common roles might include:

• Project Director
• Team Manager
• Facilitator
• Notes and Meeting Minutes
• Sub-Team Leaders
• Senior Management/Steering Committee Liaison

The scope and titles of roles will of course vary depending on the size of the team and the lean 6 sigma project.

Key Element #3 – Choose the Right People

No team of any size or structure will be successful if individual members do not have the qualifications and characteristics to work well together. Technical expertise is important, but should not be the primary factor considered when selecting lean 6 sigma team members. Interpersonal skills, creativity, honest communication and team focus are arguably the most important qualities a team member needs.

Some experts suggest you avoid putting people on the team who are known to disagree or otherwise challenge each other so that the team does not slide into dysfunction. Others, though, suggest that with a good facilitator and members who are willing to abide by set ground rules, such internal challenges can improve the project outcome thanks to frank and active discussions.

Regardless of the lean six sigma team composition, to maximize success the group as a whole should demonstrate the following:

• Focus and purpose
• Problem solving
• Respectful interpersonal relationships
• Open, honest communication
• Mutual support
• Accountability
• Commitment to the project goals

Key Element #4 – Give Them the Right Tools

“The right tool for the job” is a well-known cliché, but it is as true for Lean 6 Sigma Teams projects as it is for anything else. A Lean 6 Sigma teams projects must have the right tools to do their job in order to achieve project goals.

At minimum, the team should have the following tools at their disposal:

Initial Team Building Activity

This should occur before any real work begins. It does not have to be fancy or lengthy, but it does need to be effective at helping team members get acquainted with each other and establish positive relationships.

Appropriate Facilities

The lean sigma six group’s workspace should be big enough to accommodate everyone comfortably and allow room for other tools such as flip charts, projectors, white boards, etc.

Conflict Resolution

There will inevitably be conflicts of some sort within the Lean 6 Sigma Teams, whether major or minor. The group should discuss conflict resolution in advance and agree on a method of resolution that will apply.

Ongoing Motivators

This can be anything from team building to fun activities to regular breaks or something similar. The idea is to intersperse opportunities to take a break from the workload and refresh the lean 6 sigma team’s energy level.

Support for Participation

Any lean sigma 6 team members who are pulled away from their regular duties to be part of the groups must have the full support of their supervisor, manager or department head. If they are distracted by pressures or resentment due to time away from their regular job, they will not be able to contribute as fully to the lean 6 Sigma Teams projects.

Responsibility and Authority

Every member should be willing to take on the extra responsibility of team participation. It is just as important, though, that the organization grants them the authority to take actions to achieve a lean 6 sigma project success.

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Learn more information about 6Sigma.com’s Lean Six Sigma training coursework, available as classroom, onsite, or online options.

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Now, other companies are attempting to apply the concepts in an effort to produce a quality product. Many companies are recognizing the efficacy of these business practices. Many companies have saved money and improved efficiency by implementing Lean 6 Sigma.

To fully implement Lean Six Sigma, training and certification are required. Training will produce advocates or leaders that can guide the project to success. Employees can reach Lean 6 Sigma black belt level, Lean 6 Sigma green belt level and Lean 6 Sigma yellow belt level. Each level has a deeper understanding of the process and can help to implement the best practices. Most successful projects are led by Six Sigma black belt level individuals. This case study will provide more insight into how Lean Six Sigma can help businesses.

Catalent Pharma Solutions and the Lean Six Sigma Certification Process

Catalent Pharma Solutions is a leader in developing solutions for the pharmaceutical, veterinary, biological and consumer health industries. The company was faced with high numbers of defects after producing millions of units. The process flow was slow because of the time required to analyze the samples. Lean 6 Sigma processes were applied to address these issues.

The company specifically required a solution for their proprietary product known as Zydis. The company needed new systems that would help to predict the process variation. The improvements are also supposed to help operators understand statistical analyses.

The project team devised a database to collect information. Control charts were also completed and entered automatically. The programming language used for automation was flexible and easy to replicate. The efficiency was improved by making these changes. After two weeks of implementing Lean 6 Sigma processes, the company prevented the loss of two batches of product, which was worth 50,000 pounds.

This case study demonstrates how companies can improve processes to meet Lean Six Sigma Certification standards, prevent loses and save money. Companies that save money can reallocate the funds towards research and design or improvement of other processes. Every company should try six sigma processes.

Lean Six Sigma Certification Projects Can Be Improved Significantly

Consider enrolling your employees in Lean Six Sigma Certification programs to help your employees design processes that increase productivity and save the company money. Every business should develop a sound strategy for improving business processes according to Lean 6 Sigma principles. These companies will significantly improve and offer customers quality product on a consistent basis.

Learn more information about 6Sigma.com’s Lean Six Sigma training coursework, available as classroom, onsite, or online options.

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