The Conversion

Although the processes are the same, they have to be converted on a personal scale with a personal meaning to your specific issues. The Six Sigma tools are brilliant in their simplicity, and can be used to ultimately fix the root causes.

DMAIC: The Phases

See how applying DMAIC makes sense with your own budgeting needs:

D-Define: In this phase, you will need to establish your issue (problem) in a clear concise statement. Then, outline what you expect to achieve (goal) along with a specific time frame. This also includes why it is important that this change takes place.

M-Measure: In this phase, collecting data is done on a continuous bases, so we should know the minute we have hit one of our prime causes for the current situation. So, we want to identify all those causes. Sample causes are — not having a budget or not staying to current budget, eating out too much, being undisciplined in spending, or not making enough money for current lifestyle.

A-Analyze: This phase is a little tricky, because there is the surface issue of what is causing the problem, and then there is the root cause of the problem. So looking at the Measure phase, figure out which issue is causing your lack of money. Then figure out why you are doing that. So, if you find that you are impulse buying after you have a bad day at work, now you need to figure out what is causing those “bad” days at work.

I-Improve: So, after you have figured out the deep rooted causes for your excess spending, it’s now time to get creative and start thinking of possible solutions. You need to test drive these solutions to see if they are sustainable.

C-Control: Be gentle with yourself in the control phase. After all, the improvements might have worked short term in the test drive stage of the Improve phase, but aren’t really sustainable in the long term. So armed with strong intention, if the new recommendations you have established aren’t working, then redo them to more controlled, sustainable ones.

Learn more about Six Sigma tools through one of our training courses! For more information on our courses or services please visit 6sigma.com.

The post Using Six Sigma For Fixing Your Personal Finances appeared first on 6sigma.

Ask yourself, do you want to deliver faster Six Sigma projects that don’t overstep your budgeting parameters? Then it’s essential for you to outline a detailed plan in your project charter. Your plan will act as your guide through the rough waters of process improvement.

Key performance indicators are highly useful tools here, enabling you to identify precisely which actions benefit you as a company. As such, there are numerous KPIs to help you on your Six Sigma journey, one of which we look at today: Project Cost Variance (PCV). Join us and learn how you can use PCV to deliver Six Sigma projects on time and on budget.

Stay Focused with Project Cost Variance

It’s important to know that Six Sigma relies on the measurement and analysis of process issues. Controlling problems allows you to create solutions that prevent them from recurring, benefitting the business in the long- and short-term. Without a strong plan to follow, you’re likely to lose sight of your goals and business needs. Losing track of your priorities will only send you veering off budget towards slow delivery times. Moreover, this doesn’t just impact you, but also your customers, who depend on you for quality products and services. If customers don’t see any value in your services, or if they see you as unreliable, they’ll take their business elsewhere. For you, this is detrimental, but Six Sigma can help. First, however, we must define cost variance.

What is a Cost Variance?

A cost variance is the amount by which your project exceeds or falls under your maximum budget. Cost variance is one of two key areas that you should monitor throughout your project, the other being schedule variance, i.e., how early or late you are to meet project deadlines. You can use the following equations to calculate both cost and schedule variance:

• Cost Variance = BCWP (budgeted cost of work performed) – ACWP (actual cost of work performed)
• Schedule Variance = BCWP – BCWS (budgeted cost of work scheduled)

What is Project Cost Variance?

PCV is the process of evaluating your project’s financial performance. You should compare the budget you agreed before starting the project with the actual amount you spend. You can calculate PCV by finding the difference between BCWP and ACWP. Your ideal project cost variance should be when your BCWP equals the same as your ACWP. Your project cost variance provides otherwise unavailable insight into your finances throughout the scope of your project. Using it to your advantage allows you to monitor when and where you breach your budget. When you use PCV together with DMAIC, you can actively control your finances, targeting areas for improvement, like overspending. The result is a more focused, efficient, and successful project.

The post Six Sigma and KPIs: Project Cost Variance appeared first on 6sigma.

All organizations experience change. Change occurs when a company expands into new territory or manufactures a new brand or product. Change happens when new clients jump on board and the old way of doing things doesn’t deliver exactly what they need. Change is the order of the day when two companies merge or when a new CEO is appointed.

Change is inevitable when a company continues to grow and needs new and better ways to exploit opportunity. Outstanding companies embrace change and put a premium on change management.

In a nutshell, the role of change management is to successfully manage change. Change management is primarily concerned with three basic elements:

1. The Nature of Change
Naturally, it all begins and ends with change. The key to successful change management is to understand clearly what change involves and to implement the correct plan on how to deal with it.

To deal with change, an organization must ask the right questions. What is the nature of the change that it requires to be managed? What are the goals of this change and what is necessary to achieve them? What are the key departments involved and how many of their people will be affected? Who is the sponsor of change and who will be in charge of change management?

The organization must mobilize a team to address change. The team may include project leaders within the company or external specialists who are more familiar with the technical side of the change. This team can either be under Human Resources or assigned under the department where most of the change takes place. The sponsor of the change must create a team structure that best addresses change management.

2. The Repercussions of Change
Change management has two perspectives: the organization and the people. The repercussions of change are usually strongest in the rank and file. They manifest themselves in two areas: technical and behavioral.

In the technical area, change management is concerned with whether the skills of employees are sufficient to deal with changes in their deliverables and whether the company’s systems and processes adequately support the attainment of these deliverables. Is additional training necessary? Will the company have to hire specialists and new project leaders? Does the company have to tweak or drastically alter its systems and processes? These are the questions that change management must address.

In the behavioral area, change management is concerned with how people deal with change and whether this affects their behavior and performance on the job. Is there resistance to the new way of doing things? Are employees stressed or depressed and does this affect their productivity? Is there resentment, disloyalty, mistrust, envy? The behavioral area of change management can sometimes be the most difficult to manage.

3. Addressing the Imperatives of Change
Based on the first two elements, the organization must now determine strategy and draw up a plan of action to address the imperatives of change.

This plan should include a roadmap that gives a step-by-step account of what the organization must do to manage change properly. The plan should have provisions for training employees to develop new skills, coaching them as they use these new skills and motivating them to fully adapt to the new way of doing things. The plan should also anticipate resistance and how to deal with it.

The change management team should also plan how to communicate change to employees in a manner that emphasizes its benefits, addresses resistance and prompts them to embrace change.

In closing, the plan should ensure that employees have successfully adapted to change and that the desired levels of efficiency and productivity are achieved on a consistent basis.

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

The post Elements of Change Management appeared first on 6sigma.

Despite all the negativity surrounding stress, it can actually be good for you. It can motivate you to succeed, build resilience, boost immunity in the short term and even make life more meaningful. However, it needs to be managed. 

Unmanaged stress can contribute to many health conditions, including hypertension, insomnia, depression and anxiety. It can also degrade your personal relationships and make you less productive at work, leading to more stress.

While there are many ways to alleviate stress, not many people know that Six Sigma can help. Here’s how.

Increases Your Efficiency

When you have too much to do in a day, you can barely find time to destress. Being efficient means completing tasks on time and with the least amount of effort. Six Sigma has a tool called DMAIC that can optimize processes in your daily life by eliminating efficiencies.

DMAIC is an acronym for Define, Measure, Analyze, Improve, Control. From cleaning the house to bathing the kids and taking them to school to doing your shopping, you can apply DMAIC to these processes and optimize them. In the end, you have less to stress about. 

In a nutshell, with the DMAIC, you can identify unnecessary steps in each process and eliminate them. The beauty is that once you improve one process, you can follow the same steps to optimize others.

Organizing Your Space

Clutter leads to stress because it can be tough to relax when your living space is in a messy state. Every time you sit down, you’re reminded that you have so much to do. The low-grade stress this creates can gradually drain your energy, making you less productive in other areas of life.

When it comes to organizing spaces, whether at work or home, Six Sigma has 5S, which stands for Sort, Set, Shine, Standardize, Sustain. Suppose you wanted to make your home a more organized space for relaxation. Here’s how 5S would help:

• Sort: Go through all your belongings, including furniture, appliances, electronics, clothes and other equipment. Find out what needs to remain and what needs to go.
• Set: Find a logical arrangement for the remaining items. For example, you can arrange them by type, how often they are used and where they can be stored to reduce unnecessary motion.
• Shine: This step is about putting everything in its place and then cleaning the house.
• Standardize: With everything in its place and the house in a clean state, keeping things this way needs to become a habit. For example, you can create cleaning schedules and a list of tasks, along with instructions
• Sustain: Sustain is maintaining order. The idea is to involve everyone by communicating that 5S is long-term and motivating them to get involved and keep it going.

Conclusion

Making you more efficient by streamlining your life processes and organizing your living space are just some of the ways Six Sigma can help you manage daily stress. As you can see, the methodology isn’t just for the workplace, but everywhere there is a process, including your everyday life.

The post Applying Six Sigma in Your Daily Life Helps Reduce Stress appeared first on 6sigma.

The agriculture industry has been enjoying a lot of popularity in recent years. A lot of focus has fallen onto it from many sides, as world leaders are actively trying to address some of the issues looming on the horizon. At the same time, demands have been growing steadily. According to the OECD (Organization for Economic Cooperation and Development), global agriculture production will rise at a 1.5% annual rate. The pandemic only made the situation more apparent by exposing the fragile nature of the global infrastructure. At this point, a lot of effort is being invested into exploring methods for optimizing the performance of typical agricultural setups. Six Sigma is one of the better candidates on the horizon, and it’s already seeing a lot of utilization in this sector.

Optimizing Yield for Revenue

It’s more important than ever to maximize the output of a typical agricultural operation. This can be approached from multiple sides, and the one thing that’s common across all of them is that it requires a deep understanding of the way resources are used. Agriculture offers lots of opportunities for precise optimization, and Six Sigma has enabled many farmers to increase their yield, and therefore improve their bottom line. Some of the methods we’ve seen discovered have been a bit surprising. But in the end, that’s part of what makes Six Sigma so good. It can work even when you don’t have a precise understanding of all variables involved.

Minimizing Unused Assets

Speaking of resource utilization, Six Sigma has also enabled many agricultural operations to minimize the number of assets that remain unused. Machines and other assets sitting idly is a type of waste, and it’s something that should be avoided at all costs in an efficient operation. Six Sigma can enable farmers to ensure that all of their machines are seeing the maximum utilization they can get in the current circumstances. At the same time, all other resources used by the farm can also be put to use to their full potential.

Developing a Long-term Solution That Incorporates Those Optimization Approaches

All of this doesn’t mean much if these approaches can’t be generalized into a sustainable long-term solution. Developing a solid plan for the long-term optimization of agricultural practices has been an important task for those exploring the field, and we’re already seeing some interesting ideas cropping up. It will be even more exciting to follow these developments over the next few years, because it’s very likely that they are going to be at the heart of some major transformations in the agricultural sector.

The one thing that’s needed the most right now are people contributing to this research. The more eyes we have on this, the faster we’re going to progress and discover solutions that work. It’s going to take some time to get to a state where agriculture is truly optimized and works without any waste, and until then, there’s plenty of work available for anyone interested in taking part. Six Sigma is not going away anytime soon, and it’s important to understand its benefits when it comes to developing optimal approaches for the core parts of our lives.

Learn more about our training and courses

The post Six Sigma’s Impact on the Agriculture Industry appeared first on 6sigma.

Now, disc brakes have taken over, so even though some cars still use brake drums, there’s no doubt that some day in the near future they will be extinct. This example reflects the way businesses are constantly changing. Future customers are setting the trends, and new convenient products are being developed for them to purchase.

Stay close to your customers — they may suggest products or services that will fulfill their needs in the future. If the small car parts business had not only stayed close to trends in the automotive industry, but also listened to their customers, they would have been prepared for what the future held and designed a new product or service. Now with disc brakes, the old brake drum businesses probably went out of business. Had they been ready to pivot, they might have changed to a service-based business specializing in old cars or designer cars or whatever the market would support.

The Voice of Customer (VOC) tool is a priceless tool used by Six Sigma. For the business owner, it should be as important as paying your bills. Make it part of how you invest in the future of your company or business, so when a need for a new product that could help you pivot your business arrives, you’ll be ready.

DFSS (Design for Six Sigma) is one of the most important Six Sigma templates you will need to invest in the future of your business. The actual template is DMADV which stands for:

•  Define
•  Measure
•  Analyze
•  Design
•  Verify

DFSS is used for completely redesigning a product or service, or creating a brand new product or service. Interested in learning more? For more information on our on-demand online classes or our virtual classroom training, please visit 6sigma.com. 

The post Design For Six Sigma (DFSS): You Must Invest in the Future appeared first on 6sigma.

Organizations that do not subscribe to Six Sigma methodologies or the Six Sigma culture take a huge chance when implementing a “good” idea. This is because they don’t go through proper analysis and measurement for the data they need to take this “good” idea through to fruition. 

The management or those with clout decide that this “idea” will be successful, without any data to back up the decision. So they go ahead and implement the idea, perhaps in beta mode, to keep costs down and minimize risk. 

After the idea is implemented is when the success is weighed, and problems are addressed after they have affected the business in some unwanted way. An idea might sound good in theory, but until you have the data to back it up, you’re taking a risk with your established business.

Timing Is Everything

Problems must be identified, data must be collected, solutions must be brainstormed, and a carefully thought out plan must be obtained before implementation — and not after! This is why Six Sigma has tools such as statistical analysis and process mapping. These tools will aid in visualizing the issues and make it easier to come up with a solution.

By working to obtain the necessary data before you implement that idea, you will save yourself a great deal of time, money, and unnecessary stress.

Six Sigma tools are simple to use and reap huge benefits, even if you implemented them without first doing your due diligence. Some of these incredible tools are the 5 Whys, 5S, Value Stream Mapping, Regression Analysis, Pareto Chart, FMEA, and Kaizen.

When we say timing is everything, we are saying that prevention is better than a cure. Practicing due diligence is a small price to pay to increase the success of your business ideas.

For more information on our Lean Six Sigma courses and services, please visit 6sigma.com. 

The post Six Sigma as the Voice of Reason appeared first on 6sigma.

The post INFOGRAPHIC: Understanding the 5 Whys appeared first on 6sigma.

4 Ways Human Resources Can Help in Creating Six Sigma Culture

1. Create a qualification template that will help establish the ideal candidates with the right team, leadership, and technical abilities.
2. Create specific detailed job descriptions to not only attract but also help potential candidates completely understand what the job entails, as well as the expectations.
3. HR can also create a strategy that will help the company in the retention of their staff, i.e. Six Sigma Black Belts. Retention is the only way an organization can recoup their investment in the training and development of those Six Sigma Black Belts.
4. HR can also help in making sure team leaders, as well as staff, get the important training that is required. This might include conflict management or conflict resolution, communication skills, and dealing with issues that affect team effectiveness.

Creating a Six Sigma culture means that everyone has to be on board; establishing a high level of commitment will result in a successful transition. A highly trained Six Sigma HR team is essential. To those of you who understand Six Sigma, it is a team effort and the success that results is because everyone did their part. Everybody is important in the team, this is essential. 

Continuous education on Six Sigma tools, especially DMAIC is very important. Remember, DMAIC: Define-Measure-Analyze-Improve-Control.

Six Sigma demands as close as possible to perfection, so 99.9997% defect free, which still has room for improvement, but as you know perfection is a lifelong process.

For more information on our Lean Six Sigma training courses and services.

The post The Perfect Six Sigma Team is 99.997% Defect Free appeared first on 6sigma.

In the spirit of the holidays, our offices will be closed December 24th and 25th so that all of us can spend time with our family and friends.

All of us here at 6Sigma.com want to thank every single one of you who have truly made an impact on our lives, by your continued support in making us your choice for top-tier Six Sigma education and services. 

Have a safe and happy holiday!

From all your friends at 6Sigma.com

The post Special Holiday Message From Your Friends at 6Sigma.com appeared first on 6sigma.

This table shows that even when operating at a Sigma 3 or 4 (which is better than most) that is still too high compared to the Six Sigma level. Then it does depend on the product when dealing with Defects Per Unit (DPU).

DPU: Number of defects observed/Number of units inspected

The outcome of the DPMO (Defects Per Million Opportunities) will vary depending on the product. For example, a car would be judged very differently than a bike; this is assuming they both have the same per unit defect rate. The car with so many more parts and a complicated system of operation will obviously have more opportunities for defects than a bike. So, the same DPU might be viewed as lower on a truck than the same DPU on a bike since the bike is a much simpler product.

For more information on our Lean Six Sigma courses and services, please visit 6sigma.com. 

The post Sigma Level Table: It’s All About Quality appeared first on 6sigma.

In fact, Six Sigma’s entire evolution is towards quality. Here are some key principles of Six Sigma:

• Focus on customer’s requirements: To define what quality means, you need to go to the source, which is your customer/client who purchased your product or service. By focusing on the customer, you will give them a consistently high quality product/service.

• The process: Really understand what the customer needs from their perspective, and know the day-to-day process so you can identify what is and isn’t working. It’s referred to as “outside-in thinking.”

• Employee involvement: The name of the game is involvement. Make sure all employees are involved in what makes your company successful by implementing Six Sigma methodologies; this is done by education and opportunities for leadership.

Six Sigma Quality Tools and Approaches

• Control Chart: This is a way to track how a process is working over time. The measurements are compared to previous measurements, all things being the same, and is a good way to spot variances. 
• Pareto Diagram: This chart focuses on the effects that have the most chance or potential for improvements. The Pareto diagram is based on the Pareto principle that 20% of sources cause 80% of any issues.
• Process Mapping: This great visualization tool allows to “see” how things get done. You can view the entire process and identify the strengths and weaknesses in the entire processes. Also helps identify defects and reduce cycle time.
• Root Cause Analysis: You can use the 5 whys to determine the root cause of an issue. By removing the root cause, you remove the problem forever.
• DFSS (Design For Six Sigma): This enables us to design a product or service that doesn’t exist yet. This product or service would be designed with the customer’s requirements in mind.
• DMAIC: Stands for Define-Measure-Analyze-Improve-Control. This template is used to improve the processes that produces the product or service. Remember, it is to improve the process an existing product or service.

For more information on our Lean Six Sigma courses and services, please visit 6sigma.com. 

The post Six Sigma Quality Tools and Approaches appeared first on 6sigma.

Believe it or not, there are some interesting similarities between our country’s fight for freedom, the Declaration of Independence and Six Sigma!

The Declaration of Independence is a document written to improve the processes of freedom, while the Six Sigma doctrine incorporates a written set of techniques and tools for process improvements.

In a general way, the fight for our independence in 1776 is actually a good roadmap for problem solving, and we can make some comparisons to DMAIC (Define-Measure-Analyze-Improve-Control) in our fight for freedom. 

Note: this is a general interpretation of the DMAIC roadmap and meant to illustrate just some of the principles of the Revolutionary War and the Declaration of Independence. 

Define: This was reflected in the problem and grievances of the American people. They were angry at Great Britain, and wanted to explain to other nations why the colonies had chosen to separate from Great Britain. 

Measure: This step describes the current state of conditions and quantifies the problem. The Revolutionary War had already begun and several major battles had already ensued.

Analyze: Thomas Jefferson drafted the Declaration of Independence into five sections stating why it was necessary for the colonies to break free from Britain. Then Jefferson went on to outline with clear examples the reasons for their grievances.

Improve: The fight for freedom was to protest the grievances against Britain and why it was necessary for the colonies to separate. In essence, the situation needed to be improved. This passage from the Declaration of Independence says it all: “We hold these truths to be self-evident; that all men are created equal; that they are endowed by their Creator with certain inalienable rights; that among these are life, liberty and the pursuit of happiness.”

Control: This phase outlines controlling future process improvement, so essentially this would reflect the completed Declaration of Independence and what it symbolizes. To secure these rights, governments are instituted among men, deriving their just powers from the consent of the governed. 

So regardless how you decide to celebrate the 4^th of July, make sure you celebrate freedom. Happy July 4^th 2018!

For more information on our courses and services, please visit 6sigma.com.

The post Our Fight for Independence and Six Sigma appeared first on 6sigma.

The company culture is what makes Six Sigma a success in the long run. The success rate in saving company costs speaks for itself. Just ask Toyota, Motorola, GE or any of the Fortune 500 companies who subscribe to the Six Sigma methodologies. These five benefits listed in the below infographic are just the beginning of how powerful Six Sigma is for your business or organization.

For more information on our Six Sigma training courses or services, please visit 6sigma.com.

The post Infographic: 5 Benefits of Six Sigma Implementation appeared first on 6sigma.

DMAIC (Define-Measure-Analyze-Improve-Control)

If you have an existing product or service that doesn’t quite meet the requirements of your customers and you want to improve the existing processes then you need to use DMAIC.

D: Define the problem, goal, reason the issue needs to be resolved.

M: Measure the current status and use it as a baseline. 

A: Analyze the root cause, identify with data driven tools and validate as to why the issue is occurring.

I: Improve and identify some creative solutions to get rid of the major root causes, so the problem will be fixed and prevent future similar issues.

C: Control and sustain the success of the new improvements.

DMADV (Define-Measure-Analyze-Design-Verify)

This is the acronym for the philosophy used in Design For Six Sigma (DFSS), used when developing a brand new service or product within a business. 

D: Define the goal of the new product or service, set realistic and measurable goals.

M: Measure and know which factors are critically important. This should include any parameters, including risks, also accessing the production process and product capability.

A: Analyze, develop and design alternatives; work with different combinations and their results, selecting the best combinations.

D: Design a detailed prototype; create and modify until all the errors are worked out. 

V: Verify as the final step. The newly designed product is taken to the real world and tested to see if it would work perfectly. 

The post Infographic: Should you Use DMAIC or DMADV? appeared first on 6sigma.