Certificate, Certification, and Training

The first, and simplest form of due diligence to practice is clarifying what exactly you need. When searching for a practitioner, it can be easy to click on the first few links that show up. However, keep in mind that programs’ orders correlate to their amount of paid advertising. Furthermore, multiple practitioners will attempt to blur the lines of what their programs offer. This is where due diligence comes into play!

If you have years of experience practicing the Six Sigma methodology, a practitioner who provides a formal certificate after passing an online course is the best option for you. Likewise, if you’re new to Six Sigma and need a basic understanding of the process, a training practitioner is the better option. Lastly, a certification program is ideal for those who want to combine the training and certification test process under one practitioner. While this is usually the most expensive option, it does provide the most experience and formal understanding of Six Sigma. 

Where Does the Accreditation Come From?

While it’s important to understand what type of program your practitioner offers, it’s even more so to recognize where accreditation will come from. Is your practitioner offering a training course through a university or an online program? Does the Better Business Bureau support the program’s accreditation? Have industry leading corporations used a particular certificate exam to test their employees? These questions and more are an easy way to not only assess the legitimacy of your course but to also clarify where your accreditation comes from. A Six Sigma certification is only worth as much as the provider!

Quality vs. Quantity of Content

Lastly, finding a reputable practitioner can be done by assessing the quality and quantity of the course’s content. For example, most classroom Black Belt certification courses take between four to six weeks to complete. If you find a practitioner online who offers a similar course, does their curriculum take the same amount of time? Likewise, the quality of the course work provided should help you determine whether your practitioner is the right fit or not. Most legitimate certification courses require you to complete a Six Sigma project to receive feedback on your process improvement skills. If you practitioner offers no hands-on experience, they may be lacking in content quality. Additionally, another due diligence tip is to analyze the platforms on which these courses run. Is a practitioner using an up-to-date software for their projects? Is your practitioner providing the correct examples for you to practice; i.e. service industry versus manufacturing?

Slightly questioning and researching Six Sigma practitioners can easily determine if they are the right fit for your needs. Remember, Six Sigma is a business process improvement method that requires discipline, structure, and most importantly, due diligence!

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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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