ProcessImprovementBlog

Achieve Excellence in Business Processes

Guest Post: Six Sigma - A Splendid Waste of Time

Kanishk's Note: One of the foundation of any continuous improvement process is: Feedback. 
So, here is a very honest and direct feedback on Six Sigma from our guest author, James Lawther
I will address his points in a separate post.
 
I work in the service industry.  For my sins I am responsible for process improvement.

Six Sigma is widely regarded as the process improvement methodology of choice.  The logic is that as an industry we are data rich, so a process improvement methodology that is data led has to be a good thing.  Consequently there has been a huge investment in Six Sigma training over the past few years.  I have master black belts and black belts and green belts and yellow belts coming out of my ears.  Thousands, if not millions of pounds have been spent on Minitab licences, training manuals, and consultants.

And I guess that 99% of it has been a splendid waste of time, let me be stronger, Six Sigma has precisely no practical application in my industry at all (might as well be hung for a sheep as a lamb).  If that sounds a little strong let me explain why.

Six Sigma is a great tool for process improvement.  If you have a multimillion pound production line that makes light bulbs at 1,000 a minute and 1 of them fuses the instant it is plugged into the power there is really only one way to diagnose the problem.  Like it or not, it is going to involve a fishbone diagram and a bit of regression analysis.  When you have a problem like that you need all the surgical precision you can get to find the root cause and fix it.  You need a statistical scalpel.

The service industry doesn't work that way though.  We don't invest millions in dedicated production lines and supply chains.  We invest millions in databases and people.

Now here is the thing: databases and people are flexible, you can add bits, change bits, do extra stuff, provide bespoke outcomes for bespoke customers.  And as a consequence we do.  It sounds great but we end up with the curse of proliferation.

We end up with a production line that produces 1,000 shapes of light bulb in a thousand different colors at one every 3 minutes.  We don’t care how many of them work; we are too busy looking for the one our customer wants.

We don’t need statistical scalpels; we need common sense and a mop to clean up the mess.

James Lawther gets upset by operations that don’t work and apoplectic about poor customer service.  Visit his web site “The Squawk Point” to find out more about service improvement.

About Squawk Point: The Squawk Point is about the way large organizations work. The way in which organizational design, business processes, operational delivery and staff ambition and motivation interact.  It is about the myriad of ways in which clever people make life difficult for themselves, their colleagues and their customers.


68 comments:

  1. Six Sigma
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    Many people are misunderstanding that six sigma only work on manufacturing field, the fact is it can be applied to any field as long as there is an improvement opportunity. The only question is whether you know how to apply the six sigma or you just know only those statistical tools. The six sigma expert is good in using the six sigma methodology to get know on the direction of improvement, then work out on the improvement but not using onyl those tools

    7/30/2011 3:25 PM
  2. gravatar

    Hi, thanks for your comment. I think you hit the nail bang on the head. The point you make is that people shouldn't just be trained in 6 sigma tols, but to know which tools are the right ones to use and when.

    The problem is probably the training, if you are only trained in statistical tools, every problem looks like a statistical one.

    8/12/2011 11:59 AM
  3. gravatar

    Great blog i am fully agree with u six sigma is not applicable to only manufactruring process but in every field which needs improvement

    8/17/2011 5:59 AM
  4. M
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    Most of the people misunderstand that six sigma only work on manufacturing fields, it can be applied to any field as long there is process improvement opportunity.

    2/20/2012 3:13 PM
  5. Turhan
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    I believe that six sigma can (and should) be applied to environments outside manufacturing. I work on call center projects and have found it to be quite useful as a process improvement tool. http://www.businessprocessimprovement-resume-thunt.com/

    3/30/2012 1:03 PM
  6. Patrick Au Yeong
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    I agree on the observations described in the original post by James as that is the experience I had in Retail Banking.

    What I found useful with Six Sigma is that there is a framework to approach issues and the stats analysis ie regressions and correlations provide great fodder to tackle issues.

    However, where the root cause is linked to people or specifically, attitudes, Six Sigma has no answers.

    I believe we should look beyond the numbers and also understand what makes people tick or switched off eventhough they are fully competent. You will need inquiry skills and great people relationship to understand and provide solutions to solve the issues at various levels including motivation.

    Six Sigma alone is insufficient since in a service industry, people are not robots and they don't always behave they way we want them to. That I think is the crux of the issue.

    5/28/2012 3:10 AM
  7. Unknown
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    SIX SIGMA is a strategy for improving shareholder and customer satisfaction. Having taken the world by storm over the last decade and a half, Six Sigma is both a business philosophy and goal, as well as a comprehensive set of business analytics, tools and methodologies that lead to exponential increases in efficiency, innovation, competitiveness and profitability.
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    7/25/2012 4:23 PM
  8. Unknown
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    Six Sigma's implicit goal is to improve all processes to that level of quality or better.
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    8/18/2012 5:10 AM
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  10. Unknown
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    I also agree what you have written on your article regarding six sigma that it is the processes and improvement the quality of a business.

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    11/15/2012 8:00 AM
  11. gravatar

    I've been doing process improvement for Services for over 20 years. I've seen it done right and I've seen it done to the letter of the six sigma gospel. There are bits and pieces throughout this thread that ring true and there is more.

    1. Services are provided through a process. Document that process, identify the work-products/deliverables and measure the quality and consistency of the deliverables throughout the process.

    2. Six Sigma is good for Services but you don't need to do minute statistical data gathering and analysis. Apply the "DMAIC" concepts.

    3. Conduct audits and collect simple measures. Measures like; are the teams following the process and are the deliverables of good quality?

    4. Assess People, Process and Tools. Metrics only point to potential problems. Figure out the root cause by assessing PP&T. Solutions may involve enhancements to any or all.

    In addition to measuring Service delivery, Services should measure the service requests. Tracking trends in service requests can lend direction toward changes in the services or staffing; or changes needed on the customer side (training, staffing realignment, tool enhancements). When a support organization can provide improvement suggestions back to their customers, they have achieved a high level of process maturity. This should be the ultimate goal of any services organization.

    8/21/2013 1:18 PM
  12. Unknown
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  13. Unknown
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    I real scenario all the organization work according to there system of identfying problems or issues and then the experts will select the tools like lean, six sigma or kaizen for the solution. Expert will not waste time on arguing over which tool is best, he just find out the issues and get started with the appropriate tools.I found some interestiong content on www.sixsigmacentral.com

    1/16/2017 6:58 AM
  14. gravatar


    YES,
    Six Sigma is both a business philosophy and goal, as well as a comprehensive set of business analytics, tools and methodologies that lead to exponential increases.

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  15. Unknown
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    I agree on the observations described in the original post by James as that is the experience I had in Retail Banking.
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    6/14/2017 2:11 AM
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    With TQMI’s professional training, one can learn to use the DMAIC model for process improvement, and statistical tools and techniques to make fact-based decisions.
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    7/31/2017 1:57 AM
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