Six Sigma: Service: Automation & Controls Project Management

[oaziz]

Dear All,
I am interested in implementing Six Sigma in a system integration firm that deals in industrial control & automation projects. There are two facets of this impelmentation

1. Implementing Six Sigma in functional areas (such as engineering, sales, finance, admin)
2. Implementing Six Sigma in projects that we perform.

About 1.: As this pertains to services segment and we have no prior working on 6 sigma, should we go for plain six sigma or DFSS? Does anyone have experience of implemeting 6 sigma in such a business?

About 2.: Do we need to make six sigma a part of project managment as well? Or should we implement six sigma in functional areas only? For example, if we are talking about a project - say construction of a dam. Should the project implementation contain a six sigma approach?

Your help shall be appreciated.

Regards
Omer

[Wes Bucey]

Originally Posted by oaziz

Dear All,
I am interested in implementing Six Sigma in a system integration firm that deals in industrial control & automation projects. There are two facets of this impelmentation

1. Implementing Six Sigma in functional areas (such as engineering, sales, finance, admin)
2. Implementing Six Sigma in projects that we perform.

About 1.: As this pertains to services segment and we have no prior working on 6 sigma, should we go for plain six sigma or DFSS? Does anyone have experience of implemeting 6 sigma in such a business?

About 2.: Do we need to make six sigma a part of project managment as well? Or should we implement six sigma in functional areas only? For example, if we are talking about a project - say construction of a dam. Should the project implementation contain a six sigma approach?

Your help shall be appreciated.

Regards
Omer

At the risk of confusing you, let me say that "implementing Six Sigma" is merely the use of well-accepted Quality tools. The simple fact is you have to make a determination FIRST of the business objectives of your organization, THEN create a plan that will help you achieve those objectives.

Here's some "alphabet soup" which may help you, put in plain English.

FMEA (Failure Mode and Effects Analysis) -

• You look at your processes and determine what could go wrong to cause a nonconforming product or service.
• Once you have a list of what could go wrong, you determine the "probability" of it going wrong (how frequently.)
• Next you determine the damage or "effect" the nonconformance will have on the product or service (severity.)
• You can either go by "numbers" or "gut instinct" to determine the points in your process which should get priority treatment in preventive action or mistake proofing.

DMAIC - (DMAIC is an acronym for five interconnected phases: Define, Measure, Analyze, Improve, and Control.)
The DMAIC process is the heart of Six Sigma. DMAIC refers to a data-driven quality strategy for improving processes, and is an integral part of the company's Six Sigma Quality Initiative.

DFSS - (Design For Six Sigma)
Various writers have different opinions of whether to jump into DFSS or to gain experience with DMAIC first. Here's a brief overview of DFSS:

Originally Posted by http://europe.isixsigma.com/library/content/c040908b.asp

Questions for implementing DFSS:

• How does the company culture support either the scaled or a full implementation?
• What other programs have been introduced in the design/development practice in recent years? Where does alignment to DFSS need to be created? (E.g., new product introduction process, CMMI, etc.)
• What is the level of collaboration and integrated processes between functions? To what degree is process management versus departmental management in place?

Process, Service and Product Design

Another consideration when implementing DFSS is whether the program aims at product/service or at process design. While new process design may involve only a few of the organization's functions or departments, the design of a new product or a new service has stakeholders throughout the company's value creation process. For example, the finance department may want to design a new process for annual budgeting using enhanced web-based functionality. If the old system is mainly paper-based and entries are duplicated in different databases, this may be a DFSS project. The process has different internal customers and suppliers, hence the complexity is internal.

On the other side, if a bank considers offering a new online platform for customers and eventually generate more business from the additional services, this is a design project for a new service. This project involves sales, marketing, development, operations and support functions internally. Externally, it will need to have a high involvement from the customers to clarify their requirements.

The difference between product and service development is the level of detail and complexity mainly in the optimize phase of the DFSS project. In product design projects, the optimize phase is the phase when the design "becomes real." First prototypes will be built; data must be collected on tangibles even if simulating the processes.

Advanced DFSS programs include a number of tools for the optimize phase mainly for product design. Typical Six Sigma tools like design of experiments may be advanced by robust design principles or mixture design concepts.

DOE (Design of Experiments)
This is a topic which probably not applicable to giant products or projects like hydroelectric generating dams. Google the term to see if it may be applicable to your operation and come back to us with questions.

PDCA (Plan Do Check Act)
This is the "grandfather" of the SS DMAIC. Many folks would agree it is all you really need in addition to senior management involvement and agreement on goals. Deming, one of the major Quality gurus, was a great champion of this method. ISO9001:2000 even includes it as part of its suggested methodology for Quality Management Systems.

Wes Bucey's opinion:
In my opinion, Six Sigma initiatives are valuable in examining existing processes or methodologies for improvement. Many Six Sigma folks have perverted the concepts of Six Sigma into short term quick "fixes" which often ignore impact on other parts of the organization or its supply chain. For example, a BAD Six Sigma Lean Project will demand JIT (just in time) delivery from suppliers, resulting in a great reduction in inventory holding costs for the buyer, but creating a great inventory holding cost on the supplier when the production time cycle is longer than the JIT window demanded by the buyer.

The smart organization will look at "Six Sigma" as nothing more than a particular aggregation of existing quality tools which may or may not have real value for the organization and its supply chain.

Of all quality tools, my experience tells me that a rigorous FMEA combined with equally rigorous PDCA, injected with creative mistake proofing will deliver valuable results for any organization and the term Six Sigma need never be mentioned.