Implementation of Six Sigma in Service industry

N

Nancysmith

#1
Six Sigma can be effectively executed in the Service industry as well, such as telecom sector, hotel industry, hospitals, banks, etc. where employees are in direct contact with customers and their conversation affects the profit of the organization. Six Sigma improves the employee and customer encounter and reduces the errors occurs in the business process.
 
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M

MichaelMPerez

#3
Have you missed out on the question? I guess you were sharing your view on six sigma. This was an improvement methodology made famous by Motorola in the 1980s and is these days gaining much acceptance for its effectiveness in improving companies' bottom lines.
 

ncwalker

Trusted Information Resource
#5
It's worked SWIMMINGLY in the aircraft industry. :rolleyes:

Ever noticed how as a traveler we have to do more and MORE for ourselves each and every year?

That's six sigma.

People come in and you have concrete measurements on things like employee engagement time, employee down time. But you DON'T have good metrics on customer burden or customer wait time.

So solutions from six sigma (if one is not careful) FAVOR the most reliable measurements.

That doesn't always find the optimal medium. In mathematics, it is similar to finding a local extrema. Yep, you found A low point, but is it THE low point.
 
R

randomname

#6
For some reason the service industry has always thought of itself as different. Many of them don't even think of themselves as having an output! (oh, yeah, what about that insurance policy, those dollar bills, that water, that patient ...?).

I've worked with lots of them and haven't found any real differences yet, other than the distance between supplier and customer is obviously much closer. In fact, six sigma should actually be much easier since service industry often has a high transaction volume and lot of computer records (e.g., data!).
 

Jen Kirley

Quality and Auditing Expert
Staff member
Admin
#7
People too often overthink Six Sigma, insisting it must have complex statistical models and an extensive, detailed, exhaustive process and ppb-type measurements.

However, D-M-A-I-C as the core of the discipline can be applied to transactional type processes within the service industry. Regression analysis can be a very useful statistical model for such a project.
 

Mike S.

Happy to be Alive
Trusted Information Resource
#8
People too often overthink Six Sigma, insisting it must have complex statistical models and an extensive, detailed, exhaustive process and ppb-type measurements.

However, D-M-A-I-C as the core of the discipline can be applied to transactional type processes within the service industry. Regression analysis can be a very useful statistical model for such a project.
I agree, to a degree. But IMO it is the six sigma gurus, trainers, promoters, authors, etc. that push the "complex statistical models and an extensive, detailed, exhaustive process and ppb-type measurements" not to mention the belts, multi-week training, etc.

My personal experience with six sigma projects is observing a process that wasted many times more money than it saved, using as sledgehammer to drive an 8 penny nail.
 

Jen Kirley

Quality and Auditing Expert
Staff member
Admin
#9
I agree, to a degree. But IMO it is the six sigma gurus, trainers, promoters, authors, etc. that push the "complex statistical models and an extensive, detailed, exhaustive process and ppb-type measurements" not to mention the belts, multi-week training, etc.

My personal experience with six sigma projects is observing a process that wasted many times more money than it saved, using as sledgehammer to drive an 8 penny nail.
I agree. They turned it into a Jedi religion and reserve it for "special" people, push fancy solutions that some people I spoke with referred to as a bunch of lists, etc. I got my SSBB on my own because I wasn't invited to play their reindeer games as it were, using a document control renovation project that has a transactional basis. The most complex statistical model was regression analysis, and I did use my Quality Cost Calculator too.

So it can work, but as in so many other cases I caution to not overthink it.
:2cents:
 

Miner

Forum Moderator
Staff member
Admin
#10
Some bad experiences should not tarnish the entire methodology. As a Lean Six Sigma master black belt and corporate instructor in the methodology, I see more of the reverse (i.e., where more complex tools should have been used) than I see of the case where they use more complex tools than were appropriate. Of course we emphasize during training that the tools used be appropriate to the project.

When we teach transactional belts (e.g., service) we deemphasize tools such as DOE and focus more on analyzing time, flow, counts and money. Sometimes a pivot table in Excel is better than using Minitab. We also teach when Six Sigma is appropriate and when another, simple approach should be used instead.

Granted, there are a lot of consultants out there more interested in overselling their product. We see their handiwork when trying to hire competent belts. But they do not represent the large body of competent Lean Six Sigma professionals.
 
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