Six Sigma, Problem Solving and Continuous Improvement

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When organizations are beginning the journey into maximizing improvements with their existing cost, quality, productivity, and service opportunities, often there is a debate on what should be done and how a program should be started. This page provides basic information on how an organization can make the most successful and lowest cost decisions in implementing an improvement program. Our project partners are ready to assist with your improvement efforts.

Continuous Improvement:
A buzzword in many industries, and requirement of most Quality and Environmental Management Systems certifications (ISO 9001, TS 16949, ISO 14001 etc.) continuous improvement is a strategic approach to improving the performance of an organization. CI is an enterprise wide approach, typically driven from top management. It focuses on identifying key measures of the company's overall performance, and coupled with the organization's short and long term goals and objectives, using them as a means of identifying, monitoring, and responding to organizational opportunities. A solid CI program is a key part of an an organization's foundation philosophy to insure long-term success. When managed effectively, it enables them to identify opportunities and risks before-hand, and enables a more rapid and cost effective response.

Problem Solving:
Problem solving is a disciplined approach to defining a problem, determining its root cause, and implementing solutions to remove or reduce the risk of re-occurrence. Problem Solving methods go by many names and techniques, PDCA, Root Cause Analysis, 8-D, 5-Why, to name just a few. All of these methods have demonstrated success, but the key is to have a DISCIPLINED approach that verifies results and has input by the entire organization. Those managing problem solving efforts should be trained in key analysis methods (including the use of check sheets, 5-why, failure mode analysis, and some statistical charting and analysis tools). The effectiveness of a Continuous Improvement program relies on strong problem solving to identify root causes affecting an organization's performance, and then implementing sustainable solutions that remove or reduce the risk.

Six-Sigma:
Six Sigma is a highly refined, data intensive approach to problem solving. Developed by Motorola in the 1980's, this methodology works especially well with highly complex design and process problems, or problems that are enterprise wide. Many large corporations have saved billions of dollars with six sigma initiatives, and our staff has helped many organizations realize savings many times the value of the initial investment. Two well known acronyms DMAIC and DMADV (DFSS) define the associated steps in Six Sigma activities:

    For Process and Systems problems:
    DMAIC:Define the problem, Measure the problem, Analyze the data for root causes, Implement a countermeasure, Control for sustainability

    For Engineering / Design problems (DFSS, Design for Six Sigma):
    DMADV: Define the problem, Measure the problem, Analyze the data for root causes, Design a solution, Validate the solution

The costs of implementing a successful six-sigma program can be quite high, into the tens of thousands of dollars training the various skill levels (black, brown, yellow, and green belts typically). As such, true six sigma is not necessary for most organizations. Key questions to understanding if six sigma is right for you are:

1.     Do I have highly technical or very complex problems with high payback (> $100,000 US for black belt projects)
2.     Are my problems company or enterprise wide?
3.     Do I have the means to fund training programs?
4.     Does my customer require six sigma initiatives?

If the answers to any of these questions is yes, then a six sigma program may be worth the investment for your organization. If not, there are less costly but equally effective ways of helping your organization realize its improvement potential. Contact us to see what can be done for your organization.

For organizational training on continuous improvement and problems solving, please see our Course and Workshops listings.

 

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Continuous Improvement

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Case study / example:
An automotive Tier-1 was experiencing problems with a US casting supplier. The current supplier was experiencing over 65% scrap rates and high rework costs, resulting in a per/year loss for the project in excess of $95k USD, not including incurred costs for expedited freight and rework.

Using six sigma methodology, our team was able to solve this problem. Results
were:

• Improvement in throughput to 98% with 2% scrap rate
• Part cost savings of almost $4 USD per part
• Annualized savings of over $215k USD
• Overall program savings of $1.65 million USD
• Improved reliability and redundancy of the manufacturing process
• Improved documentation, auditing methods and training for long-term stability
  

During the course of the project actions were also take to protect the end-item customer until the completion of the project through:

• Implementation of solid containment methods
• Revision to gages and repair methods for greater reliability
• Improvements to shop floor documentation and training

Savings like these are possible with a solid continuous improvement / problem solving program. We can help your organization implement short and long term improvement programs that provide many times the savings over the cost of implementation.