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Why Six Sigma Black Belts Make Better Leaders

Besides business and functional know-how, a successful leader must have competencies in leading change and improving, designing and managing processes. A Six Sigma program helps prepare leaders by providing on-the-job training through project work.
A recent survey by iSixSigma Magazine of more than 1,300 business professionals whose companies are using Six Sigma revealed that leadership development programs which involve Six Sigma training are six times more likely to be called “highly successful” than those without. Many of these leadership development programs involve a Black Belt track for future leaders. Thus, the obvious question is, What skills and know-how do Six Sigma professionals acquire that gives them an edge as leaders?

Innovatively Leveraging on Six Sigma Framework

Some time ago, I was facilitating a Six Sigma project group involved in solving a process challenge. This group had been working on defining the parameters regarding recruitment policies. This included the allocation of cubicle, phone number, password, printing of name cards, email, pass card, etc for the new hires. The process involved seven people, taking about five months to complete. The team had dutifully performed all the analysis required, used the necessary tools and come up with detailed process delays corresponding to different positions to be delivered to the new hires. It all pointed out to be a ‘people problem’. “If Mr X and Mrs Y did their job properly we would not have any delays” was the assumed concluded answer to all the problems.

Every Beginning is Difficult

New undertakings or experiences are always challenging at first. This is no different when Schenker Singapore (Pte) Ltd, a transportation & logistics company, decides to embark on something new like Lean Six Sigma. It might seem to be even more demanding at the outset since the number of 3rd party logistics providers rising to this challenge is very limited. Best practices in this industry are not widely spread and hard to come by.

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Red Tape? – Not Here

Everyone, undoubtedly, has had the unenviable honour of experiencing ‘bureaucratic government processes.’ Be it applying for your first ID or passport, to initially obtaining a driving license and the inevitable dealings with the tax man.

The Difference Between Black Belt and Black Belt

Six Sigma has been developed decades ago and fine-tuned by many companies since then. However, there is no ISO standard or something similar guiding the deployment or regulating the certification of the key players, Green Belts or Black Belts. There is only one key requirement that helps distinguish between success and failure: business results.

The easiest task in the journey to deploying Six Sigma or similarly Lean Six Sigma is the training of Green Belts and Black Belts. Many training companies have discovered this gold mine and produce hundreds of Belts every year. For small money, nearly everyone can attend twenty 3-hour evening sessions led by trainers who have hardly run any projects to become a Green Belt including certificate. Taking this certificate, attaching it to the CV and going for the next job application is a question of days.

Three Rules for Data Analysis: Plot the Data, Plot the Data, Plot the Data

The job of purchasing is obviously to source for reliable suppliers who deliver products conforming to specification on time within a certain price range. The more data is available about potential suppliers the better the decision will be. However, how shall the data be analysed?
FridgeMaker used to get supplies of a very crucial part, the Spacer, from Supplier X. Unfortunately, over the last months Supplier X has been struggling with waves of reorganisation resulting in unreliable deliveries and hence line stoppages for FridgeMaker.

Table 1: Supplier Qualification Data for Spacer (USL=10.8, LSL=10.2)

FridgeMaker is looking for new suppliers for all parts coming from Supplier X. Purchasing has already started the supplier qualification process for the Spacer (10.5 +/-0.3) and has received parts from suppliers A, B and C. The data are shown here. Following this data purchasing can make their decision on price. All of the suppliers meet the requirements set out in the tender document.   

What to Do With Special Causes?

“Don’t use Six Sigma to tackle special cause variation!”

is one of the common phrases being repeated by Lean Six Sigma coaches and a very important recommendation for the management, too.
The Six Sigma methodology is indeed targeting variation that is an inherent part of the process – common cause variation that has been expected and tolerated due to its unknown and supposedly complex root causes. Understanding this variation and analysing the real root causes before implementing improvements is a fundamental pillar of the methodology and driver for its success.

Take Care of Your Talent – Develop your Belt

Against the common belief, statistical knowledge is not a criterion for selecting your Belts. However, the capability to acquire new technical skills, to apply these skills successfully is an important prerequisite. More important is the aptitude to involve, motivate, coach and train people, to lead and manage teams towards delivering results and to communicate effectively with different levels in the organisation.
A study by iSixSigma Magazine about the importance of different skills and characteristics for a successful Black Belt (“The Hard Truth About Soft Skills,” January/February 2008) was showing that Communication Skills is by far the most important requirement. Leadership Skills came in second and Technical Skills third. The question for the importance of Soft Skills for different roles in the Six Sigma deployment was answered by 72% for Green Belts and 99% for Black Belts with important or very important (5-point scale). Soft Skills include Communication, Collaboration, Team Leadership, Change Management, Time Management as most important to the success of the Belt.   Continue reading →

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People Development – The Smart Way

A couple of years ago, I was meeting the President of an Asian multi-national mid-sized service company for a Six Sigma Training on Saipan, a nice sunny pacific island south-east of Japan. Together with a colleague we were sitting at the beach, wearing swimming suits and preparing the next days session whilst getting sun-tanned. When the President arrived – he was in shorts and ugly slippers! – we had a casual briefing for the Leadership Team session and the Staff Awareness Sessions we were about to run during that week.

Measure The Success of Your Journey – A Lean Six Sigma Meter

Some well-known companies have been “doing Six Sigma” for years. They keep doing improvement projects in all kinds of business and support processes, rolling it out in Sales and R&D. They are extending the application of Six Sigma to the entire value chain – suppliers and customers – in their drive for sustained performance improvement. They are successful in building the Six Sigma principles into their daily business life and using this powerful approach as a vehicle to drive cultural change.

Other companies pilot improvement initiatives like Six Sigma by running a couple of improvement projects, then recognise that the journey toward improved business results will be a long and difficult one that requires a turn-around in the mindset of managers. A post-mortem analysis of a failed Six Sigma effort usually points to the lack of management commitment and lack of attention to the business and cultural investment needed to reach and sustain new levels of performance. What practical steps can be taken to maintain the focus and drive needed to reap the full benefits that Six Sigma offers?

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Six Sigma – Show Me The Money

Globalisation and instant access to information, products and services continue to change the way our customers conduct business.
Today’s competitive environment leaves no room for error. We must delight our customers and relentlessly look for new ways to exceed their expectations. This is why Six Sigma Quality has become a part of our culture. Jack Welch, GE

Six Sigma in Financial Services

Background

OurBank is an American international bank with 50 branches in Germany and approximately 300 employees working either in the headquarter office or in one of the branches.
In 2003, the senior management of OurBank decided to adopt and implement Six Sigma as their business management tool across all business units in the Europe region.
According to the OurBank business strategy, the car loan business was identified as one of the business priorities in the next 12 months. The strategy was to significantly grow the car loan business market share within the region in two years time, by 100% in the first year, and by another 70% in the second year.

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