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Increase Productivity – The Leadership Challenge

“We need to increase productivity!” What sounds very reasonable on a country scale could be damaging on a company level.

Now, after nearly two years of recession the economy is back on track, i.e. companies of all sectors sell more. This is good news, isn’t it? It brings our productivity to new heights, meeting and even surpassing the levels we had seen before the recession. Stop! This is not really good news. This is expected news. Every company – well managed or not – will be able to show these figures. The question is: have companies used the time of low productivity to expand the productivity potential in preparation for the future?

Applying Systems Thinking to the Practice of Six Sigma

To find the most valuable Six Sigma projects – ones with the highest system-level leverage – can require systems thinking and tools like the causal loop diagram, which supplies much more information than the usual cause-and-effect analysis.
Well-focused improvements done in the right place can lead to significant system-wide results for an organisation. In simple terms, it is a matter of choosing the right Six Sigma projects. But the problem is that it is not always easy to know which projects will produce the highest system-level leverage.
Often Green Belts and Black Belts are left to their own devices to find projects. Because the locus of high-leverage changes is normally not located in close proximity, either in time or space, to the symptoms of the problem, it is often not obvious to participants in the system. The result is: the “right” projects may not be selected.
Published

Increase Productivity? How To…

Productivity measures the ratio of output quantity over input quantity. Increase of productivity means growing the output quantity faster than the input quantity. Output quantity can stand for anything from number of products made over number of customers served to number of donors treated or number of work passes produced. Input is usually summarising all resources needed to do this from raw material over equipment to man hours.
How is productivity increase possible?

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.

Sushi and more… The Importance of the Moment of Truth

A typical Friday evening starts with a family dinner in a nice atmosphere. This time we decide to visit one of our favourite restaurants for a light dinner with Sushi. Upon arrival we are amazed.

Usually, this place is packed on a Friday evening. Today, more than half of the seats are empty. Therefore, going in and taking a seat at the conveyor belt is very easy. Before the waitress has a chance to approach us we have taken some plates with Sushi already. 

A Lesson of Leadership

A couple of months ago, I was having lunch with the Chairman of a medium-sized contract manufacturing company in Singapore. When we made the appointment, we agreed to meet at a posh club in the centre of the city-state. After arriving there I found myself in the middle of his management team. He brought MD and CFO along.

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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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