Masonry Magazine June 2006 Page. 41
The roots of Six Sigma can be traced back to the 1920s, when Walter Shewhart introduced the basic ideology of how processes could be corrected. Many measurement standards branched from this original conception, but Six Sigma coined by Motorola engineer, Bill Smith, and trademarked by Motorola - has become the accepted "next generation."
In the 1980s, Motorola's chairman, Bob Galvin, decided that traditional quality levels didn't work, so the company developed a new standard. Using this methodology, Motorola has realized more than $16 billion in savings between 1986 and 2006. In 1997, GE became one of the next corporations to initialize the philosophy broad spectrum and realized $300 million savings in the first year of use. Since then, hundreds of companies around the world have adopted Six Sigma as a way of doing business.
Companies use Six Sigma because it helps identify and fix problems, while also exposing areas of opportunity. Six Sigma also helps reduce costs, increase revenues, improve process speeds, raise quality levels and expand customer relationships.
"The improvement projects undertaken in a Six Sigma initiative will clearly link to the organization's strategic ambitions and business plans," Morgan said. "The efforts are firmly focused on improving customer satisfaction and the bottom line."
Morgan lists these key elements in achieving Six Sigma:
* Genuinely focus on the customer and identify his or her key to quality requirements
* Ensure that processes are designed and managed to meet these key to quality customer requirements
* Ensure that appropriate measurements are in place to understand how well you are meeting the customer requirements and how well the customer feels you are meeting the requirements
* Involve your people and ensure they are effectively equipped so that they are able, and feel able, to challenge their processes and improve the way they work
* Undertake this improvement using a systematic problem solving and process improvement approach
Companies use Six Sigma because it helps identify and fix problems, while also exposing areas of opportunity.
How is Six Sigma implemented? As the methodology is complex, and it is often difficult for a company to implement in an unbiased fashion, usually a consultant familiar with the approach is called in to assist.
According to John Morgan, director of Catalyst Consulting, and the author of the article "Six Sigma - So What?", Six Sigma can be viewed by a company as a number of different things; however, from your customer's perspective, it simply means you are getting it right. "And you are getting it right virtually every time, with less than four defects in every million activities," Morgan added. "Six Sigma equates to 3.4 defects per million opportunities, and the 'defects' are aspects of your process, product or service that the customer has identified as important. So that's why the fuss!"
Morgan states that Six Sigma is a rigorous, quantitative approach to quality improvement. And he should know: his many years of experience include operational and management roles for major insurance companies. He is a regular speaker on the conference circuit and leads the workshop "Six Sigma and Business Excellence."
Case in Point
An example of a company benefiting from using Six Sigma is JLG Industries Inc., a leading producer of telehandlers and aerial work platforms. In June 2005, JLG announced increased focus to its Six Sigma program, along with an organizational alignment intended to support the company's strategic plan and specific initiatives to grow its service operations and diversify channels to market.
"The first year of our Six Sigma program has been very successful, and now is the opportune time to expand its impact by focusing our commitment to this strategic initiative under John's leadership," said Bill Lasky, JLG chairman of the board, president and CEO.
JLG also announced the promotion of John Louderback as vice president of Six Sigma, Quality Processes and Training.
"[Louderback] has been the Six Sigma champion from day one, and he is to be commended for his passion and desire to institutionalize the principles of Six Sigma at JLG," Lasky said. "We expect that he will lead our efforts to even greater levels of success."
The Voice of the Mason Contractor
June 2006
Masonry
39