Six Sigma III
Posted Under: Deming,General Management,Statistical Thinking
Imagine you are an executive in an organization that defines quality as absence of defects. How, then, would you plan to improve quality?It’s obvious isn’t it? Spend time being clear about what are defects and what are not (via specifications), find points to check for defects and, if they are found, remove them. Institute a corrective action process attempting to avoid recurrence of the defect.
Now, put a different hat on your head. You are an executive in an organization that defines quality as continuous improvement. What do you do to assure quality?Define quality in terms of the customer (the only eyes that matter) would be the first step. Second would be to analyze processes in the organization to see to what extent they achieve the quality definition. Then, begin a continuing effort to reduce variation and center processes on target.Note that the approaches are fundamentally different in emphasis.
Naturally, activities overlap and both kinds efforts involve teamwork, training, coordination and leadership. But the focus is different.Now, reconsider the competitive track record of organizations that define quality as a never ending process of continuing improvement and the competitive track record of those companies that chase defects.There really is no comparison.
Those companies adopting the continuous improvement paradigm (e.g. Toyota, Honda, Canon) have maintained high levels of quality, lower or comparable costs and better values over the years and their profitability shows it.The Six Sigma approach is chasing defects. Finding and correcting problems is not improving quality, it is merely getting process to operate the way they were originally intended to run.
Zero defects is not good enough in today’s competitive world. Not when you are competing with someone that does not stop trying to improve once the defects are gone.To repeat: It’s all fairly simple really. Pay attention to quality in the right way and quality improves while costs go down. Enter the market with better quality at lower cost and capture the market.There is no longer the slightest doubt that this method is the key to competitive excellence.
Reader Comments
John,
I absolutely love the way that you express yourself.
Thank you for your wisdom.
SteveJ
John, your argument that continuous improvement is the more powerful method of improvement is well-made. As a functional and project manager, I am always seeking ways to improve operations in my area. As a Six Sigma Black Belt, though, I see room for both methods.
Looking at your example, I think that as an executive in a Six Sigma organization, I would not be spending time being clear about what is or is not a defect. I would instead be looking at organizational costs and identifying opportunities for improvement, then assigning a Black Belt project team with a financially-based improvement goal.
Which raises an interesting question: which improvement system results in greater improvements, long term? You’ve been arguing, convincingly, for continuous improvement.
Given the concerns about Six Sigma, I have the following questions: 1) What introductory texts for SPC would you recommend? 2) What professional seminars/instruction would you suggest to a mid-sized company with new management that wants to pursue “quality” the “right” way? Thanks. Love your writing on the subject.
Tom,
Thanks for your interest. Yes, project teams are a must, call them what you will. I noticed in reading your blog and in some of your comments a focus on financial return and measuring costs.
I think as you question, “…which improvement system results in greater improvements long term?”, a problem arises though and that is how to measure benefit. That problem is a general one as it produces an asymmetry in cost/benefit measurement. Because of the financial focus we can measure costs quite well, but have little concept of how to measure benefit.
What is the benefit of a happy customer? What is the cost of an angry one? Unknown and unknowable, I think…
Roy,
Thanks for your kind words. The best book I know of on SPC is by Donald Wheeler, “Understanding Statistical Process Control”. (SPC Press). There is an additional book on more advanced topics, but as a starting point you can’t beat that book. He’s got it right, it’s readable and very practical. Also good for self-learning as there are practice exercises with answers.
As for seminars and the like there are many. Unfortunately as many (or more) bad ones as good. I’ll do some research and follow-up with you.
I would also suggest Douglas Montgomery’s Introduction to Statistical Process Control. For my money, it’s a toss-up between Montgomery’s and Wheeler’s texts.
Sorry, there’s no comparison. Wheeler’s book is much better. I haven’t seen the latest edition of Montgomery’s book, but earlier editions had some problems. See Dr. Lloyd S. Nelson’s review in Journal of Quality Technology.
All, re: books and training that changed my life
1. Power of Statistical Thinking by Leitnaker+Sanders+Hild
2. The process improvement seminar at University of Tenessee short course division (part of the business school). It’s three one week sessions with time in between to do your project.
Its awesome; life-changing; you handle data under the tutelage of masters and you can ask questions long into the night. It’s worth every cent of the cost
John, Do you know when the review was published? I’m having some difficulty locating it. Thank you.
tom,
I’m looking for the review. I am contacting ASQ and looking for a citation. I’ll let you know how that goes.
Gerry,
I know Mary Leitnaker a bit. I went to one of UT’s first seminars (#1 or #2, I think) back when Al Lassiter was running the program. Richard Sanders was one of the instructors and he was great.
You are right about the three week program. I’d recommend it to anyone with no reservations.