Part One: Process Improvement

Part Two: Core Processes

Part Three: Process Mapping

Aim for perfection.

That’s a pretty lofty concept. It’s definitely not easy – especially when speaking of core business processes. Moving toward perfection requires measurement, analysis and documentation. And if you really want perfection, then you need more sophisticated tools. But is driving toward that ideal of perfection worth effort?

If you want to increase quality and dramatically save costs in production, then, yes, road to perfection is definitely worth driving time.

Forward Steps, Quality and Processes

Last time, we discussed process mapping to increase communication and understanding within an organization and to effectively develop a system of procedures. Now, let’s take a forward step, and look at how Six Sigma tools can decrease variability and increase quality in your processes.

Six Sigma, Pyramids and Systems

The Six Sigma methodology is an advanced set of tools designed for problem-solving and quality improvement. A 'sigma' refers to standard deviation from mean of a population. Standard deviation indicates likelihood that your next data point will deviate from mean of data set.

At bottom of Six Sigma pyramid begins a system’s current process capability. Usually at 1 or 2 Sigma levels is “tribal” knowledge based on first-time experiences. An organization moves up pyramid to 3 Sigma as systems are put in place. To hit 4 Sigma, statistics and modeling tools are used for significant process improvement. And, finally, to aim for that near perfection, organizations apply DFSS, or Design for Six Sigma.

Why?

Measurement, Analysis and Documentation

Why do (and should) organizations use these concepts to move up pyramid and toward quality improvement? Why is it necessary to measure, analyze and document processes – and, if needed, make those desired changes? Why drive toward perfection, and what does it mean in real terms?

If your current process capability runs at 1 Sigma, then that effectively means you have two defects (unusable products) out of every 3 parts. That means 67% of your costs simply become waste, with no return on your investment. At 2 Sigma, quality improves with 1 out of 3 parts as defects. But that still has an error rate of 33%. Not until 3 and then 4 Sigma levels will you see dramatic improvements. Put in these terms, you quickly see how such errors keep you from realizing a greater potential.

The Management Team section should include biographies of key team members and detail their responsibilities. It is important that these biographies are not merely resumes that include educational backgrounds and previous job titles and responsibilities of team members. Rather, biographies should highlight most relevant past positions that individuals have held and specific successes in each. These successes could include launching and growing new businesses or managing divisions of established companies.

Team member biographies should be tailored to company's growth stage. For instance, a start-up company should emphasize its management's success launching and growing companies. A more mature company should emphasize how team members have successfully operated within framework of larger enterprises.