Six-Sigma training targets bottom-line results

When the Management Development Institute first sent out information on Six-Sigma Black belt training we had to clarify that we were not offering karate.

However, one might argue that the process is a self-defense course for a company's pocketbook Six-Sigma Black Belt training has nothing to do with karate and everything to do with quality.

Motorola used the expression "Six-Sigma" in the early 80s as a synonym for their quality process. GE, under the direction of Jack Welsh, followed suit by adopting the Six Sigma process in the early 90s.

Between 1997 and 1998, GE realized roughly $900 million in savings through the application of Six Sigma.

For example, Motorola reported more than $11 billion in savings since Six Sigma was first implemented 12 years ago. Allied Signals reported more than $1 billion in Six Sigma-related cost savings in just a few years.

Simple definition

Six-Sigma is a highly controlled process that helps companies focus on developing and delivering near-perfect products and services. "Sigma" is a statistical term that measures deviation from perfection.

The central idea behind Six-Sigma is that by measuring defects in a process, one can systematically eliminate them and get as close to zero defects as possible.

Six-Sigma organizations strive to generate less than 3.4 nonconformities (defects) per million opportunities in any process that affects customer satisfaction.

What affects the customer?

Typically, an organization has an inside-out view of business that focuses on average or "mean-based" measures of past performance. Yet, customers aren't so much cognizant of averages as much as they recognize a variance within a transaction or interaction.

For example, we don't "think" much about our McDonald's french fries. We are so used to the consistent nature of their fries that the satisfaction we get from their consistency has been moved to the subconscious part of our mind.

Each time we order fries, we expect hot and fresh fries. But, if we were to get 10 hard/blackened fries in each box, we might recognize the variance and experience dissatisfaction, even if the remaining fries in the box were the best ever.

Six-Sigma focuses on reducing process variation first, and then on improving process capability. Without consistent quality, even the best-tasting fries can get a bad reputation. Most would agree that McDonald's doesn't have this problem with their french fries.

The bottom line

Six-Sigma strives to produce consistent, predictable business processes that deliver world-class levels of quality. Companies that have adopted the Six-Sigma process have increased customer satisfaction, improved product or service reliability, and improved short- and long-term financial performance.

Through Six-Sigma initiatives, Allied Signal achieved a record operating margin of 14.1 percent. Locally, Leggett & Platt closed more than $500,000 in cost reduction projects by the end of its first three-month Six-Sigma black belt training class and only three black belts were trained!

Six Sigma Black Belt training is for select individuals in an organization who have been appointed to manage one or more of the following:

Quality improvement

Customer satisfaction

Cost reduction

Candidates should have a sound knowledge of basic mathematics and be comfortable with computers. Those who are certified Six Sigma Black Belts have been through a comprehensive Six Sigma Black Belt program and have proven out cost savings projects that meet minimum requirements set by the certifying organization. Certificates are not granted until projects are proven out and closed.

(Eric Lane is training and development manager at the Southwest Missouri State University Manage-ment Development Institute.)