12 critical success factors for Six Sigma effectiveness

Citation

(2002), "12 critical success factors for Six Sigma effectiveness", Measuring Business Excellence, Vol. 6 No. 3. https://doi.org/10.1108/mbe.2002.26706cab.007

12 critical success factors for Six Sigma effectiveness

According to recent figures, fewer than 10 percent of companies are adopting a Six Sigma program to the point where it is going to make any sort of significant difference to the bottom line in any meaningful period of time.

So where are these organizations going wrong? Often it comes down to key issues that have simply not been considered at any point of the initiative; which is where critical success factors come in.

Critical success factors are just that – factors that have to be achieved in order to stand any chance of success. Read on to discover 12 key ingredients that are necessary for the effective implementation of your Six Sigma project:

1. 1.

   Management involvement and commitment. Most people who have undertaken this kind of project agree that the most important factor is the ongoing support and commitment of senior management. Behind most of the major Six Sigma success stories are enthusiastic CEOs who have made it all possible. Take, for example, Jack Welch at GE whose hands-on approach brought Six Sigma to all areas of the organization (instead of focussing solely on manufacturing).

2. 2.

   Cultural change. One of the reasons Six Sigma is considered a breakthrough strategy is because it involves adjustments to the firm's values and culture from the outset. Often this change can lead to conflict The best way to tackle this problem is through increased communication, motivation and education.

3. 3.

   Communication. A communication plan is an integral part of involving your employees, showing them how Six Sigma works and how they can benefit from this initiative. When Six Sigma was launched in Sony Electronics, as a part of the communication plan, slogans such as "show me the data" appeared on internal mail or pins worn by employees. The aim was to communicate the new management style based on facts and data.

4. 4.

   Organization infrastructure. Before considering a Six Sigma program, certain characteristics must already be in place. You must have a long term strategy, at least the beginnings of a communication plan and of course there should be enough resources and investment available to sustain your program over a considerable period of time.

5. 5.

   Training. Not only does it help to communicate the "why" and the "how", but training also creates a sense of ownership for everyone in the organization, whatever their level of involvement.

6. 6.

   Linking Six Sigma to business strategy. Six Sigma cannot be treated as a stand-alone activity. The project must have a direct impact on both financial and operational goals. Six Sigma is more a philosophy than just a few tools and techniques.

7. 7.

   Linking Six Sigma to customer. Six Sigma should begin and end with the customer. CTQs or "customer wants" are identified at the beginning of a Six Sigma program and should be adhered to throughout.

8. 8.

   Linking Six Sigma to human resources. If you really want to change your organization's culture over a prolonged period then you must create goals that can be internalized on an individual level. For example, in GE, 40 percent of executives' incentives are tied to key Six Sigma achievements.

9. 9.

   Linking Six Sigma to suppliers. Six Sigma cannot just stop inside company walls. Suppliers must also participate in this drive for quality.

10. 10.

    Understanding tools and techniques within Six Sigma. During the belt training, employees learn three main groups of tools and techniques, which are divided into team tools, process tools and leadership tools. They also need to have a basic understanding of statistics as it forms a major part of the measurement process.

11. 11.

    Project management skills. Project managers, champion black belts and green belts should consider the key elements of project management, time, cost and quality. Defining them will provide the team with the scope, aim and resources needed to deliver an improvement in the short time, at the lowest cost and meeting the requirements needed.

12. 12.

    Project prioritization and selection. As Six Sigma is a project driven methodology, it is essential to prioritize projects which provide maximum financial benefits to the organization. The projects are selected in such a way that they are closely tied to the business goals or business objectives of the organization.

Conclusion

Six Sigma has been considered as a revolutionary approach to product and process quality improvement through the effective use of statistical methods, but in order to achieve the full potential of Six Sigma applications, it is important to take these factors into consideration.

If any of these ingredients are missing during the implementation of Six Sigma projects, it would be then the difference between a successful implementation and a complete waste of effort, time and money.

This is a review of "Critical success factors for the successful implementation of six sigma projects in organizations."

Banuelas Coronado, R. and Antony, J. (2002), "Critical success factors for the successful implementation of six sigma projects in organizations", The TQM Magazine, Vol. 14 No. 2, pp. 92-9,ISSN 0954 478x.