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Essential Six Sigma Software

Six Sigma implementation projects involve the collection and analysis of huge amounts of raw statistical data related to various aspects of a given business process. Collection and analysis of raw statistical data is necessary because it helps in the decision making process. Decisions that are backed by figures and statistics are more likely to produce desired results as compared to decisions that are based on gut feelings or personal opinions.

The amount of data that needs to be collected and analyzed is often too huge to be handled manually, making it necessary for companies to invest in statistical software tools that are fast and easy to use. Most of these statistical software tools are designed for analyzing and interpreting raw data whereas some of these are used for collecting data as well.

Versatile Six Sigma Software Tools

The effectiveness of any software tool depends on its versatility, i.e. how efficient it is in handling various types of raw data related to business processes. These types of versatile software tools can be utilized as data repositories, allowing certified professionals to access the collected data as and when needed. The amount of data stored in these repositories may be huge but the task of finding data is not difficult because these software tools have a user-friendly interface that provides the necessary guidance to users.

By utilizing these software tools, Six Sigma professionals are able to assess the status of ongoing projects in the context of process and design improvements that have been implemented. While assessing the status, users can also review the effects of various changes that have been implemented, identify potential mistakes, and suggest corrective measures based on data provided by the software.

Uses Of Six Sigma Software Tools

These software tools help in selecting a sustainable project that can easily be implemented without incurring additional costs. The project selection process is similar to that of developing a new product or service and involves a series of logical and chronological steps. Some of the most important steps in the process deal with identifying the project, determining the scope of the project and selecting the changes that can be made for improving the effectiveness of existing business processes.

All these help in reducing the workload of the people involved in the project such as team members, leaders, champions, Black Belts and Master Black Belts. These powerful data analysis tools complement the existing skills of Six Sigma professionals. This in turn goes a long way in promoting unity and harmony amongst the various Six Sigma teams that are working together to achieve common goals and objectives.

Modules Of Six Sigma Software Tools

One of the most commonly utilized modules is the “Tool Finder”, which generates questionnaires for helping users in selecting the requisite tools for their projects. These questionnaires are available in the form of data collection sheets, excel sheets and checklists. This module is most suitable for making design changes and improving existing processes. Moreover, these tools are also utilized during the various stages of the implementation process, starting from Statistical Process Control to Designing of Experiments. Some of the most commonly utilized Six Sigma software tools include Minitab and Oaktree.

These software tools are quite efficient but for exploiting their full potential, it is necessary to provide adequate training to users. This way the organization will be able to ensure the success of Six Sigma implementation projects.

Tony Jacowski is a quality analyst for The MBA Journal. Aveta Solution’s Six Sigma Online offers online six sigma training and certification classes for lean six sigma, black belts, green belts, and yellow belts.

Six Sigma and ISO 9000: How To Choose

Businesses that want to improve overall quality are often faced with the difficult task of selecting the most effective quality improvement technique from available options such as Six Sigma and ISO 9000. For selecting the most suitable technique, businesses will have to look at the merits of each of these techniques and determine their applicability in the context of existing business processes. This is necessary because there is a vast difference in the concepts of both the approaches, which need to be identified before selecting any one of the approaches.

The Six Sigma Approach

Six Sigma is basically a data-driven approach that aims at improving the quality of the output, which might be a product or service. For achieving this, Six Sigma mostly focuses on improving business processes by analyzing existing processes and identifying changes that could be made for improving quality and efficiency. Six Sigma helps in achieving desired results because it lays stress on the use of statistical tools and techniques that are based on sound logic rather than personal opinions or beliefs.

Six Sigma Process

For getting a fair idea about Six Sigma concepts, let us study the above statements in context of actual business processes. Most of the Six Sigma projects are quite huge, characterized by multiple goals and objectives. For successful implementation, Six Sigma Black Belts need to break up the project into smaller manageable projects, which can further be subdivided internally. This allows Black Belts to understand the intricate details of a specific process, which may not have been possible if the project was not divided into smaller projects.

By employing statistical tools and techniques at this stage, the Black Belts are able to take much better decisions regarding changes that can be made for improving quality. However, this is not the end of a Six Sigma implementation process as the process also has to ensure that the achieved quality standards are maintained. For maintaining quality standards, control systems are put in place that measure quality on a regular basis and report any deviations that might have occurred.

The ISO 9000 Approach

The ISO 9000 approach is different as it focuses on setting standards and adhering to the set standards. It does not lay stress on continuous quality improvements as in Six Sigma. Business processes of an ISO 9000 company are governed by the eight quality principles of ISO 9000 and have to adhere to 24 requirements, which are the same for any organization. ISO 9000 lays stress on controlling different aspects of a business process, which is achieved through documentation, evidences, and reports.

The most critical principles among the eight are associated with prioritizing customer data, purchasing, and managing quality systems. In ISO 9000, every process is treated as an independent entity, even if the end goal of two processes is the same. Based on predetermined quality standards, quality managers are able to decide whether a particular process has adhered to the set standards or not.

ISO 9000 process

The ISO 9000 process calls for adhering to certain set standards that have already been documented. It does not leave any scope for innovative changes that could be made for improving quality. The process focuses on “what should be done” rather than identifying improvement potential in a business process as in Six Sigma.

In spite of the differences, it is quite difficult to say which is the best quality improvement technique. Both the techniques have delivered desired results wherever they were successfully implemented, making it even more difficult to decide which is the best. Businesses can use any of these techniques as long as it helps them in increasing customer satisfaction, reducing operational costs and maximizing profits.

Tony Jacowski is a quality analyst for The MBA Journal. Aveta Solution’s Six Sigma Online offers online six sigma training and certification classes for lean six sigma, black belts, green belts, and yellow belts.

Six Sigma And The Small Or Home Based Business

Although Six Sigma was originally devised as a quality improvement technique for the manufacturing industry, it is now increasingly being adopted by the services industry as well. The basic concepts and methodologies are more or less the same in the services sector where they are applied to both operational and non-operational processes.

Defining Six Sigma

Motorola was the first company to develop and implement Six Sigma concepts in its business processes. The main aim of the company was to reduce manufacturing defects and to achieve near perfect production processes that would help in production maximization. Six Sigma implementation projects aim at bringing the number of defects to not more than 3.4 per million opportunities that exist for such defects to occur.

This standard is applicable for both manufacturing industries as well as the services sector. Impletmentations start with the assessment of current quality levels, which are termed as 1 sigma, 2 sigma, and so on. The aim is continuous quality improvements until “6″ Sigma quality levels are achieved.

Six Sigma In Small Businesses

Six Sigma can be effectively employed in small businesses irrespective of whether the business is a manufacturing unit or is servicing a customer base. Even in small businesses, the process aims at perfecting existing business processes and assessing the real costs of the business such as COPQ (Cost of Poor Quality). At first glance, it may seem that it is suitable only for large businesses because of multimillion-dollar savings and huge reduction in the number of defects. However, this not mean that it will not be cost-effective in small businesses as standard concepts and methodologies can always be tweaked to suit small scale process requirements and for reducing implementation costs at the same time.

Most small businesses compete with large and well-established businesses and this is why they always need to be on their toes in order to reduce costs and offer quality products and services to customers. Six Sigma helps because it provides a level playing field to small businesses, allowing them to concentrate on increasing the customer base by offering better quality products and services. For ensuring the success of initiatives, small business owners can hire the services of certified trained professionals such as Black Belts and Master Black Belts. They also have the option of training their existing employees.

The conclusion is that Six Sigma concepts and methodologies can be tailored to suit any business that has a ready customer base. It is also applicable in an online business where it is all the more important to have satisfied customers because news travels faster on the internet, especially when it is something to do with bad quality products or services. By employing Six Sigma, small businesses can ensure the quality of their products or services, which in turn will allow them to garner positive publicity through customer feedbacks and reviews. Such businesses are most likely to witness rapid growth because satisfied customers are the real assets of any business, whether big or small.

Tony Jacowski is a quality analyst for The MBA Journal. Aveta Solution’s Six Sigma Online offers online six sigma training and certification classes for lean six sigma, black belts, green belts, and yellow belts.

Six Sigma Tools For Process Control

Six Sigma implementations aim at achieving near perfect production wherein the number of defects is substantially reduced. However, implementations are definitely not easy because they often require a major overhaul of existing business processes, which in turn requires extensive analysis and documentation.

Understanding The Six Sigma Pyramid

Six Sigma quality levels can be described with the help of a pyramid, wherein the base of the pyramid represents the current quality levels of a business. The aim is to move up the pyramid to make gradual improvements in the quality level such as sigma 1 to sigma 2, sigma 2 to sigma 3, and so on until the top quality level, “6″ Sigma, is achieved. Every stage or quality level requires the use specialized statistical tools, about which the certified implementation teams should have in-depth knowledge and expertise.

Some Basic Tools

Businesses aiming for achieving sigma 3 or sigma 4 quality levels need to utilize Six Sigma measurement, analysis, and documentation tools. These tools will help in measuring the current percentage of material wastage, which is usually in the range of 50 to 60 percent if the company’s existing quality level is sigma 1. At sigma 2 levels, the wastage is around 33 percent, which means that there is still plenty of scope for improvement. Once the level of wastage is identified with the help of these tools, the Six Sigma implementation team can then start making the necessary changes in processes to achieve the next quality level.

Industry Specific Tools

A use of a particular Six Sigma tool depends on the type of industry. For example, in industries having high volume transactions, it would be impossible to measure and analyze each transaction. As such, only those tools are used that are designed to identify high value transactions based on predetermined logical parameters. These tools will allow a business to give priority to the improvement of most vital processes that deal with high value transactions.

Such tools are necessary for ensuring the success of the implementation projects because higher quality levels cannot be achieved until and unless all the high value business processes are not utilized to their full potential. The full potential of a business process can only be realized when it reaches maximum optimization levels or achieves Six Sigma quality levels. All this can only be achieved by employing the right Six Sigma tools and techniques in the right business process.

For selecting the right tools, businesses need to opt for the expert advice of certified professionals. Although the tools are more or less the same used by engineers, supervisors, and other technicians, expert advice is still valued because it is only the Six Sigma professionals who know how to utilize the information generated through tools and techniques in a proper manner.

Tony Jacowski is a quality analyst for The MBA Journal. Aveta Solution’s Six Sigma Online offers online six sigma training and certification classes for lean six sigma, black belts, green belts, and yellow belts.

The Effectiveness Of Online Six Sigma Training

Six Sigma concepts and methodologies are deployed in an organization through project implementations. The basic objective of all Six Sigma implementations is to reduce wastage by improving the efficiency of existing business processes. The aim is to design near-perfect business processes wherein the number of defects is no more than 3.4 per million opportunities that exist for such defects to occur.

However, implementations are not always easy because it often involves overhauling the existing processes, which may create plenty of problems and cost a lot of money. Businesses often hire the services of professionals such as Black Belts and Master Black Belts, which may also increase the overall cost of implementations.

Why Online Six Sigma Training Is Effective

Online training allows employees to learn in their free time when their minds are completely at ease and receptive to the things that are being taught. The learning is augmented because interactive software tools are used while explaining some of the most difficult topics. Another thing is that online training allows employees to learn at their own pace, i.e. give more time to topics that they might find difficult and skip through topics that they are already aware of.

Online training also allows employees to assess whether they have learned their lessons properly or not. They just have to sign up for the online tests, give the tests and get instant results and feedback. If they find that the score in a particular topic is less than acceptable, they can go back and learn the lessons again. The overall aim of online Six Sigma training is to enable self-motivated learning rather than coaxing employees into learning new concepts and methodologies. This is why online training is far more affective than regular training courses.

Other Associated Benefits

Online training benefits are not limited to employees; in fact, the organization derives far more benefits than the employees. By training existing employees, an organization can reduce or even eliminate the dependence on Six Sigma professionals such as Black Belts who charge top dollar for their services. Another benefit of online training is that the organization gets to save the productive time of employees, which might have been wasted had the organization opted for regular classroom training. The benefits extend to the future as well because once the employees are trained, they can be called to play the role of change agents who are responsible for implementing concepts and methodologies all across the organization.

However, before opting for a particular online Six Sigma course, it is necessary to check the level of expertise being offered and whether the course is accredited by a premier institution or not. The employee training costs as quoted by different online trainers also needs to be considered before selecting a particular online course.

Tony Jacowski is a quality analyst for The MBA Journal. Aveta Solution’s Six Sigma Online offers online six sigma training and certification classes for lean six sigma, black belts, green belts, and yellow belts.

Six Sigma As A Management Program

Six Sigma is a quality improvement technique that was originally devised by the Motorola Company in the 1970’s. At that time, U.S. companies were facing stiff competition from Japanese companies that somehow managed to manufacture better quality products. The Motorola Company realized this when a Japanese firm took over its television manufacturing unit and drastically improved quality by reducing the number of defects to about 1/20th of the number of defects that occurred under Motorola management.

This forced Motorola Company to focus their efforts on the development of new quality concepts and methodologies. This resulted in the development of some of the most basic quality concepts and techniques, all of which were together referred to as Six Sigma.

Changes Made Over The Years

With the development of newer technologies, it has also become possible to implement Six Sigma management programs in organizations belonging to the services sector. Many services sector companies such as those belonging to the telecommunications and Information technology industry have now implemented Six Sigma and are reaping the associated benefits.

It is now common knowledge that companies that implement Six Sigma concepts and methodologies deliver far better results vis-a-vis companies that do not.

Similarities Between Six Sigma And Other Management Programs

Six Sigma is treated as a management program because when we look closely at its various concepts, we find that it has various quality levels such as 3 sigma , 4 sigma, 5 sigma, and of course the highest quality standard, “6″ Sigma. Depending on the aims and objectives of an organization and the resources available, its implementations aim to gradually reach the highest level of quality, i.e. “6″ Sigma. This is just like any other management program that requires a specified period of time to take effect.

Although the main purpose of implementations is to improve the quality of products or services, the implementations also affect the overall efficiency of the organization by making improvements in existing business processes. Many a management program that are executed nowadays relate to human resource management and Six Sigma is no different because it also helps in improving employee satisfaction and morale.

When the programs are implemented, the work of employees gets more organized, which means employees have to do relatively lesser amount of work. Moreover, the complexity of existing business processes is also reduced when these programs are implemented in an organization.
The ultimate objective of management programs related to any of the functional departments is to improve profitability. This is probably one of the most basic similarities because ultimately the implementations also improve profitability, though it may seem that they are just reducing defects.

Improved business processes will directly improve profitability, as operational costs will be reduced. The indirect benefit is that better processes means better products and services, which ultimately helps in developing a vast group of loyal customers, necessary for maximizing profitability and for ensuring the success of the organization in the near future.

Tony Jacowski is a quality analyst for The MBA Journal. Aveta Solution’s Six Sigma Online offers online six sigma training and certification classes for lean six sigma, black belts, green belts, and yellow belts.

Six Sigma Parameters

Information related to predetermined Six Sigma parameters is issued by the senior management through a document known as the “project charter”. Aside from defining the Six Sigma parameters, the project charter also acts as an authorization certificate, allowing the project manager to allocate organizational resources towards the completion of the implementation projects.

What Exactly Is A Project Charter?

Every project is implemented for satisfying a business need. These unique business needs are specified in the project charter along with information about new business opportunities and business threats that the organization might have to face in the near future due to increased competition. The charter also contains detailed information about the type of features that are to be included in the product or service being designed. Detailed explanation is also given about how the customers will benefit from the newly introduced features.

What Is A Problem Statement?

Also included in the charter is the “problem statement”, which provides detailed information, related to the essentialities of the project. It allows project managers to ascertain the overall scope of the project and determine the roles and responsibilities of the related stakeholders. If the project is complex, the problem statement lays stress on breaking down the whole project into smaller manageable subprojects that are easy to execute.

What Is A Mission Statement?

Another important part of the charter is the mission statement, which allows implementation team members to understand the basic relation between the project and the business objectives of the company. As far as possible, the senior management tries to give precise specifications in simple language in order to avoid any potential confusion. For example, if the purpose is to reduce defects, the mission statement will include a precise target such as “reduce defects to twenty percent” or something even more specific such as “reduce defects by twenty percent in two months time”.

If simple and precise terms are not used, it will very unlikely that the project will be completed in time. Mission statements lay stress on eliminating the main problem that is causing the defects rather than suggesting short-term remedies. If the project is large and has been divided into smaller projects, different mission statements are created for each individual subproject. In spite of all the precautions, if the implementation team is not able to understand some points, they can talk to the project sponsors such as senior management.

The task of defining Six Sigma parameters related to project implementations has become easier through the project charter containing the problem statement and the mission statement. In layman’s language, we can say that the project charter is a document that allows a project manager to understand what is to be done and how it is to be done.

Tony Jacowski is a quality analyst for The MBA Journal. Aveta Solution’s Six Sigma Online offers online six sigma training and certification classes for lean six sigma, black belts, green belts, and yellow belts.

Overcoming Six Sigma Controversies

Six Sigma is a quality improvement technique that aims at reducing wastage by restricting the number of defects to not more than 3.4 defects per million opportunities that might exist for such defects to occur. Reduced wastage naturally results in lower production costs, which in turn helps an organization to maximize profits. Six Sigma also helps in developing customer loyalty and satisfaction because reduction in the number of defects means better quality products or services.

Most Common Controversies

One of the most common Six Sigma controversies is related to employee dissatisfaction, which results because employees think that they will lose their jobs or will be shifted to other positions after the implementations are over. This can prove detrimental for the organization’s aims and objectives because the employees are less likely to lend their full support and cooperation in an environment that forces them to think negatively. In such a scenario, it is very much possible that the implementations may take more time for completion or in the worst-case scenario, may get scrapped altogether.

Another common controversy is associated with the selection of the implementation team. This controversy arises because of differences in opinions related to the composition of the implementation team. Some senior management members believe that the implementation team must consist of existing employees whereas others believe that Six Sigma professionals such as Green Belts and Black Belts must be hired to carry out the implementations. This ultimately can result in enmity and ego clashes between senior management members.

How To Overcome The Controversies

If we look closely, we will find that most of the above stated controversies are basically due to lack of proper information dissemination and lack of clarity related to the common goals and objectives. It is quite natural for employees to fear job losses, especially when there is a lack in communications between the project sponsors and the employees related to the real purpose of the implementations. To allay the fears, it is necessary to inform the employees that they will not lose their jobs and that adequate compensation packages have been put in place for employees who might have to leave the organization for better opportunities elsewhere.

The controversy related to the composition of the implementation team can be overcome by identifying the real needs of the implementation. For example, if a business process is easy, existing employees can carry out the implementation and in case a process is complex, the implementations may require the services of experienced Six Sigma professionals. The basic thing to do for overcoming any of the controversies is to concentrate on achieving the end objective rather than waste time and effort in selecting a particular implementation method or technique.

Businesses need to realize that controversies are a part of Six Sigma implementations and that they do not need to get hyperactive when faced with any of the common controversies stated above. The only thing that needs to be done is to analyze the controversy logically, find the underlying reasons, and solve them accordingly so that the implementation are properly completed within the stipulated timeframe.

Tony Jacowski is a quality analyst for The MBA Journal. Aveta Solution’s Six Sigma Online offers online six sigma training and certification classes for lean six sigma, black belts, green belts, and yellow belts.

Six Sigma Technology Online

Six Sigma quality improvement concepts and methodologies were originally devised for use in the manufacturing sector but with the development of newer technologies, it is now increasingly being implemented in the services sector as well.

The basic aim of Six Sigma implementation projects is to reduce wastage of scarce resources by reducing the number of defects to less than 3.4 per million opportunities that exist for such defects to occur. These quality improvement techniques provide accurate results because they make use of statistical analysis tools. These tools are quite effective when it comes to reducing variations in a product or service.

Why Online Training

Six Sigma projects are normally implemented under the supervision of certified professionals such as Green Belts, Black Belts, and Master Black Belts. The services of these professionals are necessary for ensuring that the implementation is completed within the planned schedule and within allocated costs. The only problem is that these professionals often charge hefty amounts as fees, which may not sometimes be too costly for a company. The best option then is to train existing employees so that they can get the requisite certification and in-depth knowledge about Six Sigma concepts and methodologies.

However, enrolling employees for a regular course is not recommended because the costs can be quite high. Another thing is that in regular courses, employees will have to attend regular courses, which will result in wastage of precious productive time. The best option is to provide online training that offers the same level of certification such as Green Belts and Black Belts. Since Six Sigma is currently the highest quality standard, it is always better to opt for reputed online training courses. It would be better if the online training course is nationally recognized and is designed to cater to different types of professionals such as engineers, technical managers, and analysts. Skills developed through the training program will then help these professionals in reducing defects in manufacturing, developing and in providing services.

What To Look For In An Online Six Sigma Course

Six Sigma online courses are selected according to the level of training a company is aiming to provide to its employees. However, it is always better to opt for an all-inclusive online course that covers most of the operations related aspects of a business such as general management, design, production, services, and even customer satisfaction.

The course should also include an introduction to Total Quality Management (TQM), leadership issues in organizations, project handling skills, quality improvement processes, use of statistical tools such as diagrams and charts, and other related topics. Such a course will empower the employees with specialized knowledge and skills that will help them during project implementations.

Online courses for existing employees are increasingly being preferred because companies do not have to spend top dollar for the training. Another reason is that by training their employees, companies are now able to harness their existing talent pool and reduce their dependence on the services of Six Sigma professionals. All these factors indicate that the future certainly belongs to online training.

Tony Jacowski is a quality analyst for The MBA Journal. Aveta Solution’s Six Sigma Online offers online six sigma training and certification classes for lean six sigma, black belts, green belts, and yellow belts.

Guide To Outsourcing

Those who are considering outsourcing portions of work for the first time may be feeling overwhelmed and hesitant about the concept of relying on someone outside the company to complete work related tasks. The discomfort with deciding whether or not to outsource work stems largely from ignorance about the process of outsourcing.

This article will serve as a guide to those who are considering outsourcing for the first time and will provide information on how to select qualified candidates, establish project requirements and enforce a deadline for project completion.

Select Qualified Candidates Carefully

One way to greatly simplify the process of outsourcing is to give special consideration to selecting a qualified candidate to complete the outsourced tasks. This is important because outsourcing the project to an individual who is qualified to complete the tasks and motivated to do a good job will make the outsourcing endeavor more likely to be successful.

To find the right candidate for the job, place advertisements outlining the project requirements and preferences and carefully review each application which is submitted. Immediately disregard applicants who are not qualified for the position.

Then review the applications of qualified candidates carefully and select a small group of the most promising candidates. Next interview each of these candidates and verify their references and passed work experiences to learn more about these candidates and their abilities and work ethics.

After interviewing these candidates it is time to make a decision regarding hiring one of the final candidates. Do not be discouraged if none of the final candidates seemed right for the job because you are under no obligation to hire any of them. You can continue your search for a qualified candidate by placing your job advertisement again and soliciting new responses.

Establish Definite Requirements

When outsourcing a project or tasks, it is important to clearly define the project requirements. This is critical because it is important for the contractor to fully understand the tasks which are being outsourced to ensure he is fulfilling all of the requirements and completing the task in a satisfactory manner.

Failure to establish definite project requirements and goals can lead to a great deal of problems when outsourcing a project. The contractor may feel as though he has completed the project as it was outlined but the employer may disagree.

When this happens there can be harmful delays until the issues can be resolved amicably. In the case that this is not possible it might be necessary to employ the assistance of a mediator to evaluate the contract documents and the work produced to determine if the contract terms were met.

Establish a Firm Deadline

Another important element of outsourcing is establishing a firm deadline for the project. This is important to avoid misunderstandings and to prevent late submissions of work. Setting milestone goals is also important because it gives the employer the ability to evaluate the progress of the contractor during different stages of the project and to ensure it is proceeding according to schedule.

Ideally the deadline should be established before the candidate is chosen. This is important because this enables the employer to verify that the contractor is available for the duration of the project. Schedule should be discussed early in the process of selecting a candidate to avoid selecting an ideal candidate only to find out he is unavailable when his services are required.

Ryan Smith is the owner of MyCirclePal.Com, one of the Net’s hottest community and social neworking sites! Post your free profile today at http://www.mycirclepal.com/

The Waterfalls And Rapids Of IT Projects - Can Project Managers Survive Them?

Even when a good governance structure is in place the structure of an IT project is more important than is often assumed. The structure can make estimating difficult, and make it impossible to deliver whilst retaining the confidence of the management and external stakeholders. Yet the structure is often assumed without proper debate - either with the customer or with the project team.

Many organisations and project managers still like to use the so called ‘waterfall’ method of controlling IT projects, because they believe it gives them greater commercial control, and allows fixed cost projects. This method splits up the total project into a series of logical steps :
- Work out what items should be done
- Estimate what these will cost.
- Agree these definitions and costs.
- Undertake formal design.
- Build the items.
- Test the items.
- Deploy and use the items.

The waterfall method can appear to offer a clear logical path from inception through to completion. The commercial control supposedly occurs because the facts are determined before agreement is reached, thereby allowing the following steps to be controlled within an agreed financial framework.

If the project uses ‘well known’ technology or is very similar to previous projects then the waterfall method can be successfully used. Where there is a substantial part that is new, or uncertain some serious issues exist with this approach.

In some cases the proportion of the total project costs and time that need to be spent before sufficiently precise estimates are generated can be substantial. Clients and suppliers can disagree whether this should this be free or paid for. In many cases a messy compromise is arrived at where the costs of the business analysis and estimation will be paid for ( or at least negotiated about ) after it is decided whether the project is to be accepted.

In other cases it isn’t certain that people are good at thinking through complex systems with sufficient accuracy to make the design ‘fit for purpose’, prior to some good ‘proofs of concept’.

Quite apart from the difficulty of identifying the ‘facts’; the fixing of features up front can lead to an 80/20 split where 80% of the costs produce 20% of the benefits and vice versa. This should give most clients cause for concern.

There can also be significant change in the business requirements during a project of 2 or 3 years duration. This has encouraged the move to Rapid Application Development ( RAD )

Good estimates are difficult
It is difficult to produce good estimates. Increasing the granularity can lead to estimating safety margins being accumulated ( if say the minimum estimating unit is 1 day - then something that took 1 hour would be recorded as 1 day giving a 7 hour accumulation per task of this length).

Estimates need to be distinguished from use of historical data to give timings. But the latter need to be very carefully annotated and used to ensure they are being used properly.

Perhaps the thought that ‘estimation should be democratically controlled, and execution involve authoritarian methods rather than as often happens the other way around’; is one of the most useful maxims here.

Acceptance of the facts
It is very difficult to know the extent to which the ultimate customer actually has bought into the design and estimates being produced. There may in fact be no acceptance other than of ‘that is the way our supplier chooses to do things’ giving the opportunity for later disputes.

In some projects it can be very difficult to establish who is entitled to sign off documents as correct on behalf of the organisation. This makes any approach other than time and materials problematic.

Rapid Application Development ( RAD )
Rapid development techniques are now accepted in many cases. These methods involve using a number of iterative prototypes are built to give the customer greater control over the finished result. Thus the analysis, design, build and test sequences of the whole project is split into a number of successive cycles.

There are, however, unanswered questions about the range of IT projects for which RAD is suitable, and issues about whether all of the suggested elements of RAD are as important as one another. For instance some approaches time box 3 to 6 week periods, whilst others simply allow incremental delivery over a number of months. Yet others regard the complete incorporation of automated unit testing into the coding ( build ) stage as perhaps the most important contribution.

There are numerous variations on RAD, including pairing - where two programmers work together with one writing tests and the other writing code to satisfy those tests. There is still a real need however to prioritise the efforts.

Some of the serious criticisms of RAD are that it can allow scope creep, lack of rigour, and cost overruns. It can be particularly difficult to stop ‘gold plating’ on particular easily understood elements (e.g. the user interface) at the expense of underlying functions that are more complex and less easily explained or understood by business people ( when the latter are involved in the assessment of each iteration ).

Here again, therefore, we encounter evidence that the structure of the project can have substantial impact on the viability of the development.

There are a number of problems therefore with both traditional and RAD methods of controlling custom and or complex IT projects. Many projects would be improved if expert help and more time were spent restructuring the project at the start to help the IT supplier clarify the design choices and the IT client clarify the business requirements. Whilst this does involve an explicit acceptance that money will be spent ‘investigating’ and ‘researching’; this is actually nothing more than bringing present good practice out into the open.

Vernon Riley is a senior consultant who understands both project management and technology. He has 20 years experience of major IT projects, and the difficulties of delivering complex projects. He can be contacted via Kutchka

Do You Want To Discover The Truth About Your Projects ?

The different types of project review each have their own characteristics and benefits. For any review however it is important to decide what the overall purpose is, and who should gain what from the output. This step is missed out in many cases and the design of the review is not given sufficient attention. Standard methodologies for carrying out project reviews can be helpful, but must be supplemented by intelligent thought! In the author’s experience a review should consider both the project management standards and the subject matter of the project. Mistakes in either or both of these can lead to disaster, and it can take considerable skill and knowledge to uncover the truth.

If you are responsible for a project’s success then you need the truth, and you are responsible for setting the principles and scope that will govern how effective the review will be in uncovering that truth. In particular you need to pick the reviewer so that you understand what bias is likely to be reflected in the results. Bias can arise from background, review methodology or political interests; and may not be intentional.

Bias due to interests
The review may been commissioned, designed or just operated by people who wish to prove certain results and disprove others. It may be that some wish to prove a particular methodology works, and therefore the review concentrates on the extent to which that methodology has been completely and fully employed. This may be completely different from assessing whether the project itself is likely to succeed or fail. The Prince2 manual for instance has a comprehensive healthcheck. This will check for the complete use of Prince2 but the questions are mostly of the ‘is there…item X’ type, and there are very few questions asking about the quality of any of the items whose existence is being checked. Jobs and career progress may be at stake and informal alliances may be formed to ensure that the “correct results” are obtained by the review.

Bias due to role
The UK government OGC gateway review is an externally focused health check which concentrates on the extent to which the project is still required and could deliver the benefits sought by stakeholders. It is also quite reasonably designed to protect a purchaser ( because the UK government almost always has this role ), rather than the creator or supplier of the project. This affects the questions and can lead to a situation in which the project is affirmed as meeting all the criteria for the purchaser but is doomed as a result of events being suffered by the supplier ( e.g. commercial losses, staff turnover etc. )

Bias due to reviewer’s background
There can be subtle issues arising from the background of those carrying out the project review. Some reviewers will be much more technologists than project managers, whilst others will be the reverse. Although it makes competent practitioners much harder to find there is a good case for insisting on both sets of skills.

Bias due to distance
Reviews are sometimes undertaken by those who inhabit a management world of reports. If they then communicate with project managers and others who are somewhat distant from the actual tasks then the overall effect may be that the blind are leading the blind. Remember that real people, somewhere, should be actually doing the work to deliver the tasks required by the project. A competent reviewer needs to find them, understand them and discover what they think. This necessitates not only people and managerial skills but also some understanding of the skills employed by the project staff.

Checklists
These are useful for ensuring appropriate coverage but it is equally important that the reviewer can think freely and explore the implications of the information that the project team give. This information is normally messy and ill organised. Coherent results pointing in a single direction are unlikely and the reviewer needs to be able to cope with

So what should the balance be ?
Project Management skills in medium or large projects are certainly critical as the need to be organised is a critical success factor. ‘Ready aim fire’ expresses the simple truth that without those competent to first aim the project team members in the correct direction there is little chance of the target being hit. It is important that clear business justification and rules for project control are created and maintained during the life of the project. Appropriate risk management and planning are also vital to enable the overall project to achieve its intended results.

That the reviewer also possesses a reasonable level of subject related understanding is also critical so that those who are undertaking the work can be questioned rigorously about the quality and assumptions underlying the work they are undertaking. This isn’t about the facility to do the work, but the ability to discuss designs, build dependencies, test conditions and the like in the detail that will establish whether the sequence of work intended is viable.

Reviews can be very important, but deciding who should carry them out, and how they should be undertaken is not simple. The most important determinant of success is your choice of reviewer.

Vernon Riley reviews IT projects as a project manager and technical consultant. He has 20 years experience of major IT projects, and the difficulties of delivering complex projects. Visit
Kutchka to find out more.

The Best Way To Create Product Specifications

When a business plan to have a product and decide to outsource the activity the big mistake is not to have a contract in place with the supplier and good product specifications.

The product specifications should, or better let’s say, must be an annex to the contract or agreement: black on white!

Many people have no or do not want to spend the necessary time to have a good start when outsourcing a task. This is really the most important part of a project, the product development phase. Everything depends on this phase.

In your product specifications you should have made a list of the features and all the functions your product should be characterized of. At this aim you should know well your product before it really exists. You should have an expert managing this activity and provide these descriptions.

The best way to start a product specification is to perform a product break down structure. You try to split your product in all its parts. Then you need to describe all their parts. As a consequence you have your feature lists.

Then you should provide a description of each feature and what its functions are. If you define all the functions for each feature you are starting to create the product specifications. The supplier has no doubt about what that product should be designed for.

Try then to split your product according to the functionalities it has to guarantee. This is a work breakdown structure. In this way you may see that a particular functionality is achieved through the combination of the actions of more than one of the product features. If the functionality is achieved through one feature then you are almost close to the product breakdown structure.

Now organize your product specification document in two sections. In the first section provide the feature list. In the second one provide a list of all the functionalities that must be guaranteed in the product. You can collect this information from the description of each feature and from the work breakdown structure.

For each feature in the feature list provide the characteristics they should have (e.g. if one feature is the current consumption of an electronic device then you should mention what the current intensity should be). In other words provide the values of the parameters, if we call in this way your product features.You should then provide a full description of the process related to each feature. Specify the inputs and the outputs for that functionality and a description of the process. For example if we are talking about a software tool and mentioning the registration of an user the inputs are the user’s data, the output is the generation of an account (storage of a record into a database) and the process is related to the creation of the account (insert into a database and forwarding of the data to the user).

You should also mention all the particular cases and exception. Do not leave anything as granted.

If you do not create a good product specification document and you have problem with your supplier, he/she will always be right. In fact you could have missed out what you wanted to be satisfied.
This is the only way to have an efficient product development, reducing mistakes, risks, wrong functionalities.

Find out how Business Management ideas applied to Internet Marketing make companies become more professional at http://www.davincistrategylab.com.

How to Choose a Six Sigma Black Belt Project

Selecting the most appropriate Six Sigma Black Belt project is the most common problem faced by students who enroll themselves in a Six Sigma training course. The project is necessary as it helps students learn the practical aspects of Six Sigma implementation programs. The project is conducted either before the commencement of the training program or during the first week.

Identifying A Problem

Before starting a project, students first need to identify a problem, similar to real life implementation problems faced by business organizations. The problem that is identified and its possible solutions form the base of the project. For ensuring the successful completion of the project, students need to select a problem about which they have a basic level of understanding. Selecting a complex problem based on a case study published in a management journal is not recommended, as the project requires students to practically solve a given problem.

The information given in the management journal will only help students in preparing the project report and not in evolving practical solutions to the problem, which students will have to do on their own. The main reason why use of case studies are not recommended is that the resources that might have been used in solving the real life problem may not be the same as provided by the organization where students are receiving their training. Training instructors also encourage students to opt for a project that is relevant to their domain or qualifications.

Select Manageable Projects

Every Six Sigma Black Belt project needs to have a defined objective. Many students make the mistake of opting for a project having multiple objectives, which is often not achievable within the stipulated timeframe. Even after giving it their best shot, most of these students are often unable to make progress in their quality improvement projects. The only option left for these students is to either reduce the scope of their project objectives or opt for a completely new project, which will mean more hard work and time. In most cases, these students opt for the first alternative in order to allot adequate time to theoretical training as well.

No doubt, there are students who have completed even the most complex projects, but going by statistics, the number of failed attempts is a lot higher than the number of successful attempts. Students who are not sure of their abilities should not try to achieve everything at the first go. Instead, they should try to concentrate more on learning the basics involved in Six Sigma programs. There will be plenty of time in their professional career for solving the most complex of Six Sigma implementation problems in an organization.

During the course of the project, the primary objective of students should be to develop insights, which will help them a lot when they become true professional after the completion of the training program. Concentrating their efforts just on achieving the objectives may not help them, as by doing so, they are most likely to miss the basics of Six Sigma. The scope of objectives in a Six Sigma Black Belt project does not matter as long as students are able to develop a thorough understanding of their individual projects and are able to assess the impact it will have on the quality of the outcome.

Tony Jacowski is a quality analyst for The MBA Journal. Aveta Solution’s Six Sigma Online offers online six sigma training and certification classes for lean six sigma, black belts, green belts, and yellow belts.

Why Six Sigma?

The advantages of Six Sigma do not exactly lie in huge cost benefits that can be realized by its implementation. The glaring examples of many corporations having saved billions of dollars are true benefits but the intangible results, such as having met the expectations of customers, and being able to improve employee relations are also paramount. Because some corporations have experienced its failure to meet stated goals, some critics often raise questions about the feasibility of implementing Six Sigma, while still others are dismissing it plainly.

Benefits of Six Sigma

Obviously, in almost all cases, the reasons for Six Sigma failure have been external factors such as wrong or misguided selection of the tools, lack of application and lack of support from upper management. It is important to keep in mind that the successful implementation of Six Sigma requires a top down approach and perseverance throughout. Also important to the process is proper and thorough Six Sigma training.

Six Sigma Is All About Eradicating Business Problems.

Problem solving involves rational thinking. Somehow, companies always found themselves compromising quality with problem solving, which is the main reason why companies decide to implement Six Sigma and support Six Sigma training.

The top-down approach of Six Sigma requires dedication and application at all levels of the organization and on a continuous basis. The statistical methodology of Six Sigma sheds light on existing flaws and their causes after thorough analysis. Emphasis is placed on experimentation following analysis and redefining the processes and their goals. This is unlike other quality assurance methodologies. The benefits of supporting Six Sigma training for company professionals are apparent.

Financial Benefits: Cash flow increases due to creation of additional revenue. Through this process although cost decreases and increased profitability can be seen. It is important that all professionals involved in Six Sigma implementation have proper Six Sigma training. Although Six Sigma training is relatively expensive, the financial benefits of supporting it greatly outweigh the upfront costs.

Operational Benefits Of Six Sigma Training: employee satisfaction due to improvement
in work flow, reduction in process times and steps, better usage of work space, etc. result from implementation of Six Sigma. One major operational reason for choosing Six Sigma is its success in waste reduction and redundancy. Waste reduction is measured in terms of improving time, product movement and decreasing material consumption.

Conceptually, the benefits of implementation of Six Sigma emerge from breaking the
mindset that product processes are invariable. Benefits also emerge as a result of interconnected activities. The result of this methodical approach to quality management is evidenced by reduced fluctuations in processes. Stability of this kind triggers a series of positive chain reactions within organizations.

Success stories of Six Sigma training are evident in all fields of business. Since Six Sigma methodology encompasses the entire process of doing business, it is likely to show a flaw here or there, such as companies that embraced Six Sigma have found out. Howsoever small in number the failures may be, they are all due to differing reasons. However, any negative results can probably be traced back to either improper implementation or incomplete Six Sigma training.

Tony Jacowski is a quality analyst for The MBA Journal. Aveta Solutions - Six Sigma Online offers online six sigma training and certification classes for lean six sigma, black belts, green belts, and yellow belts.

Six Sigma and Upper Management

The one ultimate reward that counts for any business organization is improvement of bottom line profitability and the return of satisfied customers. This end result must justify all the initiatives taken by upper management. Upper management utilizes a tool called “cost of poor quality (or “COPQ”) as a barometer for evaluating six sigma projects. Apparently, it is the only way to get upper management to accept six sigma. The upper echelons of corporations have come to realize the importance of six sigma for its tangible economic benefits.

understand the value of upper management support for quality/process improvement top down fully, when you learn that management does not realize the importance of investing that extra time and money in quality improvement or lacks the commitment. Let’s be straight forward, this scenario is not uncommon. Six sigma has such lasting power and broad scope that transcend departments and exposes the need (though not always) for change in organizational structure. Both of these would be hard battles to fight unless strong management support was present. Resistance of this type could be due to organizational inertia, or it could also be intentional.

Six sigma calls for long haul, complete and in depth implementation, which is definitely not for the faint of heart. It is possible only if your organization has 100% commitment from top management. This is why experts place blame on upper management for the failure of six sigma. Only continuous, rock solid support, monitoring and encouragement from the top brass only can prevent the failure of six sigma. Straightforward intentions for implementation should come from a customer centric viewpoint and a desire to produce quality services/products.

The continuity of the program requires undivided and dedicated monitory support until the end of the project. Upper management identifies the need, sets the ball in motion and provides continuous support (managerial and financial), which is the lifeline for the success of six sigma implementation. If these elements are not present, achieving the stated goals over a long period of time become difficult, if not impossible. One initial green light from management will not suffice; it takes continued commitment and engagement to inspire and motivate the people involved until the end.

Six sigma is a complete quality management and turn around system. As such, it identifies organizational shortcomings, wherever there are. With upper management on board, implementation stages can be monitored; midway course corrections can be suggested and any possible roadblocks at various steps of implementation can be overcome. As you can see, six sigma can be successfully implemented with the commitment of complete organizational support.

What upper management needs to understand is that six sigma is a widespread and far- reaching quality improvement program where it has to play a critical role in order to see ultimate business goals succeed. Although the various ‘belts’ implement six sigma, they are selected, trained and motivated by top management for the implementation of six sigma methodology. The upper management until the very end must support them. Only in this way can six sigma bring about significant and long lasting results to the organization.

Tony Jacowski is a quality analyst for The MBA Journal. Aveta Solution’s Six Sigma Online offers online six sigma training and certification classes for lean six sigma, black belts, green belts, and yellow belts.

Six Sigma Core Concepts

By definition, Six Sigma is a series of systems of metrics that are used to measure defects and improve quality by application of a methodology to reduce defect levels to under 3.4 instances per million. Six Sigma is a trademark of Motorola that, by its implementation, saved the company some $17 billion. It has so much evolved and come of age that comparison with the original process is hardly possible. Fundamentally, Six Sigma manages process variations that cause defects and systematically and statistically tackles the unacceptable deviations from the defined standards and works towards eliminating defect incidences.

Core Concepts Of Six Sigma

By and large, customers don’t judge a product by averages like performance but by what they actually get out of each product. Overall customer satisfaction rests heavily on the consistency with which the products are delivered. This is a result of the combination of reduced process variation and improved process capability.

The Core Concept Of Six Sigma

Today Six Sigma core concepts concentrate around defects and process variations. Defects are measured by metrics known as DPMO, defects per million opportunities. We can think of defects as offsets from the standard. Nothing is subjective, as all parameters are quantifiable. Basic measurable dimensions include time/delivery, cost/price, quality etc. In industry jargon these are called Critical to Delivery (CTD), Critical to Price (CTP) and Critical to Quality (CTQ), respectively. Each of these has a different significance to different industries, which needs to be identified before embarking on Six Sigma implementation.

What comes under the microscope next is the measurement system. Common sense tells us that a little element of subjectivity is present in all man-made measurements. For example, the some singers may be marginally better than others. A group of observers will score each singer a little differently, even if standards for performance have been established. Thus the criteria for an individual’s passing or failing is purely subjective, exposing the chinks in the measurement system. It is this way with companies’ relationships with customers as well.

Process Variability is the second Six Sigma core concept. The more variability in a process the larger the probability for a defect somewhere. At the heart of this concept is elimination of variation of process for defect removal. For example, if a carriage takes 40 minutes to transport a 5-ton load a distance of 10 miles at 99.9997% defect free Six Sigma, a four sigma will take 45 minutes to cover the same distance per same load but at 99.94% defect free. It might appear that 99.94% is quite good - if this is your conclusion, you will need to think again. Taking Six Sigma concepts into account, this equals a 20% defect in the product, which passes on to the customer.

The concept of Six Sigma is to improve the existing methodology or create a new, defect- free methodology for production. This is achieved through a methodology known as DMAIC, which is an acronym for Define opportunities, Measure performance, Analyze opportunity, Improve performance, Control performance. DFSS is the design for Six Sigma principles. Black and green belts evaluate the whole system and various fixes are chosen to be implemented.

Tony Jacowski is a quality analyst for The MBA Journal. Aveta Solution’s Six Sigma Online offers online six sigma training and certification classes for lean six sigma, black belts, green belts, and yellow belts.

Six Sigma and Statistical Methods

Six Sigma methodologies use statistical tools used to transform raw data into information. Based on the results, further actions are taken. Statistical tools and related aspects of Six Sigma methodology comprises about half of Six Sigma. In addition, Six Sigma places a lot of emphasis on graphical interpretation of data collected during the course of measurements.

The importance of statistical methods emanate from the fact that many hypotheses can be disproved with sufficient statistical data. The significance of statistical methods in Six Sigma increases with any increase in sample sizes. The statistical methods quantitatively facilitate evaluation of the performance of any process. The purpose of this being to tackle the cost of poor quality (COPQ) first, Six Sigma has a broader scope than the traditional cost effectiveness model.

Some Important Statistical Methods In Six Sigma

Variations in processes are measured in terms of deviation from the mean and data falling within the acceptable statistical limits. Graphical representation of this data helps companies to visualize things with greater accuracy. Let us examine a few of the most commonly used Six Sigma statistical methods.

Control Chart

The deviations within the acceptable limits (upper & lower) are due to common causes. Anything falling beyond the limits is attributable to some specific cause. For example, take the case of writing your name ten times. Although there are similarities, you probably won’t be able to find any two signatures being exactly the same. The reason is an inherent variation that produces reasonable results within limits and is termed as ‘common cause’. Special causes are those due to forced errors. A control chart has a mathematical mean line in the center and two limit lines. The third component of the Six Sigma control chart is the performance data, which is plotted over time.

You can seek special causes and track common ones through control charts by looking for:

Six Sigma Champions & Master Black Belts

The responsibility of developing a Six Sigma company successfully rests as much on Champions & Master Black Belts as it does on Black Belts and Green Belts. But the importance of their roles in the implementation can’t be understated, as the necessary contribution from them is substantial. A Champion is a leader bestowed with authority and the huge responsibility of overseeing the smooth and complete implementation of Six Sigma.

If someone were to explain the role of champions in one breath, it would be that of removing roadblocks. Roadblocks can be sticky issues that Black Belts alone can’t handle. Champions are looked up to for diffusing cross-territorial issues between black belts and upper management in the company through pacifying and mediation. They relieve black belts to focus on the problems on hand.

A Champion’s Role Can Be Summarized Into Four Areas:

These four points underline the position and character of champions in a Six Sigma organization.

1. Their familiarity with the entire business and operational areas but without the interfering in the day-to-day operations with the black belts. This provides them with an opportunity to focus on potential improvements.

2. Project selection, which usually comes under a microscope following reports to top management - this sometimes causes career-limiting fears in champions. Driving out this fear takes effort at both the ends with top managers being ‘educated’ by Six Sigma providers/consultants. The project selection element is crucial and alignment of interests with the needs of management has to be explained in the proper perspective beforehand.

3. Deployment of the program. The importance of this point arises because of the need for financial decision making. The Six Sigma provider, whether he is interested in the success of implementation or primarily concerned in improving financials, is pivotal to the success of the program. Even before the results begin to align with expectations of upper management, it can come under fire.

4. The accountability question; failures are most often attributed to champions. It is often said that “there are no such things as unsuccessful Black Belts, just unsuccessful champions”. This should highlight the importance of their unenviable position.

Master Black Belts

There are no universal definitions or training manual for Master Black Belts until they differentiate themselves from Black Belts by exhibiting extraordinary abilities and a high degree of propensity for problem solving. They are often devoted to working hard and are self-starters & self-reliant. They could, with some additional Six Sigma training intended to broaden the Black Belts’ skills, be prepared for assuming a position where they are able to achieve higher goals and face bigger challenges. The strategy of the mass Six Sigma training of Black Belts will not succeed even if a small percentage of them were to pass Six Sigma training unless they demonstrate that they are able to solve complex problems well. The ease with which they handle crises must indicate their affinity to take on more responsibilities as a fundamental qualification.

Implementation of Six Sigma is more than just having the skills and knowledge of implementation tools. It is the exuberance and the fire to excel that counts in addition to the all-important drive for quality.

Tony Jacowski is a quality analyst for The MBA Journal. Aveta Solution’s Six Sigma Online offers online six sigma training and certification classes for lean six sigma, black belts, green belts, and yellow belts.

Six Sigma & Strategic Planning

Strategic planning, as applied to Six Sigma, implies that the drawing down of elaborate and systematic planning of areas of concerns that have far-reaching and tactical implications at the project selection stage. The purpose of strategic planning is to have produced fundamental decisions and actions that guide successful Six Sigma implementation.

An Overview Of Strategic Six Sigma

Many CEOs are skeptical about the outcome of Six Sigma, despite huge annual spending. A critical component which helps integrate the visions of the leader with the functioning of the organization is strategic programming derived from “strategy deployment mapping”. This is said to produce an entirely new direction for the organization. The skepticism about the vision of building a future begins to gain momentum with the linking of visions to action plans and when it delivers tangible results. Six Sigma takes strategic planning to a different plane of thinking by delivering on this promise.

Success Begins With Planning

It should not be forgotten that the foundation for success is proper and adequate planning. Planning is the elaborate statement of vision by the leader of the company. This is true for both large corporations and smaller start-ups. The core of transforming organizational vision into tangible gains by employees has many steps to overcome obstacles on the path to achievement. Achievements will have to be translated to customer satisfaction for Six Sigma to be successful.

Sharing Of Vision

The vision which begins its journey with upper management needs to be shared by all the stakeholders. It may be difficult to demonstrate to employees that their actions relate to customer reactions directly. Another missing link that needs to be connected is the customer himself. The emphasis of Six Sigma is on factoring in customers & engaging them in defining needs. Deploying employees actively connects these disjointed needs. The powerful tools of Six Sigma highlight and simplifies the linkage between key elements, activities, strategies and finally the vision, paving way for smooth sharing of ideas. The methodology of Six Sigma communicates company vision effectively to all concerned in a language understandable by each of them.

Critical Mass

There is also a danger of leaders getting bogged down by trivial matters of day-to-day operations and numerous details. Two of the tools of Six Sigma (metrics), key requirements and differentiators, come to the rescue. These two metrics highlight the importance or irrelevance of some data and push for excellence on those that matter. The end result is helping leaders to envision the strategic importance of activities and steering clear of trivial, mundane things.

Deployment of Six Sigma can’t be disconnected from strategic planning and financial activities, either. If the decision to implement Six Sigma is a result of strategic planning, it means the leadership has recognized the need for complete retooling of the organization, no matter what phase it is in.

Tony Jacowski is a quality analyst for The MBA Journal. Aveta Solution’s Six Sigma Online offers online six sigma training and certification classes for lean six sigma, black belts, green belts, and yellow belts.

Is Six Sigma Quality Worth The Price to Your Business?

The last few years have done wonders for demonstrating the power and potential offered by Six Sigma Quality, Motorola’s now famous revolutionary business design strategy.

It is clear that it has become quite popular among many businesses who have undertaken the massive re-training and re-thinking of their policies and procedures in order to implement the whole new Six Sigma Quality way of functioning. What may be unclear to you is whether or not this sacrifice is worth it to your business. After all, it does take a great deal of time, effort, and often money in order to properly take on this new way of doing business.

The main issue that seems to be debated among businesspeople considering the implementation of Six Sigma Quality isn’t whether or not it will work for them, but is rather whether it is a true long-term strategy or simply a fad that will soon be forgotten by those who did not use it, and loathed by those who made the change.

To assuage those fears, it is important to recognize that Six Sigma Quality is not like other business processes and strategies. In fact, when you really get down to it, it isn’t truly anything new. What it is, is a capable, practical, and logical combination of many existing business and quality techniques that have withstood the test of time and shown themselves to be the leading methods for success. When properly combined, they become a new way of thinking, using existing individual elements whose structure and discipline have proven to obtain extremely desirable results.

Naturally, this is not to say that employing Six Sigma Quality will guarantee success for any business, however, when properly implemented with black belt training Six Sigma Quality has an exemplary track record for effective project resolutions in large and small companies alike.

If you are considering Six Sigma Quality for your business, you need to understand that it is not an easy or overnight implementation. It can be quite lengthy, but is considered by most to be well worth the effort once everything is in place and its potential starts to show its face. You’ll add value to your existing initiatives with the knowledge that all of the necessary steps are in place for your business to reach its financial targets.

In the end, it is your decision to make. Six Sigma Quality is, after all, an extremely large step for a company to take, and only you know how, when, if, and in what way your business may adopt it. Your first step is to read as much as you can about Six Sigma - including information both for and against it - and to speak to a professional you trust to give you an honest opinion.

Tony Jacowski is a quality analyst for The MBA Journal. Aveta Solution’s Six Sigma Online offers online six sigma training and certification classes for lean six sigma, black belts, green belts, and yellow belts.

The Six Sigma Process isn’t Just for Big Businesses

Many small and mid-sized business owners are under the impression that the Six Sigma Process is not for them as it has a reputation to cost a prohibitive amount of money for companies of their size. Though this was true when the original Six Sigma Process came to be, as it continues to grow and evolve, many smaller companies are now quite capable of affording to implement the latest development of its strategy.

This more affordable Six Sigma Process is commonly called Generation III. It has been developed specifically for small to mid-sized companies who are seeking to improve their profitability through performance. Its affordability has been made possible by way of the internet which now offers online training technology, as well as new smaller-scale “live” training options for reducing training expenses.

Naturally, there are a few differences between the original, Generation I Six Sigma Process and the new Generation III for small and mid-sized businesses, however, this is what makes it so beneficial to these smaller businesses - it functions with them in mind. Primarily, these differences are made up of the following:

Six Sigma - Business Realities

There are criticisms about Six Sigma which say that the methodology is an elitist technique. Through all this, Six Sigma has proven itself to be a highly effective management tool. Most of the incidences of roadblocks to Six Sigma have come from external sources. In the rare events of its failures, they are ultimately determined to have been caused by improper training of belts or Master Black Belts, not because of system errors.

How the Business World Looks at Six Sigma

Six Sigma is looked upon as a strategic business tool in the business circles, notwithstanding what others would like to think. However, it is regarded as the ultimate tool of improvement and profitability, able to both meet and exceed customer expectations and increase customer satisfaction levels.

Factors That Determine Six Sigma’s Success

Typically Six Sigma’s success depends a lot on two things. They are the steadfast commitment by top management to implementation and the success of the black belts as implementers.

The commitment of the top management is necessary until the completion of the program. The reasons cited for the lack of interest by management are basically financially oriented. Hefty consultation fees in millions of dollars that run for years and the training cost for the belts are the main reason - because Six Sigma takes time to implement, to show results and impact return on investment, the expenses incurred in Six Sigma implementation bears heavily on the bottom line of the company.

In addition to these reasons, there are roadblocks hit by black belts. These require intervention by Champions to diffuse tensions and resolve problems in implementation. These problems can be in the form of non-cooperation from a specific business division. Competition between divisions in the company can cause a few sparks to fly. In cases like these, upper management needs to take quick and decisive action to diffuse the tensions. If this fails, it can result in lack of motivation of the team.

The question on whether or not the belts succeed depends a lot on the training and their experiences. But unfortunately there is a big gap here as there is no centralized training or and no standardization. Universities, private institutes and corporations train Six Sigma candidates. Due to this, it is observed that there is a big question mark over the quality of training. Belts from different training backgrounds can fail to make a solid team, as there are chinks in Six Sigma training uniformity due to disparities in training levels.

Summarized View

You can summarize the business realities faced by Six Sigma as follows:
1. Huge cost and time required for implementation

2. Slow showing of financial benefits and customer satisfaction

3. Possibility of management losing interest midway

4. High cost of consultants

5. Skirmishes between the belts and the rest of
the staff threatening team cohesiveness

6. Elitist notion of 6 sigma professionals; income disparities with the staff demotivate the latter

7. Financial benefit: 0.5% to 1% per project

Tony Jacowski is a quality analyst for The MBA Journal. Aveta Solution’s Six Sigma Online offers online six sigma training and certification classes for lean six sigma, black belts, green belts, and yellow belts.

What Can An MBA Do For Your Career?

It is not enough that we do our best; sometimes we have to do what is required - Sir Winston Churchill.

An MBA helps you acquire the broadest range of people skills and a perfected set of proven management skills in addition to helping you develop your thought processes. An MBA also prepares you for positions of leadership. Simply put, an MBA helps you become a leader with appropriate leadership tool set. Once you get these things under your belt, which is the essence of getting an MBA, the things such as making the “right career move” and “achieving your goals” all fall into their logical place.

What Does An MBA Teach You?

An MBA helps you by broadening your educational horizons. As an MBA you are looked upon to lead teams and carry out the goals of an organization. MBA’s are routinely called upon to implement tasks that require both strong leadership skills and vision.

1. Personality Development: The general aptitude that one has developed during his or her undergraduate studies will need to be translated into management ability. During the course of MBA studies, students learn various aspects of business activities and the intricate nuances involved.

2. Leadership Ability: Leadership abilities are not limited to those who born leaders. The characteristics of leadership such as composed nature, analytical abilities, an eye for detail and identifying winning strategies are instilled during the course of MBA. A manager is looked upon as a leader having vision and ability to lead from the front and by example. Six Sigma Professionals often have as much, if not more, leadership potential than newly-minted MBA’s.

3. Domain Expertise: An MBA is supposed to be a person of resource. If for example, marketing is your chosen field for MBA, you will deeply study the science of marketing and selling consumer and capital goods. This goal is also achieved by studying the psychology of the market as a whole as well as consumers. As an MBA student, you will also study how to quantify the market, budgeting and how to manage corporate finance.

Characteristics of an MBA

There are several attributes of an MBA. But the critical one which differentiates an MBA (or any good manager, for that matter) from others is the understanding of the difference between choosing a conventional approach and a radical approach, on a case by case basis.
In addition to this, through an MBA you will learn the intricacies of planning, goal setting, and interpersonal skills (being a team player). You will identify the importance of building relationships with your employees; creating a good working environment, developing intuition, commitment and discipline. This list also includes work culture, competence and the ability to delegate tasks.

What Does All This Do For You?

Brainstorming, which is the mainstay MBA training, teaches the techniques of developing great ideas and strategies. But more than that, apart from your academics, you learn composure, empathy and team building skills which are all the qualities of a good manager.
Large corporations are looking for more and more MBAs for their senior positions not because others are incompetent, but because MBAs will have learned things that would take years for others to learn without going through a formal MBA program.

Tony Jacowski is a quality analyst for The MBA Journal. Aveta Solution’s Six Sigma Online offers online six sigma training and certification classes for lean six sigma, black belts, green belts, and yellow belts.

Six Sigma Vs ISO 9000

The debate over whether or not to choose Six Sigma over ISO 9000 is getting more interesting with each passing day. In an attempt to determine which of these is the better of the two, it is highly pertinent to discuss that in the context of applicability of them to industries. And there exists a huge amount of difference between the approaches of these two methodologies in tackling the issues.

Six Sigma - A Critical View

Six Sigma utilizes a multi-faceted approach to doing business with total improvement of the end product being the goal. In doing so, Six Sigma defines and analyzes the processes critically almost always focusing on process improvements. The statistical tools used in Six Sigma help not just in the adoption of processes but are also critical tools of Six Sigma implementation.

Process Development Stages

Let us examine the above statement as applicable to a process for easier understanding. While working on process improvement, the Black Belts break up the original sequence of different events that comprise the entire process and each event is further subdivided internally. This enables the “belts” to take an entirely different view of the process via the entire process as a whole. The powerful statistical tools employed at this stage of evaluation make the picture clearer and help the “belts” to arrive at decisions about the value additions those made to the process by different events.

This principle obviously goes beyond standardizing the processes and setting the pathway for being vigilant about adherence to the Six Sigma methodology. Useless values which have lost meaning make way for more meaningful events and eventually more robust and comprehensive processes. In a Six Sigma environment, customer demands will assume a key role in driving the processes towards aligning all activities with the vision of the leader of the company. The approach is “how to” rather than “what to” deliver.

The ISO 9000 Approach

The ISO approach towards quality management concentrates on standardization of the activities of production. The eight quality principles of ISO 9000, along with its twenty-four requirements outline business processes. The emphasis here is on the control of events in each aspect of doing business by documenting evidence and reports. The eight principles of ISO 9000 include prioritizing customer data, purchasing and quality systems, among other critical aspects. ISO 9000 recognizes each process, whose end goals are the same, as an independent entity. Documented quality requirements typically decide, based on set rules, whether or not a particular process adhered to that standard.

Document and Process Control

Maintenance of quality is achieved by adhering to key process and document control. Operating procedures and process control documents restrict deviations outside the concepts of what you should be doing in every process. What-you-should-be-doing is given emphasis under standard conditions rather than dealing with process improvement.

Stalwarts in industry are examining the possibility of merging the best practices of the two. Several industry leaders have already acknowledged the benefits of using both methodologies to compliment each other. Another view is that, as Six Sigma implementation is what you do within your company (unlike the certification in ISO) the company does not get recognition for achieving successful Six Sigma implementation. However, as long as the culmination of a business activity is defined by both methodologies as retaining and improving the customer base along with maximizing the bottom line, rejection of one in favor of other will be hard to justify.

Tony Jacowski is a quality analyst for The MBA Journal. Aveta Solution’s Six Sigma Online offers online six sigma training and certification classes for lean six sigma, black belts, green belts, and yellow belts.

Six Sigma - The Historical Perspective

The quest for perfection is second only to human survival instincts. These are the two reasons that were solely responsible for civilizations to flourish. That we are wearing clothes today as a symbol of the quest for perfection and innovation should reinforce this statement.

Was There A Conscious Effort To Develop Six Sigma Into A Competitor To Existing Systems?

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The Difference a Holistic Business Approach Makes

A holistic business approach is a relatively new concept that is increasingly being accepted by the business world. To be a business that uses holistic techniques, it means that the entire organization is considered in its processes and policies, as opposed to focusing only on its specific components. By using the holistic approach to running a business, you will make certain that your business is running at its full potential, as opposed to simply having strong areas and weak areas.

Holistic approaches to business, such as the increasingly popular Six Sigma business strategy developed by Motorola, involve the consideration of the entire business situation instead of only a single time or portion of it.

In order to implement such a process, many businesses choose to reach out to professionals for help, with consultants such as the Six Sigma Champions and Black Belts who will help different team members to see the organization in an entirely new light.

This thinking isn’t simply “out of the box”, but instead it believes that it removes the box altogether. In this sense, holistic business strategies allow business people to develop entirely new mindsets and beliefs about their companies and their roles within them. Dramatic improvements are made to help to maximize the potential of the business, and then take full advantage of that potential.

This type of business strategy is considered by many experts to be fundamental to achieving the successes that are desired. To reach the right goals, a proper foundation must be laid, and according to many, this foundation is a strong holistic business strategy.

The training for a holistic business strategy doesn’t involve only a handful of an organization’s team members, but will instead involve the entire team. After all, since the entire basis of a holistic business strategy is that the entire company and its situation must be considered in order to achieve success, this is only possible if the entire staff of the business is functioning on this same level.

If you are curious about implementing a holistic business strategy in your company in order to bring about its full potential, your first step is likely the internet. Have a look at the different holistic options available. Six Sigma is among the most accepted at the moment, but there are many options out there that will allow you to get the most out of your business and have it perform at its highest ability.

Tony Jacowski is a quality analyst for The MBA Journal. Aveta Solution’s Six Sigma Online offers online six sigma training and certification classes for lean six sigma, black belts, green belts, and yellow belts.

The Six Sigma Tool and TQM are Not the Same

Many business people have yet to recognize the difference between the Six Sigma tool and total quality management, also referred to as TQM. Though, at a glance, they do look rather similar, and the Six Sigma tool does indeed employ some of the techniques and strategies that are the foundation for TQM, they remain two entirely separate methods of doing business.

While both the Six Sigma tool and TQM place emphasis on how critical it is to look at a business’ entire support and leadership structure from top to bottom, the similarities don’t go much further than that. It is the focus on quality that causes the confusion between total quality management and the Six Sigma tool. Both approaches to business believe that constantly improving the quality of a business is vital to its continuing success. Furthermore, the Six Sigma tool cycle of define-measure-analyze-improve-control is comparable to the TQM cycle plan-do-study-act.

However, the differences are vast and important between these two strategies. It is these differences that explains why the Six Sigma tool continues to grow in popularity, while the TQM is fading out over time.

Among these differences, management is primary. In contrast with TQM, the Six Sigma tool was not created by people who had very little experience in management, and were therefore only capable of developing a plan that had very broad management guidelines. Instead, the Six Sigma tool was formulated by a group of the most capable CEOs in the United States, who had only business success as their ultimate goal. They worked through all of the tools and techniques know about the business world and incorporated each of the most effective, tried-and-true methods for having businesses operate at their full potential, in a framework that makes it entirely possible.

Therefore, the Six Sigma tool can be seen as a much more holistic approach to doing business. Though loosely based on traditional concepts, it employs those that have been known to work consistently across multiple industries and business sizes. It also focuses not only on the end result, but on the entire business and its processes and policies.

Of course, there are many other differences as well; to be rapidly summed up, the main difference of the Six Sigma tool is its ability to give organization a much clearer path toward success by using its potential to its fullest.

Tony Jacowski is a quality analyst for The MBA Journal. Aveta Solution’s Six Sigma Online offers online six sigma training and certification classes for lean six sigma, black belts, green belts, and yellow belts.

Dynamic Personality Types And Career Choices

Man is so made that he can only find relaxation from one kind of labor by taking up another - Annatole France in The crime of Sylvestre Bonnard.

It is common knowledge that people of different personalities tend to identify themselves with different career or job profiles. Professional satisfaction is predominantly connected to your attitude and your personality traits. Another point you need to keep in mind is the personality types do not have clear-cut boundaries, so it is common that we often see people bordering 2-3 personality types or with overlapped types. This explains why most people change their careers horizontally or change jobs within their chosen career.

Dissecting Two Dynamic Personality Types

General Outlook Of INTJs And ENTJs: To others surrounding these born leaders they may appear unreasonable and arrogant at times. However, INTJs and ENTJs have enviable qualities that brought them to where they are. What separates them from others are qualities like strong intuitive and judging abilities. They stand for the right things and they know when to take action. They are perfectionists and have enormous thinking capacities. They want to measure the world, including themselves, by their own standards. They easily get frustrated by incompetence of others. They want to change the norms of the world. They are the system builders. Six Sigma Master Black Belts come to mind when one thinks of these two dynamic personality types.

What Suits Them: Business Development, CEO, Crisis Management, Economics, Law, Judge, Administrator, Corporate Leader, etc. If you look at these successful professionals, it becomes clear they were not afraid of taking risks and challenges head-on.

How You Can Make A Career Choice

Identifying your career choice depends on your personality type and how you perceive a particular job. Defining your personality is to clearly understand whether or not each aspect of the profession/career you have chosen suits you.

Dissatisfaction in a job, fatigue and the restlessness that you are doing much more/less than what you are capable of resets your career choice automatically. A simple checklist of what a profession entails and whether you like or can handle the responsibilities and main tasks are what should guide you. Consider for a moment what attributes make a dispatch clerk happy doing just the routine thing - it is the contentment, the pull within, the shyness to venture into the unknown, which holds him/her.

Your aptitude for minute details, perfection, compliance and liking for numbers can suit you for an accountant’s job. If you are content doing your assigned job perfectly and punctually without having the responsibility to make decisions, then higher education goals may not be in your plan.

Can You Reset Your Personality Type

To a certain extent, yes! Certain characteristic traits are hereditary so they can only be honed but can’t be entirely changed. Nevertheless, knowledge, skills and motivation can help turn your personality up a notch and open up new opportunities for you.

Tony Jacowski is a quality analyst for The MBA Journal. Aveta Solution’s Six Sigma Online offers online six sigma training and certification classes for lean six sigma, black belts, green belts, and yellow belts.

Balance in Inventory Control

In Inventory control, the fundamental thing is to strike a balance between the questions ‘How little and how much’. Your industry’s basic stock should give a reasonable collection of products and should be enough to fulfill the normal sales demands. If you have just entered into business then you would not have any history of sales or stocking figures to indicate, but you can project such figures based on your business plan.

Basic stock should be calculated based on lead-time, that is, the length of time between reordering and receiving a product. For example, if a product sells 100 units in a week and your lead-time is 5 weeks then you must reorder before the basic stock level falls below 500 units. If you do not reorder until you actually need the stock, you will have to wait 5 weeks without the product.

If your inventory is not sufficient then you can lose sales and cost of back orders is also time consuming. In the midst of production if you run short of raw materials or parts it can be crucial and will increase your operating costs. Labor cost will be higher since your workers would not be working till the stock materials arrive and when they arrive they would have to be paid for their overtime jobs. And if there is immense demand for your product you may even get tempted to buy inventory at a higher price.

You should always keep a safety margin while determining basic stock figures to save yourself from such shortcomings. You should be able to evaluate the factors that might lead to delays, like your supplier who might have a tendency to be late, or your goods being imported. With experience you would be able to calculate this safety margin.

Excess Inventory is a no, no

If your business is in the category of seasonal product line like the woolens, festive gifts, or fast-perishing raw materials like fruits and vegetables, you should avoid excess inventory. These have too little shelf life and once the season is gone they are hard to sell. But products which contribute to people’s basic needs like some kinds of machinery and their parts, have more breathing space because it takes longer for these products to become outdated.

Irrespective of your type of business, however, surplus inventory should be avoided. The overhead costs, like the extra interest on the loan, if any, rent or property tax for dumping the unsold inventory and an increased cost on insurance will bother you from time to time. Excess inventory also leads to reducing your liquidity that should be anyhow avoided. There is this example of a retailer who gets an opportunity to buy 500 gallons of antifreeze at a mind-blowing discount, but this time it was mild winter in the country. Though he can wait till next year’s winter but the cost of space that could have been utilized for some better product goes a waste.

To get rid of the unwanted inventory you tend to sell it at a lower price and in turn you end up losing on profits. This surely solves the problem of overstocking but return on investment simultaneously gets reduced. So your business plan goes down the drain that had projected full price for your products.

Once you have faced the problem of over stocking you should be cautious, but not overly cautious, otherwise you may end up facing inventory shortage. Hence, the safety margins should always be realistic so that you can stock what you can sell.

Copyright (c) 2006

Jessica Deets researches the internet to find useful information. You can find out more information about inventory control at http://www.inventorycontrolinfo.com