Dec 9 2011
Six Sigma R.I.P.
If you google Six Sigma, you get the impression that it is a going concern, with all sorts of organizations offering training and consulting on how to implement it. If you dig just a bit deeper, you run into a Business Week article from June 11, 2007 entitled Six Sigma: So Yesterday? It explained how the best known Six Sigma icons, like GE, 3M, Home Depot, or Motorola were “dialing it back.” Whatever this may mean, it is difficult to imagine ambitious employees in a company showing enthusiasm for a program that is being “dialed back.”
The same article attributes the following statement to GE’s former CEO Jack Welch about Six Sigma: “Even if the concept is applied in areas where perhaps it shouldn’t be, it’ll be worth it in the long run.” It makes you wonder how he would have liked to work in such an area, with management knowingly pressuring him to implement an irrelevant method.
Now that the Six Sigma craze is over, there is no much merit in criticizing it. Ever since I was first exposed to it in the 1990s, I have perceived it as a welcome update of the now 90-year-old tools of Statistical Process Control (SPC), useful in industries where, if your process is mature, your product is obsolete. This applies in semiconductors and other high-technology manufacturing sectors, but not in mature sectors like automotive.
It never struck me as having the potential to be a revolution in business or comparable in scope and impact to Lean. Saying so 10 years ago made many people angry but I did worse: I put in writing, in an article entitled Six Sigma and Lean Manufacturing that was published by the SME in a Six Sigma newsletter in July, 2002.
If you google Motorola +Six-Sigma, you learn that Motorola no longer teaches Six Sigma business improvement. Given that Motorola is where Six Sigma was invented, the equivalent would be for Toyota to dump Lean. Maybe it is time to dial down the Six Sigma training programs.
Patrick Maes
December 9, 2011 @ 2:01 am
Michel, I think you are spot on. I have been in management consulting for more than 20 years and I have, as you, all sorts of fads and fashions seen come and go: Total Quality, ISO, Kaizen, Process Reengineering, Theory of Constraints, Six Sigma, Lean… (all with capitals you see, because of the life or death importance ;-))
Each and everyone of them valid in their own right, but at times put in the spotlight in an isolated way. At the end of the day, they are all tools and methodologies to be used by management to get the best possible results. I have never heard of 1 miracle cure for every disease in a body. I guess the same goes for organisations – I tend to attach more value to the quality and wisdom of management on all levels of the organisations to identify (with the help of the appropriate approach or tools) either potential improvements or failures in system or process and then take the right preventive or corrective action. If staff, supervisors, managers and executives don’t share the passion to do well and do better, then the rest is just a toolbox with rusty hammers and screwdrivers…
Robert H Meek JR
December 9, 2011 @ 5:48 am
Interesting. At the age of 66 I just got black belt certified, because here in NC 90% of the job ads I see want you to be a black belt.
Bill
December 9, 2011 @ 6:35 am
Robert,
I feel your pain. I went back to school and got my MBA, was under the assumption that it would lead to bigger, better opportunities. (Education is never a bad thing), but it took me a long time to find a “slightly” better job than I had before getting my MBA. Plant closed due to economy,… I’m not looking to sharp with my expensive MBA, 3.7 GPA, 16 years experience in 3 different industries, many success stories of providing value to employers…. and unemployed for 20 months.
Dave Patrishkoff
December 9, 2011 @ 7:04 am
I was using Six Sigma tools and techniques to solve several “mission impossible” problems in my early career and will continue doing that even if the name falls out of favor. The trick is to know what tool to use when and not try to sell Six Sigma, Lean, TRIZ or anything else as a solution for everything. My companies I worked for and my clients from over 55 different industries benefited greatly and still do benefit from what is now claimed to be “RIP”.
One of my blog posts tries to show that there are different tools to be used for different problems (http://www.leansixsigmaandbeyond.com/) and sometimes you have to blend those tools in special ways. I think it is short-sighted to say: “Let’s use Six Sigma instead of Lean or TRIZ or XYZ” or vice versa. The proper approach is to use the right techniques at the right time that are matched up correctly against the problem to be solved.
So let’s envision what will happen if we kill Six Sigma: We all go back to the popular Whack-A-Mole (WAM) problem solving technique or the other very popular GOFAAT method (Guessing One Factor At A Time), which is so common in business. I don’t think so! Those are bad options.
When my clients call me in for help because they are up a creek and their best people do not know what to do, I gather the data and information that everyone has ignored and analyze it in unique ways. You can call that analysis whatever you want but it gets the job done. The statistical techniques imbedded in Six Sigma will never die. What might change over time are better ways to use some of the imbedded analysis techniques to address enterprise-wide problems and not just individual problems.
It is scary if anyone finds joy in a possibility that something like “Six Sigma” could die. Does that mean the death to making decisions with data and accurate information?
dbainc
December 9, 2011 @ 7:57 am
It is my understanding that Motorola stopped offering six sigma training because the process got too complicated. I facilitate a two day course on sis sigma for HR professionals and one of the points that is stressed is that in today’s marketplace you need to change your direction. we advocate first that the methodology is based not strictly on results but on the problem solving process. Many corporate executives use the problem solving tools but just don’t realize they are part of the Six Sigma process. Second, taking a page from the book Velocity we also advocate a combination of TOC, Lean and Six Sigma. Michael George in his book Lean Six Sigma for Service makes a strong point that Lean and Six Sigma are greater than the wholes of their individual parts.
So based on my feedback from the seminars, Six Sigma is not in a RIP mode, but rather has taken on a different focus since its origination. I see some really exciting things going on in the HR arena in regards to the methodology and more organiations see the correct road I think you will see more usage in the workplace.
Michel Baudin
December 9, 2011 @ 9:10 am
Could you elaborate on the Six Sigma tools, methodology and problem-solving process you apply to HR?
R Kester
December 12, 2011 @ 9:26 am
As stated above, continuous improvement is a core human trait. The methods, tools and ways used will be ever improving as well. Appropriately applied the “six sigma” tools help people manage the work of improvement. As for good judgement and solid application of the tools, that is more elusive.
Certification is the accepted way to communicate to others that you have successfully studied and can apply the concepts and tools of your profession (CPA, MD, RN, PE, etc.). Six Sigma credentials are the best we have thus far for demonstrating that an individual is “Continuous Improvement” capable and until a better system is available it will remain. Strongly recommend certification and continuous learning for anyone wanting employment.
Michel Baudin
December 13, 2011 @ 11:41 am
You are one step away from disqualifying any non-black-belt as an expert in continuous improvement. The two best continuous improvement coaches I know, however, are Hormoz Mogarei and Kevin Hop. They have learned it respectively from Toyota and Honda, and have had nothing to do with Six Sigma.
Vincent Marchese
December 13, 2011 @ 7:36 am
If we look at all the programs that have been used in business over the years, there remains one single constant; Continuous Improvement. Six Sigma and all the other initiatives focus on examining the process and finding ways to improve it. So if we examine Six Sigma processes with Six Sigma tools, we are able to find inefficiencies and ways to improve them. Six Sigma is not in RIP mode, instead I see it as evolving as with every thing in life. It is a tool /process that can and should be used on itself to improve efficiencies and evolve to a sharper more accurate tool that is relevent to what business has become today. Do you look the same as you did 20 years ago? Are you better than what you were 20 years ago? I’m sure you have passed on skills and knowledge to someone, so when you’re gone, you’re not really gone, neither is Six Sigma.
Mike Clayton
December 14, 2011 @ 9:26 pm
Six Sigma methods are better than the old TQM methods, and now that that has been proven, the hype is no longer necessary.
Lean methods are better than the old JIT methods, so same story.
TOC methods are better than simple Pareto, so same story.
Once the hype is “downsized” and the training becomes mostly free or inexpensive, then those ideas have WON. That does not make the ideas RIP, just the over-priced training companies and universities that sell certifications that cost too much.
So if you are just using this term to get responses, fine.
But the software support for the Six Sigma tools, including Simulation, Optimal DOE, and Relibility Modeling has improved greatly in past 10 years, so that the labels of the tools are more important than the label for the “methodology.”
All of these “methodologies” require some type of Project Management (something that TQM and JIT people ignored often to their peril.) So the DMAIC and the Kaizen Blitz standardized PM approaches did help to get teams better organized. And hiring professional statisticians did NOT pay off as well as hiring Black Belt engineers who came form the industry being served, in my experience of 52 years.
Nor did hiring Lean trainers from outside of the industry being served work as well as using Lean Senai’s from that industry, with the domain knowledge as well as the Lean ideas.
Michel Baudin
December 15, 2011 @ 9:37 am
I wish I could agree wholeheartedly that all the more recent labels represent progress.
Could you say more about the improvement in software support? Are you talking about Minitab being today more powerful than 10 years ago, or about different tools? If so, what are they?
In the way I learned to implement Lean, the content of each project drives the way it is managed. If all your projects are organized as Kaizen Blitzes, you are restricting project scope to what can be done through Kaizen Blitzes. An implementation of Lean involves both projects that are too small for a Kaizen Blitz — like changing the position of a tool on an assembly work station — and too big — like changing the wage system. What you need is an array of approaches to project management, as well as overall program management.
Christy Hollen
December 30, 2011 @ 6:04 pm
Christy Hollen made the following comment in the Continuous Improvement, Six Sigma, & Lean Group on LinkedIn:
James Thornton
December 30, 2011 @ 6:30 pm
James Thornton made the following reply in the Continuous Improvement, Six Sigma, & Lean Group on LinkedIn:
Michel Baudin
December 30, 2011 @ 6:33 pm
Thanks for pointing out the article. What had originally caught my interest in Six Sigma is that it had some non-trivial technical content, centered on statistical design of experiments. I am saying this based on a 1990 Six Sigma training manual from Motorola University.
It really made sense to attack the process capability issues of the high technology of the 1990s with more than the SPC tools from the 1920s, that were designed to work around the limitations of paper spreadsheets and slide rules.
Ashton Kutcher looks awfully young in the video attached to the article. Other than that, I noticed the following two statements:
“The program further evolved in 2005 when we added Lean concepts to the traditional Six Sigma framework…” What I have seen of “Lean Six Sigma” efforts in terms of content is 99% Lean, with the belt system added.
“An example of this recently occurred when a supplier requested to increase the tolerance range for a component in order to meet the capability requirements (Cp/Cpk). The development engineer, who is Green Belt certified, pulled from her Six Sigma experience to examine the data using simple histograms and normal probability plots.” That is an example of Six Sigma? Or of the old SPC?
Christy Hollen
December 30, 2011 @ 6:35 pm
Christy Hollen replied as follows in the Continuous Improvement, Six Sigma, & Lean Group on LinkedIn:
Tariq Zaman
December 30, 2011 @ 6:39 pm
Tariq Zaman replied as follows in the Continuous Improvement, Six Sigma, & Lean Group on LinkedIn:
Marcel Power
December 30, 2011 @ 6:42 pm
Marcel Power made the following comment in the Continuous Improvement, Six Sigma, & Lean Group on LinkedIn:
Jim Dent
December 30, 2011 @ 6:44 pm
Jim Dent made the following comment in the Continuous Improvement, Six Sigma, & Lean Group on LinkedIn:
Dirk Janssens
December 30, 2011 @ 6:46 pm
Dirk Janssens made the following comment in the Continuous Improvement, Six Sigma, & Lean Group on LinkedIn:
Christy Hollen
December 30, 2011 @ 6:48 pm
Christy Hollen replied as follows:
Jim Dent
December 30, 2011 @ 6:49 pm
Jim Dent replied as follows:
Feargal Judge
December 31, 2011 @ 7:45 am
Feargal Judge, in the Lean Business Process discussion group on LinkedIn, commented as follows:
Marek Kozlowski
January 2, 2012 @ 11:39 am
Comment in the Lean Six Sigma discussion group on LinkedIn:
Alan Brown
January 2, 2012 @ 11:40 am
Comment in the Lean Six Sigma discussion group on LinkedIn:
Theresa Gruenwald
January 2, 2012 @ 11:42 am
Comment in the Lean Six Sigma discussion group on LinkedIn:
Michel Baudin
January 2, 2012 @ 11:43 am
I learned about it as the achievement of 3.4 defects per million opportunities in production processes, but it seems to have shifted focus from this goal. The success stories are not about quality but about dollar savings, and paint Six Sigma as a cost reduction tool.
Here is a quote from one success story: “Both Six Sigma and Lean are proven concepts and have saved companies billions of dollars,” which drags Lean into the same category, of cost reduction programs.
Did Toyota grow from nothing to the world’s largest car company by reducing costs? Did Wiremold grow 10-fold in a decade by reducing costs? Lean is about simultaneously improving all dimensions of business performance, not cutting costs.
Why don’t the Six Sigma success stories emphasize quality improvement? Normally, you pursue it to make your customers happy so that your business grows, not to cut your costs.
Theresa Gruenwald
January 2, 2012 @ 11:44 am
Comment in the Lean Six Sigma discussion group on LinkedIn:
Alan Brown
January 2, 2012 @ 11:46 am
Comment in the Lean Six Sigma discussion group on LinkedIn:
Cristian Bleotu
January 2, 2012 @ 11:48 am
Comment in the Lean Six Sigma discussion group on LinkedIn:
Dave Patrishkoff - LSS Master Black Belt
January 2, 2012 @ 11:51 am
Comment in the Lean Six Sigma discussion group on LinkedIn:
Daniel Lang
January 2, 2012 @ 11:53 am
Comment in the Lean Six Sigma discussion group on LinkedIn:
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Michel Baudin
January 2, 2012 @ 11:54 am
Dave Patrishkoff’s wrote: “They often shy away from certain external customer satisfaction projects because they cannot put a dollar value on a happy customer and the COPQ is too difficult to calculate and justify.”
This has always been the problem with cost-of-quality calculations. It is a textbook case of looking for your car keys next to light rather than where you dropped them. That the direct costs of failure, appraisal and repair do not begin to account for the true cost of quality is obvious from cases like tread separation at Firestone or sticky pedals at Toyota. Accountants may refuse to see it, but CEOs don’t have to put their heads in the sand.
In their business plans, they can and should make assumptions about the impact of quality on sales.
JC Betancourt
January 2, 2012 @ 2:07 pm
Comment in the Operational Excellence discussion group on LinkedIn:
Martin Haack
January 2, 2012 @ 2:10 pm
Comment in the Operational Excellence discussion group on LinkedIn:
Terence T. Burton
January 2, 2012 @ 2:12 pm
Comment in the Operational Excellence discussion group on LinkedIn:
Charles Lankford, MBA, CSP
January 2, 2012 @ 2:14 pm
Comment in the Operational Excellence discussion group on LinkedIn:
Eric Maass
January 2, 2012 @ 2:23 pm
Comment in the PEX Network & IQPC – Lean Six Sigma & Process Excellence for Continuous Improvement discussion group on LinkedIn:
Chris Gates
January 2, 2012 @ 2:24 pm
Comment in the PEX Network & IQPC – Lean Six Sigma & Process Excellence for Continuous Improvement discussion group on LinkedIn:
Lean six sigma the oxymoron | Troy Taylor | LinkedIn | Michel Baudin's Blog
January 30, 2015 @ 9:23 am
[…] Six Sigma R.I.P. […]
Mikel Harry
May 4, 2015 @ 5:50 pm
Michel, this is a very nice blog article — well written with a lot of appeal. Overall, I would have to say that many of your thoughts and understandings are spot on. However, on the flip side, I take exception with some of your other points-of-view. Nonetheless, all of your points make for great conversation and good material for debate.
By all means, keep up the great blogging.
Mikel J. Harry, Ph.D.
Co-Creator of Six Sigma
National Best Selling Author