Six Sigma is a process improvement methodology that started at Motorola with the intent of improving product quality. Subsequently, General Electric adopted Six Sigma and introduced it across GE. Though the Six Sigma methodology was started to improve product quality, it was rapidly modified to improve any business process.
The fundamental aim of any Six Sigma exercise is to identify sources of variation and to minimize them. Variation is what catches the eye of the customer and Six Sigma requires any team to first identify the customers, understand their requirements and then analyze the process(es) to determine to what extent the process(es) meets the requirements.
Indian organizations adopted Six Sigma about fifteen years ago. Many private and public sector organizations have successfully deployed Six Sigma. However, very few have relentlessly persisted with the initiative in spite of realizing the potential and the gains. This article attempts to highlight some of the basic causes why organizations have failed to maximize the gains from Six Sigma.
Six Sigma improvements are achieved by employees being assigned to improve processes. A fundamental difference between Six Sigma and other improvement initiatives like Quality circles, TQM, 5S, etc. is that it is not voluntary. Six Sigma is top-driven. The targets for improvement are generally stiff and teams have to devote time and effort to dramatically improve process performance.
A few reasons why Indian organizations have not succeeded in their efforts to achieve the quantum gains reported by US and European organizations are:
Satisfied with mediocrity: Barring a few organizations, which are inspired by the Japanese pursuit of excellence, most organizations are satisfied with small improvements. Teams give up the effort after achieving minor gains and do not put in the time or effort to achieve world-class benchmarks of process excellence.
Lack of interest and drive by Top Management: Top Management focus on short-term measures like turnover and profits at the cost of lasting process improvements often result in the teams not being set aggressive goals.
Adopting short-cuts in improving processes: Six Sigma process requires measuring the process outputs and an intense analysis of causes of variation followed by implementing solutions which are long-lasting. The rigor of Six Sigma is given a go-by and impulsive, off-the-cuff solutions are thought of and implemented.
Organizational changes mid-way: Any Six Sigma improvement effort may take between four to six months to implement. Team members should not be disturbed during the course of the effort. However, organizational changes and transfers carried out mid-way result in some teams losing key individuals and thus the impetus to improve.
Performance appraisal not linked to Six Sigma efforts or results: To motivate the teams to put in the time and effort to achieve the targets, the HR department needs to be pro-active and institute a performance appraisal system, giving due weightage to Six Sigma. However, in the initial stages, the HR department does not make any changes to its existing appraisal systems. Teams realize that the time and effort invested by them towards Six Sigma may bring only marginal gains at the end of their review period.
Undue focus on unsuccessful improvement efforts: Traditionally, Indian managers are critical. It needs to be recognized that initial waves of Six Sigma will result in some failed projects or projects not achieving desired results in spite of the best efforts of the team members. Doubts are often expressed over the Six Sigma methodology and its applicability to the organization, rather than Management finding ways to integrate Six Sigma into the strategic vision of the organization.
The Deming Prize is awarded to companies by the Union of Japanese Scientists and Engineers (JUSE) for remarkable progress in customer satisfaction and quality improvement. In the first decade of this millennium, many Indian manufacturing companies have been awarded the Prize. If we look deep into the reasons for success, we find the following common attributes:
Relentless drive to achieve the objectives
Total employee participation in the effort
A time-scale of two to three years from the initial vision to results
Benchmarking processes to international levels
If all Indian organizations could learn from these successes soon, India could become the hub of excellence in the next decade.
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Raj writes for chillibreeze.
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