I
had a good opportunity to learn the basics of 6 sigma in a conference conducted
by the Confederation of Indian Industry (CII) last week in Chennai. It was
scheduled to cover the basics like what's 6 sigma, what different methodologies
used etc. (in the morning session). In the afternoon session, Caterpillar and
one more company (Wabco) were scheduled to present their 6 sigma case studies.
I
had a natural curiosity how the 6 sigma is applied in the software industry
because my earlier perception was 6 sigma is completely a statistical technique
through which you measure the number of defects and then rectify the problems
and reduce your defects. It's very much suitable for manufacturing but unsure
of how the techniques can be used in the IT. The course, for sure, corrected some of my wrong perceptions
In
my own definition, I would say '6 sigma is a structured project management
approach to bring about breakthrough improvements or to solve critical
problems'. The words 'project management'
in my definition may cause some discomfort to the 6 sigma community, but
I could see a lot of similarities between PMI recommended project management
approach and the 6 sigma methodologies like DMAIC.
Of
course there are a few differences
- PMI is for all the projects, while 6 sigma is looking for projects that seek breakthrough results or solutions to highly critical problems
- 6 sigma emphasizes on measuring the existing process capability to know where we stand while I don't see that much emphasis in the PMI (I may be bit out of place here)
- PMI treats projects as a temporary endeavor and it doesn't speak much about post project closure. But 6 sigma gives equal importance how to retain the benefits you achieved through the 6 sigma project in the post-closure phase
But
for the 3 points, it's mostly project management best practices. I would say a it's an extension to the PM
practices prescribed by the PMI. I know most people will have objections to
this way of looking at 6 sigma, but then that's how I felt.
In
the afternoon session, Caterpillar was talking about their 6 sigma culture, was
giving unbelievable numbers like they had completed about 50000+ 6 sigma
projects. I was not convinced. I asked a
question 'can you give some examples of 6 sigma projects in Caterpillar?' The
speaker was giving examples like 'improving the food quality in the company
cafeteria' and some other 'projects' for which the solutions were obvious. It
was very clear that they are 'misusing' 6 sigma for even low hanging fruits.
Instead 6 sigma should be used for plucking the sweetest fruits that are
hanging in the most difficult region to climb and reach.
If
there is a problem, then there will be a root cause and there will be a
solution. You will typically go for 6 sigma only when you don't know the root
cause as well as the solution. If they are known then you don't need 6 sigma,
you can apply simple techniques like KAIZEN (small, incremental, continual
improvements) or 7 SPC quality tools.
The
other company, Wabco presented an impressive case study in which they had
solved a critical engineering problem in one of their complex products and the
cost savings were around 8 million INR. Their problem domain looked like a
legitimate 6 sigma candidate
I
would definitely recommend 6 sigma for companies who are looking for improving
their profitability, resource utilization or operational excellence. 6 sigma is
not a daily routine, rather a highly important strategic project initiative
that's expected to bring radical changes.
