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  • 1 - Six Sigma Introduction - New One

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    Islam Gad
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    1. Leaders face the challenge of driving both short-term performance and long-term capability simultaneously in today's complex business environment. Past management approaches are no longer effective for addressing this "leader's dilemma". 2. Six Sigma provides a methodology for leaders to identify organizational problems, assign the best people to solve them, and guarantee resources and time for finding permanent solutions, enabling them to meet both short and long-term goals. 3. Six Sigma is a data-driven, customer-focused approach that aims to prevent defects and exceed customer needs through understanding and reducing variation in processes.

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    1- Six Sigma Introduction - New One

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    1. Leaders face the challenge of driving both short-term performance and long-term capability simultaneously in today's complex business environment. Past management approaches are no longer effective for addressing this "leader's dilemma". 2. Six Sigma provides a methodology for leaders to identify organizational problems, assign the best people to solve them, and guarantee resources and time for finding permanent solutions, enabling them to meet both short and long-term goals. 3. Six Sigma is a data-driven, customer-focused approach that aims to prevent defects and exceed customer needs through understanding and reducing variation in processes.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    2 views67 pages

    1 - Six Sigma Introduction - New One

    Uploaded by

    Islam Gad
    1. Leaders face the challenge of driving both short-term performance and long-term capability simultaneously in today's complex business environment. Past management approaches are no longer effective for addressing this "leader's dilemma". 2. Six Sigma provides a methodology for leaders to identify organizational problems, assign the best people to solve them, and guarantee resources and time for finding permanent solutions, enabling them to meet both short and long-term goals. 3. Six Sigma is a data-driven, customer-focused approach that aims to prevent defects and exceed customer needs through understanding and reducing variation in processes.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    of 67

    Strategic Management and Business Analysis - 2014 1 -1

    Why we are here today ?

    Strategic Management and Business Analysis - 2014 1 -2


    Why a Renewed Interest in Six Sigma?

    • Today’s leaders face a new reality, they must continuously generate month-to- month
    financial results while continuously building a long term sustainable business model.
    • Current environments in all industries demand superior performance along both dimensions.

    • Fierce new competitors, demanding customers, fluctuating markets and impatient investors
    add to the complexity.

    • Past management approaches are no longer effective in this environment.

    Strategic Management and Business Analysis - 2014 1 -3


    The Leader’s Dilemma

    How can I
    drive weekly performance
    and
    build future capability …
    simultaneously?

    Strategic Management and Business Analysis - 2014 1 -4


    • The Leader’s Dilemma
    Leaders need to be able to :
    – Identify their organizational problems

    – Assign them to their best people

    – Provide full resources and support

    – Guarantee uninterrupted focused time to permanently solving these problems.

    – Doing all of this well is the Essence of Six Sigm a

    Strategic Management and Business Analysis - 2014 1 -5


    Becoming customer centered is not a choice

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    Customer Loyalty and Retention Rates

    Score (5 Point score) Retention Rate (1 year later)

    5 very satisfied 92%-97%

    4 satisfied 80%-85%

    3 neither (neutral) 60%-65%

    2 dissatisfied 15%-20%

    1 very dissatisfied 0% -5%

    4 & 5 are satisfied customers

    1,2 & 3 are not satisfied

    Strategic Management and Business Analysis - 2014 1 -7


    Without Six Sigma Discipline… With Six Sigma Discipline…
    Conjecture/assumption about what customers want Customer requirements based on careful assessment

    Processes based on our convenience/cost Processes designed and run to fulfill customer requirements

    Limited efforts at tracking customer satisfaction Multi-faceted , ongoing “Voice of the Customer” effort

    Customer focused data not communicated or used Customer focused data key to managing the business short-and long term

    Inspection to meet Customers needs Prevention to exceed Customers needs

    Strategic Management and Business Analysis - 2014 1 -8


    The Change Curve
    • Change Environmental Change Future Shock
    Typical Business Responses
    Time

    • Incremental views of change will get you at best 10% improvement every year
    • This rate of change is guaranteed to eventually lead to mediocre organizational
    performance.
    • Facing future shock is inevitable. Sometimes future shock takes the form of: merger of
    acquisition, bankruptcy, radical downsizing, significant decline in stock prices

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    If an organization pursues an
    appropriate strategy, the future
    shock may never happen

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    Understanding Variation

    Target

    Data Point

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    What is “Six Sigma” ?
    • “Six Sigma” - refers to tools, processes, and culture made famous by Motorola and General
    Electric in the 1980s and are aimed at reducing variability and defects.

    Strategic Management and Business Analysis - 2014 1 -23


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    Sigma & Six Sigma
    “Sigma”
    Is a m easurement scale upon which improvements can be gauged.
    “Six Sigma”
    Is an overall m ethodology that drives business improvement.

    Strategic Management and Business Analysis - 2014 1 -29


    Six Sigma is a way of Life
    • Highly structured approach to achieve breakthrough improvement.
    • Applicable to all organizations, not just manufacturing; Hospitals, Schools, Hotels,
    Restaurants………
    • Six Sigma touches every aspect of organizations of all sizes.

    Strategic Management and Business Analysis - 2014 1 -30


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    1. Define:
    What is important?

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