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Round 2: Six Sigma vs ISO 9001 featuring ISO 13053:2011

9/25/2013

7 Comments

 
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At exactly two years ago, ISO introduced ISO 13053:2011 entitled " Quantitative Methods in Process Improvement – Six Sigma "

It is about the application of Six Sigma to improve existing processes with 2 parts:

Part 1: DMAIC methodology, describes the five-phased methodology DMAIC (Define, Measure, Analyse, Improve and Control), and recommends best practice, including on the Roles, Expertise and Training of personnel involved in such projects.

Part 2: Tools and Techniques, describes Tools and Techniques, illustrated by fact sheets, to be used at each phase of the DMAIC approach.


Some of you might disagree, but pardon my honest and blunt opinion.

The first time I have read about ISO developing a Six Sigma standard, I laughed.  Really hard.  Why?  Because it was like Samsung, planning to sell iPhone-inside-a-Samsung-Box to its customers.  It was like re-packaging an already finished good and telling everyone that this is 'the' original.  Nothing more like selling pirated DVDs and telling everyone to buy only from me, because it is only I that sells the real deal.

We all know that ISO, its certifying bodies and consultants are earning a lot to sell the standard (print), consulting and auditing services to companies.  ISO, in my opinion, wants to take a piece of the Six Sigma pie, even to the point of monopolizing it since they can now say that they own "the" standard. 

They are trying to exploit Six Sigma's weakness of not having a central certifying body.  It is indeed ironic, that a discipline that aims to reduce variations does not have a standard way of implementing the initiative and issuing Six Sigma certifications.

Why did ISO thought about it in the first place?  Was it because ISO's revenues were declining and want to enter new market?  To me, it seems like a desperate move.

So did it sell?  Did companies adopt ISO 13053 to roll-out Six Sigma?  Try to ask around, and you'll get blank stares.

7 Comments

Six Sigma VS ISO 9001 (QMS)

9/20/2013

6 Comments

 
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On one of my previous posts, I asked what is more important to you, and to your organization, is it Six Sigma or Innovation? 

This time, let's talk about Six Sigma vs ISO (specifically ISO 9001, or Quality Management Systems, since there are hundreds of ISO standards). 

I am not fond of comparing Six Sigma to other quality initiatives, but these are usual questions I get from executives and quality practitioners.

In fact, I remember this question from iSixSigma thread way back in 2007, where one executive asked:

"ISO and Six Sigma – where is the connection? Why do we need both? Can we live without one or the other? Should they both remain as they serve different purposes? Should one yield to the other and integrate before dissolving? What are your thoughts?
"

The scope of comparing the two quality initiatives is as wide as the pacific ocean.  Since this blog post is only as big as a surfboard, it would be impossible for me to cover everything.  I would also like to get insights from you, dear readers, and fellow quality practitioners so we could learn from one another.

Main Goal
The goal of ISO 9001 are standardization and compliance.


Standardization means making your processes the same, which would result to having your customers receive a "similar" service or product every time, all the time, whenever, wherever.  It means receiving a "similar quality" burger from your favorite fast food chain wherever (branch), whenever, every time, all the time.  It also means, that even if you have 3 people making your burger in a branch, all three would create "same quality" burger.

Compliance means ensuring that what is "really" happening on your production floor, offices, warehouse, etc. are SIMILAR to the processes written on your Operations Manual and Work instructions.  If there are differences, you should either update your documentation, or align actual processes to your manuals. 

Six Sigma, on the other hand, drives change for the better.  The heart of six sigma initiatives are process improvement projects, which aims to "change" the current process to the ideal process and in turn would lead to reduction of process defects, delays, and variations.

What is interesting is this: in the CONTROL Phase, the last phase of DMAIC (Six Sigma methodology), project teams ensure that the "new/ improved" process shall be the new standard to avoid recurring of defects.  If Six Sigma is also used by an ISO company, it is a must for the team and process owners update their operations manual to reflect the improved process and make it the new standard, and let everyone comply to it.


Certification
Six Sigma certifies individuals, while ISO certifies companies.  ISO certifying bodies certify companies that complies to ISO standards.  Six Sigma initiatives certify individuals, after satisfying requirements set by the person or institution.  ISO has a central certifying body, while Six Sigma has none.  Due to that, one big risk companies and individuals should look into is the quality of a Six Sigma training program.  You will only be as good as the person or institution that will certify you. 

At iAcademy School of Continuing Education, where I am the Lean Six Sigma Program Director, we strictly maintain the following standards before we certify an individual as Six Sigma Green or Black Belt:.

1.  Attend learning sessions/ lectures (100% attendance for Green Belt; 85% Black Belt)
2 . Pass practical and written examinations (60% passing score)
3. Complete an actual Six Sigma project by hitting the goal and show proper use of six sigma tools and methodology.
4. Mentor a green belt candidate to complete his/her project (For Black Belt only)



ROI
This is where Six Sigma is way ahead than ISO.  Both programs require significant investments in terms of money, time, and resources, but in Six Sigma, you can get your ROI as fast as you finish your first few projects.  Projects produce quantifiable soft & hard savings (affects your P&L), and executives love that.  This is one main cause why Six Sigma is still widely used today.

Critical Success Factors
Both programs in my opinion, share similar critical success factors:  Support from the top management; Competent program manager (Black Belt for Six Sigma, QMR for ISO); Alignment of initiatives to support management strategies; and support from critical mass.


Now, I give you back the question asked by the Executive on iSixSigma forum.  Share your thoughts and let everyone learn something new today.

"ISO and Six Sigma – where is the connection? Why do we need both? Can we live without one or the other? Should they both remain as they serve different purposes? Should one yield to the other and integrate before dissolving? What are your thoughts?"



6 Comments

Innovation VS Process Improvement

9/14/2013

7 Comments

 
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You may argue that innovation, breakthrough ideas and invention have more impact on improvement than process does.  But a higher level view makes it clear that moving a big idea from the brain that created it into your operations requires not just one well-designed process, but many well-designed interconnected cross-functional processes, to deliver a profitable outcome for your company.

Marketing has a process.  Operations has a process.  Research and Development has a process.  Logistics has a process.  Finance has a process.  And inside of these processes are many sub-processes.  It's often down in the layers of the sub-processes where you discover defects, delays and variations.

In theory, improve the processes, improve the results.
7 Comments

Can YOU Tear Down Walls Between Departments?

9/4/2013

2 Comments

 
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One BIG source of process delays, defects and variations that I always see are walls between departments.  This is no surprise since companies usually set-up their structures according to functional activities:  Sales, Marketing, Operations, Logistics, Accounting, HR, etc.  This tried and tested way of organizing people are not really wrong.  It makes planning, organizing, leading, and controlling employees more efficient because each employee that performs the same function works as a team and reports to the same manager. 

The problem lies when we start talking in terms of process.  Processes  produce the products and services that the company sells to its customers, and processes, are almost always, cross-functional.  Meaning, for every process, it involves at least 2 departments, and the outputs of one department are inputs of another.  Since departments work in silos, they usually have conflicting agendas. 

Every department has its own set of targets, metrics, goals, and sad to say, personal interests.  I have seen it with my own eyes: 
  • Sales prioritizing volume while downplaying unnecessary quality;
  • Marketing prioritizing speed while downplaying expenses; 
  • Logistics prioritizing efficiency while downplaying the need to have allowances in stocks;
  • Operations prioritizing speed to satisfy orders in time while downplaying defects and rework resulting to hidden costs;
  • Audit insisting all thousand transactions of a process conform to a control designed to avoid a repeat of an error happened only once, due to a special cause, resulting to delays.

And the list goes on and on.

One school of thought is to cure this conflicting agendas is to structure an organization according to "process" and not "functions".  Advocates of this idea say that this strategy shall make all departments that form a process look to a common goal and tear down silo mentality.


Your thoughts please?  Everyone is listening.


2 Comments

Major Hospitals in the Philippines Start Their Own Six Sigma Programs- 3.4 deaths per million patients?

8/18/2013

0 Comments

 
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MANILA, Philippines-  The Six Sigma revolution in the Philippines has started.  Two of the biggest hospitals in the Philippines are now using Lean Six Sigma as their quality improvement initiative.  Makati Medical Center and St. Luke's Hospital are now reaping the benefits of the Six Sigma culture by embedding the Six Sigma discipline, tools and methodologies to their laboratory, hospital, and even its medical operations. 

"In the 4th Six Sigma and Process Improvement Conference, Dr. Alejandro Dizon, VP and Chief Quality Officer of St. Luke's Medical Center joined us and presented their success stories on their journey towards the Six Sigma culture.  He talked about their deployment strategy where Senior Medical Support officers were trained in Six Sigma to reduce process delays, defects and variations." said Rex Tuozo, Six Sigma Master Black Belt of Six Sigma Philippines, and host-moderator of the 4th Six Sigma and Process Improvement Conference.

"If in business, delays and defects are a big no-no, how much more in medical operations where people's lives are at stake?" Tuozo added.

For these doctors and medical professionals who are dedicated and truly care to each patient, getting a Six Sigma score, or 3.4 deaths (defects) per million patients (opportunities), are still not enough.

0 Comments

What really is the goal of Six Sigma?

7/5/2013

1 Comment

 
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1 Comment

    Rex Jayson Tuozo "The Six Sigma Guy"

    Rex is a Six Sigma Trainer and Consultant, theater performer, Suits & Game of Thrones fan, and the author of the 1st Six Sigma book in the Philippines

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