Finding Savings with Six Sigma

I don’t see any evidence six sigma is making a comeback but magazines like to talk about new ideas rather than just explore what continues. They like to discuss common cause variation as though it were special cause. Six Sigma Makes a Comeback

Unlike in the 1990s, when such executives as General Electric’s Jack Welch embraced Six Sigma with missionary zeal, consultants say today’s converts generally are looking for a fast way to save money.

How sad. Six sigma has always been hampered by a lack of core values (like respect for people, constancy of purpose) and a focus on cost cutting but the direct desire to pursue a deadly disease (short term focus) is sad indication of where some have taken what can be very useful tools.

Still, Six Sigma is finding new life, especially in retail. Target (TGT) claims more than $100 million in savings over the past six years from the program. Mike Fisher, Best Buy’s (BBY) senior director of Lean Six Sigma, says projects like streamlining appliance installation have helped the company save up to $20 million in some cases. “Without a doubt, it put us in a better position to muscle through the recession by getting all of those inefficiencies out,” says Fisher.

Six sigma and quality management other efforts can be very useful. But many of the efforts (as many of any management efforts) are executed poorly and do little good and much that is rightly ridiculed.

Related: Quality and InnovationSix Sigma Much More than Common SenseProcess Improvement and Innovation

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