The sad state of Six Sigma

The newest report published by Aberdeen Group Inc. states that extremely few firms can meet the requirements of the en vogue business philosophy of “Six Sigma.” Six Sigma is essentially a method of quality control that seeks to achieve constant improvement. Strictly speaking, a process must not produce more than 3.4 defects per million opportunities, with “defect” defined as “anything outside of customer specifications.”

If that sounds like a pretty demanding benchmark to you, well, Aberdeen research would tend to agree. According to “The Lean Six Sigma Benchmark,” of the over 400 companies studied (among them Boeing, Glaxo SmithKline, Rexam, Tyco Electronics, EMC, GE, and GM), more than half stated that Six Sigma programs were in effect, but about 16 percent “hold true to the rigorous program with its stringent quality goal, structured problem-solving approach, dedicated training, and the prioritized projects that are the hallmark of Six Sigma philosophies.”

Naturally, the study also found that the 16-or-so percent following the Six Sigma program correctly averaged some 40 percent savings overall and 65 percent more per project. (To this outside observer, it seems pretty clear than having a successful Six Sigma system installed would produce successful results. After all, in most situations a 99.99966 percent success rate is pretty good.)

Aberdeen also showed that those who took a more technology-enabled approach fared much better in lowering defect rates. The report singled out Minitab and SAS JMP for the most impressive levels of quality, “in some instances rivaling or surpassing best-in-class performance.”

Explaining the generally low scores, Aberdeen manufacturing and ERP research vice president Cindy Jutras said, “Adapting to the rigors of Six Sigma requires a significant cultural change for most companies, and many find it a challenge.” Beyond that, she says, “Six Sigma methodologies are dependent on data, so data collection can present significant obstacles. Automated data collection and IT solutions can play a key role in resolving these obstacles.”

As for recommendations, the study offers manufacturers three recommendations to help impart Six Sigma strategies: apply metrics of DPMO (Defects Per Million Opportunities) across all business processes in all industries; identify and prioritize business impact projects according to anticipated savings and improved throughput; and integrate data collection with analysis.

To obtain a free copy of the report, click here. Aberdeen Group, Inc. provides fact-based research and insight focusing on the technology-driven value chain for the Global 5000 value chain, its technology executives, and solution providers.