The Big Six Sigma Myths

By: Marvin M. Wurtzel, President, Marvin M. Wurtzel & Associates

Thursday August 23, 2007

Six Sigma has an attractive value proposition. Increase profits and improve customer satisfaction through more effective and efficient business processes. What company could say no to this idea? But, the Six Sigma methodology often is associated with daunting myths that prevent companies from taking advantage of its potential. For example, it’s assumed that Six Sigma is strictly for manufacturing processes, doesn’t work with Business Process Management (BPM). Or, it’s believed that Six Sigma initiatives require massive training efforts, create unappealing bureaucracy and are just not cost-effective.

These myths simply aren’t true. In fact, any company can take advantage of the principles of Six Sigma to achieve continuous improvement of their processes resulting in improved customer satisfaction, leading to millions of dollars in cost savings and profitability. One of the most effective and efficient ways to enhance the value of a Six Sigma initiative is to use a common sense approach to extend the principles of Six Sigma throughout the organization — across people, processes and technology.

The Top Ten Six Sigma Myths
1. Six Sigma is a new concept

Six Sigma is Total Quality Management (TQM) with a focus on process, results, and return on investment as a result reduction in variation. It's not the tools or process of Six Sigma, it's how you implement it that counts. The tools have been around for a many years, they are statistical in nature and now aided by computer to make them more user friendly. Start by leveraging Business Process Management and your understanding of the core processes in your business. Then apply it with a clear focus to drive significant results in your company.

2. Culture change is difficult

Culture change is easy when you give employees what they need to do a better job and don't waste their time. Employees don’t come to work to do a bad job, we don’t always give them the processes, tools and training to do the job correctly. By working on the core business processes that are problematic, then the next, and the next, your ongoing success will convert the rest of the organization to Six Sigma.

3. Setting big goals may prevent the success of Six Sigma

While Six Sigma equates to 3.4 defects per million operations is a very lofty goal, moving up a sigma level or two can give some impressive results. Since many enterprises operate their core business processes at the 3 to 4 sigma level, an improvement of even one sigma level represents a huge step forward in reducing defects or errors, and in turn improving customer satisfaction and reducing costs. Through a better understanding of their core processes, businesses can make significant improvements rapidly. For example, if a businesses which has an order fulfillment process (a core process) operating at 3.0 sigma or 66,000 defects per million opportunities (DPMO) could improve performance to the 4.0 sigma level (6,210 DPMO), it would realize a gain of approximately 10X performance. Imagine if each error cost as little as $10.00 to fix, then the cost savings would be in the range of $600,000.00.

4. You have to train everyone

Many Six Sigma consulting organizations make their money by training the organization in volume. You don't want to measure the number of employees trained, you want what you expect training will do to provide significant improvements. Also, restricting participation helps build interest and desire among the rest of the work force.

To read about the rest of the 6 myths, please click here.