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Increasing Firm Value Using Six Sigma
Marjorie Green & Mischa Dick
Six Sigma Systems, Inc.

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Masters are those individuals that may eventually replace the external consultants. They should be rigorously trained and gain additional, technically much more complex, project experience. The duration for Masters training is 12-18 months.

Another key element of the Six Sigma infrastructure is project tracking and support. Project tracking should be well integrated into the business tracking mechanism. Management must have visibility of project progress, such that poor performance is immediately recognized and addressed.

Project support is most often the determinant of truly successful programs. Especially when the organization is new to the methodology, the availability of both on-site and off-site support is critical to ensure projects move quickly. Many of the tools require some application experience and until training participants have gained initial experience, they should be provided with personal mentors to ensure quick help.

The infrastructure associated with Six Sigma is applicable across industries, functions and cultures. The detailed program content, the exact tools and their presentation must be altered and supplemented to provide the most efficient tool set given the operational challenges and opportunities of the specific firm. Many traditional programs are rooted in discrete parts manufacturing. For processes such as refining, or any form of chemical processing, additional techniques are required to complement the program to account for the technical differences in continuous processes. In service applications, yet other tools must be provided in addition to the ones traditionally used in manufacturing. Some industries are still underserved in regards to Six Sigma, primarily those outside of discrete parts manufacturing. However, programs tailored to those industries are now available in the open market.

Six Sigma has proven to be a substantial value generator for many organizations. Given an achievable ROI of 700%, the decision to press forward with this approach has not been difficult for many executives. Some executives that have not implemented this approach may find themselves missing a substantial opportunity for low cost value generation. If operational opportunities exist, Six Sigma has proven to be a methodology executives can utilize to increase firm value without making large investments.

First Published in Asia Pacific Magazine, April 2002.

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