Tight times elevate Six Sigma ends over means

In the 15 years since Motorola introduced the Six Sigma concept for quality improvement, thousands of companies around the world have embraced it and spent untold amounts of money on Six Sigma consultants, training, and related expenses. But with executives demanding that every investment deliver quick returns, some companies now are taking sober, carefully measured steps in embarking on Six Sigma programs, says one consulting firm.

Once, companies would approach Six Sigma with unabashed fervor, intent on training as many "green belts" and "black belts" as possible, says Mike Wootten, VP of the manufacturing industry practice at Celerant Consulting. "It was the 'shotgun' approach to Six Sigma in which companies just wanted to 'spray' it everywhere," says Wootten. "They figured they'd just sprinkle 'magic dust' everywhere and good things would happen."

Unfortunately, adds Celerant analyst Al Mostacciulo, that approach resulted in reduced focus on business results and, consequently, an anemic return on the investment. But there's been a change stemming from the difficult economy, they add. Client companies are carefully examining their businesses to determine the specific areas in which Six Sigma processes will have the greatest impact.

For example, Honsel, a light metal processing company based in Germany, worked with Celerant to establish a Six Sigma plant that would yield rapid returns in overall equipment efficiency and cost reduction. As a result of short-term actions laid out in the plan, the company improved its production equipment availability by 7.5 percent; reduced internal rejects by 21 percent; and reduced returns by 40 percent.