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How about Three Sigma?

Friday, May 14, 2010 by Slaughter Development

According to one noted blogger, three sigmas ought to be enough. More importantly, though, is the question of whether we should use any sigmas whatsoever.

Over at Lexican, Steven Levy offers some refreshing words. First:

I get heartburn when people assume or suggest that process improvement and Six Sigma are synonymous.

It should be obvious that Six Sigma is just one tool that can be used to attempt to make businesses more efficient, but the marketing budget and the groundswell for the “cottage industry” is tough to ignore. We’ve taken on Six Sigma before, but let’s return to more insight from Levy:

Three Sigma represents about 7 defects per 100 “things” — widgets manufactured, processes run, documents reviewed. As a manufacturing standard, it’s pretty minimal, but it’s a reasonable human standard.

The things that are hardest to measure are also those that matter most. The Six Sigma methodology is designed for things that are easy to measure, that are “cookie cutter” (or stamped out with a mechanical jig). Misapply it, and you can do as much harm as good. You can’t write off the nuances, the gray areas, the conditions encountered for the first time.

The best hitter in baseball hits at a One Sigma level. The best putter in golf putts at a Two Sigma level. Three Sigma’s not as easy as it sounds.

Failure is crucial to human learning. A methodology where we are aiming for near-zero defects is probably going to be demoralizing at best. However, the essential component of improvement is the analysis of the improvement. This is where Levy misses the mark:

Ultimately, my methodology is pragmatism and practicality. Use what works. Borrow liberally. Focus on the destination more than the path.

We should be realistic, emulate successful patterns and borrow from experts. However, there is tremendous danger in focusing on outcomes. Although it may sound counterintuitive, we need to put process ahead of results. Individuals are most empowered to make smart choices when they focus on their own work, not someone else’s goals. Process-oriented thinking helps ensures that failure leads to learning rather than losing.

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Like this post? Here are some related entries from The Methodology Blog you might enjoy:

Taking on Lean Six Sigma - People often ask us if we use popular change management techniques like Lean Manufacturing or Six Sigma. The answer is definitely no, but not for the reasons you might think. Read on »
Process Improvement Failure - Millions of companies have pursued major business process improvement projects. Some new evidence reported in the Wall Street Journal, however, shows that most of these endeavors fail. Read on »
Summit: Continuous Improvement Primer - The final session at the Indianapolis Productivity Summit last Monday was an overview of popular approaches for “continuous improvement.” Read on »
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