Innovative Methods for Doing More

¶ … innovative methods for doing more with less. Although some organizations have not been able to respond to this change, many have done so by adopting new quality management paradigms that improve the very structure of operations in the organization. In particular, Six Sigma has become a notable paradigm for ensuring quality in the organization. Given the importance of quality to the organization, this investigation considers a basic overview of the Six Sigma paradigm and its link to quality strategies and quality awards. Through a careful consideration of what has been written on the subject, it will be possible to identify the utility and prominence of this quality method such that it can be effectively applied to the organization.

Six Sigma and Quality

In order to begin this investigation, it is first helpful to consider the basic premise of Six Sigma. According to Benes (2006) "With techniques based on statistical process control, six sigma practices are used to identify and eliminate defects, waste and quality control problems: (p. 55). This author goes on to note that Six Sigma can improve customer satisfaction and serve as the basis for team building in the organization. Jones (2004) goes on to report that Six Sigma is an enterprise wide process that can improve quality at all levels of the organization as reported by this author, "Six Sigma improve quality and cuts costs throughout an enterprise, from manufacturing to sales and customer service" (p. 24). Thus, Six Sigma has notable implications not only for individual departments in the organization, but also for the bottom line of the company.

Given the importance of this paradigm in developing quality in the organization, it is important to consider how Six Sigma can be linked to other quality strategies and quality awards. Antony, Foutris, Banuelas and Thomas (2004) compare the process of Six Sigma with lean production. Defining the basic premise of lean production these authors report that, "Lean production is a strategy for achieving continuous improvement in business process performance through the elimination of waste" (p. 10). These authors go on to note that in the lean production process waste is defined as any activity in the workflow that does not add value to the final product. When lean production is combined with Six Sigma, Lean Sigma is produced. "Lean Sigma combines the variability reduction tools and techniques from Six Sigma with the waste and non-value added elimination tools and techniques of lean production, to generate monetary savings to the bottom line of the organization" (p. 10).

Considering the link between Six Sigma quality and the various quality awards that have been offered, researchers note that the Dubai Quality Award has recently been awarded to Xerox Emirates. The organization which employs a hybrid Lean Sigma approach to quality was awarded to the organization in March of 2006. According to scholars the Dubai Quality Award or DQA "is process for recognizing role model organizations and was established under the patronage of HH Sheikh Mohammed 10 years ago. The process provides a roadmap to achieve excellence through the adoption of good practices and soundly-based approaches that are deployed systematically and are continuously measured and reviewed" (Xerox Emirates..., 2006). What this effectively suggests is that the Lean Sigma process used by Xerox is indeed amenable for the development of high quality standards in the organization.

McClusky (2000) further argues that the specific tenets of Six Sigma can be directly related to the European Quality Award. According to this author, the basic methodologies followed in Six Sigma are outlined in the European Quality Award. These methodologies include: developing a set of metrics that can be used to quantitatively measure progress in the organization and implementing these metrics on an enterprise-wide basis. This process often requires the adoption of a culture that supports the use of metrics for improving quality in all aspects of the organization. By aligning the basic context of the European Quality Award with Six Sigma, those organizations that use this paradigm are best suited to achieve the quality success that is necessary to garner this award.

Malcolm Baldrige quality award winners have also been heavily associated with Six Sigma methodologies. For instance, Ramberg (2000) reports that Motorola -- the organization that first pioneered the use of Six Sigma -- won one of the first Baldrige quality awards. Because the award mandates that winner must provide a review of their practices to other organizations, companies such as General Electric and Xerox were able to develop Six Sigma methods that were successful for quality development. Subsequently, these companies have also been rewarded for their efforts to improve quality through the application of Six Sigma.

Six Sigma has also been associated with the development of innovation and new product development in the organization. Phandis (2006) in her examination of new product development under a Six Sigma framework contends that there are two specific issues that must be addressed: customer quality and product quality. Thus, in order to align the forces, the organization must develop a strategic framework for product development that builds on these aspects. When an innovative solution is developed by members of the organization, metrics need to be put in place to assess customer response to the product; the ability of suppliers to provide materials for the project; and the potential for new or competitive products to take over the market. The data gathered in the initial stages of product development will provide a clear understanding of the overall feasibility of the project from both the standpoint of the customer and the standpoint of the organization. Once the feasibility of the project has been assessed and deemed justifiable, it will then be possible for the organization to move forward by implementing the same metrics that were used in the assessment phase of product development.

Further examining the use of Six Sigma to develop innovation in the organization Lee (2004) considers the application of this paradigm in the 3-M corporation. According to this author, 3M has a new product introduction process in place that enables the organization to "derive innovative ideas." Once these ideas are derived, "Six Sigma provides the rigorous methodology to ensure that development does not flag. The result is a product or service developed with less waste and frustration and on the market sooner with less development cost" (ISSSP session...). Lee further reports that organizations that have used this methodology for product development in their organization have found that, "Design for Six Sigma has played a key role in developing new products and services from the ground up to meet Six Sigma standards and customer expectations for their issues" (ISSSP session...). What this effectively suggests is that there are methods that can be used to retain an innovative culture while still ensuring that the organization is looking at the bottom line.

Drawbacks of Six Sigma

While the data clearly demonstrates that organizations can have notable success with Six Sigma paradigms, Brue (2005) reports that there are some problems that need to be addressed when applying Six Sigma to the organization. Brue argues that the promise of Six Sigma often leads CEOs to believe that the implementation of the paradigm by itself will serve as the impetus for organizational success. However, as noted by Brue, Six Sigma requires an organizational culture of support that will ensure the success of the paradigm. For this reason, many organizations that undertake Six Sigma implementation fail to successfully use the paradigm for quality improvements in the organization. Because Six Sigma requires more than simple implementation this can have ramifications for the bottom line of the organization.

Other scholars examining Six Sigma implementation have also noted that organizations often experience problems when establishing Six Sigma paradigms in the organization. According to Lee (2004) "Corporate innovation and Six Sigma go hand in hand if the methodology is fully utilized" (ISSSP session...). What this effectively suggests is that if the organization is to fully embrace the Six Sigma methodology, a culture that supports innovation and change must be created in the organization. Overall, these types of innovative cultures can be difficult for the organization to establish. This is especially true when one considers that establishing change as a central competency of the organization promulgates a plethora of barriers for organizational cohesion.