While large firms have realized billions of dollars of profit through six sigma programs, small to midsize companies have been completely left out. After all, the creators of Six Sigma didn't intend their delivery systems for businesses of that scale.

But now that the business initiative program has evolved, doors are finally opening for smaller companies. In fact, they're the driving force behind the latest iteration of Six Sigma, dubbed Generation III. This new program is drawing small to midsize companies because it's accessible and affordable. It entails less training than previous Six Sigma iterations and allows for a much faster return on investment. What's more, it offers the option of online training, which significantly reduces the cost of instruction.

Six Sigma is a business initiative program that roots out errors in processes and products, and delivers that savings to the bottom line as increased profitability. Executives and managers have embraced it because of its ability to compress cycle times, minimize product defects and enhance customer satisfaction. Not to be confused with a quality measurement program or an alternative to ISO 9000, Six Sigma focuses on maintaining 3.4 errors per million chances for error and returning the savings to the balance sheet. The typical U.S. company runs at Four Sigma, which is equivalent to 6,210 errors per million opportunities for error.

Over the past two decades, Six Sigma has increasingly emphasized value creation. Its latest iteration—Six Sigma Generation III—seeks to help companies maximize the value of their goods and services. Value is enhanced when products are delivered to the right place, promptly, completely and at the most affordable cost.

Six Sigma Generation III expands on the professional designations of this business initiative. Before its creation, Six Sigma professionals—who conduct programs for companies—included green belts and black belts. Black belts are expensive to train and return on investment takes a while, making it impractical for smaller companies. Even green belts can cost a lot to train in a traditional classroom.

With the debut of Six Sigma Generation III, a new belt was introduced—the white belt. It involves much less training and delivers a much quicker return on investment. The white belt professional could carry out up to 12 projects a year and potentially deliver $25,000 from each project to the employer's profit column. Not only is Generation III more affordable because of this new designation, but also because of the availability of online training. Online instruction is a fraction of the cost of conventional classroom training. And advances in online training technology are making Six Sigma more accessible than ever.

Indeed, with its newest iteration, Six Sigma is now for companies of all sizes. It can make a difference in performance and profitability by eliminating mistakes and bolstering customer satisfaction.

Source:

Six Sigma for the Little Guy
Mikel J. Harry and J. Douglas Crawford
Engineering Management, November 2004
www.memagazine.org/emnov04/sixsigma/sixsigma.html