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What is Six Sigma?
Six Sigma, created by the Motorola Corporation, is a five-step methodology used to understand customer requirements and to map, analyze, measure and improve processes in order to deliver 99.9997% defect-free products and services, improve cycle time and eliminate non-value added activities.
More information Glossary of TermsLean Leadership Initial Results from Survey of 500 Operations Leaders
In response to current market conditions, U.S. operations managers are overwhelmingly focused on cutting costs, according to a survey released today of over 500 operations improvement leaders conducted by a leading Consultancy firm in the US.
The survey creator states that “Cutting costs will keep the lights on,” But the results of this survey show that effective performance improvement programs can provide a critical advantage, especially in times like today.
The study targeted companies that have been working to improve their operational performance in response to today’s market realities. Over half of participants report annual sales of more than $500 million, and a quarter report sales in excess of $5 billion. Additional highlights include:
• Over 90% report that their operational improvement initiatives have helped their companies respond to the market downturn over the past six months.
• More than two thirds of firms are still hiring or maintaining current staff levels of their operational improvement teams.
• Spending on improvement initiatives is down at roughly one third of companies, but holding steady or increasing at the remaining two thirds.
• As pressure increases on the top line, corporate visibility of efficiency improvement initiatives has intensified at almost half of companies.
No sympathy for the automotive industry
Operations managers and executives blamed the U.S. auto companies for their sales and cash-flow predicament, and offered a variety of ideas for returning the companies to profitability. Top of the list: “Consolidate and eliminate vehicle makes.” That’s just what General Motors executives have said they’re going to do—two years down the road. Here are their top five recommendations in descending order:
1. Consolidate and eliminate declining vehicle makes.
2. Renegotiate labor contracts.
3. Slash bloated bureaucracy.
4. Bring newer, more fuel efficient vehicles to market.
5. Eliminate legacy retiree and healthcare cost burdens.
Look out for information about this survey on SixSigmaZone.com; we may be publishing more excerpts from it soon! Let us know if you would like to know more articles like this email:
enquire12 [a] sixsigmazone.com
Thanks to Ted Stiles for providing this article. Ted is Director of Executive Search at Stiles Associates, LLC, a leader in lean executive search and selection. For more information telephone: + (001) 800-322-5185 for more information.
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