Monday, October 25, 2010
Monday, March 22, 2010
Employee Schedules, Six Sigma, and Labor Strategy in Life Sciences
We are just about down with are most recent article entitled "Six Sigma = Failure for Life Sciences" and we share it as soon as it is done. I blurb is posted below.
Six Sigma = Failure for Life Sciences
With all the talk about Six Sigma, the reality is in most cases it is a goal and not a requirement. All manufacturers are working towards an error free environment, and the Six Sigma methodology is an effective tool to remove error. However, Six Sigma does not mean error free. While that might be okay in most manufacturing verticals, it is a recipe for failure in life sciences. It simply isn’t good enough.
So What Is Six Sigma?
Sigma is the Greek word for standard deviation. Standard deviation represents a particular variation from a mean. In Six Sigma one tries to minimize this variation. Keeping a process the same every time can create a quality standard, remove waste, and improve the customer experience. With Six Sigma, variation is dramatically reduced, but it is not eliminated.
• 2 sigma = 68%
• 3 sigma = 93%
• 4 sigma = 99.4%
• 5 sigma = 99.97%
• 6 sigma = 99.9997% - At Six Sigma, there are still 3.4 errors/1 million processes
It is commonly thought that General Electric created Six Sigma. Although the methodology is embraced in every area of their business, they didn’t. And no, it wasn’t created in Japan either (that was Kaizen). It was, in fact, created by Motorola in the United States in 1984. It was designed as a tool to remove variability from process, therefore stabilizing controls and minimizing defects. The use of applied statistics is the foundation to achieve this desired result. It is not just the understanding of the numbers, but the application of analysis. Turning data into actionable information allows management teams to make decisions that affect real change - change that removes waste, increases capacity, and eventually increases profits.
The key principles are listed as:
• Customer focus
• Data Driven
• Rational
• Analytic
• Focus on Conformance
Is This Not Good for the Life Sciences Industry?
Six Sigma is good for the industry, just not good enough. When one reaches the sixth sigma it means they are making 3.4 errors per 1 million processes. If the aspirin we take for a headache was manufactured under this standard it wouldn’t just be a bad practice, it would be dangerous. If an insulin manufacturer gets the formula right 999,996.6 out of 1 million times, is that okay? When personal health and safety are at risk, companies cannot afford to make any mistakes.
What Drives Variability in Life Sciences?
People. To be fair it isn’t just people, but we are the largest contributors. People drive variability and for that reason need to be managed to drive effectiveness two ways. The first is to manage human variability. The second is to manage the care of production, distribution and lab equipment. People are responsible for that equipment. So what do we do about it? Can we create a system that allows people to perform at their best, and manage them by isolating variability in performance and making course corrections immediately? Yes, we can. There are a variety of steps one can take to push past the sixth sigma and get closer to zero errors per million.
Six Sigma = Failure for Life Sciences
With all the talk about Six Sigma, the reality is in most cases it is a goal and not a requirement. All manufacturers are working towards an error free environment, and the Six Sigma methodology is an effective tool to remove error. However, Six Sigma does not mean error free. While that might be okay in most manufacturing verticals, it is a recipe for failure in life sciences. It simply isn’t good enough.
So What Is Six Sigma?
Sigma is the Greek word for standard deviation. Standard deviation represents a particular variation from a mean. In Six Sigma one tries to minimize this variation. Keeping a process the same every time can create a quality standard, remove waste, and improve the customer experience. With Six Sigma, variation is dramatically reduced, but it is not eliminated.
• 2 sigma = 68%
• 3 sigma = 93%
• 4 sigma = 99.4%
• 5 sigma = 99.97%
• 6 sigma = 99.9997% - At Six Sigma, there are still 3.4 errors/1 million processes
It is commonly thought that General Electric created Six Sigma. Although the methodology is embraced in every area of their business, they didn’t. And no, it wasn’t created in Japan either (that was Kaizen). It was, in fact, created by Motorola in the United States in 1984. It was designed as a tool to remove variability from process, therefore stabilizing controls and minimizing defects. The use of applied statistics is the foundation to achieve this desired result. It is not just the understanding of the numbers, but the application of analysis. Turning data into actionable information allows management teams to make decisions that affect real change - change that removes waste, increases capacity, and eventually increases profits.
The key principles are listed as:
• Customer focus
• Data Driven
• Rational
• Analytic
• Focus on Conformance
Is This Not Good for the Life Sciences Industry?
Six Sigma is good for the industry, just not good enough. When one reaches the sixth sigma it means they are making 3.4 errors per 1 million processes. If the aspirin we take for a headache was manufactured under this standard it wouldn’t just be a bad practice, it would be dangerous. If an insulin manufacturer gets the formula right 999,996.6 out of 1 million times, is that okay? When personal health and safety are at risk, companies cannot afford to make any mistakes.
What Drives Variability in Life Sciences?
People. To be fair it isn’t just people, but we are the largest contributors. People drive variability and for that reason need to be managed to drive effectiveness two ways. The first is to manage human variability. The second is to manage the care of production, distribution and lab equipment. People are responsible for that equipment. So what do we do about it? Can we create a system that allows people to perform at their best, and manage them by isolating variability in performance and making course corrections immediately? Yes, we can. There are a variety of steps one can take to push past the sixth sigma and get closer to zero errors per million.
Friday, January 15, 2010
Workforce Management Software - Worth It?
With more and more companies automating their workforce management situation, companies need an objective guide to pick the right software company and the right amount of software from the right vendor. We can help.
Core Practice is an objective consulting firm that will help you pick the right software for your contact center, manufacturing facility, distribution center, mine, utility, or retail operation. Every company is different, with different rules and labor strategies. Spend 3 hours with our Chief Strategist, John Frehse and go through a workshop where you will learn about what is available and discuss the strategies that may make sense to you. You will get actionable information to help make the right decision. Software isn't necessary for everyone. Is it right for you? Find out at CorePractice.com.
Core Practice is an objective consulting firm that will help you pick the right software for your contact center, manufacturing facility, distribution center, mine, utility, or retail operation. Every company is different, with different rules and labor strategies. Spend 3 hours with our Chief Strategist, John Frehse and go through a workshop where you will learn about what is available and discuss the strategies that may make sense to you. You will get actionable information to help make the right decision. Software isn't necessary for everyone. Is it right for you? Find out at CorePractice.com.
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