Chapter 8 Six Sigma Analysis

8.1 Introduction Organizations of Modern days are passing through highly competitive battlefield environment. For survival one has to be ahead of the fiercely competitive benchmark obtaining in the world. Performance excellence is the single most dominant requirement of all the organizations today. . Rapid breakthrough technological changes taking place every now and then. Eli Goldratt (2002) has analyzed the root causes and problems of flexibility of change, which are desired for an appropriate organizational throughput. To bring in the requisite changes in the organizations, Eli Goldratt, (2002), the exponent of Theory of Constraints has suggested three important questions to be asked for continuous improvement: 1. What to change? 2. What to change to? 3. How to cause the change? And there is no other way to deal with these questions except by using thinking process which can ultimately ensure us to systematically find the solutions/ answers to any complex problems, whatsoever. Six sigma (George Ecke, 2001) further addresses change acceptances and quality production. Unleashing the brain-power of people under command and articulation of peoples dream is more important to the Spiritual leaders as well as to the Spiritual workculture. Thus, it is observed that the various manifestations of emotional and spiritual quotients finally impart organizational excellence, which will in turn help in the achievement of the desired goals of the company.

8.2 Six-Sigma Approach Model Six Sigma is a management philosophy that attempts to improve upon customer satisfaction to near perfection. A six sigma company has little more than three bad customer experiences (3.4) for every million opportunities. (Ecke, 2001). This level of near perfect performance is a significant distance from where most organizations stand

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today. Some brief discussions have already been included in chapter two. Herein, Six Sigma measurement and evaluation techniques will be discussed briefly. Six Sigma is a smarter way to manage a business or a department towards managing with facts and data. It is a management method that has customer satisfaction as its `overriding philosophy. Six-Sigma is at 999997 per cent performance, wherein defects in many process and products are almost non-existent. As per Pande et. al (2002), six sigma efforts, target three main areas: Improving customer satisfaction Reducing cycle time Reducing defects

Ecke (2001), in his latest book entitled `Making Six Sigma Last- examines three critical success factors (CSF) Strategic component Tactical component Cultural component

Ecke in the above book, i.e. managing the Balance between Cultural and Technical change exclusively addresses the third and most important component of the Cultural Component of the Critical Success Factors (CSF). The `Cultural acceptance of change is the single most dominant factor and the same is most neglected/overlooked by most of the organizations. It cannot be over-emphasized here more than this, that if this component is mastered by any organization, it can bring in/usher in more amazing/ dramatic results forwards six sigma performance continuous improvement. It is muchmuch more than SWOT principles application of organizations as well as that of individuals.

8.3 Performance Evaluation A simple but powerful formula has been given as equation (8.1), for finding out performance evaluation, and giving much focus on the third component of six sigma, that is, `cultural acceptance of change. E = Q x A ----------------------------------------------------------- (8.1)
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where,
E= Q= A=

performance evaluation (refers to the extent a company achieves six sigma as a technical measure of performance) quality refers to strategic and tactical elements of six sigma initiative) cultural acceptance of change (refers to cultural acceptance of the strategic and tactical elements of six sigma)

A high quality (Q), element is not enough to ensure success. Without `cultural acceptance, the change effort might begin with initial enthusiasm a nd excitement but will quickly fizzle out. Herein, management of change is also inbuilt, incessant and inherent. (3Is).

The above formula is multiplicative and E can be calculated by equation (8.1) to find out the results by the interpretation given in Table 8.1 (Ecke, 2001). Table 8.1: Performance Evaluation: Six Sigma Approach Q x A Score Results 0 20 21 40 41 60 61 80 81 100 Wasted efforts and money on six sigma Some tactical results appear, but initiative may likely die down Significant tactical results achieved, initiative will focus on projects for the life of six sigma Cultural transformation takes place, but requires reviewing for survival/staying Cultural transformation has taken placea worldclass six sigma organization has emerged

If the value of E is measured as per Table 8.1 and is answered 60 per cent then cultural transformation takes place but requires reviewing and only after 80 per cent of E value, the transformation of an organization takes place-a world-class six sigma organization comes to stay. At around 40 per cent, only cultural transformation visibility starts, which requires lot of initiative to be taken, otherwise it will die down.

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8.4 Cultural acceptance of change The modern organizations are passing through fiercely competitive battlefield environment. The Organization Design (OD), Organizational levers of control and diagnostic control systems are the dominant parameters of organizations effectiveness. The strategy has to match with the changing scenario and process of change for achieving higher performance. Table 8.2 (a): Model Summary Std. Error Mode l 1 R .820(a) Adjusted R Square R Square .672 .662 of the Estimate 1.115

a Predictors: (Constant), acceptance of change

Table 8.2 (b): Analysis of Variance (ANOVA) Sum of Model 1 Regressi on Residual Total Squares 84.131 41.012 125.143 df 1 33 34 Mean Square 84.131 1.243 F 67.695 Sig. .000(a)

a Predictors: (Constant), acceptance of change b Dependent Variable: rating performance Table 8.2 (c): Coefficients Unstandardized Coefficients Std. Model 1 (Constant) acceptance of change B 1.978 .088 Error .606 .011 .820 Beta t 3.265 8.228 Sig. .003 .000 Standardized Coefficients

a Dependent Variable: rating performance

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Thus from the above analysis it is observed that Impact of acceptance of Change is significant at .o1 level and 67% on performance.

8.5 Impact of Cultural Acceptance of Change on Performance of Personnel 8.5.1 Case study from corporate sector A format of appraisal system was given to all concerned personnel (senior managers, managers, executives, senior supervisor, and supervisor) and explained what is required out of them and how to fill up. From the calculation and further validation from individual higher value of performance was found to be 90% and average as 54%. This clearly shows that six sigma meaning higher performance culture, is setting in the unit (> 60 scale). A graphical representation depicts the appreciation of the performance of personnel of the unit is which is shown at Fig.8.1
100

80

Value Performance score

60

40

20

0 1 2 3 4 5 6 7 8 9 11 13 15 17 19 21 23 25 27 29 31 33 35 10 12 14 16 18 20 22 24 26 28 30 32 34

Respondents

Fig. 8.1: Performance of Employee (Corporate sector) 8.6 Case studies of Educational Institutes. Herein, performance evaluation as a case study of personnels feedback of three educational institutes from Pune region has been taken randomly. The present work thus may open up new avenues for future research on much needed organizational workculture especially focusing on High Performance Work System (HPWS), thus

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transforming the organizations into passionate organizations. For Socio-Political reasons we are not naming the institutions from which actual study has been carried out.

8.6.1 Educational Institute: ABC From the calculation and further validation from individual higher value of performance was found to be 74 per cent. This clearly shows that, Six sigma meaning cultural transformation is taking place, but requires reviewing for survival/ staying. This clearly shows that six sigma meaning higher performance culture, is setting in the unit (> 60 scale). A graphical representation depicts the appreciation of the performance of personnel of the unit is which is shown at Fig.8.2 and 8.3

Ratings

Respondents Fig. 8.2: Performances of Employees (ABC)

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Fig. 8.3: Performance Appraisal of Staff (ABC) 8.6.2 Educational Institute: PQR As per six sigma approach for Performance evaluation on a (QxA) score, work-culture visibility states setting in around (QxA) score of 60. From the calculation and further validation from individual higher value of performance was found to be 72 per cent> 60 scale, which shows that six sigma i.e. Higher performance culture is setting in. A graphical representation depicts the appreciation of the performance of personnel of the unit is which is shown at Fig.8.4 and 8.5

Ratings

Respondents Fig. 8.4: Performances of Employees (PQR)

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Fig. 8.5: Performance Appraisal of Staff (PQR) 8.6.3 Educational Institute: XYZ As per six sigma approach for Performance evaluation on a (QxA) score, work-culture visibility states setting in around (QxA) score of 60. From the calculation and further validation from individual higher value of performance was found to be 76 per cent> 60 scale, which shows that six sigma i.e. Higher performance culture is setting in. A graphical representation depicts the appreciation of the performance of personnel of the unit is which is shown at Fig.8.6 and 8.7

Ratings

Respondents
Fig. 8.6: Performances of Employees (XYZ)
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Fig. 8.7: Performance Appraisal of Staff (XYZ) Herein, three educational institutes (viz; ABC, PQR & XYZ) from Pune region have been taken randomly as a case study of personnels feedback for performance evaluation. The summary of percentage of performance rating has been tabulated below. Table 8.3: Summary of responses from Educational institutes (ABC, PQR & XYZ) Description Educational Institutes ABC Performance above 60% Performance below 60% Total no. of respondents % of Ratings 10 08 18 74 PQR 13 05 18 72 XYZ 14 04 18 76

8.7 Critical evaluation From the above cases it has been observed that in all the three institutes Higher Performance Culture is setting in, but requires reviewing for survival/ sustenance. Hence a) The quality of education has to be maintained in the wake of quantitative increasing growth of indiscriminate institutions. b) Herein, we are more worried about good availability of talented teachers, with also lack of talented students availabilities.

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c) Thus, we observe that in the educational system quality is the fundamental factor to be addressed than the quantity.

A summary of the ingredients that emerged out of the qualitative analysis of fifteen representative educational institutions have been listed at Table 8.4 Table 8.4: Summary of Ratings based on Performance (Educational institute) Item-Description Low (20% - 40%) B (39%), Rating of Performance D (32%), K (30%) Medium (40% - 60%) A (41%), C (42%), E (57%), H (42%) I (56%), J (42%), L (42%) High (60% - 80%) G (81%), M (64%), N (64%), O (72%), F (78%)

8.8 Discussion Herein, all the fifteen educational institutions have been studied and a summary of ratings based on performance have been shown as low, medium and high ratings. The ratings of low, medium and high have been arrived at according to the percentage. Thus, questionnaire analysis evidently indicates the various institutes performances.

8.9 Concluding remarks Technological changes every now and then, the teaching-learning technique by teachers also require a frequent change to suit the changing requirements. Teaching leadership scorecard is a tool that ensures that the leadership development function is focused on accompanying objectives that are linked to teaching business strategy.(Phillips et.al.2009). Teaching learning scorecard imparts the following benefits: It enhances students as well as teachers capabilities. It develops leadership traits. It enriches career development programme as well. It imparts teachers training as well.
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It helps teachers students to unleash their brain-power. It truly enhances motivational leadership perspective. It enhances teaching-learning as a more focused programme.

The Scorecard also develops intangible assets of both the teachers and students: Increases job satisfaction Increases organizational commitment. Improves teamwork. Reduces conflicts and complaints.

Thus, it can be observed that teacher-leadership scorecard provides a much needed linkage to needs, objectives and evaluates the whole educational programme systematically.

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