KNOWLEDGE-BASED SIX SIGMA FOR MANAGEMENT INNOVATION

nigerianfortyfortManagement

Nov 6, 2013 (3 years and 10 months ago)

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KNOWLEDGE
-
BASED SIX SIGMA FOR MANAGEMENT INNOVATION


Y
o
ung H. Park, Ph.D*

Sung H. Park, Ph.D **

*Department of Industrial and System Eng., Kangnam University, KOREA

** Department of Statistics, Seoul National University, KOREA


1.ABSTRACT


Six Sigma is a
well
-
known
management

strategy in Korea. To apply six Sigma in a
company effectively, information technology (IT) and data technology(DT) have to be
used well in the company. Korea is very strong in IT industries such as the Internet,
mobile phones, commun
ication equipment and computer
-
related semi
-
conductors.
However, Korea is rather weak in DT compared to IT. Without an efficient DT system,
IT will have limitations in growth in the company. Also without an efficient IT system,
DT also cannot be well visua
lized. Knowledge Management (KM) is very important in
this knowledge
-
based information society. If Six sigma and KM are to be combined
efficiently, they can become very powerful management strategy. The so
-
called
knowledge
-
Based Six Sigma (KBSS) will be pr
oposed in this paper. In this paper,
major differences between DT and IT will be explained first, and then the
methodologies of KBSS will be proposed. Also the relationship between DT and KBSS is
commented and how KBSS can be implemented in industry is s
uggested.


2.

SIX SIGMA, DT and IT


Six Sigma would be defined as

new strategic paradigm of management innovation
for organization, which implies statistical measurement, management strategy and
quality culture

.
The core goals of Six Sigma are to reduce
defects
, improve yield,
improve customer satisfaction, reduce
variation

and increase shareholder value. As a
result of those, Six Sigma eventually increases the company

s competitiveness.

However, many executives, managers and engineers still do not unders
tand how it
can help them. Also many small
-

and medium companies do not think Six Sigma is very
good in their own company. Why are these things happening? T
h
ey know Six Sigma is
good method, they learn Six Sigma tools and methodologies, but results for the
ir
company are not so supper. We think one of the reasons of failure of Six Sigma in
company is weak management of data and information in their company. We will
propose knowledge
-
Based Six Sigma (KBSS) based on DT and IT in order to
operate

Six Sigma effe
ctively in company at the followings.

DT is an essential element for Six Sigma, and in general for national
competitiveness.
The

importance

of DT will rapidly expand in this knowledge
-
based
information society. The
definition

of DT is a scientific methodol
ogy which deals with;



Measurement, collection, storage and retrieval techniques of data,



Statistical analysis of data,



Information creation from data,



Statistical/computational modeling from data,



Creation of necessary knowledge from data informa
tion,



Diagnosis and control of current events from statistical models,



Prediction of future from statistical models.

Many believe that DT is a subset of IT. This is not true. Generally speaking, IT is
defined as an engineering methodology which deals w
ith;



Presentation and control of raw data and information created by DT,



Efficient data/information and image transmission and communication,



Manufacturing technology of electronic devices for data/information transmission and
communication,



Engine
ering tools and support for knowledge management.

The scope of DT can be divided into three categories: management DT,
multiplication DT and execution DT. Management DT comes first, then multiplication DT,
and finally execution DT provides valuation and pr
ofit generation for the organization
concerned. The scopes of each DT are;



management DT ; acquisition, storage, retrieval and analysis of data, creation of
information



multiplication DT ; analysis of results
obtained
, use of information multiplied, creation
of knowledge



execution DT ; execution of generated knowledge, data
/information
transmission


The difference between DT and IT can be seen in the information flow as shown in
Figure 1.

Figure 1. Information flow of DT and IT


DT is mainly concerned with data collection, statistical analysis
of data and data
refinement, generation of information, and creation of necessary knowledge from
information. However, IT is mainly concerned with data/information/image transmission
and communication, and development of engineering devices and computers f
or
information handling. Also IT is concerned with engineering tools for knowledge

management. Generally speaking, DT forms the infra
-
structure of IT. Without DT, IT
would have limitations in growth. On the other hand, DT cannot be well visualized. IT is
t
he vehicle for DT development


3. KNOWLEDGE
-
BASED SIX SIGMA


We think that KM is very important in this knowledge
-
based information society. If
Six Sigma and KM are combined, it could
become

a very powerful management strategy.
We want to propose the so
-
ca
lled Knowledge Based Six Sigma (KBSS) as the
combination of Six Sigma and KM.

KBSS can be defined as

a company
-
wide management strategy whose goal is to
achieve process quality innovation corresponding to 6sigma level and customer
satisfaction through suc
h activities as systematic generation, storage, and dissemination
of knowledge by utilizing the
information

technology of the internet/intranet, data
-
bases
and other devices. There are some differences between Six Sigma and KM. However,
There also exist so
me areas of intersections such as data acquisition and utilization,
data analysis, generation of information, and so on. KBSS is a combination of KM and
Six Sigma which can be developed as a new paradigm for management strategy in this
digital society of t
he 21st century.


DT


Data

collecti
on


Fact

Sta
ti
stical analysis

o
f data and data

refinement

Generation of

Information and


Inference from data

IT


Fact


Da t a/i n f or ma t i on/i ma ge

Tr a n s mi s s i on a n d

c ommu n i c a t i on


Devel opment of engi neer i ng


devi ces and comput er s f o
r

I nf or mat i on handi ng


Engi neer i ng t ool s and
s
uppor t f or knowl edge

management

Cr eat i on of

Knowl edge f r om

i nf or mat i on

The

methodologies in KBSS can be explained as follows.



Project team

The project team activities for quality and productivity improvement are perhaps the
most
important

activities in Six Sigma. If the concept of KM is added to these activities,
more useful and profitable results could be
possible
. Through te
am efforts, a team can
create and capture information,
share the information and utilize it in the MAIC process.
Also by using the MAIC process, team can create new information and operate the
CSUE process.




Education and training

Education and training
is the most fundamental infra
-
structure in Six Sigma. Also in KM,
without proper training, creation, storage, sharing, and utilization would not be easy,
and the process flow of knowledge would not be possible.




Process flow in KM and Six Sigma

In KM, a
good process flow of improvement activities is the CSUE cycle as shown in
Figure 2. CSUE stands for Creating & Capturing, Strong & Sharing, Utilization and
Evaluation. As explained previously, the well
-
known process flow of improvement
activities in Six Si
gma is MAIC



Flow in KM Flow in Six Sigma

Figure 2. Process flow of improvement activities in KM and Six Sigma


The CSUE and MAIC cycles
can be intermixed in order to create an
e
fficient

cycle in
KBSS. One way is to use the MAIC cycle in each step of CSUE, or to use the CSUE
cycle in each step of the MAIC cycle. We believe that CSUE and MAIC are both
Evaluation


Creating &


Capt ur i ng


Ut i l i zat i on

St or i ng &


Shar i ng

Cont r ol Measur e



I mpr ove Anal yz e

complementary to each other.



Information and knowledge
management

Information on areas such as cu
stomer management, R&D, process management, quality
inspection and reliability tests are essential elements in Six Sigma. In KM also,
information management concerning storage, sharing and utilization of knowledge is the
most important in a structure. Info
rmation management is essential in KBSS.




Tools

Basic QC and statistical tools can be used in KBSS. Also some advanced Six Sigma tools,
such as FMEA, QFD, design of experiments, and marketing surveys, can be effectively
used in KBSS. We believe that if DT, KM and Six Sigma are combined in an eff
ective
way, the companies will make their management an excellent one.


4. CONCLUSION


In this paper, major differences between DT and IT was explained first, and then
the methodologies of KBSS was proposed. Also
the

relationship between DT and KBSS
was co
mmented and how KBSS can be implemented in industry was suggested in order
to operate Six Sigma effectively in company.


REFERENCES


1 Harry, M. J. (1998),

The Vision of Six Sigma,


8th Volume, Tri Star Publishing.

2 Harry, M. J. (1998),

Six Sigma : A Br
eakthrough Strategy for Profitability,



Quality Progress 31, No.5

3. Magnusson, K., Kroslid, D. and Bergman, B (2000),

Six Sigma: The P
ragmatic


Approach,


Studentlitteratur, Sweden.

4. Park, sung H. (2003),

Six Sigma for Quality and Productivity Promot
ion,



Asian Productivity Organization.

5 Stamatis, D. H.(2004),

Six Sigma : A complete Guide to the System, Methods

and Tools, Stamatis.