It is about that simple: Six Sigma methodology provides businesses with the tools to improve the capability of their safety business processes and starts by asking fundamental questions based around customer requirements.
Six Sigma projects that can focus on risk management. Actually many of the tools used by a Six Sigma project manager are used by Risk Managers such as flowcharts, check sheets, probability and statistics.
A team working on a risk management project should:
- Identify loss exposures
- Analyze loss exposures
- Determine the appropriate techniques to treat the exposures
- Implement and monitor (control)
A team can look for opportunities to control the risk by:
- Risk Avoidance
- Loss Prevention
- Loss Reduction
Six Sigma has been around for more than a decade. Lean for nearly as long. Each is unique and yet shares a number of common attributes with the other. By applying the 5S (Sort, Sift or Simplify, Sweep, Standardize, and Sustain) and then proceed onto the next Lean tool. In most cases multiple applications of 5S are utilized to reach optimal performance before more complicated tools are applied. Loss reduction can include ideas that reduce the severity of the loss after it occurs. These ideas include notification alarms, sprinklers, fire extinguishers, storing valuables offsite with two copies, Health and Safety programs, emergency action programs, defibrillators, seat belts, and airbags.
All of these can contribute to savings in the eyes of the insurer. Your company risk manager should be aware and involved in these improvements and negotiate lower premiums.
Applying rigorous analysis to all processes in the business, Six Sigma can assess whether customer safety requirements are being met. Since ‘Metrics’ lie at the heart of Six Sigma, the basic approach is to measure performance on an existing process, compare it with a statistically valid ideal and figure out how to eliminate any variation each time the process fails to deliver and a defect is found. Six Sigma rigorously works towards uncovering the root cause of these defects and eliminating them time and again, resulting in reduced defects, declining costs and ultimately achieving a highly improved state of customer satisfaction.
It Defines Opportunity-What is important?
- Identify and validate business improvement opportunity
- Document and analyze business processes
- Define customer requirements
- Build and launch effective project teams
It Measures Performance – How are we doing?
- Achieve an in-depth understanding of the process using value stream mapping
- Determine what to measure
- Develop effective data collection methods
- Understand and measure variation
- Evaluate measurement systems
- Determine process performance
It has Analyze Opportunity – What is wrong?
- Identify process constraints and bottlenecks
- Narrow down to the Potential Root Causes
- Confirm Root Cause to Output Relationship
- Estimate Impact of Root Causes on Key Outputs and assess the impact of process complexity
- Prioritize Root Causes
It will Improve Performance – What needs to be done?
- Develop potential solutions
- Evaluate and select solutions
- Develop “To Be” Value Stream Map
- Develop and implement pilot run
- Confirm attainment of project goals
- Develop full scale implementation plan
It has and it will Control Performance – How do we guarantee performance
- Mistake-proof the process to eliminate defects from the process
- Complete all documentation including SOPs, Process Control Plans, and Training Plans
- Develop a monitoring system and implement SPC and Visual Process Controls to provide feedback on the process