A criticism of the Six Sigma approach was presented in the “Wall Street Journal and Chief Executive Magazine”. The article below rebuts the critic’s dubious statistics.
In this linked-to PDF article below it was stated:
Mr. Holland, who heads the QualPro firm, made the following reference in articles that appeared in the Wall Street Journal and Chief Executive Magazine in January (2007) “…research identified 58 companies that announced broad Six Sigma programs. He then compared stock performance for each of these companies since their announced launch date to the S&P 500 stock index….
QualPro found that 91% of these companies had stock performances below the S&P 500 index since announcing a Six Sigma program.” Is this the kind of rigorous examination of facts that Six Sigma demands or is it junk science? Is it scholarship or is it magical thinking? In Six Sigma training, emphasis is stressed that a correlation between two variables does not prove causation. The deployment or non-deployment of Six Sigma and a company’s stock performance can be correlated but correlation does not mean there is causation. That’s because many factors affect stock performance. There appears to be some vagueness, too, about the sample of companies chosen for the survey. Were they a random example or were they cherry-picked?
Click on the link below for the article’s full text.
Response to Criticism of Six Sigma Approach: An Enhanced Lean Six Sigma Implementation
Much has happened since the above referenced 2007 article.
An enhanced to a traditional lean Six Sigma deployment approach is now available. An Integrated Enterprise Excellence (IEE) business management system for implementing lean Six Sigma puts an organization’s puzzle pieces together:
An IEE system addresses the business scorecard and process improvement methodology issues highlighted in a 1-minute video:
Contact Us to set up a time to discuss with Forrest Breyfogle how your organization might gain much from an Integrated Enterprise Excellence (IEE) Business Process Management System and its enhanced Lean Six Sigma deployment approach.