Monday, January 5, 2009

The Six Sigma Process Isnt Just For Big Businesses

Writen by Tony Jacowski

Many small and mid-sized business owners are under the impression that the Six Sigma Process is not for them as it has a reputation to cost a prohibitive amount of money for companies of their size. Though this was true when the original Six Sigma Process came to be, as it continues to grow and evolve, many smaller companies are now quite capable of affording to implement the latest development of its strategy.

This more affordable Six Sigma Process is commonly called Generation III. It has been developed specifically for small to mid-sized companies who are seeking to improve their profitability through performance. Its affordability has been made possible by way of the internet which now offers online training technology, as well as new smaller-scale "live" training options for reducing training expenses.

Naturally, there are a few differences between the original, Generation I Six Sigma Process and the new Generation III for small and mid-sized businesses, however, this is what makes it so beneficial to these smaller businesses – it functions with them in mind. Primarily, these differences are made up of the following:

• Generation I focuses primarily on defect, while Generation III focuses on value.

• Generation I places emphasis on the provider, while Generation III places emphasis on both the customer and the provider.

• Generation I expert consultants and trainers are referred to as Black Belts, while Generation III expert consultants and trainers are referred to as White Belts.

Instead of making its primary focus the reduction of costs, Generation III of the Six Sigma Process now involves the creation of value. This is an enormous step in the strategy's outlook. Its aim is to have businesses provide goods and services of the highest possible value. In terms of Generation III, value means that the product or service is provided at the right location, on time, in the right amount, and at the lowest possible cost.

To reduce costs, Black Belts of Generation I who train in costly classroom settings leading to a relatively long development before actual results are seen, have been traded in for the Generation III White Belt. White Belts of the Six Sigma Process provide results much more quickly with less overall training. This is possible due to the White Belt's narrower focus.

Ultimately, this means that companies, no matter their size, are now ready to take advantage of the benefits and potential offered by taking on the Six Sigma Process.

Tony Jacowski is a quality analyst for The MBA Journal. Aveta Solutions – Six Sigma Online ( http://www.sixsigmaonline.org ) offers online six sigma training and certification classes for lean six sigma, black belts, green belts, and yellow belts.

Sunday, January 4, 2009

30 Ways To Be A Butthead Boss

Writen by Gene Simmons

1. Trust no one. Not your superiors and not your employees. Especially not your employees. They're probably out to get you anyway.

2. Believe that all of your people are lazy, good-for-nothing slackers. Remind them of that frequently.

3. Get mad and shout a lot. This will reinforce to your "workers" that you mean business.

4. Never grant special favors. Having babies, being sick, taking time off to go to weddings, funerals or 50th anniversaries are just ways to get out of work. Don't let them get away with it.

5. Try not to make decisions. Decisions will only give your boss a reason to fire you. If a decision is absolutely necessary, try to postpone it as long as possible.

6. Do not tolerate errors. Of any kind or any size. Even the smallest of errors just reinforces the fact that your people are screw-ups. Fire people for minor infractions.

7. Criticize. Never be satisfied with any of your employees' work products. If they were trying at all, they would be doing better.

8. Refuse to listen to suggestions. Your subordinates are just trying to get you to do something that will get you into trouble. They don't have the sense god gave a goose anyway. Your way is the right way.

9. Complain to various employees how bad the others are. Try to get them on your side so they'll group together and force the really worthless people to leave.

10. Change your mind often. About everything – policies, procedures, work assignments. Don't let your employees become complacent with the way things are.

11. Come into work late and leave early. Take long lunches. Show your people that you're the boss and can do whatever you want.

12. Prohibit office celebrations and parties. No birthdays, no holiday parties or decorating, no nothing. This is no place to be goofing off. There is work to do.

13. Never praise your people. They'll just expect more of it. Besides, no one ever does anything that's worth recognizing anyway.

14. Never tell any of your employees exactly what you do. They'll use it against you.

15. Refuse to discuss the status of the company with any of your employees. Finances and future plans are none of their business. They need to focus on just their jobs.

16. Do not train your employees. Give them only the minimum information they need to do their jobs. Let them prove themselves by figuring out the details.

17. Definitely do not cross-train your people. That will only cause them to get big-headed about how much they know. Don't give them a reason to complain about their miserable wages.

18. Give the easy jobs to the employees who always agree with you. They've earned it.

19. Give the really cushy jobs to the really "friendly" people – the cutest or best looking ones who aren't afraid to show just how friendly they are. Being a boss is tough. You deserve your perks.

20. Petty cash is your discretionary lunch money. Enjoy it.

21. Cut company expenses by firing whoever you want. Demand increases in productivity from those remaining. Maybe they will eventually get the idea that they need to get to work.

22. Never show your people that you care about them. It would make you look weak and erode your status as a boss.

23. Display your power. Sit behind a big desk. Make sure all the other chairs in your office are much lower than yours.

24. Never go to employees' work stations to discuss anything – unless you need to chew them out. You're much too important to leave your office. Make them come to you.

25. Use meetings to intimidate your employees. Be loud, be forceful, pound the table – show them who's boss.

26. Do not accept the blame for anything. When your people screw up, it's completely their fault. Never yours.

27. Take full credit for everything good that happens in your group. None of your employees are smart enough to have done it by themselves.

28. Never, ever make your own coffee. You're much too important to spend your time doing that.

29. Tell your employees that you're reading ALL e-mails whether you do or not. Do not permit them to make personal phone calls for any reason. Make sure they know that you are watching their every move. You can't trust any of them.

30. Never, never, never give any of your people access to the Internet. They'll just waste their time accessing porn sites or maybe even self-improvement sites like NuPathz.com.

About The Author

Gene Simmons, through NuPathz.com, provides an easy reading self-help blog, articles, quotations, thoughts and links along with affordable self-help and self improvement books & materials - all designed to help folks find the road to a more enjoyable lifestyle, to pass on some of life's "secrets for survival" in a chaotic world & offer a few smiles along the way. It's a down-to-earth, simple approach to discovering a better life. You can visit Gene at his website.

gene@nupathz.com

Saturday, January 3, 2009

Information As A Competitive Advantage Part 7 Cost Reduction

Writen by Kostis Panayotakis

A cost cutting strategy is very popular in the business world, especially during recession or falling revenue periods. The Business which achieves to maintain the 'cost leader' position, has a major competitive advantage. The ability to sustain a low cost position, is a precondition for long term development in any highly competitive environment. To achieve that, a business has to develop core competencies in lean production, which cannot easily be copied by Competition.

The use of financial and managerial accounting systems for production cost measurement and control, is a common practise.

Profitability monitoring is also enabled by accounting systems. The use of profitability ratios at the organizational level, at a profit-center level, or at the product level, is a common practice which is based on the effective recording and structured analysis of business information. Production cost analysis contributes to the product pricing strategy and profitability estimation. Use of cost accounting techniques like activity based costing, requires monitoring the following facts:

  • Unit rate for each cost driver which is related to the production of a product or a service (e.g. man hour cost for a specific specialization is 35 Euro)
  • Actual consumption of each cost driver for the production of a unit of a product (e.g. 4 man hours are required for the drafting of a contract).
Cost drivers relate to direct production costs for which assignment is obvious, as well as indirect production costs for which assignment is done via calculations (e.g. estimation of a room space which is hosting a specific procedure). Beyond production cost, facts should be monitored on marketing resource consumption, logistics costs and technical support costs. Cost and revenue monitoring per Customer, allows per Customer profitability analysis. This way, priority can be given to profitable Customers. Information on Customers with low or negative profitability, should be used to carry out a root-cause analysis. Use of aggregated information on production cost & revenue, instead of detailed information per product, business unit, even Customer, does not yield actionable insight on the production activity and the profitability. Many Businesses do not have sufficient information on the profitability of each product or Customer group. On the other hand, detailed monitoring allows decision support for better product and customer management. The ability to capture integrated information like: speed and setup cost of each production procedure, production rates, time to conclude a production cycle, resource and activity cost, waste cost, is very important. Information capture should support the optimization and cost reduction of production processes.

Copyright 2006 – Kostis Panayotakis

Material relevant to information management, can be found at http://www.pleroforea.com Kostis Panayotakis - http://www.pleroforea.com

Friday, January 2, 2009

Your Corporate Selfimage Will Determine Your Success

Writen by Tim Connor

One of the critical factors for success in any endeavor is a healthy and positive self-image. Essentially a persons self-image will determine:

-how they respond to life's circumstances

-how they view the world around them

-what goals they set for themselves

-how they react to failure and adversity

-how they feel about themselves and others

-how they behave when no one is looking

-how they handle difficult situations

-their destiny and much more.

Organizations are made up of groups of individuals with various self-images and therefore create what I refer to in my management seminars as an 'organizational self-image'. Organizations also create a destiny which is often consistent with how the combined group of employees in a department, division, group or even the entire employee base see themselves as an entity.

For example, if a group of employees in a customer service department see themselves as unimportant and unappreciated the department in general will tend to treat customers in much the same way. Yes, there may be select individuals who treat customers with respect and concern, but by an large the department as a whole, because of it's low self-image, will treat most customers poorly.

If the management team in an organization, for whatever reason(s), is not in sync with its direction, goals, decisions, philosophy, communication etc. it will create confusion, a lack of harmony, very little employee empowerment and poor performance among its employees.

If the members of a sales team feel that they are unnecessary, constantly under pressure to perform with little or no positive reinforcement or appreciation or are perceived by other departments or senior management as nothing. but arrogant trouble makers, the individual self-image of the members of the group will become the 'group' self-image. The results of this 'corporate self-mage' is often the same as in the list of consequences listed above. One common sales outcome in this issue is where the sales group's approach to price resistance is generally to reduce price rather than sell value thereby contributing to low margins and profits.

I'll leave you with a few questions to consider - What is your corporate self-image? What do you believe is the general corporate self-image of most of your employees? Are you accurately aware of it and its consequences both internally and externally? What are the ultimate consequences either positive or negative that you are experiencing as a result of this self-image? What or who is contributing or re-enforcing this corporate self-image?

Tim Connor, CSP is an internationally renowned sales, relationship, management and leadership speaker, trainer and best selling author. Since 1981 he has given over 3500 presentations in 21 countries on a variety of sales, management and relationship topics. He is the best selling author of over 60 books including; Soft Sell, That's Life, Peace Of Mind and The Male Gift Giving Survival Guide. He can be reached at tim@timconnor.com, 704-895-1230 or visit his website at http://www.timconnor.com

Thursday, January 1, 2009

Generational Managing

Writen by Murad Ali

Within the corporate world we now see three different generation cultures working side-by-side. Progressive mangers are expected to understand these differences and make peace with the different mindsets and traits that come along each age group. In order to retain top talent and build solid working teams rewards and assignments should take into consideration the personal likes and dislikes of each of the groups.

Culture plays an important part of successful management. For example, older executive managers have a different culture than their younger subordinates. Today there is four different cultures co-existing at once; traditionalists who were born before 1945, boomers who were born between 1946 and 1964, generation x born between 1965 and 1977, and finally generation Y born after 1977 (Sachs, 2006).

An interesting article by Dana Kyles outlines three of these differences with clarity (2005):

Baby boomers are seen as competitive, political and hard working. They hold the majority of management level positions are results orientated instead of the method. They want the status symbols that come with higher pay, special parking spaces, titles and perks. There is approximately 80 million in the workforce.

Generation X's are seen as disloyal, individualistic and technologically savvy. They were raised in a time of single parents and unconventional wisdom. When they began entering the workforce they did so during economic recession and strife. They are not interested in the status symbols that many of their Baby Boomer parents are interested in but want to feel a certain level of satisfaction from their jobs. There is around 46 million in the work force.

Generation Y's are seen as technologically savvy, purposeful and able to multitask. Many Generation Y's have been reared in non-traditional households like the Gen Xers but have come to understand their place in society. They are still individualistic but want to contribute to society. They also desire personal relationships with supervisors and want feedback. Technology and fast paced lifestyles have given them the ability to multi-task with ease. There is approximately 75 million just entering the work force.

Corporations need to adapt their cultures and reward structures to better appeal to the interest of their employees. Companies who adhere only to the interest of the executive management may find themselves having high turn over and low performance at the lower ranks. This raises the cost of business and reduces the overall effectiveness of the organization.

Murad Ali is a two-time published author on business, economics and social reform. He edits the Muslim Times and has related articles on http://www.muradenterprises.org