If Motorola is credited with the birth of six sigma, then General Electric deserves the credit for bringing the manufacturing-centered principle into the everyday management and business conversation. The decision to pursue six sigma at General Electric was not an easy one for Jack Welch. In fact, he is credited with saying that the decision to begin a six sigma initiative at GE was the most ambitious undertaking the company had ever taken on. Now add to this the fact that Jack Welch thought the quality-centered initiative was too heavy on slogans and not focused on results. That was, until the cost-benefit analysis performed by GE indicated that raising quality standards to a statistical six sigma would save the company between $7 billion and $10 billion.

The Underlying Theory
So what exactly is six sigma? Six sigma itself is a highly infrastructure-centered system of quality and process improvement initiatives. At the heart of six sigma are the goals of creating consistent, stable results from processes; an investment in the culture of quality improvement from the entire organization, especially top management; and creating processes and practices that can be measured, analyzed, and improved upon. 

Unlike traditional quality control methods that preceded the six sigma movement, six sigma places an increased emphasis on strong, passionate leadership and a clear focus on achieving measurable financial returns from the project. Although not foreign to the highly structured claims environment, the infrastructure of a six sigma project involves uniquely named, martial arts oriented positions like “Champions,” “Black Belts,” “Orange Belts,” and “Green Belts.” Each position has specific responsibilities toward the six sigma project. As an example, “Black Belts” operate under “Master Black Belts” and devote 100 percent of their time to the execution of the six sigma project, while “Green Belts” are employees that pursue the six sigma project along with their traditional job responsibilities and work under the guidance of “Black Belts.”  

If six sigma sounds like a serious commitment, it is. In fact, some of the criticism of six sigma lies within the high level of organization recommended for implementation of a six sigma project. Smaller companies typically shy away from the idea of creating a “Master Black Belt” position where that employee devotes 100 percent of his or her time to a process-improvement project as opposed to current job duties.  

Six sigma's principles and methods are not dependent on converting your employees and teams into groups of martial artists, though. The project methodology, the acronym DMAIC, can really hold true with or without the infrastructure changes. 

What Is DMAIC? Simply put, DMAIC stands for: 

• Defining the problem or project goals.
• Measuring the key elements of the current practice or procedure.
• Analyzing the data to find cause-and-effect relationships.
• Improving upon current procedures and practices.
• Controlling the process moving forward so that deviations are caught before they can affect customer satisfaction or quality of product or service a company provides.

In short, efficiency and productivity improvement practices do not have to be industry specific. Quality control isn't just about producing a better widget. Rather, it's about producing a more satisfied customer or a more efficient business with the end result of improving the bottom line. Six sigma projects, and their associated tools, can be an invaluable phase in achieving this end goal.

Mark J. Rose is a senior associate attorney with the insurance defense law firm of Roig, Tutan, Rosenberg, Martin & Stoller, P. A. in Deerfield Beach, Florida. Rose is certified by Florida Supreme Court as a County Court Mediator and is an adjunct professor of business law at Palm Beach State College. He obtained his Bachelor of Science in Engineering, cum laude, from the University of Pittsburgh and obtained his Master of Business Administration and Juris Doctor from Stetson University.   

Rose is the founder of Florida PIP Guide (www.FLPIPGuide.com), a blog dedicated to Florida's No-Fault Law and Florida insurance fraud.  Mark was recently published in the Trial Advocate Quarterly on the issue of Florida's newly enacted No-Fault Law and its implications for Florida automobile insurers.

Prior to beginning law school at Stetson University, Rose worked with an interdisciplinary team at U.S. Steel's Mon Valley Works, Edgar Thomson Plant to develop a solution and implementation plan to improve efficiency in their continuous strand steel production operations. As an industrial engineer and an insurance claims attorney, Rose is an advocate of “lean manufacturing” and “six sigma” principles in non-traditional forums, such as claims administration, consulting and defense. He may be reached at [email protected].