Quality Management

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Is six sigma continual improvement a cure all methodology for all problems? Justify you answer. (10 marks)

The six sigma bandwagon has been such a huge success that large number of organisations across multiple industries has jumped on an embraced the initiative. Six Sigma represents process management in a systematic way for continuous improvement in quality. It is very effective in cutting cost and improve bottom line.

Initial implementation of Six Sigma may yield significant improvement in defects per million opportunities and drive profits up. However, when an organisation is too obsessed with process management they tend to lose sight on innovation. Such obsession and focus on process efficiency kills innovation and present a disconnect in customer relationship. Implementing Six Sigma in isolation will see companies improve quality, reduce costs and increased efficiency. The success however is short term and unsustainable without strategic business change. Once the required belt tightening or efficiency levels are achieved, companies need to kick start top-line initiatives for a wider base of revenue (Hindo 2007).

Six Sigma is not the best tool when it comes to transformational change (Roth 2007) in accordance to change in trend or business environment. In the era of globalisation, businesses are no longer limited by geographic boundaries while trends changes much faster than what we are used to. Overly obsessed with statistical data and theoretical approach Six Sigma leads managers into launching unrelated continuous improvements project while what they should be doing is innovating products and services tailored to changing trend. Advantages gained through Six Sigma yesterday will be replaced by trends of tomorrow. Six Sigma corporations do not need to do anything wrong to fail, as long as competitors catches the next trend and do them right.

In the case of Motorola where Six Sigma originated, the emergence of smartphones and broadband internet was the trend they failed to catch. While Samsung and Apple was riding the trend and ran with it churning out innovation on half yearly basis Motorola were still looking to improve production of their signature Startec flip phones.

PART B

3a. In your own words, explain the five critical success factors (5 marks)

North Mississippi Health Services (NMHS) is guided by five critical success factors namely:

- People – Maintain High quality workforce

NHMS started off with providing a working environment that attracts the best talents available. With the best talents available to them NHMS nurtures these talents to provide the excellent quality medical services and best services to their customers. People equity forms the foundation of NHMS’ critical success factors. Emphasis in placed on selecting the best talents, training and retaining them. Focus is placed on the right talents with a good cultural fit for the organization. People equity are the driving force behind success at NHMS, so much so that they focus relentlessly on keeping their talents motivated and excited about their work.

NHMS has recorded high employee retention rate of above 90% since 2007. Employees are kept motivated and engaged through rewards and recognition liked to organizational performance management system and critical success factors. NHMS provides a full time career counselor to assist employees with career progression besides reimbursing tuition fees for advanced education.

Senior managers emphasize on ‘people-first’ culture where servant-leadership philosophy allows managers to build trust with employees thus sustains an empowered, accountable and high-performing workforce. The Live Well Employee Incentive Program educates and rewards employees for healthy & safe behavior choices on the job.

- Service – Improve customer service

NHMS applies various methods in collecting feedback on areas for improvement namely:

- Free phone line (Careline)

- Regular visit to work areas by leaders

- Face-to-face interviews

- Facebook comments and

- Surveys

Performance results are shared with entire workforce, patients and other stakeholders through performance score cards and reviewed monthly. Collaborative workgroups share best practices on regular basis towards service improvements.

The Ideas for excellence program captures improvement suggestions generated by the work force with approximately 40% of acceptance (Tapscott 2012).

- Quality – Improve prevention and health education services. Improve health outcomes.

NHMS created a system-wide, patient focused improvement department responsible for integrating quality initiatives throughout the entire health system. Font-line staff were empowered to serve as driver of quality. Systems and processes were developed to measure success by front line staff.

- Financial – Produce financial resources required to support mission and vision

Powered by talented workforce giving the best service and quality healthcare, NHMS has led its competitors in terms of market share. Despite being located in the epicenter of poverty, NHMS has maintained Standard & Poor’s AA rating for 18 years running. NHMS applies ‘Days cash-on-hand’ financial indicator showing available funds for better planning of future spending (Tapscott 2012)

- Growth – Expand access to health services.

NHMS allocates funding towards charity care while employees provided meals, prescriptions, clothing and utility assistance to the community. NHMS also financially support local nursing schools, organized free fairs for preventive screenings, health care promotions and childhood immunizations.

3b. Propose THREE (3) measurements that NMHS can use in order to gauge their success (6 marks)

NHMS defines success by achieving its mission, vision and values. In order to measure success NHMS invests in creating systems and processes that allows it to measure success. Data collection and review is vital continuous improvement projects or action plans. NHMS uses EPP process to determine data collection to identify performance measures according