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What Can Six Sigma Do For You?

If you thought the Six Sigma framework was big business territory, think again.

Monique Verduyn

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Small and medium sized businesses have a number of characteristics that can speed up the structuring of an effective Six Sigma system, such as flexible process flows, short decision-making chains and high visibility of senior management.

Sound like Greek to you? In his book Six Sigma for Everyone, noted consultant and author George Eckes provides a practical guide that explains the underpinnings of this revolutionary quality assurance methodology.

A quality management and process improvement methodology, Six Sigma is particularly well suited to process-intensive industries like manufacturing. It measures a process by its average performance and the standard deviation of this performance, aiming to reduce the occurrence of defects in a process to a level of “Six Sigma” outside the norm: no more than 3,4 times per million.

Limiting Process Variation

Motorola is where Six Sigma began. An engineer, Mikel Harry, began to study the variations in the processes within Motorola. He saw that too much variation in any process resulted in poor customer satisfaction and ineffectiveness in meeting the customer requirements.

Eckes uses the example of a fast food restaurant where you are the customer. What if over the course of going there for lunch five days in a row, you experience different waiting periods in the drive-through line from the time you join the line until you get your order filled – anything from two to 24 minutes.

The average wait is 12 minutes, but that doesn’t describe the real situation. Not having control over variation, this fast food restaurant is going to lose business, since customers don’t like the uncertainty of not knowing whether it is going to be a 2-minute wait or a 24-minute wait.

Six Sigma is about applying a set of tools to reduce variation in the processes and improve the effectiveness and efficiency of those processes. It’s an approach, says Eckes, that can move management away from thinking of downsizing as their only approach to improving the financial outlook.

The Six Sigma Framework

Six Sigma projects should be derived by senior management from your business’s strategic plan. This sets an organisation’s goals and key performance measurements.

1. Define the objectives.

Based on goals, the senior management team defines the scope of each Six Sigma project and organises the right project team. While projects are progressing, review them and provide financial, technical and moral support. After the projects are completed, audit the results, establish systems to sustain the improvements, and continuously adjust the business’s strategic plans.

2. Measure existing systems.

Identify and describe the potential critical processes or products. Establish valid and reliable metrics to help monitor progress towards the project goals.

3. Analyse the system.

Identify ways to eliminate the gap between the current performance of the system or process and the desired goal. Outline each process and document your findings.

4. Improve the process performance.

Each process is modified and the outcome is measured to determine whether the revised method produces results within customer expectations.

5. Control the new system.

Institutionalise the improved system by modifying policies, procedures, operating instructions, and other management systems. Each critical factor should also be continuously improved by transforming its management into different Six Sigma projects.

Get Buy-in With Early Wins

For Six Sigma to be successful in your business, the first projects you take on must be successful.

Winning projects help the people in the organisation see that Six Sigma works for them and are essential to overcoming doubt and scepticism.

Bear in mind that because smaller businesses have limited cash and resources, senior management has to play an active role in the entire Six Sigma cycle. It may seem like a big commitment, but driven from the top, Six Sigma can have a healthy impact on your bottom line.

Buy The Book

Six Sigma for Everyone, by George Eckes, is published by John Wiley & Sons. Get it from www.kalahari.net

Monique Verduyn is a freelance writer. She has more than 12 years’ experience in writing for the corporate, SME, IT and entertainment sectors, and has interviewed many of South Africa’s most prominent business leaders and thinkers. Find her on Google+.

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A World Of Opportunity Awaits With Peli Peli

Business ownership has always been the entrepreneur’s way of shaping their future. If you’ve always wanted to experience life in the US, this is your chance.

Peli Peli

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Global media has been reporting that the chances of non-American citizens being granted access to move to the US are getting slimmer with the new administration. However, there is still one channel of access that allows people the opportunity to relocate that hasn’t been amended by the presidency.

The EB-5 Visa programme was created by Congress in 1990 to stimulate the US economy through job creation and capital investment by foreign investors. Under a programme initially enacted as a pilot in 1992, and regularly re-authorised since then, investors may also qualify for EB-5 classification by investing through regional centres designated by USCIS based on proposals for promoting economic growth.

The question most commonly asked by foreign investors is where to start selecting a relatively low-risk company to invest their money into. One such entity that has been granted designation under the EB-5 programme is the restaurant group Peli Peli.

Built-in success

Peli Peli is a South African cuisine restaurant that has gained incredible traction in the competitive American restaurant industry. They currently have six successful branches opened in the Texas area. Peli Peli Vintage park, which opened in 2009, generated revenue of $5,3 million in 2016.

Related: The Pros & Cons Of Owning A Restaurant Franchise

Peli Peli Galleria opened in 2015, and had $5,2 million revenue in 2016. Peli Peli Kitchen, their first fast casual concept, opened in October 2016 and reported revenue of $2 million in 2017. Peli Deli, a downtown fast food casual lunch concept and Peli Peli Cinco Ranch, which opened in February and July 2017, respectively, are both showing incredible growth to match their predecessors.

At least two more locations will be opening in 2018, and as all new Peli Peli locations have historically generated positive cash flow within the first year, the company expects to increase its revenue exponentially.

The power team behind the brand

The restaurant chain has garnered popularity, and won a multitude of awards, including Best Service & Best Atmosphere — Readers’ Choice Award (Houston Press) and 2013 Diners’ Choice Award winner for the Top 100 American Fare Restaurants in the United States (OpenTable). Peli Peli is also rated in the top ten in Houston, Texas (which boasts over 12 000 restaurants) on both Tripadvisor and Yelp.

The Peli Peli trio who own the business are Chef Paul Friedman, Thomas Nguyen and Aiki Tran. These three dynamic businessmen have their own share of accolades to speak of. Chef Paul, who is a born and bred Joburger, has been a contestant on Cutthroat Kitchen for multiple episodes on the Food Network. He won the People’s Choice Award and was placed third as a judge in the Gumbo Smackdown 2014. He received the 2013 Chef of Chef Awards in the 9th Annual Houston Wine and Food week, as well as being the 2013 Cadillac Culinary Master. He was also one of 60 Houston Chefs to be listed in the book Best Chefs America.

Thomas Nguyen, who is Chief of Marketing for Peli Peli, graduated from the University of Texas School of Law and was a former litigation attorney. He was the Houston Business Journal’s 40 under 40 award recipient in 2015 and an EY Entrepreneur of the Year Gulf Coast finalist in 2016 and 2017. He was Entrepreneur of the Year — Houston Asian Chamber of Commerce and is also a freelance writer for the Houston Press.

Peli Peli’s CEO, Aiki Tran, has over 12 years of experience in restaurant technology and won the 2007 Entrepreneur of the Year award — Houston Asian Chamber of Commerce. He was responsible for streamlining the technology infrastructure for franchises such as Popeyes and Wings, Pizza N Things. He also became the number one reseller of Aldelo and Dineware POS systems in Texas, with installations in over 200 restaurants.

Related: The Only How-To You’ll Need To Start A Restaurant

Joining their ranks is South African Ryan Stewart. Having owned 16 restaurants throughout the country, he is also the CEO and co-founder of the Mozambik restaurant chain. Ryan has 17 years’ experience in the industry and is being brought on board by Peli Peli to assist in their revenue and store location growth.

Your path to the US

With the combined talent, brainpower and experience of these four businessmen, it’s no wonder Peli Peli is achieving success. The investment required to qualify for an EB-5 Visa through Peli Peli is an amount of $500 000 and is structured as an equity investment at risk. It entitles the foreign investor to permanent residency, and within two years of living in the United States, a green card for the investor and his/her dependents.


For more information on how

You can be a part of the EB-5 Visa programme through Peli Peli.

Email: ryans@pelipeli.com

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Strategy

4 Ways To Find Your Own Business Style

The only way to develop a business style is step-by-step over time.

Timothy Sykes

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Finding a style in finance will define how you react to changes and how you approach new situations. It’s as important in business as it is in stock trading. Developing a business style and developing a stock trading system are extremely similar pursuits.

But I’m not going to pretend that it’s easy to do. It will take time and you do have to be willing to work at it.

Here are my four ways of finding your own business style.

1. Get rid of your expectations

You can’t force anything to work. It’s necessary for you to be flexible when it comes to finding a business style. Begin by letting go of any expectations you have before trying a new style.

Prior to attempting a new style, you have to be willing to go into it with no expectations. You never know what you’re going to find.

Related: 8 Steps to Building Your Business According to the Lifestyle You Want

2. Track your movements

Some things are going to work and some things aren’t going to work. I always tell my students in the Tim Sykes Millionaire Challenge that they should keep records of the things they’re doing. Keep these records as detailed as possible because attempting trial and error can quickly lead you in circles.

Don’t fall into the trap (as I did in the beginning) of trying the same thing multiple times because you never tracked the results.

I keep large spreadsheets with notes of the various styles and systems I’ve tried in business. Business mistakes can be costly, so you need to do everything you can to avoid making them.

3. Look at what others are doing

business-options

I refuse to believe that someone is doing something truly unique. The moment someone makes a breakthrough in business there are a hundred people replicating the same things. And that can be a powerful tool. Consider what others are doing and see whether you can learn something.

It’s why I also advocate finding a mentor to help you out. They’ll be able to help you out and you’ll benefit from their enhanced experiences in business.

Again, track what you’re taking from other people so you know whether something is working.

Related: I Started Saying ‘No’ To These 6 Things. My Life And My Business Got A Lot Better

4. Refine what you do

Rarely will anything in business work the first time. However, your first attempts will give you a good benchmark as to what you need to do next.

You should never be satisfied with what you have, even if it’s working. Always work on improving your business style. I believe this is the most important thing because it also teaches you how to adapt to changing conditions over time.

Last Word – Constantly Growing

There’s no step-by-step guide for how to develop a business style. The only way to do it is to obey the fundamentals and then develop everything over time.

Even though the process is long, you’re guaranteed to learn a lot of lessons and gain from a huge number of experiences over time.

This article was originally posted here on Entrepreneur.com.

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Strategy

6 Questions You Should Be Asking When Coaching

Top athletes have coaches because they’re winners. Business leaders should be the same.

Nadine Todd

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Dr Marshall Goldsmith

Whether you’re a CEO looking for a mentor, coaching your management team, or structuring a coaching programme for your managers to implement, there are six questions that can help anyone get better at anything.

The expert

Dr Marshall Goldsmith is a best-selling author and world-renowned business educator and coach. He has coached top CEOs, including Alan Mulally, former President and CEO of Ford Motor Company.

The key to a successful coaching programme is simple dialogue and establishing responsibility. The person being coached must understand and agree that success lies in their hands. They must take responsibility for their actions.

Related: How Business Coaching Can Help You Achieve Your Goals

The method

Once every few months, have a direct coaching session. Ask (or answer for yourself) these six questions:

  1. Where are we going?
  2. Where are you going?
  3. What are you doing well?
  4. Do you have suggestions for my improvement?
  5. How can I help you?
  6. So you have suggestions for me?

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