Six Sigma
Principles
Key Concepts
Sigma Level
Process Management
 
 
 
 
 
 
 
 
 
Six Sigma

Six Sigma initiatives have helped many companies to back billions of dollars in saving, dramatic increase in speed, strong new customer relationships, etc. Six Sigma contribute to how companies measures and analyzes its performance and in improving basic approach to manage the business.

What is Six Sigma?

Some defines Six Sigma as a highly technical method used by engineers and statistician to improve product and process. It is true, as measures and statistics are key resource for Six Sigma improvement.

Other definition states that Six Sigma is a goal of near-perfection in meeting customer requirements. Perfectly said, as Six Sigma target to improve the performance to such an extent that to have 3.4 defects for every million activities or opportunities. And this goal has been achieved by few companies till now.

Other suggests Six Sigma for "culture change". As Six Sigma effort is to position a company for great customer satisfaction, profitability and competitiveness. Hence to make the above statement true companies have to change their current working culture.

By collaborating all the above definitions. Six Sigma can be defined as comprehensive and flexible system for achieving, sustaining and maximizing business success. Six Sigma is driven by understanding customer's needs, disciplined use of facts, data, statistical analysis, and diligent attention to managing, improving and reinventing business process.

Business success that has been achieved by implementing Six Sigma has broad classifications and it has proven many benefits, including

  • Cost Reduction

  • Market share growth

  • Customer Retention

  • Productivity Improvement

  • Culture change

  • Cycle time Reduction

  • Product/Service development

  • Defect Reduction

  • And many more

Features of Six Sigma
  • Six Sigma encompasses a broad array of business best practices and skills that are essential ingredients for success and growth. Six Sigma can be implemented to many business activities and challenges, from strategic planning to operations to customer service and maximize the impact.

  • Six Sigma do not follow any rigid formula. It takes into account the business need and priorities and company readiness for change. It helps a person whether he leads a department or entire organization by scaling up his efforts to tackle specific problem to renew the entire business.

  • Apart from manufacturing industries, service and non-manufacturing organization also enjoys the benefit of Six Sigma. Finance, marketing, customer service, marketing, Logistics, IT, in order management finds huge opportunities since these sectors are 60 to 70 percent efficient till now.

  • Six Sigma inspires and motivate better ideas and performance from people. It inspires people for creativity, dedication, excellence in technical skills, etc. It creates collaboration between individuals and technical abilities. People are energized and enthusiastic because they gain confidence, learned new skills and improve their process.

Benefits of Six Sigma
  • Generates Continuous success: In present scenario of shifting markets, company need to constantly innovate and bring some changes in their organization. If companies do not take correct measures to improve their current situation then it is bound to be out of business in few years. Six Sigma helps in creating skills and culture for constant revival of the companies. It helps companies and people to attain constant pursuit of excellence.

  • Set performance goal for everyone: Each individual, function, business unit has different objectives and target. Hence it is very hard to make everyone work in same direction to achieve common goal. But common for everyone is delivery of product, services or information to customers. Six Sigma uses common business framework of process and customer to create a consistent goal. People understanding customer's requirement can access their performance against the Six Sigma goal of 99.9997 percent perfection.

  • Enhances values to customers: With tight competition in every industry, delivering good or defect free product and services won't guarantee complete success in the market. The quality of product should be made so special and so valuable and so important to their success that our product become their real value choice. Six Sigma deals with creating the real value of products within customers.

  • Accelerates the rate of improvement: Due to boost in IT sectors, customer's expectation for improvement in products gets more demanding. And the organization who provides solutions at the earliest is the winner. Six Sigma helps in getting ideas and tools in addressing the changes required to improve the product or process as earliest as possible.

  • Promotes learning: Learning is a continuous process which helps to improve and accelerate development and sharing of new ideas throughout the organization. Sig Sigma insist skilled people to bring better ideas and ability to apply them more quickly.

  • Execute strategic change: Better understanding of company's processes and procedures provides greater ability to carry out minor and major adjustments that current business process demands.

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