Abstract:
This is a competitive world. The pace of change is increasing, and businesses are being disrupted by external factors. In recent times, the biggest external factor has been e-commerce or e-business. The spectacular rise in 1999 and fall in 2000 of so many dotcom companies should that without substance no business will survive. When a larger bubble bursts, innocent bystanders will feel some effect. There are many reasons why organizations (in both old and new economies) did not sustain the initial successes gained by improvement initiatives. One main factor is the lack of solid measures.
All companies have one key measure; the return on assets, or the ‘bottom line’. However, the bottom line is a historical measurement – no matter how good the accounting system, by the time the bottom line is known it is too late to influence the result. The second main factor is the apparently finite lifecycle of change such as TQM and Six Sigma. Initial commitment is high and staff is very committed to the new way of working, but as time progresses setbacks may occur, unanticipated problems may arise. Another key factor is lack of holistic approach to the management of organizations where economic, social and environmental criteria of the business are valued for sustainability.
Introduction:
In the earlier days of realization that quality is important for survival of many companies, senior managers were made to learn through adoption of quality management systems, the involvement of improvement teams and the use of quality tools that improved business performance could only be achieved by proper planning and processes and involvement of people. These are the basic elements of Total Quality Management (TQM) approach and this has not changed no matter how many techniques and approaches have change or will change in future. The development of TQM has seen the introduction and adoption of many dialects and components including quality circles, international systems and standards, LEAN, Continual Improvement, and Business Excellence etc. An approach that favored some companies like Motorola, General Electric and Allied Signal is Six Sigma.
Quality beyond six sigma is Fit Sigma. A holistic approach that fits the needs of all types of business and sustains improved performance is Fit Sigma. But, recognizing the key element of any successful management scheme, alignment with the business strategies of the company is very important.
The new wave – Quality beyond Six Sigma:
Fit Sigma is the new wave of Sigma. Six Sigma provides quality. Lean Sigma provides agility and efficiency. Fit Sigma ensures sustainability. In other words, it can be referred to as maintaining fitness of the organization. Fit Sigma also considers what is really required for a specific organization or operation. Fit Sigma explains that it is not necessary to achieve the virtual perfection level of 3.4 errors per million opportunities – Fit Sigma is what is fit for the organization. Not all organizations need the intensive and expensive investment required by the Six Sigma deployment plan.
Features of Fit Sigma:
The three distinctive features of Fit Sigma are: (1) Fitness for Purpose, (2) Sigma (∑) for improvement and integration, and (3) Fitness for sustainability. FIT SIGMA has three important aspects. First with Fit Sigma, we identify key areas where Zero defects are essential and where Zero defects are possible, but also we recognize the key areas where Zero defects are not essential or practical. We believe that Sigma should fit the requirements of the organization rather than an imposed mathematical formula for which organization strives had to be fit. Secondly, it focuses on deploying a holistic approach to Six Sigma with a conscious shift from variation (σ) to integration (∑) across every function. The third aspect is sustaining the benefits gained. Many organizations have adopted Six Sigma and the same applies to other quality initiatives and found that the initial enthusiasm and successes gained but not sustained. Thus Fit ∑ means a quality system that fits the needs of the organization (fitness for purpose), is a holistic approach that integrates (∑) all functions, and keep the organization fit. Once the organization is fit, its culture will be developed to such an extent that staff will be trying for organizational Kaizen – i.e., the organization as a whole continues to become fitter.
Conclusion;
FIT SIGMA is not a statistical tool; it is both a management philosophy and an improvement tool. The philosophy is that of a totally business-focused approach underpinned by continuous reviews and knowledge-based culture to sustain a very high level of performance. In order to implement the same, a systematic process is necessary. The process is a set of tools that are drawn from those which have been tried and proven in the successive waves of quality over the last 40 years, beginning with TQM, going to Six Sigma and including Lean Sigma. The difference in FIT Sigma is recognition of the need to sustain and retain the achieved successes. It is not a rapid program in search of problems; it is an adaptable solution that can be tailor-made to fit any kind of organization. FIT SIGMA is not a magic formula; it is a business philosophy, process, and culture.
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