Six Sigma (6σ) is a popular business strategy widely used in a vast range of organizations that vary from manufacturing industries to services industries and local governments as well. It started as a defect reduction mechanism in the manufacturing industry and was later applied to improving processes and services in other non-manufacturing industries as well. The concept was first initiated by Motorola and was pioneered by Joseph Juran who is often known as the father of Six Sigma. Though Six Sigma has become a huge industry and a brand name in itself it is a registered trademark of Motorola.
First let us understand what Six Sigma means
Sigma (σ) is a Greek alphabet and is used to measure deviation (in statistics) from the laid down standard process. A higher Sigma level means that the product or service is closer to perfection or zero defects. Six Sigma is the level of service/process at which there will not be more than 3.4 defects per million opportunities; at three sigma level there will be 66,807 defects per million opportunities. Thus, Six Sigma level can be said to be the level of virtual perfection. A number of global as well as Indian companies and managers vouch for its efficacy; a few organizations which have used it successfully are American Express, Bank of America, JP Morgan Chase, General Electric, and ICICI Bank. Though the use of Six Sigma is not without controversy, it is a popular quality management tool.
Here are some unique features of Six Sigma:
Use of DMIAC for Six Sigma Implementation:
DMIAC process is the mainstay around which Six Sigma functions. DMIAC stands for Define, Measure, Analyze, Improve and Control. In the define phase, scope of the business activity, the processes that need to be improved and the desired end results are identified. In the measure phase, statistical tools are used to collect data and understand the effects of deviation on the end result .The collected data is then analyzed to reach a meaningful conclusion. The improvement phase involves the actual execution of all the corrective measures that have been identified to reduce the number of defects. Control is the last part of the process. It is essential to measure and monitor the impact of improvements that have been made in a process. If the process has improved and has reached the level of defects as per the Six Sigma standard then the improvements are adopted as a standard process else the entire process might have to be repeated.
Relies on Data and Facts:
Six Sigma is based on data and facts and not mere assumptions. Implementation of Six Sigma is done with a clear objective of reducing the number of defects to 3.4 per million opportunities which leaves no room for ambiguity or subjectivity. All decisions at any stage of the process are based on the collected data and its analysis.
Requires Training and Cultural Change:
For successful implementation of Six Sigma, initiative commitment is required by the top leadership and the right kind of training and a cultural change is required across all levels of the organization.
Financial Perspective:
Six Sigma is aimed at achieving quantifiable financial returns which may be in the form of reduced TAT (turnaround time) for a service, reduction in number of errors (thus reducing cost) or increased profitability due to satisfied and loyal customers.
Customer Centric:
Six Sigma is a customer centric business philosophy. It is outwardly focused and the entire process is carried out with a view to enhance customer satisfaction.
Continuous Process:
Implementation of Six Sigma is not a one-time activity but a continuous process. Once an organization adopts Six Sigma as a business practice, it needs to be ingrained in the culture of the organization and it will eventually become a part of the organization’s DNA.
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