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Benefits Of Six Sigma

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No one needs to emphasize the holistic approach the Six Sigma deployment takes on overall business processes. All processes in an organization present at least one opportunity for improvement. Having a limited picture about the limitations of Six Sigma and its applications projects an all together different picture.



At the enterprise level, each company must consider the entire application of the project and this is certainly beyond the line employee level.

A Little Background

We have all known Six Sigma as a deployment strategy related to company activities and we have examples for justification. We have many glaring examples of successful and not so successful companies in recent history. Motorola, DuPont and General electric are some cases in point. Also known to us are the failures of deployment mostly in non- manufacturing businesses.

While thinking along the same lines, if in your understanding, Six Sigma is not applicable to your organization or industry, perhaps what first step you may take is answer whether it can improve the financial situation of your company within an acceptable timeframe. This fundamental answer must be obtained even before the project selection process. Answers to whether Six Sigma can work in all processes and parts of the organization must be put into place.

Thinking Beyond The Shop Floor

Notions and misconceptions such as those confining Six Sigma to the shop floor and relegating it as something of a quality implementation tool dedicated for manufacturing industry must be shown its due place for it to show results of any significance. The ?beyond the factory? approach encompasses almost all non-manufacturing aspects of the economy, not excluding those in the new economy group. For example, law offices, non-profit organizations, online business and the transport sector.

Three Critical Steps To Take Six Sigma Benefits Beyond The Shop Floor

Holistic thinking does not exclude non-production activities within organizations. Activities that don't produce physical products but are still parts of production activities that go into manufacturing, as well as service industry sectors, such as transport industry or consultancy firms, contribute to the economy in a larger meaning by value creation. The following critical steps help reap major benefits in implementation:

?The Strategic Deployment: Think through the overall deployment of Six Sigma initiatives across the entire organization.

?The Tactical Deployment: Tactically selecting, conducting and closing the projects in all those environments.

?Methodical Deployment Of Operational Tools: Applying the analytic techniques of Six Sigma properly when facing common challenges beyond the shop floor, such as skewed (non-normal) distributions of cycle times, or the predominance of discrete data.

Holistic thinking In Six Sigma calls for adopting a statistical approach in its entirety to all aspects of conducting business and looking beyond statistics is an embedded part of deployment. Judgmental timing and accuracies assume the same degree of significance of decision making. There is not one single sure-fire formula to ensure the success of it.
Benefits Of Six Sigma
Since its introduction in the 1990's, 6-Sigma has become the buzzword in both the manufacturing and service industries. The various methodologies used in 6-Sigma are based on a disciplined and data driven approach that help in eliminating defects and achieving near perfection by restricting the number of possible defects to less than 3.4 defects per million. The methodologies are effective in managing business processes of both the manufacturing and service industries. In manufacturing industries, the concepts and methodologies are used for reducing the number of defects whereas in service industries, they are used mainly for reducing transactional errors.

Although many companies have been successful in reducing the number of defects through Six Sigma projects, the arguments raised against the efficacy of 6-Sigma in all aspects of business processes still do not seem to die down. Some management experts think that Six Sigma is inherently flawed, as it does not take into account the flaws that might be present in the system itself. They are of the opinion that the analytical and statistical tools used in 6-Sigma only expose flaws in the execution and do not account for a process that itself is riddled with defects.

Supporters of Six Sigma offer a different viewpoint. According to them, quality management tools such as Total Quality Management (TQM) and 6-Sigma are conceptually quite similar except for their labels. Business organizations may use any of these for improving overall quality. However, they often give preference to 6-Sigma as they believe that Six Sigma is more than just a process improvement program and is based on concepts that focus on continuous quality improvements. They have the opinion that 6-Sigma concepts combine statistical measurement tools with contemporary management techniques for achieving extraordinary results.

The Limited Use Of Six Sigma

6-Sigma gained prominence as an effective quality improvement technique after it was successfully implemented in Motorola. Since then, many large organizations have implemented 6-Sigma programs and improved the quality of manufactured goods or services rendered. However, the full potential of 6-Sigma has not been realized so far because many competent small to medium level enterprises have still not implemented Six Sigma programs. These enterprises have all the resources to implement such programs, but are often wary of the final certification, as they believe that it is meant only for large organizations. These companies often do not realize that 6-Sigma delivers the same benefits to both large as well as small business enterprises. The only difference may be in the volume of goods manufactured or services rendered.

The Future Of Six Sigma

6-Sigma may appear similar to other quality management tools such as TQM or Kaizen Events, but in reality, it is quite different. Other quality management programs often reach a stage after which no further quality improvements can be made. 6-Sigma, on the other hand, is different as it focuses on taking quality improvement processes to the next level. This means that 6-Sigma has the potential to outlast other quality management programs in the future.

The scope of 6-Sigma is also much broader than other quality management programs as it can be applied to every business process of an organization. The future is bright for 6-Sigma programs with the growing awareness in small and medium enterprises about the potential benefits that can be derived from implementing such programs.
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