SIX SIGMA
Six sigma has traditionally been described as a method used by engineers and statisticians to fine tune products and processes. It refers to a performance target of operating with only 3.4 defects per million activities or opportunities. Now, the scope has widened from a purely statistical target to encompass a cultural change as well. It improves a company's position to provide greater customer satisfaction, profitability and competitiveness.
It is therefore a comprehensive and flexible system for achieving, sustaining and maximizing business success. It is driven by a close understanding of customer needs, disciplined use of facts, data and statistical analysis with diligent attention to managing, improving and reinventing business processes.
The Six sigma process :-
· The first step to implement the 6 sigma process is identification of the problem which needs to be addressed. This process uses statistical processes and charts etc.
· After identification of the problem, the root cause has to be ascertained through analysis. It also involves predicting results.
· Next comes the optimal solution analysis and solidating the predicted results.
· After the analysis, there is defect prevention and process improvement, i.e. mistake proofing for the future.
· Last comes the formulating the quality development programs which can cover any or all of the products, services and product design.
This is a tentative process flowchart. It can be adapted according to the purpose and scale on which it is being implemented in the organization.
The Pay off from Six Sigma:-
This section will familiarize you with the advantages that accrue to organizations from implementation of the 6 sigma program.
· Wide ranged impact: Six Sigma can be applied to a wide range of activities from planning to operations to customer service. Therefore, it is a broader and more detailed process improvement method than earlier quality improvement methods in practise, for e.g. TQM.
· Flexibility: 6 sigma efforts can be modelled and designed according to the needs of the organization. It can be applied for any purpose and at any level from one department to the entire organization.
· Scope: Initially it was believed to be beneficial only for manufacturing or technical cause but now there are various tools and approaches available for non manufacturing or service industries so the scope has widened.
· From technical excellence to people excellence: It has been realised that creativity, collaboration, communication, dedication are more powerful than statistical standards alone. So, Six Sigma helps in striking a balance between accommodating people and demanding performance according to standards.
· Changing organizational environment: Six Sigma brings a smarter and new ways to run the organization. It does take an investment in time, money and energy but it also ensures big returns. There are wide ranged changes in attitude and enthusiasm from unproved processes, better information flow and learning new skills.
In companies like G.E and Motorola, the term “quality” and “Six Sigma” have become synonymous. So we can easily gauge how powerful the concept is. Today, there is unprecedented competition, constant changes in consumer taste, technology and financial conditions. Thus, to survive and succeed, companies have to provide flawless service and maintain stringent quality standards. Six Sigma plays a very important role in providing a frame work or structure to support and sustain success in this ever changing business environment. The most important question for today is not how do we succeed? But how do we stay successful? Six sigma helps companies to sustain performance levels and also improve them to both survive and succeed.