Benchmarking Training Workshop

Why do Companies need Six Sigma?

3:15 AM Posted by IQMS Global


Performance Quality is the key to growth of every industry. So checking of performance quality now and then is very much necessary which can be done using Six Sigma. “SIX SIGMA” – the statistical representation, is a process of quality measurement, which helps the organization in the improvement of their quality. Originally developed by Bill Smith at Motorola in 1986, the Six Sigma Training program was created using some of the most innovative quality improvement methods from the preceding six decades. The term "Six Sigma" is derived from a field of statistics known as process capability. The term 6 Sigma refers to the ability of manufacturing processes to produce a very high proportion of output within specification. Processes that operate with “six sigma quality” over the short term are assumed to produce long-term defect levels below 3.4 defects per million opportunities.

The basic component of the Six Sigma methodology is DMAIC. DMAIC means - Define, Measure, Analyze, Improve and Control. Some companies add a R for "recognize" in front of Define and an R for "realize" after Control. You first have to Recognize you have a problem before defining it and, after implementing a solution you have to control it over time to Realize its financial benefits.

Generally speaking, companies use Six Sigma to reduce variation in products and processes - but the net effect of any Six Sigma project is what people are really looking for: fewer defects, shorter cycle times, increased capacity and throughput, lower costs, higher revenues and reduced capital expenditures.

When Six Sigma is deployed systematically and pervasively - with the right technology support and leadership force - it can produce large amounts of cash for shorter-term profitability or for longer-term investments.

In its most simple sense, Six Sigma is a highly disciplined approach to decision making that helps people focus on improving processes to make them as near perfect as possible.

The term "Six Sigma" relates to the number of mathematical defects in a process. Six Sigma practitioners focus on systematically eliminating the defects so they can get as close to "zero defects" as possible.

Six Sigma implementation will guide organizations to:
- Improve Customer Satisfaction
- Increase Profitability
- Increase Productivity

Six Sigma is important because it scores much higher over other quality improvement techniques such as Total Quality Management. Business organizations employing Total Quality Management just focus on achieving predetermined quality levels, which certainly improves efficiencies but does not allow the organization to realize the full potential. Six Sigma is different as the focus here is to make consistent quality improvements until business processes are fully optimized. As soon a certain quality level is achieved, the organization shifts gears and starts concentrating on achieving other levels of quality. The whole process continues until all the business processes are fully optimized.

Another reason for the ever-increasing popularity and importance of Six Sigma is that it really helps when it comes to handling competition, which has increased considerably in today’s business world. Business organizations worldwide have realized that in order to beat the competition, they will have to offer better quality products or services to their customers and that too at competitive rates.

2 comments:

Anonymous said...

The Six Sigma methods have managed to set some of the most outstanding benchmark and that too for the excellence.
Lean six sigma certification in India

Anuradha Singhaniya said...

I am very glad to read your informative blog...thanks a lot for your valuable sharing
If you want to take six sigma training join us India's best institute for Training and get six sigma certification.

Post a Comment