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The Six Sigma Approach
from: Deepshikha KhoslaThe Six Sigma Approach To put it in layman language, the Six
Sigma proposition is all about improving capabilities of
business process to such an extent that there in no margin for
poor quality. Customers value unswerving, consistent,
predictable and world-class quality from a product or service.
More often than not however, businesses measure their
performance on averages and average-based measures of the recent
past. With a Six Sigma approach the organization ensures that
the customers are not presented with a variant experience of the
service or product every time. The idea is to reduce variation
and improve business processes to such an extent that customers
are delighted with the consistency of the product or service
quality.
The Six Sigma approach recognizes and eliminates defects through
a structured, data driven, problem solving method by using
painstakingly collected data which is further subjected to
statistical analysis. Quantitatively, a Six Sigma approach means
fewer than 3.4 defects per million opportunities, where an
opportunity is a chance for non-conformance. In most businesses
today, the cost of poor quality represents an astounding 20% to
30% of total revenues. With a Six Sigma approach, the company
attempts to reduce these costs, while focusing on achieving
world class quality levels.
The main point of difference between a Six Sigma program and
other performance improvement programs is that while the latter
tries to measure output variables and puts in place controls
(like an inspection program) to protect customers from
organizational defects, the former tackles the problem at the
root level thus eliminating the need for any inspection and
reworking.
The Six Sigma approach begins with asking customers what is
critical to them. After this a rigorous analysis is done for
each and every process in the business to asses whether the
business is able to deliver irtual perfection and that which the
customer deems crucial each and every time. Data is used to
reveal the core causes of the defects and then to eliminate or
improve the hindrances from the process. Financial and
statistical analysis are the primary tools to implement a Six
Sigma process. Not only will this lead to improved customer
satisfaction, but also increase profit margins, reduce cycle
times and cut costs.
The goal of a Six Sigma program is to minimize variation amongst
all the critical processes. These processes don necessarily have
to be product floor or manufacturing processes. The can related
to billing and invoicing, new product development, processing
customer orders, managing human resources, recruitment,
budgeting or any of the other business processes by which an
organization manages its overall running and operations. The
implementation of Six Sigma is not a trifling matter. It
requires commitment monetary commitments and wholehearted
involvement of employees. A proper foundation needs to be set in
place so that training funds are utilized effectively. The
business has to adopt a new working culture in which nearly good
enough is just not enough. It must be perfect. Organizations
that have adopted this approach bear witness that Six Sigma is
definitely worth the effort!
About the author:
Deepshikha Khosla writes on a variety of topics include Six
Sigma. See www.sixsigmahome.us
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