Six Sigma as a management process
Globalization has created a huge impact on today’s business environment. Now-a-days customers are well informed, have access to global information with respect to products and services and have become choosy as they have lots of available choices. The use of internet has removed geographical barriers and has made everything available for everyone. As a result, competitions among the organizations have been increased drastically over the period of time, especially in this 21st century. In this scenario old business models do not fit and the mode of customer-centric businesses has been changed. Today’s competitive markets do not give any chance for error. Management always seeks to provide error free solutions to the customers which will exceed their expectations. Six -sigma has gained its importance because of the nature of today’s business and it has become the inevitable part of the business culture in today’s business environment.
Definition of Six-Sigma
Six-Sigma refers to the highly systematic process that aims to deliver and develop almost perfect product or services to its targeted customers. The word six-sigma is considered as a statistical term which shows that in what extension any given process is deviated from the perfection. The idea underlying the six-sigma is to identify errors in the process. If the errors are identified, it would be easier to remove those errors from the systems and possibility of error free solution with respect to products or services will be increased. For example: GE has implemented six –sigma in this process and their aim is to achieve almost 100 percent perfection in their product design.A six sigma process is one in which 99.99966% of the products manufactured are statistically expected to be free of defects (3.4 defects per million).
Methodology of Six-Sigma
Six-Sigma includes mainly two methodologies, the one being DMAIC and other being DMADV. DMAIC refers to the most five important factors, namely, Define, Measure, Analyze, Improve and Control. This methodology is considered as the base for any process and trained to every member of the organizations. The main aim of DMAIC is to identify the customer’s need, set the goal for the project and finally address the problem. In order to identify the root cause of the problem the analysis of data has been done to find out the cause-effect relationship. After identification of the root cause of the problem, organizations can take the effective measure through the techniques and tools of six sigma management. The future process also can be taken into consideration by measuring the deviation from the goal and defects can be prevented through necessary action taken by the management.
The methodology of DMADV also includes five steps which are define, measure, analyze, design, and verify. The methodology aims to identify the goals in order to measure customer satisfaction consistency and demand of the consumers. It focuses on identification of factors which are critical to risks, quality, production process capabilities and finally capabilities of products. In order to select the best design which the company will accommodate, the alternatives are analyzed and designed. The next step is verification of design. In order to have design verification details have been designed and optimized. The design verification is done through the pilot run and product process implementation. Now the question can be asked what is the befit of company to use this six sigma process as a management tool. The answer is six sigma process helps to improve productivity of any process through identification of bottlenecks in the production process.
As a result the transaction process will be faster and error free and it will make the consumers happy because they do not need to wait for long time for the transaction to be ended. The customer’s needs are identified and goal is set in order to satisfy that need. Higher productive, removing bottleneck in the process, less waste makes the helps in improving the performance of business.
Six sigma methodologies include factual data and information which helps the company to make their process error free and accurate. There are many well-known tools and techniques in the process of sigma which are used by the management in order to achieve their goal. Some of them are Design of Experiment, statistical process control, fishbone diagrams, flow diagrams, Pareto diagram, Failure Mode and Effects Analysis or FMEA, control charts, defect measurement matrices, and root-cause analysis. With the help of these tools six sigma is considered as a scientific management technique to increase the productivity and efficiency of the companies. The six sigma of quality control is a very cost effective way to increase productivity of the organization and helps in strategic decision making of the management. The six sigma process is not limited to particular industries or the organization. Rather it can be concluded that it is well implemented in all kinds of organizations looking for perfection.
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