Six Sigma dates back to 1987, when it was formally introduced by Motorola. Post that, this quality improvement methodology has witnessed an interesting growth curve. Initially, its progress was modest, but it gradually gained momentum owing to the favourable results. One of Six Sigma’s first growth potential came into notice in mid 1990’s when Jack Welch, the then CEO, General Electric and Larry Bossidy, the then CEO, AlliedSignal adopted the Six Sigma. Since then innumerable companies globally have implemented and reaped the benefits of this methodology.
On the way to its journey of being accepted as a quality management methodology, Six Sigma was once termed as a “management fad”! However, Six Sigma has saved Fortune 500 companies and resulted in an estimated savings of $427. Hence it has proved that it is no management fad.
Understanding the Six Sigma Process
Simply put, Six Sigma focuses on reducing irregularities, service inefficiencies or defects when a company is producing a service or good. Six Sigma usually makes use of a control chart that include points equivalent to the product manufacturing process. Accepted products and practices must fall under a selected range when they are converted to the points presented on the chart. Furthermore, the points that don’t come under the chosen parameters are considered as flaws or defects in the system.
Reasons to use Six Sigma
Implemented with precision and discipline, the Six Sigma methodology offers many organizational benefits. Some of the crucial ones are elucidated below:
Helps to enhance customer loyalty and boosts customer retention: Every successful business work towards retaining its existing customer base. Your customer will only choose to be loyal to your brand and not switch to any new service or product offering, when you ensure customer delight. Are you aware of the consumers that are not content with your service offerings? Chances are there that most companies are not aware of this fact and they plan business expansion strategies without knowing their customer loyalty score. When you use the Six Sigma methodology, you automatically eliminate the chances of having dissatisfied consumers. To boost customer loyalty successfully, you can carry out a customer dipstick to understand the crucial attributes of your service or product that is essential for customer satisfaction. As you plan your business development strategies you know that you are not overlooking factors that drives customer interest, that helps you increase your customer base
Helps you reduce your cycle times to a great extent: There are situations when company projects go beyond the stipulated deadline. This is mostly because of the modifications made in the project scope and new shifts in management policies. When you use Six Sigma tools you are able to designate teams with expert professionals from every level within the company. Professionals are also drawn up from every functional vertical. This team is allotted with the task of recognizing the factors that has the chance to negatively impact the project owing to long cycles. This team can further be asked to look for probable solutions to neutralize these negative impacts. Many esteemed brands implementing Six Sigma have reported a minimization of their cycle times by 35%
Helps you to shape up your corporate strategy: Six Sigma has a crucial role in a company’s strategic vision. When your organization defines its mission, objectives and conducts a SWOT analysis, application of Six Sigma tools helps you concentrate on the areas of improvement in an accurate and efficient way. Let us explain this with the help of an example. If your business strategy is about becoming a cost leader, then the use of Six Sigma would maximize yields, enhance internal processes, maintain the lowest cost supplier agreements and remove pointless complicacies
Helps to keep your employees and staff motivated: What is the secret to business success that entrepreneurs and business often overlook? It is employee and staff performance. This leads to increased productivity which translates into increased service revenues. However, for your employees to work and perform consistently there is need for motivation and encouragement. Rapidly expanding companies that keep their employees motivated enjoys increased productivity of 25 to 50%. Applying Six Sigma problem resolving processes and tools effectively fosters employees development and helps to build a corporate culture of efficient knowledge –sharing and employee motivation
The modern day business ambiance demands a balance of business intelligence, performance, use of latest technologies and effective quality management. Do you want your company to get listed amongst the leading names? Is attaining competitive edge over competitor’s one of your core business objectives? Use Six Sigma methodologies to leverage your existing resources to perform to your best capacity.
Author : Shweita Dey