cost reduction Archive

THE REAL BENEFITS OF SIX SIGMA

Six Sigma is a process management methodology which allows organizations to use process data to eliminate or minimize the defects in process. ¬†Six Sigma is basically the variation reduction approach and process is optimizes to achieve the maximum production on mean of the control limits of process. A process is operated on Six Sigma when only 3.4 defect produce in per million opportunities. The two …

Cost of Quality and Business Excellence

  Increase profitability and reduce cost is the most attractive part of TQM. Organizations widely adopt TQM in 1980 to achieve benefits of increased profitability. However it is observed when try to cut cost in order to increase profitability cost of others steps involved in that process increased. For example if a manufacturing industry cut cost in procurement of raw material then usually quality of …