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 methodologies are used in six sigma approach for process improvement. One is DMAIC which stands for Define, Measure, Analyze, Improve and Control. DMAIC is best for existing processes. The second one is DMADV which for Define, Measure, Analyze, Design and Verify. DMADV is used for process development (new process).
BENEFITS OF SIX SIGMA
The Six Sigma is an attractive approach for number of benefits. The prime benefits of Six Sigma Implementation are described here
INCREASE CUSTOMER LOYALTY
Every organization wants to retain its customer. The customer loyalty and retention are one of the key success factors for sustainable growth.
The organizations only can retain its customer in long term if providing the products or services with consistent quality. The Six Sigma ensures the consistency in process by reducing the process variation and ultimately enhances the customer loyalty.
SHORT CYCLE TIME
Adopting Six Sigma methodology can help employees to manage their time effectively. The reduction of process results the reduction of repair and rework. After implementation of Six Sigma the time utilized in repair and rework can be utilize in productive actives.
The equipment on plant are also more operated for productive activities rather than rework of the defected materials. The material or product can be produce in short time because of very less involvement of reactive activities such as repair or rework.
The training and development is the baseline for sustainable competitive advantage in today’s global completion. The adoption and implementation of six sigma is better way to train the employees for process improvement. The opportunities for training also enhance the employee satisfaction by provide the sense of career development and learning.
The modern approach in business excellence is strategic planning. The environmental analysis of an organization is conducted and after finding the list of weakness (Derived from SWOT analysis). The organization may use six sigma approach in order to improving these weaknesses.
If an organization is adopted cost leadership as a generic strategy for business unit then the implementation of six sigma helps to improve the process, enhance the productivity by reducing the defects and ultimately reduce the production cost and helps to provide more margins for cost leadership.
SUPPLY CHAIN MANAGEMENT
The recently competitive environment forces the organization to shift towards collaborative approach and focus one supply chain for more effective value creation. The organization can minimize the process variation only when the inputs received in process are consistent. If the suppliers of the firms are not able to provide consistent materials the firm cannot achieve ultimate goal. It is not economically beneficial for firm to produce all raw materials required for their process (Full Vertical integration).The Six Sigma also improve the supply chain of the organization by focusing on consistent quality suppliers rather than price based supplier selection. The better supply chain is competitive advantage for organization to achieved business excellence.