Six sigma management tool useful to guarantee the quality of products . method is manufacturing or non manufacturing applying this technique provides a way of producing products that they are 99.99966% free of defects.
Sigma means standard deviation and so six sigma means six standard deviations away from the mean. solves company problems using statistical methods. It minimizes the variation in the operation and hence you do have a the quantity of defects in the end product. This leads to whole efficiency and profitability company .six sigma began by Motorola.
How is it used?
Six sigma provides a logical and sequential tool for solving problems because follows: Define the opportunities, measure the performance, analyze the opportunities, improve the performance, control the performance. Through this frame work criteria can be established for various performances. Data is required to be gathered and surveys done both from internal and external customers. Based on these details as well as therelated statistical formulae root causes could be established and informed decisions made that can then get rid of thedefects and waste.
An experienced team leader with members together with a statistical package is going to beneeded. This involves an intensiveduration of training for team leader; business friends and staff to be able get accurate results. Once theroot factors behind problems and bottle necks are determined new procedures must beimplemented to be able in order to slow up thedeviations.
Applications
This management tool can be employedin any sort of business that hasabout customer satisfaction. To supplyquality the first time around prevents rework and definitely improves Profitability.
It can be used in non manufacturing processes including medical, insurance, air line hospitality. Both customers are often more satisfied Where there are less bottle necks. Less timeis investing in solving problems in customer services with there beingfewer problems.
However Six sigma was designed for manufacturing companies to lower waste that is associated with defects. Spending less of your budget on waste improves the profitability. The standard Of goods are higher and customers are usually moresatisfied and this will improve sales.
Disadvantages
This management tool is usually an investment for large companies which entail many training and time that eventually pays off however probably are not economical for smaller companies. Also sometimes as soon as thetroubles are actually identified it cannot be fixed or addressed by management owing to monetary constraints or otherwise not.
The perfect solution is can be a new experience longer working employers plus itusually takes them extended period to adjust tonew procedures hence increasing production time and errors. Also gathering accurate data for making an educated decision might becostly. Training persons who eventually leave and the cost of new equipment to be implemented could behigh. Six Sigma is dependent on perfect production methods which might involve defining a whole newprocess which can becostly. How there is proven statistics in leading companies that this tool efficient and feasible.