Six Sigma is a methodology used by organizations to eliminate defects in any process. To achieve a six sigma for a process it should not contain any defect that is outside of customer specification.
Six Sigma works with the use of two sub methodologies. DMAIC used for existing processes and DMADV which is used for new processes. DMAIC stands for Define, Measure, Analyze, Improve and Control. DMADV stands for Define, Measure, Analyze, Define and Verify.
There are number of benefits in implementing six sigma within a business. There are six key advantages that this methodology offer any company.
Implementing Six Sigma in a business helps employees to manage their time effectively. This results in a efficient business and productive employees. They are asked to set smart goals and then principles of six sigma to them. The key areas involved are Learning, Performance and Fulfillment.
In the area of learning a practitioner of six sigma asks how often the interruptions deviate him from the task and how many interruptions require his attention.
In Performance, the user knows how the practices he is using are helping them to reach their professional goals so that the users can create an action plan. The result of this will be the employees will be 30% efficient and are happier in themselves, having a better work-life balance.
Any business wants to retain its customers. It is a significant factor to measure the success of business. Customer loyalty and retention will show the the levels of Customer Satisfaction.
Most of the surveys says that the reason of customers for not returning to a business are dissatisfaction and employee attitude. The company may or may not know that they have a dissatisfied customer.
By implementing six sigma in a business reduces the risk of having dissatisfied customers. To achieve this you should consider a running voice through customers to understand the products which are critical to customer perception of satisfaction.
In every business the employees need to act in a right way, if it is destined to success. For this they must have a sufficient motivation. The organizations which are fully engaged with the employees, had 25-50 % increases in the productivity.
By sharing Six Sigma Problem solving tools and techniques will help in employee development.
We do observe that most of the firms extend their deadlines often because of changes in project scope or shift in management policy.
By using Six Sigma, a business can develop a team of experienced employees from all levels of the organization and from every functional department. These teams work on identifying the factors that leads the project to long cycles.
The team is tasked to find solutions to these problems. This method allows the business to create shorter cycle times fo projects and fix to that schedule, with many businesses reporting reductions in cycle times up-to 35%.
Six Sigma plays a key role in any strategic vision. Once the business has used a created mission statement and carried out a SWOT analysis,then six sigma helps you to focus on the areas of improvement.
For example, if the strategy of your business is based on being a cost leader in the market, then six sigma helps you to improve internal processes, eliminate unnecessary complexity, increase yields and maintain lower cost supplier agreements. In fact, Whatever your business strategy happens to be, six sigma helps your company the best at what it does.
The aim of six sigma is having a defect rate less than 3.4 per million and your suppliers have influence on whether the target is met or not. One of the best way to reduce the defect rate is to implement six sigma to decrease the number of suppliers your business has.
It is also very important to know whether the supplier is planning for a change. For example, the change in machinery can have an effect like ripples from a pond when a rock is thrown.
Most successful firms drive their six sigma improvements as far up the supply chain as possible.
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