Six Sigma

What is Six Sigma?

Six Sigma is a problem solving methodology, which employs statistical rigour to identify, drive and demonstrate process improvements. In Six Sigma, an improvement can claim to be so only if it is based on data and numbers.

Six Sigma has come to be regarded as a magical tool in the field of Business Process Management (BPM) and is being extensively used across diverse sectors of the economy.

Six Sigma originated at Motorola but gained immense popularity in the business world after it was successfully deployed at GE. Most of the large-sized business organizations of today have adoptedSix Sigma in some form or other as part of the larger Business Excellence Framework.

Most of the Business Excellence Models like CMMI, ISO 9001, MBNQA require the adoption and emphasize the application of quantitative rigour (using Statistical Tools and Techniques) to improving business processes.

Applying Six Sigma to Business

The typical usage of Six Sigma has primarily been in solving two of the most common business problem faced by all business organizations:

Achieving breakthrough improvements in existing business products and processes
Designing and developing innovative products and processes Achieving breakthrough improvements in existing business products and processes

Organizations in the current business climate have no choice but to improve on their products and services on an almost daily basis. As these products and services result from the business processes deployed by these organizations, persistent focus on Continual Business Process Improvement (CBPI) is but mandatory.

CBPI ensures that an organization can sustain its competitive edge by being able to offer the same products and services that its competitors are offering in the marketplace but at a cheaper rate, faster cycle-time or better value-proposition.

Six Sigma offers the DMAIC (Define Measure Analyze Improve Control) as a problem solving methodology for addressing the above business need.

Designing and developing innovative products and processes

Organizations also need to be on constant lookout for newer product and service offerings to its customer base for sustaining and growing sales volume and revenue.

Newer or innovative product and service offerings could mean one or more of the following:
1.Products that serve the “needs” of the customers. For example, people need food hence creating novel food varieties (using Genetic Engineering, for example) would fit into this category
2.Products that serve the “wants” of the customers. People want cakes and pastries hence baking cakes using ingredients that have never been used for baking cakes would fit into this category
3.Products that are either served, or booked / dispatched via a different format. People want pizzas and offering pizzas through home delivery mode or ordering over Internet would fit into this category (the core product or service would generally remain unchanged)

Six Sigma offers DFSS (Design For Six Sigma) or DMADV (Define Measure Analyze Design Validate) for addressing the above business need.

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