Six Sigma: A strategic Tool to reduce Your Business cost

Introduction:  The Cost of Poorly Performing Processes

Prior to the introduction of Six sigma philosophy, there was a debate on whether or not Six sigma could be a goal worth pursuing. several specialists in the area of quality believed that wastage was a way of life. attempting to eliminate wastage would cause additional wastage. They believed that it absolutely was possible to eliminate waste however the endeavor would value too much and also the advantages would not be worthy. however, as Joseph M. Juran, who was to become a breakthrough quality leader later noticed the costs of poorly performing processes, the argument shifted heavily in favor of Six sigma approach of life.

Six sigma as a Strategic Tool

As mentioned in the earlier articles, Six Sigma helps the organization develop at numerous levels viz. operational, tactical and strategic. while the operational and tactical goals of value reduction and magnified client satisfaction area unit well understood, and appreciated, the strategic intent behind Six alphabetic character isn't well recognized. it's the important issue, but within the success or failure of any Six Sigma initiative within the organization. Here is a proof:

Efficient Processes have become a Business Imperative

When Six sigma was introduced by Motorola, it became a strategic advantage for them. Since, not many of their competitors had the efficiency of Six sigma tools, they were leading these firms and therefore the marketplace. However, with the passage of time, each major corporation on the world has developed a Six sigma program. efficiency is currently the name of the game. Hence, from a strategic viewpoint, there are currently Six sigma programs developed by corporation/Regulatory body competing against other Six sigma programs and the better one’s win!

Isolated Efforts don't seem to be as Effective as Co-Ordinated Ones

Over the course of time, there are varied studies that are conducted regarding the potency of those Six alphabetic character programs. it's been noticed that corporations that follow Six sigma projects periodically do not stand to gain the maximum amount from it as do corporations that have a well-coordinated effort. Today’s marketplace requires using Six sigma processes to execute the companywide strategies.

Process Improvement Opportunities are many and Varied

An organization that's truly dedicated to 6 sigma philosophy will notice several and varied projects that can be dead. Even an existing Six Sigma organization must be developed over time. this is because technological changes unleash higher ways of doing work and the organization should endlessly adapt.

Hence, the challenge lies in prioritizing between the various Six sigma projects and executing the correct ones. projects should be checked for strategic match i.e. however do they help meet the long run goal of the organization in question.

Example: a corporation like Facebook that depends on intimate information of its customers to put ads, must execute Six sigma projects related to client Relationship Management (CRM) initial and then if resources are left must think about alternative projects. Facebook would not need to be operationally efficient at the cost of being misdirected from its long-term strategy.

Alignment between Strategy and 6 sigma Operations

It is for this reason that Six sigma has been tied up with a process referred to as Hoshin Kanri by the Japanese. Roughly translated into English, it means that management of direction. Six sigma efforts, therefore need to be well directed.