Six Sigma refers to a data-driven approach used by companies to upgrade their business processes. The method uses a five-step methodology to eliminate defects at all stages within a company. Six Sigma defines defects as anything that is not within customer expectations. The goal is to apply a measurement-based approach that focuses on identifying and improving defects.
Like any other approach, Six Sigma has both advantages and disadvantages.
Benefits of Six Sigma
Six Sigma has a proven track record of adding value and ensuring quality to the output of a business in the form of incremental improvements to a product or a service. It may also be used to optimize supply chain processes and increase customer satisfaction. The benefits of Six Sigma go beyond simple problem-solving and consider the entire production process from the raw materials to the end product, as opposed to only the end product.
Six Sigma is a proactive methodology that identifies and provides recommendations for potential problems before the company incurs any form of loss. Six Sigma may be implemented in several categories within a business, directly impacting profitability and reducing costs. It is significant to note that for B2B customers, the Six Sigma standard for manufacturing products is a credible endorsement.
Six Sigma Disadvantages
Six Sigma inspects the business processes minute-by-minute and generates large amounts of empirical data, leading to time-consuming and complicated procedures. Also, because it is a quality improvement process at its root, adoption of its protocols often leads to an increase in the overall costs.
Sometimes when a company implements Six Sigma, problems arise as the company focuses on Six Sigma endorsed policies only and forgets about its specific mission statement or policies. For small businesses, it may constrain new ideas favoring creativity and innovation, which require some risk-taking to implement. Companies have to find certified Six Sigma institutes to train their employees or conduct in-house training without formal certification. In either case, the cost of Six Sigma adoption by small businesses is too high to be feasible. Even large companies must provide a lot of training for employees to grasp the system.
Five Steps of the Six Sigma Process
Define: The initial phase of the Six Sigma process is the define stage. The team initiating a high-level view of company processes to gauge client needs and define a problem or an area that needs improvement.
Measurement: The second stage, measurement, is the accumulation of data, which is critical during the life of the project. Initially, the team maps out the current process to determine a baseline and looks for what is causing a problem. Throughout the project, it charts possible improvements empirically.
Analysis: The third stage is analysis, which is continual as the team analyzes the data and focuses on the cause of a problem.
Improvement: The fourth phase is improvement. This is the solution-development phase in which the team implements a solution and varifies it performs as expected.
Control: Finally, the fifth phase entails control. Here, the focus is on maintaining the solution and progress the team has made.
Six Sigma Concepts in Quality Management
Much like a basic quality-control program, Six Sigma quality control works to find and identify areas in need of improvement. Six Sigma provides an answer to the question of what's the difference between quality assurance (QA) and quality control (QC). Six Sigma quality control not only identifies a problem, but it also provides a solution and monitors the situation continually. In this way, Six Sigma delivers on both quality assurance and quality control. It promotes quality in the processes as well as in the products themselves.
Source: smallbusiness.chron.com
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