Why is Six Sigma Important for Business?

03-Apr-2020

Six Sigma is a data-driven strategy used by the manufacturing companies to ameliorate their business processes.

To achieve a task, a collaboration of teams is of utmost importance; a team works together to accomplish goals and this is where Six Sigma comes into effect. Six Sigma is a method that counts on the synergetic efforts by teams to ameliorate performance by consistently eradicating routine waste and disparities.

It not only helps with the waste reduction but provides a structure and scheme for head to toe organizational culture change. 

Six Sigma - An Overview

Six Sigma is an approach that focuses on the enhancement of the flow in the value stream along with the reduction of waste.

Six Sigma utilizes the substantial DMAIC framework and statistical tools and concepts to know about the supreme causes to understand and reduce the discrepancy.

A conglomeration of Six Sigma and its constituents allows for an ever-evolving improvement paradigm that consolidates powerful data-driven tools to resolve problems and difficulties in order to ensure smooth and rapid transitional augmentations at negligible costs.

The best combination of the tools is made to utilize approaches so that it can add value to the system and Six sigma works towards defect and variation reduction in order to achieve desired results for an organization.

All over the globe, many organizations from varied industries are adopting six sigma strategies. To get a transitional push and to eliminate the costs, the organizations are now diverging towards the six sigma concept and approach. The results thus obtained are proven to be efficient in handling the swift transformations easily in an organization.

Introduction To Six Sigma

The Six Sigma process was first developed at Motorola somewhere around the 1980s to eradicate defects in its manufacturing processes. Its main goal was to achieve the desired performance rate to put up a defect-free environment in its organization.

Six sigma is a process-based enhancement methodology that was developed in manufacturing environments. These methodologies are proven effective and point to several success stories that prove their efficiency in the industrial environment.

Importance Of Six Sigma

• Process Mapping

The documentation of various business processes can be easily achieved by utilizing the tactics and concepts proposed by Six sigma. These mappings and charts are generally utilized for making stern decisions which can bear fruitful results for the organization. The mapping of the processes allows for close scrutiny of the defects which in turn paves way for effective solutions to overcome the problems. The resolutions are firm and the results prove wonders for the organizations which is why it becomes imminent for the organizations to practice process mapping in order to eradicate slight bits of the defect that may come up during the process which if not tackled may result in a huge blunder.

• Waste and Defect Management 

Six Sigma helps in the defect management by eradicating the discrepancies. The ultimate goal of Six Sigma is to smoothly run the processes in order to increase the productivity of an organization. This relates to the contemplation of the issues arising out in the run time of the processes and then to go on finding a perfect solution by keeping in mind the cost incurred to reduce the defects.

Waste means anything that is not adding value to the final product so in order to minimize the costs, waste reduction is of utmost importance and it can be easily achieved by incorporating several theories and processes related and proposed by Six Sigma.

• Achievement Of Continuous Improvement

A thorough and continuous state of improvement can be achieved through the system of Six Sigma. The framework of Six Sigma constantly works toward the continuous enhancement of the processes involved in making a consumable product for the customers. Enhancements can be made in the ongoing processes that can add up to the waste but all thanks to Six Sigma this haywire situation can be controlled and dealt with efficiently.

Advantages Of Six Sigma

Integrating six sigma concepts and theories create a win-win situation for the organizations. The strategies of Six sigma provide methods to refine the flows and eradicate wastes in order to make the process smooth and reliable and effective as well. Value-adding opportunities are rapidly created and identified to ensure continuous improvement throughout the system. This leads to greater productivity and the chances of waste generation are lessen to two-fold.

It calibrates the financial benefits and savings. This, in turn, offers chances of focusing efforts on the areas where improvements and improvisations are much needed hence creating a virtual zero defect system. The increased scope for improvement benefits the organization to the fullest, thus leading to better products for the organization as well as for the industry.

A conglomeration of Six Sigma methodologies will result in the development and utilization of tools and practices that come handy to resolve issues and problems that may arise in an organization and could create swift transitional enhancements at negligible costs. In addition to this, it would also generate potential productivity, enhanced quality, cost reduction, improved speed, a guarded environment for employers and exceeding customer expectations.

Six Sigma and its constituents are customer focusing methodologies that strive to improve the ongoing processes in the organizational setup in order to achieve a defect-free environment to create efficient services for the consumers. The combination of Six Sigma and its constituents increases the performance level to match the expectations of the consumers for the betterment of the organization. Furthermore, this leads to unity among the workspaces which in turn creates a collaborative effort to ensure the proper and smooth working of the teams involved in the ownership of processes. The system gets in constant regulation and the improvement comes under the pivotal focus to reduce and eliminate all the defects that may cause the loss of finances in order to cope up with the deficiencies.

Six Sigma concepts allow projects to complete on time and as desired because there is the utilization of not only the statistics but a lot of varied historical, perspective and data experiences are involved to generate and make fruitful decisions which can produce desired results and can help in the profit maximization for an organization working together in different industries.

When Six sigma theories are coupled with its other constituents, it tends to produce better results that can improve the ongoing processes in an organization, leading to the actual overall development of the different processes indicated in the work system. The whole idea of this conglomeration is to provide efficient substitutes and resolution whenever encountered with an error or defect while in the process of generating consumable products for the customers. The cost is kept in the focus and the question of development is pondered over this segment this in turn allows the organization to develop efficient strategies to tackle the spontaneity of the situation.

Six Sigma is a very crucial tool as far as organizational processes are concerned. It is a very impeccable tool that is proven to give desired outcomes and results thereby making it an indispensable part of the millennial organizations and industries. It is a boon in today's world.

Education Professional