Six Sigma: What Is It and How to Utilize It?     

Six Sigma: What Is It and How to Utilize It?     

You have reached the right place if you are searching for a business management tool to improve product quality. The Motorola Corporation developed the Six Sigma strategy also denoted as ‘6𝞂’ or 6 Sigma technique in the 1980s. The term comes from statistics, where measurements are considered within six standard deviations of the mean error rate if they fall within that range.

The quality management strategy is an organizational strategy that focuses on eliminating errors or defects in business processes.

It is mainly derived from the statistical concept of sigma levels for process performance metrics, where a 6 Sigma level would be three standard deviations from the mean. 

The following article will explain this business strategy and how industries can utilize it.

What is Six Sigma?

The market size for business intelligence and analytics software applications is forecast to increase to 17.6 billion by 2024.

Utilizing the Six Sigma strategy helps establish clear objectives regarding customer satisfaction, product or service performance, and compliance with regulatory requirements for external and internal stakeholders. It is known to help companies measure and improve the quality of their products. 

In addition, it also helps understand how to allocate resources to correct any problems before they affect customers. 

To manage these objectives, the company must thoroughly understand its processes and best meet customer requirements within its capabilities. A comprehensive analysis is carried out using specific tools to understand these processes.

These tools include:

-A variation on the histogram, called a Control Chart.

-A tool for mapping the functional relationships in a process. 

-A measurement system analysis.

-New product design tools.

The sources of variation are the potential problems that can affect a process, its outputs, or both. Sources of variation can be anything from machine malfunctions to changes in materials to variations in people’s skills in working on a process. 

How to Utilize the 6 Sigma Tools?

This business management strategy reduces variation and makes processes more efficient. Any process can be improved with  the management practices set in this business strategy. 

Here are ways to use these tools.

Improve Existing Business Processes

It involves examining the entire process to identify every part that has the potential for error or defects. It also requires finding ways to eliminate these errors and defects. 

These techniques can be very effective, but it takes time and effort because the process must always remain operational.

Innovate New Products And Services 

The Six Sigma strategy can create a better way of doing business by improving product designs, innovating new products, redesigning business processes for greater efficiency, quickly adapting to constantly changing customer requirements, and reducing lead times so that customers receive their orders more quickly than the competition. 

Streamline The Decision-Making Process

The quality management tool helps to integrate planning, forecasting, and strategy-setting so that everyone is working towards the same goals.

The involvement of frontline employees closest to customers can help companies respond quickly when customers want new products or services or when they want existing products delivered faster. 

Implement Total Quality Management (TQM)

The 6 Sigma strategy is an integral part of TQM because it ensures quality where it counts in the process. 

Why Use 6 Sigma?

This business strategy can help businesses make their customers happier, increase sales, boost productivity and reduce costs. Here are some facts about this business strategy:

Improve Customer Satisfaction

The tool helps to improve customer satisfaction in several ways. For example, when processes are made more efficient, products or services can be delivered faster and reduce cost.

In addition, whenever problems arise with a product or service, they can quickly be corrected so that the customer is happy again.

Boost Productivity

The strategy can help to improve productivity in several ways. For example, the 6 Sigma management practices encourage everyone to streamline the entire process and ensure customer requirements are being met more effectively. 

It reduces lead times, so customers receive their orders faster than the competition. 

Improve Product Or Service Quality

The 6 Sigma management practices ensure that the process is always performing at its highest possible level for optimal customer satisfaction. 

It means products can be manufactured right the first time, reducing scrap rates and rework expenses providing better value to the customer.

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