Six Sigma

TOTAL QUALITY MANAGEMENT Advantages Low cost, differentiation strategy SIX - SIGMA 3.4 defects per 1,000,000

9/21/2011 11:56:00 PM

Is a systematic method for improving the operational performance of an organization by eliminating variability and waste. Sigma Standard deviation from the mean of a normal curve. Driven by the customer and thus aims to achieve maximum customer satisfaction by minimizing the defects. It targets the customers delight in new, innovative ways to exceed the customers expectation. Introduced by Motorola in the year 1981. Increase the efficiency level and reduce wastage Optimal utilization of resources with minimal wastage Important Methodology DMAIC Define Measure Analyse Improve Control - Used as a strategy to grow eg. GE saved US$ 10bn -

- Millitary US$ 5 bn Management Phillosophy way to create a common language. Implementation leads to rise of profitability and reduction in cost. Thus, improvements achieved are directly related to financial results. It is successfully implemented in every business category including stock value growth, employment growth, ROI Six Sigma targets variation in the processes and focuses on the process improvement rather than final outcome. It is a prospective methodology as compared to other quality programs as it focuses on prevention rather than correction. To create Six Sigma or Total Quality Management, there has to be a cause-effect relationship. Disadvantages - Applicability of Six Sigma is being questioned Quality standards should be according to specific tasks and measuring 3.4 defects per million as a standard leads to more time spent in less profitable areas. - Gives emphasis on the rigidity of the process. Which contradicts the innovation and kills creativity. - People argue that 6sigma is a bit gimmicky and simply a rebranding of the Continuous Improvement Techniques and Tools as practiced in TQM - 6sigma implementation constantly requires skilled manpower. Thus, control and employee dedication is hard to accomplish if not implemented regularly. - While converting the theoretical concepts, into practical applications, there are a lot of real time barriers that need to be resolved.