OBJECTIVES AND SCOPE OF SIX SIGMA

Six Sigma comprises of a set of practices designed to identify, analyze and eliminate defect in
a process or product. Defect is not simply a problem with a product, but it is anything that
causes a company to operate less cost-effectively, at a slower pace and with customer
dissatisfaction. The ultimate objective is to acquire and constantly please customers.

Business Improvement

Apart from reducing the number of defects present in any product, a business implementing
Six Sigma methods must seek improvement through any means available. This means
identifying and solving problems wherever they occur. The elimination or resolving of these
problems leads to overall business improvement.

Reducing Defects/Variation

Any business for improvement must reduce the number of defective products or services.
Defective products can irreversibly harm customer satisfaction levels, as each customer ending
up with a defective product becomes a potential lost costumer, and this spoils the reputation of
the company.

Reduce Costs

Reducing the costs increases profits. A company implementing Six Sigma principles need to
reduce costs wherever possible without reducing the quality. There is always a scope of cost
reduction. Look for cheaper raw materials of equal or comparable value; reduce transportation
costs via alternate shipping methods; streamline production and quality control processes with
automation or improved equipment technology; cut down personnel costs with outsourcing,
downsizing or other methods; or reduce rent payments by moving production or sales facilities
to different locations.

Improve Cycle Time

Any reduction in the amount of time taken to produce a product or perform a service means
money saved, both in maintenance costs and personnel wages. Additionally, customer
satisfaction improves when they receive products sooner than expected. The company that can
provide products to its customer faster wins business, regardless of questions of quality or cost.

Improve Customer Satisfaction

Customer satisfaction depends upon successful resolution of all other objectives. As you fulfill
the other objectives, you can gain customer satisfaction. Every aspect of a business process
from marketing strategies to sales personnel performance, can have a positive or negative effect
on the customer satisfaction. Seek positive customer response during these processes, and
customer satisfaction will improve.