Success in Business - Using Six Sigma
Jack Welch, legendary former CEO of GE referred to Six Sigma as "the
most important intiative GE has ever undertaken". Let's look at what
Six Sigma is and isn't.
- Six Sigma is not about big business - it's about successful business,
whatever the size.
- Six Sigma is a process improvement methodology that can be applied
to any type of business to streamline operations and maximise the return
on resource invested. That translates are more profit!
- Six Sigma uses operational data - and data doesn't lie. It removes
subjective interpretation and ideological business fads from the process
of gaining business success.
- Six Sigma was developed, tested and proven by Motorola in the early
1980's and have been successfully deployed by thousands of businesses
throughout the world.
Six Sigma Model
The six sigma model uses six phases:
- Select - process for improvement based on the likley
effort required and the probability for success, and where an improvement
has a direct benefit to the customer.
- Define - the project team, the process data to be
collected and 5 to 10 core metrics to measure the process, and how the
project will be managed and results communicated.
- Measure - collecting data and validating the measurement
systen to ensure data can be trusted.
- Analyze - data to identify and quantify opportunities
for improvement. Also identify the cost:benefit of moving forward to
the improvement phase - the business case.
- Improve - define the cause of the problem and redesign
the process to eliminate the problem. Implement the solution.
- Control - put measures in place to maintain the new
improved process, and continue the improvement effort. These measures
also validate the results of the improvement.
Six Sigma Project Outcomes
The outcomes include:
- Identify and eliminate hidden waste and cost
- Identify and eliminate defects
- Increase profit margins
- Increase customer satisfaction
- Increase employee satisfaction and commitment.
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