Relevance & Application of Six Sigma in Services Sector
Six Sigma was traditionally developed to improve the quality standards in manufacturing sector, and it achieved a huge amount of success in the same. But now the focus is shifting from manufacturing to services.
Many service sector companies as well as the service functions within every sector are adopting it as a tool to boost their efficiencies. But there is a lot more to achieve for Six Sigma in the services sector and loads of hurdles exist in the way to success.
For a long time, quality control and improvement has been considered an important means for acquiring competitive advantage. Quality-control methodologies like statistical quality control, zero defects, and total quality management, are some of the key methodologies undertaken for many years. Six Sigma can be considered as the latest quality improvement methodology in this series, that has gained popularity and acceptance in many industries across the globe.
Evolving continuously over the past few years, today, it has acquired the status of a business management strategy rather than mere quality assurance methodology. Moreover, the strategy has been utilised by many world class organisations such as General Electric (GE), Motorola, Honeywell, Bombardier, ABB, and Sony, to name a few from the long list.
The concept of Six Sigma was introduced by Bill Smith in 1986, a senior engineer and scientist within Motorola’s Communication Division. Mikel Harry formerly at Motorola is accredited with the development of the Six Sigma concept in the late 1980s. Following this, for three consecutive years, Motorola spent $ 170 Million on workers' education and training, thus, saving $ 2.2 Billion in terms of cost incurred as a result of poor quality, and was honoured with the Malcom Baldridge Award in 1988.
Instrument of Quality Control
The main aim of Six Sigma methodology is to reduce the drawbacks in any process and improve its capability, thus, bringing the defects in the output within tolerance limits. In a way, it strives for perfection allowing only 3.4 defects per million opportunities. The methodology strives on assertions that, first of all, continuous efforts to reduce variation in process outputs is key to business success; secondly, manufacturing and business processes can be measured, analyzed, improved and controlled, and finally, successful achievement of sustained quality improvement requires commitment from the entire organization, particularly from top-level management.
Initially applied to manufacturing sector, Six Sigma methodology has evolved over a number of years allowing its application in many fields such as Services, Medical & Insurance Procedures, Call Centers, etc. In current scenario, Six Sigma has evolved into a tool for overall business improvement and not just measurement of quality.
- Six Sigma: The Roadmap for the Future
1 Comments - 2 years 2 weeks ago
- Relevance & Application of Six Sigma in Services
0 Comments - 3 years 6 weeks ago
- Relevance and Application of Six Sigma in Services
0 Comments - 3 years 6 weeks ago
- Supply Chain Managers handle information, not
0 Comments - 7 weeks 2 days ago
Bomb call at IIM Bangalore turns out to be hoax0 comments - 1 hour 40 min ago
8 best Android Jelly Bean tablets to grab0 comments - 3 hours 1 min ago
ESMT and Der Tagesspiegel announce “Tagesspiegel0 comments - 1 day 3 hours ago
BIMTECH’s new Bhubaneswar campus to launch in0 comments - 1 day 4 hours ago