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Service processes are subjected to more noise or uncontrollable factors compared to manufacturing processes as work requires considerable human intervention, therefore, more probability that in service processes similar activities might be done in different ways.

The technical background of employees is generally minimal in services as compared to manufacturing. Moreover, human behavioral characteristics, such as friendliness, eagerness to help, honesty, etc., are thought to have major influence on service processes which determine the quality of service provided to customers.

Service processes are greatly influenced by the culture and the culture doesn’t think in terms of processes, variation, and data unlike manufacturing processes. Service processes are often complex and not well-defined, process output is often intangible and can be unique.

Relevance of Six sigma in Current Service Sector Scenario

Services account for more than 75% of the GDP of most developed countries. It contributes 55% to Indian GDP and has grown at 28% annual growth rate since last five years. The major Indian services consist of ITES-BPO segment. Accordingly BPO exports are growing at about 33.5% percent and have exceeded FY '06 expectation at USD 8.4 Billion in FY '07. Other segment like healthcare industry is worth US $ 17 Billion in 2006, and it is expected to grow by 13% per annum for next 6 years.

However, Indians service industries have to overcome a lot of challenges to continue their heady growth and sustain their share relative to other competing countries. Without any scientific references, it is suggested that overall sigma for product and services in India is mainly around 2.5 sigma. A company with such low sigma will have cost of poor quality 2% of revenue. If Government of India’s annual budget is around Rs. 100 Billion, cost of poor quality works out to Rs. 2 Billion. This is shear waste. If we calculate the loss to society concept in all governmental processes and infrastructure facilities, this figure can be much higher. Imagine the same money is used for better road, better education, hospitals, railways and healthcare. In five years time, the country will become developed country.

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* Contributed by: -
Aniket Raj Agarwal & Nikhil K. Jainender,
Symbiosis Institute of International Business, Pune.