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Operations Article | "Relevance & Application of Six Sigma in Services Sector"

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Relevance & Application of Six Sigma in Services Sector

- by Ankur Gupta & Sumit Roshan *

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The most common reason why service-oriented organisations stay away from Six Sigma is their notion about it being a manufacturing solution. One of the major hurdles service-oriented organisations must overcome is their mind-set that because their
company is human-driven, there are no defects to measure. Moreover, it is a quite common view among many people engaged in service organisations that Six Sigma requires complicated statistical tools and techniques. The truth is that Six Sigma is not about a collection of statistical tools and techniques, and service organisations simply do not need many of the tools and techniques of the six sigma toolbox. The majority of the problems in service organisations can readily be tackled using the simple problem-solving tools of Six Sigma.

"Six sigma demands massive training costs and additional effort," has become another misconception among many employees in the service sector. However, it is already a proven fact that the benefits obtained from Six Sigma implementation outweigh the investment costs.

Advantages

As already mentioned, the major benefit of Six Sigma is in the form of considerable improvement in the bottom-line result for service oriented organizations. Other benefits include: -

  • Effective management decisions due to heavy reliance on data and facts instead of gut-feelings and hunches. Hence, costs associated with fire-fighting and misdirected problem solving efforts with no structured or disciplined methodology could be significantly reduced.

  • Increased understanding of customer needs and expectations, especially the critical-to-quality (CTQ) service performance characteristics, which will have the greatest impact on customer satisfaction and loyalty.

  • Improved knowledge across the organisation on various tools and techniques for problem solving, leading to greater job satisfaction for employees.

  • Reduced number of non-value added operations through systematic elimination, leading to faster delivery of service.

    Next


    * Contributed by: -
    Ankur Gupta & Sumit Roshan,
    IMT, Ghaziabad.


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