Relevance and Application of Six Sigma in Services Sector

- by Jinesh Kothari & Abhishek Raghuvanshi *

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Six Sigma Revisited

Six Sigma means "a systematic innovative activity to statistically measure and analyze causes of defects that happen in all parts of management, and then remove those causes." Defects include all causes that interrupt process or service and adversely affect the quality of the service. As a theory, it was originally used in manufacturing for quality improvement, timely delivery and process management. However, the principles can equally be applied to improve any process’ quality.

The six sigma revolves around defining what is the project, what one wants to improve and how does one define quality (or lack of it in terms of defects). This is where people working in "six sigma project" have more clarity about quality and what the sources or causes that disrupts the quality of the process. Getting it right here has two main advantages. First, it brings about more tangibility in the quality by converting it into more manageable numbers, and second, ability to pinpoint and define the causes of the defects more precisely. Finally, attacking the root of the "causes" to bring the number of "defects" (bad quality in six sigma parlance) down.

Figure 1: Six Sigma Principles & Methodology

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* Contributed by: -
Jinesh Kothari & Abhishek Raghuvanshi,
FPM-32,
IIM Lucknow.

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