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

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Relevance and Application of Six Sigma in Services Sector

- by Jinesh Kothari & Abhishek Raghuvanshi *

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The DMAIC Methodology

The DMAIC methodology is very generally applicable to anything one wants to improve. The biggest reason that it is highly relevant in services is it breaks the ambiguous
problem into manageable parts and assists the manager to focus on the problem at hand. As it is based on numbers and statistics, improvements are much more tangible rather being plain qualitative like good / better or excellent. This is where other quality programs like Kaizen (continuous improvement), TQM found a limited applications. Typically, six sigma works on the following framework of execution to achieve desired results of six sigma levels of defects (more famously, 3.4 defects per million).

1. Define

A simple method to identify the project in "six sigma" is to find out the problem areas or the areas where improvement is needed. The trick lies in defining the project with as much focus as possible while keeping it aligned with the Critical Success Factors or key performance indicators of company objectives. Otherwise, the project will achieve its results of improving the processes but not the company objectives. Next is to define the defect and to state where lies the opportunity to detect them. Also, answering and implementing the question of how to make these defects highly detectable.

2. Measure

In measure stage, one creates systems, methodology and implements it through suitable technology to record and measure the opportunities, defects and other metrics like time, personnel, etc., many good companies have a robust measurement of quality in place. In most cases, the existing records can be used to start the project and using the existing metrics (in worst case as proxies) to go ahead with next stage. This stage is much dependent on how objectives are defined? It can be defined to improve customer service, generating business expansion and gaining knowledge about the service sectors business processes.

3. Analyze

Here one brainstorms to find out the root causes of the defects for various opportunities. Two tools that are used Root-Cause Analysis (or fish bone diagram, on three branches people, policy & process) and FMEA (a more proactive approach for potential failure analysis and risk identification, mitigation and allocation).

Next


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


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