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Six Sigma Saves You Dollars

Jul 29, 2010 Business Management

Six Sigma is a standard that identifies defects per million. It has saved companies like Motorola billions of dollars. It came into existence in the 1980s.

There are eight important steps while implementing six sigma. The first of these is to understand how sigma can help us become error-free. For this the first thing to do is to identify what our main concerns are.

The second step is the most important one. This step is where you do not compromise on the cost of your resources. You hire these resources as long as they share the same vision and values for implementing the Six Sigma.

Training is crucial for survival. This helps in knowledge creation by the knowledge practitioners. Employees are in a better position to become change agents for the company.

With resources and training checked in it becomes very important for an organisation to prioritise the activities next in line. For this it is essential that the organisation listens to its customers to get relevant insights. Then the organisation should also list down the factors critical to its quality requirements. They should be give utmost importance. Also we need to continuously check whether the organisation is linking its Six Sigma goals to the corporate strategy or not.

The person or team who leads the Six Sigma initiative should be identified and held accountable. This gives the team responsibility and ownership as well. There should be key performance indicators on which a performance of a process can be measured. If there exists no such measurements then measurement processes must be set up.

Micromanagement can lead to bureaucracy and red-tapism which kills the implementation process. Similarly too weak governance can lead the process into losing momentum. So a balance should be struck.

Rewards on recognising achievements made by the employees are a great way to boost the efficiency of any organisation. It keeps the employees happy and satisfied with the jobs and reduces turnover. Recognising such contributions builds the morale and keeps the employees enthusiastic about implementing Six Sigma.

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Tags: Business Management, six sigma