abhishreshthaa
Abhijeet S
Future of Six Sigma: The New Focus
Six sigma is a business initiative that helps the organization meet its changing business need.
It is widely used to provide a structured approach to improve process but many organisations have found that the return of an organization's effort will be much more favorable to the "bottom line" if the six sigma methodology was focused on the design and not the product alone.
Although six sigma brings a new direction to quality and productivity improvements, its underlying tools and philosophy are grounded in the fundamental principles of total quality and continuous improvement that have been used for many decades.
Over the past few decades Six Sigma has evolved from a focus on defects to cost reduction to value creation. In its initial application, Six Sigma delivered defect reduction.
Then over a period of time organization started using Six Sigma extensively to achieve cost reduction. The latest iteration, Six Sigma Generation III, delivers higher levels of value for the customer and provider.
Initial Focus
Widely Used Focus
The New Focus
Defect
Cost Value
Provider
Customer
Customer
and
Provider
Concurrently
Large scale industrial
Large scale industrial
and
Small, medium and large scale
Six Sigma creates value by focusing everyone on a simple, but highly effective four-step strategy - Innovation, Configuration, Realization and Attenuation. In terms of product or service value, there are three key determinants. First, there is utility (form, fit and function). Second, we have Access (volume, timing and location).
Third, we must consider the idea of Worth (economic, emotional, and intellectual). Put it all together and we have the guiding principle that value, is delivering a quality product or service to the proper location, at the right time, in the right volume, at the lowest possible cost.
For every product or service, an enormous number of expected value requirements exist. These requirements are referred to as critical-to-value characteristics, or simply CTV's. And for every rightful level of expectation, the actual condition exists.
This creates a value gap between the value expectation and the value reality. Six Sigma projects are undertaken to close every one of the value gaps, whether it is focused on product or process design, economic value, manufacturing or any other factor.
With the change in the application focus Six Sigma delivers additional value by reducing the gap between the customer's expectations and what the provider delivers. It does this by uncovering hidden sources of loss - in processes, products and services.
The drivers of Six Sigma for value creation include small to mid size companies that must improve performance and profitability to continue operating. The advanced e-technologies of the Internet now allows classroom-like training online, reducing training and related expenses.
Ultimately, it will be the need of all companies small or big to improve profitability and Six Sigma professionals to improve career opportunities that will drive the new generation of Six Sigma.
Six sigma is a business initiative that helps the organization meet its changing business need.
It is widely used to provide a structured approach to improve process but many organisations have found that the return of an organization's effort will be much more favorable to the "bottom line" if the six sigma methodology was focused on the design and not the product alone.
Although six sigma brings a new direction to quality and productivity improvements, its underlying tools and philosophy are grounded in the fundamental principles of total quality and continuous improvement that have been used for many decades.
Over the past few decades Six Sigma has evolved from a focus on defects to cost reduction to value creation. In its initial application, Six Sigma delivered defect reduction.
Then over a period of time organization started using Six Sigma extensively to achieve cost reduction. The latest iteration, Six Sigma Generation III, delivers higher levels of value for the customer and provider.
Initial Focus
Widely Used Focus
The New Focus
Defect
Cost Value
Provider
Customer
Customer
and
Provider
Concurrently
Large scale industrial
Large scale industrial
and
Small, medium and large scale
Six Sigma creates value by focusing everyone on a simple, but highly effective four-step strategy - Innovation, Configuration, Realization and Attenuation. In terms of product or service value, there are three key determinants. First, there is utility (form, fit and function). Second, we have Access (volume, timing and location).
Third, we must consider the idea of Worth (economic, emotional, and intellectual). Put it all together and we have the guiding principle that value, is delivering a quality product or service to the proper location, at the right time, in the right volume, at the lowest possible cost.
For every product or service, an enormous number of expected value requirements exist. These requirements are referred to as critical-to-value characteristics, or simply CTV's. And for every rightful level of expectation, the actual condition exists.
This creates a value gap between the value expectation and the value reality. Six Sigma projects are undertaken to close every one of the value gaps, whether it is focused on product or process design, economic value, manufacturing or any other factor.
With the change in the application focus Six Sigma delivers additional value by reducing the gap between the customer's expectations and what the provider delivers. It does this by uncovering hidden sources of loss - in processes, products and services.
The drivers of Six Sigma for value creation include small to mid size companies that must improve performance and profitability to continue operating. The advanced e-technologies of the Internet now allows classroom-like training online, reducing training and related expenses.
Ultimately, it will be the need of all companies small or big to improve profitability and Six Sigma professionals to improve career opportunities that will drive the new generation of Six Sigma.