Six Sigma for Quality is actually revolutionizing in quality management system emerges standards, that increase profitability.
Today, wise leaders do their best to ensure that the quality of their goods is excellent. After all, if customers are dissatisfied, the reputation of both manufacturers and trading firms will fall. Fortunately, these problems can be avoided.
How to achieve this and increase profits?
The six sigma can improve the quality of goods. for example, by changing the supplier of raw materials or the procedure for storing products in warehouses. Imagine that these seemingly simple solutions actually require complex mathematical calculations, in other words, statistical approaches to quality management.
As we believe that the worth dressing, since the profit after the introduction of such a technique turns out to be colossal. The American management concept of Six Sigma has not yet had time to prove its indispensability in Indian business. This foreign theory has a lot of shortcomings due to the specifics of the economy of our country. However, enthusiastic entrepreneurs who are prone to innovation do not prevent them from working on promoting the system in their firms.
The concept of “Six Sigma” opponents call it just a fashionable novelty. Adherents believe that this theory is the best way to fight for the quality of any goods or services, regardless of the scale of the firm.
The results speak for themselves. Companies such as Motorola, Texas Instruments, IBM, AlliedSignal, and General Electric have successfully implemented Six Sigma and achieved billions of dollars in cost reductions. Later, this methodology was adopted by Ford, DuPont, Dow Chemical, Microsoft and American Express.
In India, the American methodology began to be introduced primarily by joint (semi-foreign) firms focused on Europe, and enterprises engaged in large-scale production, having plants or factories.
Recently, the concept has also interested small enterprises that pay special attention to the quality of products produced or sold.
The essence of the technique
Being quite new, the concept of “Six Sigma” combines a lot of traditional and well-known tools and methods. The main feature of this system is considered to be the following idea: “Less emotions, more verified facts and sober analysis.” Sigma, strictly speaking, is the name of a letter of the Greek alphabet. It is also a statistical term, a measurement parameter, which is also called the standard deviation.
When this letter is used in business, it denotes the number of defects (defects) during the production process and helps to understand how this process differs from the perfect one. Thus, sigma is a kind of indicator of the deviation of business results from ideal ones.
Statistical techniques
“Six Sigma” is a statistical technique for measuring the business process in the parameters of marriage, – says financial consultant and experts.
“It helps to determine how substandard goods or services are. For example, reaching the highest level of six sigma means that during the analyzed process, the number of defects is only three to four per million possible. In other words, the work is done almost flawlessly.”
In addition, according to the financial consultant, the concept allows managers to eliminate all defects and shortcomings as much as possible, that is, to reach the level of quality with almost zero defects. The basic idea is that if the number of defects can be measured, then it is possible to identify ways to eliminate them.
There is something to strive for:
Experts find it difficult to explain why we are talking about six sigma. “That’s the name of a statistical theory,” they say, “it’s an axiom accepted without evidence. At the level of six sigma, the goods are excellent, and at the level of three sigma, a large amount of defective goods are produced. ”
Six Sigma explores a company’s day-to-day processes and determines what level of Sigma the firm’s performance corresponds to. Today, most entrepreneurs operate at a level of quality corresponding to three or four sigma. This indicator indicates a fairly large number of defective goods. Such a defect is the reason for the loss of up to 25 percent of the total revenues of the company because customers do not like defective goods.
Therefore, entrepreneurs need to strive for the best – to the level of five, and ideally – to the level of six Sigma, when only three or four defective products are allowed in the entire issue.
Quality Fighters
Within the framework of the Six Sigma concept, a certain infrastructure is created through which this approach is implemented in the culture of the organization. By analogy with karate, the qualifications and involvement of an employee in the corporate project “Six Sigma” are reflected in the colors of virtual belts: black, green, yellow.
Each of these categories performs its functions within the framework of the program. Team leaders are called “black belts.” They are responsible for measuring, analyzing, improving and managing key processes that affect the growth of customer satisfaction. Their task is also to identify the circumstances in which defects appear.
In some ways, this is reminiscent of the work of a detective. Only instead of a magnifying glass and evidence in cellophane bags, a Pareto diagram, Shewhart maps, brainstorming, experiment planning and other analytical quality management tools are used. It is not surprising that in the international market, the Black Belts have an enviable reputation. Their opinion is listened to by company leaders. In India, according to experts, the owners of the black belt can be counted on the fingers. The reason is that managers can get the necessary training for this level only in the West. Many directors are unwilling to spend their money and the time of valuable employees on “incomprehensible” training.
The rest of the employees participate in the project only from time to time, performing the tasks of the leaders. Often these are temporary workers who have undergone introductory training.
Indian Start
Indian adherent of the American concept of Six Sigma. Entrepreneur and financial consultant and experts said that his business after applying the new methodology went uphill. The concept of Six Sigma was first introduced in the audit company he once headed.
As a result, the quality of audit reports has improved: the number of defects in the documentation has decreased, the planned deadlines for submitting reports have not been exceeded.
Supporters and opponents
Like all other approaches, Six Sigma has its ardent fans and equally ardent opponents. Adherents of the concept believe that the American method is the best suited to small businessmen engaged in trade, not production.
In addition, for small business entrepreneurs. The American concept is especially beneficial. Since for small trading firms, statistical calculations of Sigma will be much easier. And the result is no less indicative. Thus, managers of medium and small businesses will be able to quickly master the theoretical basics of the Six Sigma technology. Which will allow them to quickly apply the knowledge gained in business.
Opponents of the concept emphasize that the system is based on deep knowledge of the staff, so it is unlikely that it is viable for India. After all, the development of employees is a rare priority for Indian entrepreneurs. Businessmen prefer to invest in equipment rather than in people.
Education
Today, the latest method of quality control is taught in several educational centers. Which are joint with different European universities or colleges. There are also Indian firms in which the theory is presenting in a cheaper and simpler version. But experts do not advise to go there. A full-fledged “belt” of “Six Sigma” should undergo a multi-level and very serious theoretical and practical training.
The preparation of a real black belt. Which has an international certificate, for Indian managers today is possible only in the European countries. The candidate attends the training for four to five months. At the same time, the week of theoretical classes. That he conducts abroad should alternate with a three-week practice at home.
The cost of such an educational process is on average 15-20 thousand dollars. According to many Indian entrepreneurs. It is very expensive to train a single employee. In addition, firms lose valuable personnel for some time. It happens that a specialist, having receiving high qualifications, outgrew the company and went to competitors.