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It creates a better process by eliminating opportunities for defects even before they can occur. This has a direct impact on the bottom line in terms of: 1. Reduced costs 2. Improved customer service 3. Waste elimination When we say a process is `Six Sigma', we are saying that it is the best in its class. Such a level of capability will result in having only something like 3 to 4 nonconformances in a million opportunities. Six Sigma Impact on Cost Research and studies show that Six Sigma has had a direct impact on Cost of Quality by directly contributing to all the components of Quality cost. Why Six Sigma? In any industry, organization or daily process, when you dont know what you dont know, the hidden costs are huge. In a Jam manufacturing unit, the nozzle filling up the bottles often fills either excess or less than the specified quantity. In the former case, jam over flows out of the bottles thus soiling the bottles as well as the conveyor belt. For bottles that have a lesser quantity of jam, it is poured manually into the bottles, and in this process too the result is sticky bottles. To clean the bottles, hot water has to be sprayed to avoid damaging the bottles that contained hot jam. Thus we see that a single error often goes unnoticed or is not given much importance. But when all the possible errors that exist in a system are considered, the monitory impact on overall productivity, customer satisfaction and profitability multiplies dramatically. Six Sigma helps you identify what you dont know, indicates what you should know, and helps reduce the errors and rework that cost you time, money, opportunities and customers. Why Six Sigma? Six Sigmas focus is on the process rather than on the final outcome. But why should companies focus on the process rather than on the final outcome? Final outcomes or results are dictated by what happens during the process.
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You may have set an objective; say, develop some new solution in record time. But if your emphasis was on the final outcome and you did not really keep a check on the process, then, when you are asked to develop the same software again, you may well repeat the same mistakes, come across the same problems and all you have is your memory to fall back on. On the contrary, if the process was documented, you or anyone else can repeatedly produce the same output again and again. You would also avoid making the same mistakes. You might even manage to reduce the development cycle. By focusing on collecting and improving process measures, you would eventually improve the entire process. Six Sigma and the Implementation Strategy A business can improve its profitability dramatically in every sphere by using the Six Sigma Implementation Strategy. Six Sigma and the Implementation Strategy are two distinct aspects. Six Sigma is the philosophy with the goal of reducing the defects frequency to 3.4 defects per million opportunities. The Implementation Strategy provides the means to achieve that goal through a highly focused system of problem solving. Implementation Strategy is also called Breakthrough strategy (term coined by the Six Sigma Academy) Summary Six Sigma is a statistical concept whereby a process is it is operating so well that it allows for less than 3.4 defects per million opportunities. If a process accepts outputs only if they fall within Six Sigma from the average for all outputs, then it is essentially delivering no defective outputs at all. Six Sigma has two major goals; Cost reduction and Total customer satisfaction. Implementation Strategy provides the means to achieve Six Sigma goal through a highly focused system of problem solving.