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Six sigma.

Article Excerpt
[check] This checklist introduces the Six Sigma quality technique, and presents action points for its implementation.

Companies are increasingly adopting Six Sigma in a bid to improve the quality of their processes and products, and thus achieve competitive advantage. It has been estimated that poor quality, resulting in defects and wastage, can account for 20-40% of sales revenue. Six Sigma offers a structured and disciplined method for reducing that figure significantly: in fact, in a perfect Six Sigma state, a company would reduce it to only 10%. While many companies dismiss a zero defects state as unattainable, Six Sigma offers the potential to get very close.

Definition

Six Sigma is both a technique and a philosophy based on the desire to eliminate waste and improve performance as far as is technically possible. At its heart is a statistical method that involves drawing up an optimum specification for each of the processes within the organisation, then using statistical analysis to reduce defects in the processes, products and services to almost zero. This is accompanied by an organisation culture that focuses on creating value for the customer and eliminating any processes that do not make a contribution to this final goal.

Six Sigma is a registered trademark of Motorola, Inc., which implemented the technique successfully in the 1980s. It is based on the statistical tools and techniques of quality management developed by Joseph Juran.

Advantages of implementing Six Sigma

* it has the potential to increase quality, performance, productivity, and competitive advantage

* costs can be greatly reduced

* wastage can be minimised, and environmental impact decreased

* employees become motivated and have pride in their achievements

* customer satisfaction and retention is increased

* improvements are sustained over time

* it creates visible...