The Pros And Cons Of Six Sigma

The Pros And Cons Of Six Sigma

Since Motorola first used the business strategy known as Six Sigma in 1986, many companies have realized the benefits of using this methodology and implemented it with outstanding results. The Six Sigma system concentrates on identifying and eliminating all causes of errors or defects in business processes offering products and services that match the expectations of the customers. This measurement based strategy focuses on process improvement and variation reduction, expecting that 99.99966% of the products manufactured to be without defect meaning 3.4 defects out of a million products. This system improves the productivity of a company and also reduces the costs, thus saving money for future investments.

When Six Sigma was first introduced there were many skeptical reactions in companies. The process seemed difficult and hard to implement. Also, the methodology was very similar to other corporate management systems, companies considering it to be an old wine in a new bottle thus it will pass just like other systems as it does not really work when implemented. However, over the years Six Sigma has shown many benefits, managing to increase the productivity of the organizations who decided to use this system.

There are a lot of advantages if you are considering using the Six Sigma approach in order to boost up your business or just make it more efficient by reducing costs and setting specific goals. First of all, the methodology clearly states that no project shall be approved if bottom line impact hasnt been clearly defined. This way, the goals are clearly defined causing less ambiguity. This strategy also places a big importance on strong and determined leadership, decisions being made based on facts and research, not on assumptions. It can take many forms depending on the type of products or services the company is offering thus covering a wide range of expertise. Also, all the techniques and technologies used for fixing problems are very effective and can determine the success or failure of a project.

Though there are many advantages, the Six Sigma process also has some limitations. For example, the selection and prioritization of projects is a very important process though, in many companies, the prioritization of projects is still purely subjective. Also, determining the goals of a project is of critical importance, and chasing after the wrong goals can make you waste your time and money. There are also many so called experts in this system, who barely understand the tools and techniques, but who offer their services to other companies. Also,, many of them lack leadership and communication skills or the power to make others understand and follow their instructions, skills needed when trying to complete a project.

To sum up, the Six Sigma process offers many benefits, though the risks are high. You should always hire a specialist, a person with experience that will guarantee to increase the performance of your business. This way, you wont risk much and you will obtain very good results in no time, boosting up your business just the way you wanted.