Six Sigma
Principles
Key Concepts
Sigma Level
Process Management
 
 
 
 
 
 
 
 
 
Principles of Six Sigma

These principles of Six Sigma came by major breakthroughs in management thinking. Basically these principles can be said as common sense applied by people to fine some genuine solution at a given period of time.

Sincere focus on customer problems

Every company writes policies and mission statements vowing to "meet customer expectations and requirements". Unfortunately very few businesses tried hard to improve the understanding of customers' requirements or expectations. Even when they did, customer data gathering was one time process or very short lived activity which ignored the dynamic nature of customer needs.

Measure of Six Sigma performance begins with the customer. Six Sigma improvements are defined by their impact on customers' satisfaction and value. Sig Sigma defines how business can be molded to define customer requirements. How to measure performance against them and stay on top of new developments and unmet needs.

Data and fact driven management

Many attentions were paid to improve information systems, knowledge management in recent years. But now also it is surprising to see that business decisions are based on opinions and assumptions.

Six Sigma take the concept of "Management by facts" to higher level. Six Sigma discipline begins by providing clarity to what measures are key to success of business performance. Then it applies data and analysis to build an understanding to key variables and optimize results.

Process Focus, Management and Improvement

Process is key vehicle to success for six sigma success, whether it is related to product designing and services, improving efficiency and customer satisfaction or running the business. It is basically a way to figure out competitive improvement in bringing value to customers.

Proactive Management

Proactive management in six sigma refer to defining ambitious goals, reviewing them frequently and setting clear priorities. Focusing on problem prevention and questioning selves why we do things. This way of working is more dynamic and responsive in nature.

In real business scenarios reactive management are followed where firefighting is done against the problems and come out with process which defines how we do things here. These processes make organization busier in dealing with one crisis to another and get less time in innovative works. Finally, organization loses control in business.

Boundaryless Collaboration

Boundaryless is breaking barriers and improving teamwork across organization. These opportunities available throughout improve collaborations within companies and with their vendors and customers. Huge amount of money are lost due to disconnections between various groups that should be working for the common cause of providing values to the customers.

Six Sigma bring an attitude that is committed of using customers and process knowledge to benefit all parties. It also creates an environment and management structures that support true teamwork.

Drive for perfection and Tolerance for Failure

Six Sigma prompt people to come out with new ideas and approaches for the businesses to reach new heights. People can see a possible path to better service, lower cost, new capabilities. Which mean driving towards perfection with a calculated risk management system?

But in traditional business process the approach would have become stagnant because People are afraid of the consequences of mistake and they will never try.

Some of the areas that have been influenced by Six Sigma are:
  • E-Commerce and Services

  • Enterprise Resource planning

  • Lean Manufacturing

  • Customer Relationship Management Systems

  • Strategic Business Partnerships

  • Knowledge Management

  • Activity-based Management

  • The "Process centered Management"

  • Just-in-time Inventory / Production

Copyright 2011, All Right Reserved. Basicsofmanagement.com is for educational purposes only. We do not guarantee the correctness of the content. The risk of using this content remains with the user.