Six sigma method is a method to help businesses improve their competitiveness against competitors. In a process improvement approach, reducing errors, reducing costs, helping customers to be satisfied with the products that the company provides. So the method? What is Six Sigma?? Let's Johnson's Blog Learn about this information through the article below!
What is Six Sigma?
Six Sigma It is a method to help improve business and quality management processes based on statistics with the aim of finding errors and omissions.
Then identify the root cause of that error, which helps to reduce the error rate, and correct the error to increase the accuracy of the Six sigma process.
This method also helps businesses capture and identify with customer requirements more thoroughly so that the business is more customer-oriented.
Six sigma also uses the statistical method of errors arising and counting those errors in a process. Then fix those errors from there. Six levels of Six Sigma including:
Sigma level | Error on 1 million products | Percentage error |
One sigma | 690.000 | 69% |
Two sigma | 380.000 | 30,8% |
Three sigma | 66.800 | 6,68% |
Four Sigma | 6.210 | 0,621% |
Five sigma | 230 | 0,023% |
Six sigma | 3,4 | 0,0003% |
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The benefits of the Six Sigma method for businesses
Keep customer loyalty and satisfaction
Using Six sigma tools to reduce error rates so that businesses can focus on providing customers with better product and service quality, increasing customer satisfaction.
Reduce costs, increase profits
Through the Six sigma tool, businesses will be able to eliminate the waste of production stages with low productivity or inefficient workers including time and materials thanks to the error rate.
From there, the causes can greatly reduce the error rate in the future. From there, profits can be increased and the cost of sales of each product can be reduced.
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Reduce management costs
Management expenses in the business are also reduced because the business will not have to spend too much when the error rate is reduced, and that situation will not happen again in the future.
Strategic planning
Six sigma is a very important step in a company's project because it is like a strategic vision. The business will then set out its goals and mission and conduct a SWOT analysis and focus on its area of strength and development.
Business expansion
Businesses will be able to create Six sigma standard process and reduce the sources of defects so that difficulties in the project will be reduced and can progress to expand the production scale.
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Improve corporate culture
The human factor is extremely important to develop the company in a stronger way. From there, if the environment is competitive, employees will also compete and establish a culture of fair and progressive competition for the business.
Principles of effective application of Six Sigma method
Customers are the focus
Six sigma focuses on understanding the voice of customers and that is the business philosophy of the business. Need to improve the process to a standard based on customer expectations and needs.
Proactive management
Six sigma focuses on defect handling and seeks to be proactive and increase business accuracy so product defects can be addressed and improved.
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Emphasize data and facts
Six sigma helps that project and business and answers the following 2 questions when making a decision:
- What data and facts are most important and needed?
- How does six sigma use informational data to maximize benefits?
Unlimited Collaboration
Six sigma will create a smooth process and always follow unlimited rules between functions, agencies and departments in the business including diagonal, horizontal, vertical.
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Towards perfecting mistakes
Standard six sigma is not yet 100% accuracy. Six sigma makes the business not in a hurry and creates absolute perfection. From there, the company's plan will be improved in a more complete and effective way and avoid failure.
But as long as that business is exempt from the consequences for the business limit and learns lessons in the process later.
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Epilogue
Hopefully with some information Johnson's Blog offer about What is Six Sigma? will help readers better understand this concept and draw many lessons for the upcoming project.
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