Cost Leadership Strategy

Six Sigma Methodology Reduce Costs and Improve Customer Satisfaction

Six Sigma  means a measure of quality that strives for near perfection. It is a disciplined, data-driven approach and methodology for eliminating  defects in any process from manufacturing to transactional and from product to service.

The statistical representation of Six Sigma methodology describes quantitatively how a process is performing. To achieve Six Sigma, a process must not produce more than 3, 4 defects per million opportunities. A six sigma defect is defined as anything outside of customer specifications, an imperfection or non-conformance. In a manufacturing environment, an example of a defect is a product that fails a functional test and poses a quality problem, while in a transactional environment, examples of defects are incorrect billing and late product delivery to customer.

The essential objective of the Six Sigma methodology is the implementation of a measurement-based strategy that focuses on process improvement and variation reduction throught the application of Six Sigma improvement projects. This is accomplished throught the use of Six Sigma DMAIC process – Define , Measure , Analyze, Improve, Control, which is an improvement sytem for existing processes falling below specification and looking for incremental improvement. Six Sigma processes are executed by Six Sigma Green Belts and Six Sigma Black Belts, and are overseen by Six Sigma Master Black Belts.

As a cost leadership strategy, the Six Sigma initiative is a synchronize systeme whereby the implementation revolves around the vision and mission of the organization. Six Sigma will drive  and ensure what the organization wants to achieve in the next years to come are achievable. This is done when the top managemet strategizes the important business issues and opportunities and use the Six sigma methodology to solve the critical issues using the dedicated process experts. Therefore, each Six Sigma projects and Six Sigma initiatives are part of the company’s journey towards achieving its goal in driving business forward.

In summary, Six Sigma methodology  reduce costs and improve customer satisfaction by greatly reducing waste in all processes involved in the creation and delivery of organization’s products and service.