Courtesy : Simplilearn
Six Sigma basically is a Management philosophy which aims at Customer Satisfaction. If a corporation produces a product or delivers a service which is not up to the Customer’s Satisfaction, then it will have a tough time being Competitive or Profitable for that matter. Reworking on a Product or Service due to inefficient processes means loss of not only Cost of Material, Labour and Time but also of Customers and its Reputation.
It is important to involve the Customer to define what is important to them as, retaining a Customer is as important as gaining a Customer. With appropriate understanding of consumer’s expectation, Corporation should go back and work on their processes to improve the Product or Services on the basis of customers’ requirements. Once these required improvements or changes are identified, and then there should be an objective, numerical approach to evaluate Current Practices as well as its Future Goals. While Six Sigma has many process and steps involved, these are not the only things involved to improve the System it also involves lots of Statistical measurement to do this.
The ultimate goal of Six Sigma is to advance the processes to ensure that only 3.4 defects are there in one million opportunities. “Sigma” is used to quantify and define the spread or distribution about the average or mean of any procedure/process. The Sigma capability or the Z-value for a process is a metric that specifies how well that process is performing. The greater the Sigma capability, the better the process can be assumed to be. Hence, the Sigma capability primarily measures the capacity of the system to produce defect-free Products or Services. A defect can be defined as anything that affects the Product Quality and may result in Customer Dissatisfaction.
When reviewing a Human Resources organization, it becomes clear that a number of business processes have an impact on the effectiveness of employee efforts in delivering Services or Products to Customers. An effective HR organization can balance the financial needs of the Company while attracting and retaining the most appropriate personal to become part of the organization.
The table below offers a logical grouping of HR functions with a sample of Six Sigma project opportunities. The list can be used to kickoff a brainstorming session with stakeholders and team members.