manufacturing articles business management businesses Marketing sales Technology Business finance Lean Manufacturing small business Investing articles employee health

Six sigma

Six Sigma is a methodology used to implement lean manufacturing in a production process or service oriented business setting.While there are those who attribute much of their success to the six sigma process, there are also those for whom this process may not be ideal.Naturally, the decision as to whether or not six sigma should be implemented lies with the management team of each respective organization.In order to better understand the advantages and disadvantages of the six sigma process, the following information has been provided.

Advantages to six sigma

  • One of the greatest advantages of six sigma is that all of the measuring and data collection that takes place along with evaluations can be shown in direct connection with increased revenues and profits.Research has proven that companies who consistently implement six sigma do perform better in almost all categories and measures of business success including return on investment, return on sales, employment growth, and stock value increases.
  • In some cases there are investors that want to see six sigma principles applied before they will make a final decision to invest in or purchase a company.
  • The six sigma methodology places emphasis on achieving measurable and attainable goals.A six sigma implementation is never put into motion unless there has been sufficient evidence that it will produce results and improve the bottom line.
  • Six sigma provides tools and techniques that are used for fixing problems in a business setting that take place in a very sequential order.This helps to improve the way that ideas and action flow through the company in many different areas if not all.Discipline regarding the way problems are handled and solutions arrived upon is engrained in the process.
  • Six sigma is designed to make employees at all levels of the organization more committed to the business and its vision and goals.
  • Six Sigma also relies on cultural changes and customer opinions which really are very important in the success of all businesses.

Disadvantages to six sigma

  • Some say that six sigma is flawed in its very objectives.There is the argument that improving efficiency may not even lead to improved profits and that reducing waste may actually cost more than just working with a negligible amount of waste.
  • Changing marketplaces are making six sigma more and more difficult to implement.There is greater need for six sigma professionals however current market conditions are not allowing for funds to be reallocated to fund the hiring or training of six sigma professionals.
  • Some people believe that six sigma is a very complicated system and sometimes doesn't warrant the attention and time that it takes to even begin to understand the concepts.
  • The value of reducing variation may not actually be worth the time and money it takes to implement six sigma, especially when the operation is small or highly specialized.
  • Six sigma relies heavily on data and measurement.In some cases it may be difficult to gather sufficient data and this can be a big problem especially when tactical decisions are being made based on the date collected.There are even times when a particular type of data or measurement may not even be available at all.
  • Prioritization can also become a problem when six sigma is being used because it so critical to the success or failure of the implementation.There are very few tools that have been developed that help make objective decisions regarding prioritization.
  • Critics to six sigma claim that six sigma is based on arbitrary standards that may or may not translate from industry to industry and from company to company.

FREE: Get More Leads!
How To Get More LeadsSubscribe to our free newsletter and get our "How To Get More Leads" course free via email. Just enter your first name and email address below to subscribe.
First Name *
Email *

Get More Business Info
Sponsored Links
Recent Articles


Copyright 2003-2020 by - All Rights Reserved
Privacy Policy, Terms of Use