The purpose of the implementation of Six Sigma management:
Six Sigma it not only improves product quality, but also reduces costs, increases productivity and market share, and improves customer satisfaction and loyalty.
Analysis of the advantages of the implementation of Six Sigma
1, to improve the ability of enterprise management
Six Sigma management to data and facts as a driver. In the past, the enterprise's understanding of management and the understanding of management theory is more in the oral and written, and Six Sigma to transform all this into practical and effective action. The Six Sigma approach became synonymous with the pursuit of a flawless management style.
As Welch noted in GE's 2000 annual report: "The high quality created by Six Sigma management has miraculously reduced waste, streamlined management processes, and lowered material costs in what used to be a complex management process at GE. The implementation of Six Sigma management has become one of the necessary strategies and hallmarks for introducing and committing to high quality innovative products."
Six Sigma management gave Motorola more incentive to pursue what at the time appeared to be an almost impossible goal. the company's quality goal in the early 1980s was to improve 10 times every 5 years, which was changed to 10 times every 2 years after the implementation of Six Sigma management, creating a miracle of 100 times improvement in 4 years.
The statistics of foreign successful experience show that: if the enterprise is fully implemented six sigma innovation, each year can improve a sigma level, until it reaches 4.7 sigma, without the need for large capital investment.
This period, the profitability of the increase is very significant. And when 4.8 sigma is reached, it is raised again. After reaching this level requires process redesign and increased capital investment, but at this time the competitiveness of products and services increased, and market share increased accordingly.
2, saving business operating costs
For the enterprise, all the defective products are either discarded, or need to rework, or at the customer site need to be repaired, replaced, all of these need to spend the cost of the enterprise. U.S. statistics show that a company implementing 3 Sigma management standards spends 10 to 15 percent of its sales revenue directly related to quality issues.
From the implementation of Six Sigma management in 1987 to 1997, 10 years, Motorola due to the implementation of Six Sigma management cost savings have amounted to $ 14 billion. The implementation of Six Sigma enabled Honeywell to save $600 million in 1999 alone.
3, increase customer value
The implementation of Six Sigma management can make the enterprise from understanding and meet customer needs to achieve maximum profit between the various links to achieve a virtuous cycle: the company first understand, master customer needs, and then through the use of Six Sigma management principles to reduce the arbitrariness and reduce the error rate, so as to improve customer satisfaction. satisfaction.
General Electric's medical device division created a new technology after the introduction of Six Sigma management, bringing about a revolution in medical testing technology. Whereas it used to take three minutes for a patient to undergo a full-body exam, it now takes only one minute. As a result, the hospital improved the utilization of its equipment and reduced the cost of examinations. In this way, the company, the hospital, and the patient are all satisfied with the results.
4, improve the level of service
As Six Sigma management can not only be used to improve the quality of the product, but also can be used to improve the service process, therefore, the level of customer service can be greatly improved.
A Six Sigma management team at General Electric's lighting division succeeded in improving the payment relationship with its largest customer, Wal-Mart, reducing billing errors and disputes by 98%, speeding up payments and fostering a mutually beneficial relationship.