Overview:

The Six Sigma Strategy is a management method developed to minimise variations in manufacturing processes and reduce any defection rates in outcome through the study of statistical analysis of different processes. It is one of the oldest as well as the most prominent tools for managing different steps of production for various manufacturing organisations across Australia with a common goal of eliminating errors and wastes. The strategy involves five fundamental stages that help shape an organisation’s approach to tackling problems. Take a look at what they are below:

• The first stage defines all the information surrounding a working project, a problem or a production process. It doesn’t work on theories and uncalculated data but rather a solid calculated approach capable of delivering results. Most of the things looked into in the first stage involve categories like the budget, scope or the timeline of the project.
• The second stage is the measuring phase that measures the capability of a production process to deliver results. The current effectiveness is measured using a set of standards, and the data obtained is used as a reference for improvement. Like the first stage, measuring does not involve fabricated data but defined values capable of being utilised.
• The third stage involves analysing the calculated data, and the root cause of any errors or inefficiency is isolated. Once the problem is identified, the work for creating a valid solution will begin soon after. The analysis is usually done through data tracking maps and charts that highlight the capability of the production processes.
• The fourth stage is the action stage, where the root cause of the error is addressed, and the plan is drawn out for deployment. The different variables involved with the error are taken apart and examined to highlight the main cause of the process’ inefficiency.
• The final phase is the plan’s deployment, where the changed variables are following the plan to reduce wastage and increase quality. Being an ongoing process, all the data produced and efficiency received is tabulated and used as a reference in case another problem arises within the production process or project implementation.

Benefits of The Six Sigma Strategy To A Business or An Organisation:

1. Reducing Unnecessary Wastage Of Resources: The goal of every business is to produce more with less input. Wastage in a production process occurs due to an excess input of products, time or resources. The strategy helps businesses identify the wastage and reduce them to ensure a more fair allocation that increases productivity.
2. Managing Time As A Valuable Resource: Time is directly proportional to the amount of money an organisation makes, which goes both ways. Effective time management strategies will create profits, and lousy control of time will lead to a loss of efficiency and value. Better project deadlines adhering to a strict policy of implementing the steps will be one of the ways time management is brought about.
3. Motivating Employees: An organisation will only be as good as its employees, and the more motivated they are, the more productive they will be. Using the Six sigma strategy, companies can personalise a system where workers are fully motivated to finish a task or work on a project.
4. Increasing Customer Satisfaction: The various steps involved in the sigma strategy is aimed at product improvement and reducing defects. This ensures that only quality products reach the customer base, and any feedback is analysed in-depth to find the root problem.
5. Raising Profits: As more and more processes are checked and analysed using a tactical approach having tangible data, the risk for loss or defects considerably reduces. This minimises the loss incurred on production processes, raising the company’s revenue.