What is six sigma Six Sigma is a defined and disciplined business methodology to increase customer satisfaction and profitability by streamlining operations, improving quality and eliminating defects in every process company wide. If you pay a close look at this definition, you will find certain keywords. The first one is defined, Six Sigma is a defined business methodology. This methodology is not about using slogans on reducing the defect levels. It is also not a philosophy that gives high level guideline on how to manage a business process. As we had discussed earlier, Six Sigma is the only methodology available in the market that is a structured step by step methodology designed to solve any business problem.
It clearly defines what needs to be done in the project, how it needs to be done, and by when. Hence, this term defined is of critical importance in the definition of six sigma. The second term is disciplined, Six Sigma is a disciplined business methodology. A Six Sigma methodology cannot be deployed in those processes where there is no discipline, it cannot be implemented in those processes, where organizational policies and procedures are not being followed by the employees where employees at all levels act and behave as per their whims and fancies. The next set of keywords is it increases customer satisfaction and profit drivability. Most companies face a dilemma of either meeting customer satisfaction or profitability.
If they focus on customer satisfaction that comes at a price of profitability, if they focus on profitability, customer satisfaction gets impacted. But when organizations embrace Six Sigma, both customer satisfaction and profitability become complimentary. As one increases, the other increases, it creates a win win situation for the organization. The final set of keywords include by streamlining operations, improving quality and eliminating defects in every process company wide. These three are the critical changes that are brought about by implementing Six Sigma in organizations.