Question

A growing belief in business is that managers should be able to improve the performance of the resources they manage. What role could Six Sigma play in this new management requirement?

Answer 1

Six sigma is a management approach based on improving business proccesses by decreasing the possibility of defects. It mainly uses stastical methods.

It is a data oriented approach which involves defining, measuring analyizing, improving and controlling.

For example, for improving the performance of human resource, the first step is defining. It is important define to what is expected from the human resource and what are their capabilities. Their performance must be measured precisely. Then it must be analyzed to discover the areas for improvement. After analyzing, actions for improvement can be taken such as training the employees and helping them develop more skills. Then, the last step is controlling which means comparing actual performance with set standards.

The focus is on reducing defects and continously improving the performance throughtout the process. Eventually, it enhances the business process.

Statistically defining, measuring, analyzing, improving and controlling factors such as process cycle time, costs, customer satisfaction, profits etc. and taking corrective actions reduces defects.