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Companies And Benefits Of Six Sigma

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Describe about the Companies and benefits of Six Sigma?




Manufacturing units have improved the quality of production activities. This has been possible due to continuous improvement process adopted and introduced by the companies. Sig Sigma is considered to be one of the best methods, through which the required changes in the production and manufacturing process could be introduced. The application of the methodology depends upon the production process followed by the respective company. In this report, the importance of the ‘Six Sigma’ has been presented. Through lean thinking and management system, the company can improve upon the production or distribution plans, analysis the logistic challenges, and introduce better supply chain management system. These factors helps the management to reduce on the cost of production and ensures continues production activities for the company. The challenges associated with the introduction of the quality improvement methodologies have been included in this report (Antony and Banuelas, 2001).

Quality Improvement and literature review

Sig Sigma and lean management are important business strategies that enable company to implement plans for improving the production activities. Quality and efficiency of the manufacturing process can be constantly reviewed and changes can be introduced. During earlier times, the improvement process was mainly applied to the units that were not involved in the manufacturing process. Some of the sectors were such a process was applied were health care and software development. As the need for quality products and services increased, manufacturing units introduced changes with the operational activities. This was done to avoid errors and analyse or identify the areas of concerns. Production costs in companies increases due to improper wastage management, inefficient supply chain management system, and others. With the help of the lean and sig sigma management process, it is possible for the companies to introduce quality improvement process (Antony and Banuelas, 2002).


Literature review

Lean and Six Sigma were considered to be powerful tools through which the quality for many healthcare services was proposed to be improved. Toyota is one of the leading car manufacturing companies in the world. The company attempted to control the wastages and delays in the production process through the lean method. By doing so, the management also proposed to focus on delivering valuable services to the existing and potential clients. Sig Sigma was adopted to introduce powerful application method, which solely concentrated on the quality development and reducing the variances in the adopted process. As per Kumar, 2011 lean thinking method was introduced in the healthcare centres to improve upon the flow of the tasks and reduce on the wastages. Through such methods, the companies had adopted an efficient strategy that focused on the areas requiring improvement. Such methods were also used for improving the customer services, implementing changes in the cultural factors, encouraging the employees of the company to get involved with the decision-making process of the company, and analysing the root of the problem. Lean thinking process enables the management to analyse, the reason for adopting a particular method for carrying out the production activities.  Six Sigma encourages the company to adopt the corrective measures through which the quality of the production process can be improved. As per Kumar 2006, Snee 2010, and Dahlgaard and Dahlgaard- Park 2006 the methods adopted for improving the quality of production activities through ‘Sig Sigma’ plays a key role (Antony et al., 2007).

Benefits of Sig Sigma

Some of the benefits associated with the process are –

1. Improves quality
2. Reduces costs
3. Analyse the changes that would improve the production activities.


Methods to improve the quality and indicators of the selected business

Knowledge of lean and sig sigma

Sig Sigma for companies helps the management in measuring the quality that has been adopted for perfecting the services. In this method, the company analyse and adopt an effective approach through which the defects in case any are eliminated. Such a process is quite useful for companies that are involved in the manufacturing or transaction methods. An attempt is made to improve the products and offer the best possible services to the clients.  In the statistical representation method, Six Sigma represents the quantitative method that is used for performing the tasks.  By reducing the defects, the company improves the production and reduces the operational expenses (Antony et al., 2008).

Through the lean learning method, the company analyse the process that would be required to be adopted for carrying out the production activities. In this method, the defects involved in the production process are analysed and corrective measures are implemented. With the help of such a method, the management choose the method through which the production activities can be improved. In this method, the resources available with the company are used in the right manner (ASQ, 2009).

Analyse the Deming’s 14 point philosophy and lean practices

Thorough the lean practices the company analyse the selection of the method for improving the quality of the production activities. The method selection has to be done after analysing the future goals and expectations of the company. Through the Deming’s 14 point philosophy, the company develop new plans, adopt new philosophy, improve the quality of inspection, increasing the supplies of the goods, work on the consistency, train the staffs, and conduct other factors. With the help of the lean process, the management adopts and introduce new and better methods, through which the quality of services can be improved.  Through such an analysis, the management adopt the best strategies that would enable the management to improve the production activities ( Snee, 2010).

lean thinking and cultural factors

Through lean thinking, the management of the company work towards quality improvement. This method is also applicable to the organizational culture. OC is related to the human behaviours that are involved in the business activities. In this process the values and beliefs of the individuals are considered. With the help of the lean learning process, the company adopts an effective strategy through which the changes in the organizational values and culture can be introduced. This will help in increasing the quality of production, and handling the challenges faced by the staffs in the right manner ( Kumar, 2006).

lean thinking and cultural factors

Business process analysis

The sig sigma strategies are adopted and introduced by the company to control the malfunctioned activities. Management of the company attempts to introduce an effective method through which the production activities are reduced. With the help of the quality process, the wastages involved in the method have to be analysed. This would help in introducing better methods that would help in improving the quality for production.

Business process analysis


Challenges involved in introducing sig sigma – It includes analysing the challenges that are involved in the production process. The selection of the method depends upon the manufacturing process adopted by the company. The steps involved in the method needs to be analysed, as this will help the management in selecting the best steps through which corrective measures can be adopted.

Issues - through effective planning and measures the issues involved with the introduction of the corrective measures for Sig Sigma can be overpowered. In this method, the issues associated with the production have to be analysed. The corrective steps have to be implemented by the management.  Steps involved in the process have to be analysed (Timans et al., 2011).


Challenges involved in Sig Sigma


The principles adopted by the company include implementing the plan that is required for improving the quality of the work. Tasks involved in the production activities have to be analysed, and different measures has to be adopted for implementing the principles.

Areas for improvement

The areas for improvement have to be analysed, as this will help the management in introducing the corrective measures for implementing the changes. The steps have to be analysed and the corrective measures needs to be introduced (Yin, 2009).

Case Studies

Lean learning and Sig Sigma has helped many companies to improve the quality of the production activities. Toyota Corp management has adopted and implemented an effective strategy through which the production costs have been controlled. For this, the company has introduced steps for reducing the wastages. In this method, the quality for process output is denied and causes of the defects are removed. An attempt is made for minimising the variability that is basically involved in the manufacturing process. The quality management methods include statistical methods through which the production activities are improved. This is one of the reasons; the company could manufacture reliable and quality efficient cars that would cater the needs of the buyers. The projects undertaken by the company are analysed for the quality check and production improvement. Through this method, the company analyse the shortcomings that can affect the production activities. The fluctuations are analysed and corrective measures are introduced by the management. Toyota is involved in manufacturing different types of cars that would cater the needs of the clients. However, the errors involved in the process increases the production activities and delay the production activities. This is one of the reasons; the company has adopted and implemented an effective quality check process. The methods intended to be adopted by the company is analysed. Through this process, the steps that would be followed by the company are evaluated. Based on the collected facts, the methods to improve the quality of production is designed and implemented (Bisgaard, S. and De Mast, 2006).


The problem associated with the process is related to implementing an effective supply management system. This is not an easy process. The methods have to be adopted and model should be efficient to help the management in analysing the impact of the proposed changes. Strategies adopted by the company for introducing ‘Sig Sigma’ are quite challenging, and it depends upon the projects undertaken by the company. The other issue is associated with the with the leadership factors. It also depends upon the technical factors that have been adopted for introducing the changes that are required for improving the quality of production activities. The challenges lies with collecting and analysing the information that is required for carrying out the production activities (Dahlgaard and Dahlgaard-Park, 2006). 

In the second case, the problem associated with the implementing Sig sigma and lean management with the NHS has been analysed.  The management attempts to improve the quality of the production activities, and the best method to do so have been adopted. Data collection includes collecting information from different resources and analysing the feedback provided by the members or staffs of the company. The areas of concerns have to be identified as this would help in increasing the quality of services. Through such process, the management attempts to introduce effective leadership factors and improve the communication process.  Such process is required for increasing the value of services that is proposed to be rendered to the clients (DelliFraine and Langabeer, 2009).

The method basically includes collecting information from different resources and analysing the same. In this case the relevance of the data has to be related with the objectives of the healthcare services. The process adopted would help the management to overcome the problem that is adopted worth the performance of the NHS.

Some of the problem associated with the process includes analysing the area that needs to be worked upon by the healthcare services. The problem is associated with identifying the areas and introducing the corrective steps through which the changes can be implemented (De Souzzae and Pidd, 2011).



The methods adopted by the company includes –

1. Finding the areas that needs to be worked upon
2. Implementing the steps through the sig sigma steps

Case Solving Problem

Some of the effective steps include -

DMAIC – In this process, the expectations of the customers are analysed and it is related to the project goals. The current process for production is analysed, and the data relevant for evaluating the same is done in the right manner. Collected data are analysed, and the cause effect relationship is developed. Through such a method, an attempt is made to improve the quality of product activities. Some of the techniques used by the company are designs of experiments and standards adopted for work.  Control the process that causes deviations that can impact the quality of production process. In this method the control system is adopted and implemented by the company.

Quality management tools – In this method, the sig sigma adopted by the company includes analysis of the variances, scatter diagram, QFD, and root causes analysis (Feng, and Manuel, 2008)

Quality indicators for selected business

Quality indicators includes adopting and methods –

1. Improvement strategies for increasing the production
2. Reducing the wastages
3. Improving the quality (Grove et al., 2010)


The corrective steps involved in the implementation of the sig sigma and lean measurement has to be introduced for improving the production activates. The strategies adopted by the company have to help the management to increase the production process, and reduce on the operational activities.



Antony J and Banuelas R, 2001. “A Strategy for Survival”, Manufacturing Engineer, Vol. 80, No.3, pp.119-121.

Antony J and Banuelas R, 2002. “Key Ingredients for the effective implementation of Six Sigma program”, Measuring Business Excellence, Vol. 6, No. 4, pp. 20-27.

Antony, J., Antony, F.J., Kumar, M., Cho, B.R., (2007), “Six Sigma in Service Organisations: Benefits, Challenges and Difficulties, Common Myths, Empirical Observations and Success Factors”, International Journal of Quality and Reliability Management. Vol. 24, No. 3, pp. 294-311.

Antony J, Kumar M, and Labib A, 2008. “Gearing Six Sigma into UK manufacturing SMEs”, Journal of the Operational Research Society, Vol. 59, pp. 482-493.

ASQ Lean Six Sigma Hospital Study Advisory Committee (2009), “Get your checkup”, Quality Progress, August, pp. 44-50.

Bisgaard, S. and De Mast, J., (2006), “After Six Sigma – what is next?”, Quality Progress, Vol. 39. No. 1, pp. 30-36.

Dahlgaard, J. J. and Dahlgaard-Park, S., (2006), “Lean Production, Six Sigma quality, TQM and company culture”, The TQM Magazine, Vol. 18, No. 3, pp. 263-281.

DelliFraine, J.L. and Langabeer, J.R., (2010), “Assessing the Evidence of Six Sigma and Lean in the Health Care Industry”, Quality Management Health Care, Vol. 19, No. 3, pp. 211-225.

De Souzzae L, and Pidd M, 2011.  “Exploring the barriers to Lean Health Care implementation”, Public Money and Management, Vol.31, No.1, pp. 59-66.

Feng, Q. and Manuel, C.M. (2008), “Under the Knife:a national survey of Six Sigma program in US Healthcare organisations”, International Journal of Healthcare Quality Assurance, Vol. 21, No. 6, pp. 535-547.

Grove, A.L., Meredith, J.O., MacIntyre, M., Angelis J., and Neailey, K., (2010), “UK health visiting: challenges faced during lean implementation”, Leadership in Health Services, Vol. 23, No. 3, pp.204-218.

Kumar, M., Antony, J., Singh, R.K., Tiwari, M.K., and Perry, D., (2006), “Implementing the Lean Six Sigma framework in an Indian SME: a case study”, Production Planning and Control, Vol. 17, No. 4, pp. 407-423.

Snee, R., (2010), “Lean Six Sigma – getting better all the time”, International Journal of Lean Six Sigma, Vol. 1, No.1, pp. 9-29.

Timans, W., Antony, J., Ahaus, K., Solingen R.V., (2011), “Implementation of Lean Six Sigma in small- and- medium-sized manufacturing enterprises in the Netherlands”, Journal of Operations Research Society, Vol. 63, pp. 339-353.

Yin, R.K., (2009), Case study research: design and methods, 4th Edition, Sage Publications, Los Angeles, USA

Case study  references

Ansari A, Lockwood D, Thies E, Modarress B, and Nino J, 2010. Application of Six-Sigma in finance: a case study. Retrieved from

Anthony J and Kumar M, 2012. Lean And Six Sigma Methodologies In Nhs Scotland: An Empirical Study And Directions For Future Research.


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