Six Sigma is a comprehensive business strategy that sets out six standard deviations represented by the Greek letter Sigma: σ that actually denotes standard deviation in statistics. Six Sigma helps in achieving the goals of the business as well as in sustaining and maximising its achievements.
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The chief components of Six Sigma are, as the name denotes, six in number: the first urges to place the focus on the customer; the second, to ascertain and comprehend the work process or the value stream; the third, is the management, improvement and stabilising of the process stream; the fourth is the removal of waste and those steps that add no value to the product and process; the fifth is the management by using factual data and reducing variation; and the sixth is the involvement and training of the human resources in the process.
In other words, the basic Six Sigma concept is customer focussed and the improvement of the business in this systematic manner would also satisfy the needs of the customer. This method is carried out through the precise and methodical analysis of statistical data and factual information and continuously engaging in the improvement and management of the work processes. It has been calculated that the failure risks are reduced to just 3.4 parts per million per transaction by using this method of Six Sigma.
The method of Six Sigma involves the application of these principles and practices in business. By this process of defining, measuring improving, analysing and controlling in a continuous cycle, the operational performance is constantly improved by eliminating the unnecessary and wasteful phases in the processes and precludes any further shortcomings.
DMAIC stands for define, measure, analyse, improve and control. This process seeks to define the actual goals of the project and make everyone involved in it also aware of the goals. Measuring involves the collection of data relating to the work processes. Analysing involves the evaluation of the collected data and facts to check the basic problems. Improving involves eliminating the problems by introducing and testing new designs, innovations and correction of faults. Control involves setting up of control plans to ensure the continuity of the process and minimise deviations.
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