management (QM) has been seen as an important management strategy for achieving
core competencies. Conventional quality tools like Zero Defects, Statistical Process
Control (SPC) and Total Quality Management (TQM), have been important players
for some time. Six-sigma being more recent quality improvement initiative
gained popularity and gained acceptance in most industries around the globe. Most
Basic elements of six-sigma like, Failure Mode Effect Analysis (FMEA), Statistical
Process Control (SPC), gage repeatability & reproducibility and many other
tools are being used from quite some time. In fact, Six-Sigma gives a guide framework
which tries to unite the basic quality tools with the help of high-level
management support. However, many service industries are still not using the basic
aspects of SPC. Actually, they can benefit enormously by implementing both Statistical
Process Control (SPC) and six-sigma. Proper Implementation of six-sigma helped
industries like General Electric (GE), Citibank and many other service based
industries to remove defects/errors from their delivery process & create great
success stories which others can follow. Only limitation of six-sigma in
service based industries is that features of service based industries are not
uniform. Application of Six-Sigma and its benefits are somewhat limited to few
specific type of services like health care industry and banking industry. Understanding
the control variables of the process will be of help in broadening applications
of six-sigma in service based industries.
Six Sigma, being a part of long-term business strategy, will include following:
• Process Orientation.
services based organizations should learn to identify important business
processes which are critical for satisfying customer. This will enable them to be
more focussed on trying to improve their quality at business process level—
upon a short and more apprehensive understanding of the policy owners’
• Improve quality along with
reduction in costs.
gives firms a more proper path to prevent errors/defects, reduction in
hand-offs, and elimination of rework. This will aid hugely in making fast
transactions and reduction in costs.
• Use of facts for making management
will add statistical efforts to improve. Managers will be capable to make
decision on the basis of the data and the given facts—will not rely on
perceptions & gut feelings, will be more accurately trying to establish better
levels of performance which can be achieved and promised to the customers, clients
and prospect customers.
• Customer loyalty Retention.
strong emphasis on voice of the customer (VOC), Six Sigma provides very good
understanding of what can create & drive customer loyalty, and how can you
try to make long-term and profitable relationships among the current and
prospective policy owners.