Forecasting: Out-tel, Inc - Case Study Example

1. Six Sigma as a Metric Six Sigma is generally used as a scale for measuring the levels of goodness or quality in a process. This process could be amanufacturing or a services process. Six Sigma refers to 3.4 defects per million opportunities. Therefore, Six Sigma can be viewed as an effective metric for quality measurement (Motorola University).According to Tata Consultancy Services, Six Sigma is a metric that shows how well a process is being performed. A higher sigma capability is preferable as it helps in achieving defect free work.

The company defines defect as anything that leads to customer dissatisfaction (Murugappan, Keeni).2. Six Sigma as a process for improvementAs evolution in Six Sigma has taken place, the original definition of 3.4 defects per million has moved into the background and the focus has been to use Six Sigma as a methodology or a process for improvement. The biggest focus area of Six Sigma has been to assess customer requirements perfectly. After this analysis, the business processes are aligned to meet those requirements.

Data analysis techniques such as Statistical Process Control (SPC) are used to minimize and control variation in these processes. Six Sigma is a process that enables a firm to achieve sustainable improvement in its business processes in a quite short duration (Motorola University). The use of Six Sigma as a process for improvement has led to the evolution of DMAIC concept where DMAIC is an acronym for the various stages of the Six Sigma process. These stages are Define, Measure, Analyze, Improve and Control.

The acronym has been modified to DMADV later by some organizations which implies Define, Measure, Analyze, Design and Verify (Hurley, L).DMAIC or DMADV is one of the 3 methodologies being used in the Six Sigma process. The other two are Process management and Design for Six Sigma (DFSS). DFSS is used when a process has to be designed from scratch to ensure quality.3. Six Sigma as a philosophy for managing a businessSix Sigma is a way or a philosophy of running the business. Six Sigma aims for near perfection by reducing defects and variations to an extremely small number.

Six Sigma is a management philosophy which recognizes the fact that defects prove to be very expensive for an organization. Six Sigma helps in increasing customer satisfaction, productivity and profitability of a firm and results in a distinct competitive advantage (Jacowski, Tony). Six Sigma philosophy does not believe in measuring and controlling defects. Rather it believes in eliminating them and measurement is just a means to reach the end.It is not sufficient to have metrics and processes in the organization for Six Sigma capability.

Six Sigma is a philosophy which has to be linked to organizational strategy and has to be driven from top to bottom. Six Sigma is a way to develop a leadership tool within the organization. It helps leaders define the future, the work to be done, the skill sets required, the performance evaluation criteria, reward mechanisms, career progression, managerial roles and strategy execution. Six Sigma provides everyone in an organization a common platform to work towards achieving customer satisfaction.

According to Jack Welch, former GE CEO, there is an infinite capacity to improve anything in the world and six sigma is an enabler to realize this dream (Quinn, 2002).4. References‘What is Six Sigma?’, Motorola University, Available online from Murugappan Mala; Keeni Gargi, ‘Quality Improvement – The Six Sigma Way’ , Tata Consultancy ServicesJoacowski Tony , ‘The Philosophy of Six Sigma’, Available online from Hurley L 2009, ‘Explaining Six Sigma’, Available online from Quinn L.

Daniel 2002, ‘What is Six Sigma?’, Available online from