Industrial Examples - Concept of Six Sigma in Total Quality Management, How Six Sigma is Used in Different Industries., Healthcare, Software, Oil and Gas, Government,
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Industrial Examples - Concept of Six Sigma in Total Quality Management
1. Presented by
Dr. R. RAJA, M.E., Ph.D.,
Assistant Professor, Department of EEE,
Muthayammal Engineering College, (Autonomous)
Namakkal (Dt), Rasipuram – 637408
Industrial Examples - Concept of Six Sigma
in Total Quality Management
MUTHAYAMMAL ENGINEERING COLLEGE
(An Autonomous Institution)
(Approved by AICTE, New Delhi, Accredited by NAAC, NBA & Affiliated to Anna University),
Rasipuram - 637 408, Namakkal Dist., Tamil Nadu.
2. Industrial Examples - Concept of six sigma
How Six Sigma is Used in Different Industries.
Originating with Motorola in the 1980s, Six Sigma initially focused on
eliminating defects in manufacturing processes.
It worked. Motorola reported record profits. Other companies soon followed.
Nothing breeds success quite like success.
But as Six Sigma became familiar to more organizations, it eventually was
adopted by some for work outside of manufacturing.
Software engineering and technology firms began using some of its practices.
More mature industries, such as healthcare and energy, also have implemented
Six Sigma.
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The creation of Lean, a complementary methodology with Six Sigma, attracted
even more companies. Lean focuses on creating value for customers and
eliminating wasted steps in a process.
It also emphasizes working quickly. Nonprofit and government organizations
have adopted Lean methods to squeeze productivity out of every bit of money
they receive.
The following looks at some of the industries that use Six Sigma, Lean or a
combination of the two.
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Healthcare
Healthcare faces unique challenges. Large hospitals are incredibly complex. The
daily challenges involve many different processes. Just creating a proper
schedule for healthcare workers that maximizes productivity and doesn’t
overwork nurses and other staff members is daunting.
But they also work under complex government and industry regulations, deal
with technology issues involving patient records, buy and maintain sophisticated
medical machinery and must ensure safety for all employees, patients and
visitors.
Healthcare also is a mature industry where things have been done a certain way
for decades.
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Change can prove difficult. A 2017 HealthLeaders Media Patient Experience
survey found that the main stumbling block to implementing healthcare is
changing the culture.
Yet the study also found 87% of healthcare organizations saw improvements in
patient scores after implementing process improvement methodologies.
Pharmaceutical companies also have turned to practices such as quality by
design to ensure the best results in manufacturing drugs, including meeting
safety standards and product effectiveness.
Here are some examples of the ways companies have adopted Lean Six Sigma
in healthcare.
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Software
Technology companies striving to remain competitive in a constantly evolving
market must focus on efficient processes and speed-to-market. Worldwide,
many have implemented process improvement, including Lean and Six Sigma.
One early adaptor was Wipro. In 1997, the company began implementing Six
Sigma into every phase of the business, including software and hardware
development, according to the Community for Human Resource Management.
Initial results included a 91% on-time project completion rate as compared to
the industry average of only 55% at the time. In the years since, many
companies have incorporated Lean, which allows for continuous improvements
while keeping the experience of end users in mind.
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Oil and Gas
Another mature industry turning to Six Sigma is the oil and gas industry. With
the overall industry facing a downturn in recent years, Six Sigma
methodologies have helped keep some businesses profitable in tighter economic
times.
One example is Colorado-based UECompression, which uses Lean Six Sigma
to reduce process cycle time and improve the quality of its air and gas
compression products, according to Boss Magazine.
With a global market for its products, the company uses Lean Six Sigma to
identify and eliminate defects in production and supply chain.
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Government
Six Sigma has also caught the attention of government leaders, especially those
trying to maintain quality services in areas where tax revenue is down.
One example is Kern County in California. Faced with declining tax revenue
from the oil and gas industry in and around the county seat of Bakersfield, the
county has started an ambitious project to introduce Lean into many county
departments. The county has even created a website about its initiative to keep
taxpayers informed. There, people can view individual projects, including one
such project completed by the Treasure-Tax Collector’s office. After realizing a
growing issue with incorrect and duplicate payments, the department redesigned
payment forms with the consumer in mind. The result, a projected savings of
nearly $120,000 in labor costs.
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