Continuous Improvement: Understanding Processes and Facts About Six Sigma.
A continual improvement process, also often called a continuous improvement process (abbreviated as CIP or CI), is an ongoing effort to improve products, services, or processes. So far we discuss continuous improvement and linked it to process improvement initiatives. To avoid assumptions, a fundamental discussion of the definition of the process itself and the facts about Six Sigma should be known before we start any initiative in the company.
What is a Process?
Most companies have processes in their business. Process is any activity or series of activities that have input , have value , and produce output for internal and external customers. Large, medium or small companies must be utilizing thousands of processes every day to create products or services they sell.
The industrial process is a process that depends on a series of machines and there is physical contact with materials that will be delivered to external customers. Not included in this process are shipping, distribution, and billing. While the commercial process is in which includes ordering materials, employee salaries, and order processing from customers. This process is present to support the industrial process and can also stand alone as a separate business.
How to share industrial and commercial processes? The calculations are simple. If 80% of the value generate from the product or service comes from machine activity. Then we can consider it as an industrial process. Conversely, if 80% of the value is generates through human activity. Then we can consider the process as a commercial process. Airlines, employment agencies, accounting firms, fast-food restaurants, and the like is a commercial business, not an industrial business. The profitability of banks, insurance companies, brokers, and the like as a whole depends on the quality of their commercial processes. While the profit of a manufacturing company depends on the quality of industrial processes (and commercial), whether it is able to meet or exceed customer expectations.
Some Facts About Six Sigma
After getting an idea of what kind of process is meant in all of the Six Sigma methodology discussions, here are some facts relating to the method itself:
Six Sigma Applies to Products and Services and not to Company
The history of modern business shows that companies with six sigma can still have financial problems. There is a very clear distinction between the product and the six sigma process with the six sigma company. The six sigma strategy creates specific targeted improvement for each process within the organization. Giving the organization the ability to understand and incorporate the latest technologies. Six sigma encourages organizations to review the workings of companies, rather than tinkering with existing systems. This method will help simplify systems and processes, improve capabilities, and certainly find the best way to control systems and processes permanently. But a six sigma product is likely to fail to get the market if it is too late in the release or if it enters the market without the preceding demand. This is the reason why companies should achieve Six Sigma status in everything they do.
Six Sigma is A Performance Target
It's important to understand that Six Sigma is a performance target. That applies to one character that is critical to quality ( critical-to-quality(CTQ)), not the whole product. When a car is describe as a "six sigma product" it does not mean 3.4 out of 1 million cars will be produce defective. Six Sigma means that in a single car. The potential defects of characteristics that are important to quality are only 3.4 out of 1 million opportunities. The more complex a product. (eg, compare a paper clip with a set of medical devices with many subsystems) the greater the potential defects that will be seeing in parts of the product. When a complex set of medical equipment may have more defects per unit than a paperclip. The "opportunity" level of paper clips and medical equipment has the same six sigma capability. So instead of questioning whether a product is six sigma.
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