Importance of Six Sigma in Process Improvement

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Importance of Six Sigma as Process and Sustainability Improvement in United Parcel Services Martin Tunggadjaja March 2013 ABSTRACT Six Sigma is a process improvement developed by Motorola in 1985 that encompasses a set of strategies and tools acquired in order to improve the current business practice and systematic processes to fulfill the objectives. It is initially designed to measure how many faults or defects are in the process so that they can be eliminated systematically as part of improvement to reduce weaknesses and reinforce quality. One of popular process improvement methodology that is part of Six Sigma is DMAIC, which consists of: Define, Measure, Analysis, Improve and Control. Originally Six Sigma was first…show more content…
Page 3 of 15 Hence, the logistics management is depicted as the part of supply chain management that plans, implements, and controls the efficient, effective forward and reverse flow and storage of goods, services and related information between the point of origin, and the point of consumption in order to meet customers’ requirements (Council of Supply Chain Management Professionals, 2007). Since problem situations most often will exhibit many and diverse characteristics which make different methodologies suitable for the logistics management, it is recommended that a ‘dominant’ methodology is chosen, but which will be supported by other ‘dependent’ methodologies (Lindskog, 2012, p49). This ‘dominant’ methodology chosen would be Six Sigma and the ‘dependent’ methodologies supporting Six Sigma refers to the performance and improvement methods, such as DMAIC Method. 3. Overview of Six Sigma Six Sigma can also be seen as a business improvement methodology that helps an organization to focus on (Motorola University, 2007). One example of a company implementing the Six Sigma system is General Electric, whose their results achieved within the implementation in the first two years (1996-1998) include saving money and raising profit (Kotelnikov, 2007). These results are as following: • • Revenues rose to $100
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