chapter  2
23 Pages

Why should organizations implement Six Sigma?

No one keeps his enthusiasm automatically. Enthusiasm must be nourished with new actions, new aspirations, new efforts, new vision

Papyrus

Response to change: competition: waste Overview Six Sigma recognizes that we live in a rapidly changing and increasingly competitive world. Customers’ needs and expectations are continually changing. Economies are also on the move. In the early 1900s, some 70% of UK workers were in agriculture, now there are less than 2%. In the early 1950s, just under 50% of UK employees were in manufacture or production, now the figure is just 20% or so. The UK economy is now becoming dominated by the service sectors and public administrations, which are claimed to have a higher proportion of waste than manufacture. This is not necessarily a reflection on relative management performance but rather on the nature of the process. For instance, the yield of a manufacturing process is generally expected to be high. The consequences of failure are immediately transparent. Not so, say, in a sales process. The proportion of actual sales to sales interest or enquiries is likely to be much lower. Failure to make a sale is not so transparent and obvious. In consequence, the scope for improvement is much higher than for the manufacturing sector of an industry or function of a single organization.