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Introduction
Six Sigma has been incorporated in many organizations as a measure of quality in order to attain perfection, especially as far as the quality of goods and services is concerned. It refers to a data-driven and disciplined methodology and approach for elimination of defects in the organization (Harry 64). This methodology is incorporated in all levels of production from manufacturing to the transaction level in products and services. It is noteworthy that, Six Sigma has varied meanings for varied groups within any organization. This variation depends on an individual’s level, as well as his respective job role in that organization. In the case of the enterprise level, the methodology would mostly be applied as a strategic business initiative. This is where it would focus on enhancing considerable improvements in varied areas including capacity, business growth, customer satisfaction, and investor relationships (Harry, 63). In the case of the operations level, the methodology takes a tactical nature. In this case, it is mostly directed towards enhancing Cost of Poor Quality (COPQ), delivery time, Defects Per Unit (DPU), as well as varied other crucial measures of operational efficiency and effectiveness. In the case of the process level, the process is mainly used in reducing variability. This is in an effort to reduce the process cycle times, the number of defects, as well as direct costs. In this case, the mantra is that if any improvement is made, then the gains must be verifiable on a timely basis. In this case, the elimination of a mistake, error, defect or fault in the system must in essence directly translate to a measurable gain. The gain could be in terms of lower overhead costs, reduced headcount and less material.
This implies that Six Sigma is essentially a tactical and strategic system used in the management of the total business enterprises. In this case, the methodology incorporates the capability and the capacity to deliver provider and customer satisfaction, which are essential ingredients for business prosperity (Harry et.al. 97). In essence, Six Sigma marks the epitome the ideals of business prosperity and maximizes an enterprise’s control functions. In its most basic form, the methodology represents 3.4 faults per million defect opportunities. The Six Sigma perspective relates to one defect opportunity for every critical-to-quality (CTQ) characteristic. The methodology rests on the idea that as performance is enhanced, other key aspects of the business would also be improved. These aspects include capacity, quality, inventory time, cycle time and many others. Once these factors are improved, the service-provider and the customers would derive increased satisfaction in the performance of their business transactions (Harry et.al. 132).
Everything carried out in any enterprise involves a process, where there is a beginning and an end. All these processes involve frequency distributions. These are histograms that indicate the number of measurements falling within certain data range. While there are varied distributions that have been investigated and observed, the normal distribution is the most prevalent. The normal distribution incorporates a curve with a bell shape, as well as a center point which is the average or the mean.
Going by the magnitude of the company, it is inevitable that LG electronics would be using the Six Sigma methodology to eliminate wastage and improve efficiency and effectiveness. This is the only way that it would enhance customer satisfaction while safeguarding the success of the company, especially in the long term. LG electronics consists of three companies namely Digital Multimedia, Digital Media and Digital Appliance. Its principal products include refrigerators, washing machines, vacuum cleaner, air conditioners, and air compressors. While it adopted the Six Sigma methodology in 1996, it fully applied it in 2000 so as to upgrade its performance (Park, 67).
In business innovation, LG Electronics Company adopted a Total Quality Control (TQC). On adoption of the Six Sigma methodology, the company adopted varied facets including a Six Sigma e-Academy for training individuals and a Six Sigma marketing strategy, which was essentially its main quality management concept. As a means for total customer satisfaction in product and service provision, the company divided its Six Sigma roadmap into three parts, including the manufacturing six-sigma, research and development six sigma and transactional six-sigma. In the initial stages of application, improving the Rolled Throughput Yield (RTY) was the key project in the manufacturing area. Later on, however, the RTY improvement was incorporated into all the subsidiaries. In the case of Research and Development DFR (Design for Reliability) was the main concern and, therefore, became the key goal for all research and development sectors. In the case of the transactional areas, the Six Sigma methodology was adopted to enhance the company’s market share via total customer satisfaction (Park, 69).
At LG Electronics, Six Sigma is customer-focused, practically implemented and process-driven via continuous Six Sigma projects. In this company, the methodology incorporates three things. There is statistical project evaluation where defect rates in all the processes are measured, while using s-quality level to measure the capability of the measuring process. There is also the business strategy, where the company aims at gaining a competitive edge in cost, quality, and customer satisfaction. In the management philosophy, the company works smarter based on teamwork and data analysis. Customer satisfaction involves analysis of the market needs, which include delivery, quality and price. These needs are solved through working smartly (Park, 73).
Conclusion
The importance of the Six Sigma approach in enhancing the performance of an enterprise cannot be gainsaid. LG has been using it since 1996 and earned an award for it in 2000. It has been able to enhance its performance as pertaining to cutting costs and enhancing the performance of various sectors.
Works cited
Sung H. Park. Six Sigma for Quality and Productivity Promotion. Hirakawacho: Asian Productivity Organization. 2003. Print
Mikel J. Harry, Prem S. Mann, Ofelia C. de Hodgins, Christopher J. Lacke, and Richard Hulbert. Practitioner’s Guide for Statistics and Lean Six Sigma for Process Improvements. New York: John Wiley & Sons, Inc. 2010. Print
Harry, M. J. Six Sigma: A Breakthrough Strategy for Profitability, Quality Progress. New York: May. 1998. Print
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