What Role Should Six Sigma Play in Corporate Strategy?
Q3. What role should six sigma play in corporate strategy?
Six sigma is a methodology and describes the process of;
Define – Measure – Analyse – Improve- Control
This process means that Six sigma has to be kept in mind from the identification of needs and objectives all the way through to when the objectives are met and need to be sustained. When Six sigma is implemented within 3M, different objectives will be set with six sigma and the reduction of waste in mind. These objectives are usually linked to specific business processes which have been prioritised for specific reasons such as value to the business or resources required. Once these objectives have been set, Six sigma shapes the plan or strategy of how these objectives can be achieved, this means the Six sigma programme has to be closely aligned to corporate strategy.
Some organisations choose to implement Six sigma as a separate organisation which makes measuring the success of the programme easier. 3M on the other hand has decided to employ the strategy internally, allowing it to create an organisation wide common language. Choosing to implement it in this way means that Six sigma will be ever present within almost all of the organisational functions and activities.
Corporate strategy is often seen as a concern only for upper and middle management, however when employed, Six sigma will mean that corporate strategy will be a concern from the bottom up as it creates universal goals throughout the organisation and its departments. This sometimes results in a shift (both intentionally and non-intentionally) in an organisations culture. Upper management will have to take precautions however, so the Six sigma programme does not disrupt 3M’s strategy so much that the company’s vision is blurred which could lead to things such as a decrease in innovation (something that 3M has relied upon since being founded in 1902.) This could also lead to a weak brand identity. This issue however has been addressed at 3M
Six sigma is a methodology and describes the process of;
Define – Measure – Analyse – Improve- Control
This process means that Six sigma has to be kept in mind from the identification of needs and objectives all the way through to when the objectives are met and need to be sustained. When Six sigma is implemented within 3M, different objectives will be set with six sigma and the reduction of waste in mind. These objectives are usually linked to specific business processes which have been prioritised for specific reasons such as value to the business or resources required. Once these objectives have been set, Six sigma shapes the plan or strategy of how these objectives can be achieved, this means the Six sigma programme has to be closely aligned to corporate strategy.
Some organisations choose to implement Six sigma as a separate organisation which makes measuring the success of the programme easier. 3M on the other hand has decided to employ the strategy internally, allowing it to create an organisation wide common language. Choosing to implement it in this way means that Six sigma will be ever present within almost all of the organisational functions and activities.
Corporate strategy is often seen as a concern only for upper and middle management, however when employed, Six sigma will mean that corporate strategy will be a concern from the bottom up as it creates universal goals throughout the organisation and its departments. This sometimes results in a shift (both intentionally and non-intentionally) in an organisations culture. Upper management will have to take precautions however, so the Six sigma programme does not disrupt 3M’s strategy so much that the company’s vision is blurred which could lead to things such as a decrease in innovation (something that 3M has relied upon since being founded in 1902.) This could also lead to a weak brand identity. This issue however has been addressed at 3M
References: Appendix 1 - http://www.isixsigma.com/index.php?option=com_k2&view=item&id=1358:&Itemid=111 Websites http://www.businessknowledgesource.com/manufacturing/the_pros_and_cons_of_six_sigma_featured_article_026571.html http://www.businessweek.com/innovate/content/feb2007/id20070227_766365.htm Books The Fundamentals of Operations Management(4th edition-2003) – Davis, Aquilano, Chase All about six sigma: the easy way to get started (2006) - Warren Brussee