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Service with a Sigma-ile

23 December 2005

In the final part of the three-part article on Six Sigma, Sanjay Matai shows how it can be used in service industries and compares it with other quality tools.

The earlier articles in this series acquainted us with the basics of Six Sigma, its benefits, the team and infrastructure required, implementation strategy and some common statistical tools. In the last part in the series we look at how Six Sigma is being employed in non-manufacturing situations and how it compares with the other quality improvement tools.

Six Sigma in non-manufacturing
Six Sigma began with quality improvement in manufacturing processes. However, its application has since been suitably adapted and successfully deployed not only in the non-manufacturing functions such as design, commercial, accounting, etc, but even in service-oriented industries such as IT, banks, schools, etc.

Consider the following facts:

  • Six Sigma is a broad framework and is essentially data-driven
  • It emphasises a cross-functional approach with a focus on overall business improvement
  • It is not restricted to just 'product' quality improvement
  • Many non-manufacturing processes and service functions relate directly or indirectly with the customer
  • Even in manufacturing, non-manufacturing elements like IT and after-sales service play an important role today
    It is not only possible, but essential to bring non-manufacturing functions within the ambit of the Six Sigma programme.

Many non-manufacturing functions can be:

  • Looked upon as a statistical process susceptible to variation
  • Defined in terms of customer satisfaction metrics
  • Amenable to rigorous data collection and analysis
  • Appropriately modifiable to improve service levels

A few examples:

  • The time taken to answer the phone and resolve customer queries in a BPO
  • The number of customers handled per hour by a teller in a bank
  • The number of error-free bills generated by a telephone company
  • The minimum lead-time the logistics department can maintain, without disrupting production schedules
  • Minimising the time taken to book an airline ticket
  • The number of days it takes for an insurance company to settle a claim
  • The number of error-free deliveries by a courier company
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