Although Six Sigma is directly related to the improvement
of business processes, its ultimate aim is to offer better products and
services to customers. This means that process improvement is not an end in
itself, that it is a just a means of improving quality of goods manufactured
and services rendered. Six Sigma does help in improving bottom lines and
reducing operational costs, but the real benefits are derived in the form of
increased customer satisfaction.
In the business world, satisfying customer needs should be
the penultimate aim of every business organization, as it will not only help in
increasing revenues but also help in securing the company’s future prospects.
The top companies that have managed to remain on the top have been able to do
so because of their commitment towards improving customer satisfaction.
Customer Orientation
Six Sigma was originally devised as a method for improving
business processes in the manufacturing industry. Motorola Corporation was the
first company to implement Six Sigma concepts into its business processes for
making significant changes in operational costs and product utility. However,
with the development of new concepts and methodologies, the use of Six Sigma
has spread to the services sector as well. Since the basic aim of Six Sigma is
to improve customer satisfaction, it does not matter in what type of industry
it is being implemented.
The Six Sigma approach focuses on innovation rather than
confirming to predetermined standards. It lays stress on continuous quality
improvements rather than limiting the quality to a certain predetermined level.
Six Sigma calls for increased customer involvement at every stage of product
development so that companies can offer products and services that suit
specific customer requirements. This approach has helped many businesses to
improve their profits and stay ahead of the competition.
Six
Sigma Process and Customer Needs
Customers have become very critical of the products or
services that are offered to them and are appreciative of only those products
that offer value. By utilizing Six Sigma concepts that concentrate on specific
customer needs, businesses can get a fair idea as to what features should be
integrated in the product or service offering. While designing a product or
service, Six Sigma allows product development managers to source inputs from
customers and quantify the inputs. Quantification is necessary as customer
inputs are often very vague in nature such as ‘better quality’, ‘low cost’ and
others. By quantifying the inputs, Six Sigma allows managers to understand the
basic needs of the customers, which can then be integrated in the product or
service offering.
The scope of Six Sigma stretches far beyond the initial
product development and includes proper management of after sales customer
services as well. Improving after sales services with Six Sigma helps companies
in maintaining the vital link, which in turn helps build customer loyalty.
Building customer loyalty has gained prominence in recent years because it
allows companies to have a regular source of revenue. It also helps companies
in increasing their customer base, as satisfied customers are most likely to
recommend the product or service to their friends and associates. This type of
word of mouth publicity is certainly better than standard marketing techniques
that involve thousands of dollars in advertising and marketing costs.
Businesses that have a long list of loyal customers are bound to be successful
both in the short-term and in the long-term.
Based on the feedback received from customers, Six Sigma
allows businesses to create a win-win situation for all. Businesses benefit
from reduced operational costs whereas customers benefit from the improved
quality of the product or service offering.