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Six Sigma is a world wide respected business philosophy and strategy adopted by companies who wish to provide world-class service quality. It is a goal for process improvement that uses fact based decision making, and is totally customer focused with the customers requirements dictating where the focus of improvement should be. This continuous improvement methodology is used to improve and monitor the business processes. The on-going statistical analysis is driven by data generated by these processes resulting in a qualitative measurement of process capability in numerical terms better known as the 'sigma level'. Six Sigma is equivalent to a failure rate of 3.4 parts per million or 99.99966% 'good'.
Put more simplistically it is data driven problem solving and although in the UK it is traditionally associated with the manufacturing industry, it can just as easily be used for transactional services such as HR, Payroll and Pensions administration where the inputs drive the huge volumes of transactions processes and the business outputs. In fact research in the USA shows that the opportunity for improvement is much greater in transactional services with non value adding activities amounting to between 30% - 80% of every transactional process.
Equally, it is extremely important to continue to monitor and measure the variation in these processes to ensure that the process improvement originally achieved is being sustained and is delivering the financial benefits predicted.
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