Reality check of Six Sigma for Business Excellence

Abstract

Six Sigma is a useful problem-solving methodology and provides a valuable measurement approach. It has a statistical base and with proper utilisation of methodologies can help to improve the quality of both product and process. In addition to providing data-driven statistical methods for improving quality, Six Sigma also focuses on some vital dimension of business processes, reducing the variation around the mean value of the process. In general, it creates a link between the effective use of quality improvement and statistical tools to deal with customer focus, measurement and continuous improvement, which are also the partial requirements of the Business Excellence measurement system. Unlike Six Sigma the Business Excellence measurement system provides a comprehensive and holistic approach methodology for business improvement by integrating all the stakeholders' performances. The Business Excellence measurement system is a means of measuring customers', employers' and stakeholders' satisfaction simultaneously within an organisation in order to obtain a comprehensive evaluation of the organisational performance (Kanji, 2002 Kanji, G. K. 2002. “Advances in Management and Business Studies”. In Measuring Business Excellence, London: Routledge. [Google Scholar]). Here, the measurement system (that is, statistical methods) can be used to measure how well different areas of the organisation are performing. In reality, some Six-Sigma methodologies, such as statistical techniques, can be used for this purpose. In this paper, the author will discuss how well Six Sigma can be incorporated into the Kanji's Business Excellence Model (KBEM).

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