Global Sourcing Potential Benefits and Problems

Global Sourcing Potential Benefits and Problems

Six Sigma Article Review

Breyfogle, Forrest W., and David Enck. (May 2002) "Six Sigma Goes Corporate." Business Management. Issue 7. http://www.optimizemag.com/issue/007/management.htm

Six Sigma is a statistical term that measures how far any given process deviates from its ideal or perfect outcome. "We all dream of perfection -- of coming up with a flawless business plan and the optimal processes for executing it. But being perfect in these areas is a hard thing to define, let alone quantify. How precisely can you really measure success?" (Breyfogle & David Enck, 2002, 1) From the quantitative side of business theory, the Six Sigma strategy employs formerly purely numerical analytical procedures to the human and managerial side of the business equation.

The central idea behind Six Sigma is that if it can be determined how many defects are in a process, these defects can then be eliminated. It utilizes a systematic five-phase, problem-solving process called DMAIC: Define, Measure, Analyze, Improve and Control. The Six Sigma process begins by defining the problem, then measuring statistically the impact of the problem, analyzing the situation to find root causes of the problem, attempting to improve the situation once the causes are identified, and only then instituting long-term control or maintenance of the solution. (Breyfogle & Enck, 2002, 1)

According to the authors Breyfogle and Enck, Six Sigma is an appropriate strategy in most for-profit companies, where generating more "cash and customers" or addressing a lack thereof, is the primary concern of managers. This procedure can be valuable in changing company target policies and attempting to generate more revenue. For instance, the company may be lacking a clear understanding of the desires of the targeted customers. By finding out if the problem, as defined, if the wrong customers are being targeted, or the company is using the wrong advertising methodology, the company can then measures the impact of the problem, attempt to understand why the incorrect strategy was implemented by the corporate staff in charge of this department, and then put into a new solution to generate new target audience, making the new strategy or 'target audience' critical to a new company vision. (Breyfogle & Enck, 2002, 2)