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Why Six Sigma is Important for Service industry

By Rohan A T

The tertiary sector of the industry which is most commonly known as the service industry offers services to businesses as well as the end consumers. These services include accounting, restaurants, computer services and tourism to mention a few. The primary difference between the service industry and other industries is the fact that the service industry deals with the creation of services rather than products. The service industry has been always a crucial link that has been holding together the entire economy of the country. While the companies operating in the sector have always been trying to improve the quality of their services, they have at times not been able to keep pace with the fast-moving consumer preferences. Six Sigma is one revolutionary method that was introduced to achieve consistent improvement in the quality of the services offered by the businesses. Simply defined, Six Sigma is a set of specialized tools and techniques that can be used for process improvement. Organizations can use the Six Sigma techniques and tools to improve the quality of their services consistently. The use of Six Sigma is crucial for the survival and growth of the service industry. Now let’s look at some of the major reasons why Six Sigma is an essential tool that helps in the development of the service industry.

1. Cost Reduction: Unwanted expenses and errors can have a major impact on the balance sheet of the companies. These expenses also get in the way of businesses earning a profit. With the operations of companies getting wider and more complex, the business leaders may not be able to pinpoint these expenses. The implementation of Six Sigma will help companies to get rid of the errors that they make and with that the profit earned by the companies will increase which will help in the growth of the business.  

2. Reduction of Wastes: These wastes include overproduction, motion, and transportation that might have an adverse effect on the operational efficiency of a company. The reduction of these wastes is another important advantage of implementing Six Sigma in your organization. By reducing these wastes, companies are also able to improve the timeliness of their delivery and this, in turn, will lead to improved customer satisfaction.

3. Meeting Customer Requirements: Giving what the customer wants is the key to achieving organizational success. One common misconception that majority of the companies have is that they know what the customer is looking for. While some get it right, many others get it wrong and this will have a massive impact on the performance of the company. The adoption of Six Sigma will help organizations to move from subjective based production to result-oriented production. The Six Sigma tools and techniques will help companies to understand what actually the customer requires and tweak their services accordingly and by that growing into a customer-centric organization.

4. Consistent Improvement: This is yet another key advantage that Six Sigma can offer to companies. What organizations are looking for is sustained improvement and the majority of the businesses are unable to keep the momentum going over sustained periods. Six Sigma will allow companies to design and develop robust business processes and services that will help them to achieve sustained growth. This will also allow the organization to develop an innovative work culture in the organization.

5. Objective-Oriented Operations: Last but not least, Six Sigma will ensure that the path towards the success of the company is well defined. By fostering a culture of continuous development and improvement in the organization, Six Sigma will set the pace for the company to develop. By accelerating idea generation and knowledge transferring within the organization, Six Sigma will make the organizational work culture rich. This, in turn, will give the company a sense of common direction which will make them work like a well-oiled machine.

In this modern-day when cut-throat competition is a common scenario in all the industry verticals, Six Sigma without a doubt is a tool that will come in handy in your quest to achieve consistent growth.

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