Why Six Sigma Will work in Service Environments

Although Six Sigma has its roots in manufacturing, it works just
as effectively in service industries. It’s no secret that
service environments, such as financial organizations,
healthcare providers, retail companies, and hospitality
organizations have a harder time applying Six Sigma principles.
However, the core principles of Six Sigma grant it to
cost-effectively translate manufacturing-oriented Six Sigma
tools into the service delivery process.

Service organizations have different root causes of problems and
a one-of-a-kind set of processes and metrics. Thus, the tools and
methodology required to achieve the improvements of Six Sigma
are significantly different. While problems in the manufacturing
setting might lie within a process, the issue in a service
environment often is the process itself. Service industries are
full of waste–and ripe for the benefits of Six Sigma. It is
easy to apply relatively easy statistical and lean tools that
will reduce costs and achieve greater speed with less waste in
service processes. There are numerous case studies that
demonstrate how Six Sigma can be used in service organizations
just as effectively as in manufacturing-and with even faster
results.

In a service organization, the critical factors in calibre and
efficiency are flow of information and interaction between
people, especially interactions with customers. Transforming the
process of these flows will yield calibre results. At the heart
of each service business are the opinions, behaviors and
decisions prefabricated by people. Examining and modifying human
performance in service environments is as complex as any
manufacturing situation. Six Sigma achieves documented
bottom-line strategic business results by initiating an
organization-wide culture shift. Until a process focus-rather
than a task focus-is developed, the scope and endurance of
improvements will be limited. Examining and modifying human
performance in these environments is complex, but Six Sigma
provides the tools and methodology required to achieve
significant long-term improvements.

Service managers trained in Six Sigma become skilled at advanced
process analysis and problem solving techniques relevant to the
“real world” of service environments. They learn to refer and
eliminate poor decision-making processes, standardize practices,
reduce cycle times and manage the risk of the extensive changes
required for breakthrough process improvement in people-oriented
transactional processes. Successful Six Sigma services projects
will lead to improved customer satisfaction, increased profit
margins, reduced costs, and lower turnover. Six Sigma tools can
be used in many service environments, even service areas within
a non-service industry. Areas such as procurement, call centers,
surgical suites, government offices, R&D, and many more will all
receive benefits from implementing Six Sigma process improvement.

Six Sigma will help a service environment become a
customer-centered organization, acquire control over process
complexity, and improve response time on signature services.
Peter Peterka is President of
Six Sigma us. For additional information on Six Sigma
Green Belt or other Six Sigma
Certification programs contact Peter Peterka.