Summary
Six Sigma was developed by Motorola in the 1980s. While originally developed to improve manufacturing processes it has since been used by many organizations to improve all areas of business. Financial companies are starting to use Six Sigma in their businesses because they have found it to be profitable for them, but are these results industry wide? Are the companies currently using Six Sigma faring better than companies that do not? This paper intends to investigate the application of Six Sigma in financial services industry.
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Extract
Six Sigma in the Financial Services Industry
Introduction
Six Sigma is a strategic approach to business improvement with the goal of reducing errors and inconsistencies. Six Sigma was initiated by Motorola in the 1980s. Many companies such as General Electric, Allied Signal, and Honeywell have successfully adopted the program. While originally intended to improve manufacturing processes it has since been used by many organizations to improve all areas of business.There are two main practices used in Six Sigma. DMAIC is used for process improvement and DMADV is used for process creation. DMAIC stands for define, measure, analyze, improve, and control. DMADV stands for define, measure, analyze, design, and verify. DMAIC is more widely used because many companies who adopted Six Sigma are hoping to improve processes not create new ones. "In the define stage, the project team defines the problem and clarifies the project's scope. In the measure stage, the team collects data to analyze the problem and assess the process's current or baseline performance. In the analyze stage, the team determines the problem's root cause(s). In the improve stage, the team creates and implements solutions that eliminate or minimize the root cause(s). During the control stage, the team uses ongoing measurement and other tools to control the process so the problem doesn't reappear."There is a defined hierarchy in Six Sigma. After the initial training a person obtains the rank of Green Belt moving to Black Belt, Master Black Belt, and finally a Champion. The Champion is responsible for implementation of the Six Sigma project and ensuring the project is meeting the strategic goals of the organization. A Champion is also responsible for mentoring the Master Black Belts and Black Belts. A Master Black Belt is usually a full time Six Sigma pra...See the full content of this document
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