SIX sigma in the service sector Essay Example

attempts or successful implementations of Six Sigma in the Service Sector. The elaboration will be divided in three categories, Six Sigma in the Healthcare Industry, Six Sigma in the Hospitality Industry and Six Sigma in Software Solution Industry.The Harvard Business Review explains what needs to be done in adapting the Six Sigma into the service sector.

They are: Determining Best Candidates

Similar to the manufacturing sector, implementation of Six Sigma in the service sector must be categorized within departments. The first step is therefore, choosing departments that are most suitable for the Six Sigma. There are three types of departments according to this measurement: highly customized processes, Mass-customized Processes and Standardized processes. The highly customized processes are not very suitable for Six Sigma implementation. This is due to the high variability of tasks which resulted problems that will cost the company more.

The most profitable processes in Service Sector Six Sigma implementation is the standardized services·

Defining Service Defects and How to Measure it

One of the most challenging issues in applying the Six Sigma in the service sector is to define what constitutes a service defect. Unlike in the manufacturing industry where product defects can be easily determined, the service industry must first form a consensus of what defines as a product defect. Only with the presence of a firm consensus can the process be enhanced.

Searching for Root Causes and Making a Long-Term Commitment

After defining defects, discovering what might have caused the defects is also more difficult in the service sector compare to the manufacturing sector.

Procedural mistakes, troubles in understanding commission rules can also contribute to service defects. Often, this takes long term commitment and extended deadlines.(Biolos, 2003)

Six Sigma

in Healthcare Industry

1. Baxter Healthcare

Baxter Healthcare is one of few healthcare companies that have been recorded to benefit significantly from Six Sigma implementation. The implementation of the concept was quite similar to the guidelines stated in the Harvard Business Review. First, the company stated that their strategy is to take account of each facility as an independent small business. Second, the company stated that it uses a value-stream mapping to discover how each activity generates value to customers. If an activity fails to generate value to customers, then it is eliminated or repaired. This is the way Baxter Healthcare defines what constitutes a service defects (‘Six Sigma-The Baxter Way’, 2007)

2. Mckeeson Healthcare

In McKeeson Healthcare, different strategies are used to apply the Six Sigma in the service sector. After dividing its business into several measurable departments, the company focuses on building long term relationship with customers and suppliers. This is too within the values of Six Sigma concept. Each customer is perceived as a long term investor that will deliver profitable returns for the company (Lisanti, 2004)

3. Queen Diagnostics

Anther well-known Healthcare organizations that are implementing Six Sigma to enhance its operations are Queen Diagnostics. The company attempted to use Six Sigma to raise the bar in healthcare service quality. Similar to other attempts of implementing the Six Sigma concept into the service sector, the healthcare organization is dividing the business into small and measurable units to make it easier for them to implement Six Sigma. In fact, the company is currently running 150 Six Sigma projects within the company. The company had 11 master black belts and more than 100 trained black belts to work full time

and managing the six sigma projects in its departments (Westgard, 2001).

4. New York Presbyterian Hospital

The New York Presbyterian Hospital has a different implementation strategy. The company prefers to perform benchmarking activities to help in the transitional process. The company joined the GE Medical Systems under a multi year, millions of dollars worth of partnership agreement. The New York Presbyterian Hospital is relying to the experience of GE medical systems to provide it with world class technology, services and management techniques.

The partnership is expected to bring enhancement not only in the way the hospital treat its patients, but also in the way it encourages clinicians and employees to perform the best for their customers (New York, n.d).

Starwood Hotel

Implementation of Six Sigma in the hospitality industry has some differences and similarities to the implementation in healthcare. Similarly, hotel managers divide the business into several segments with several quality measurements. They are: Front office operations, includes reducing wait time curing check in and check out, reducing no shows, accuracy of information, increase occupancy, etc. Food and beverage services, includes maintaining optimal inventory management, reducing time from order o service, standardized food and beverages quality, etc. Accommodation operation includes reducing turnaround times, standardization of cleanliness, etc.Store operations, include reducing inventory surplus, standardizing operating procedure, developing the cost-benefit analysisHuman resource operations, include increasing accuracy of payroll, dependability of document management, increasing employee satisfaction rate, etc (‘Starwood Hotels’, 2001) Starwood hotels have performed over 3,000 projects worldwide in those areas and also other areas like productivity, menu re-design, resort concierge, etc (Dewilde, n.d.).