Business Management

Six Sigma-The Best Management Improvement Tool
Every business unit aims at reducing defects and maximizing quality. Six Sigma helps greatly in this regard by eliminating the defects in a work process by a series of methods. Thus, delivering the end-user or customer a high performance, reliable and valuable product.
Theory Of Constraints- A Theory With Substance
The biggest advantage of the theory of constraints is that it not only helps to manage a complex system but also determines the root cause of any problem as well. The very first thing that a business unit must consider before implementing Six Sigma, is whether the chosen project is feasible enough or not. Often, it so happens that on the account of choosing wrong projects, the quality and productivity no doubt increases, but the net profit of the organization remains unaffected as before. This is a major constraint and the theory of constraint works along these lines.
The theory emphasizes five points. They are:
Step 1-Identify System Constraints
First look for the constraints or hindrances in the system of the organization.
Step 2-Decide How To Exploit The System's Constraint
Once you have identified the constraints, then search for a Six Sigma project that will minimize the waste of the constraints by exploiting the constraint itself.
For example, if machinery is proving a constraint in the work process, then apply a Six Sigma solution that concentrates on reducing defects by reducing setup time, eliminating scrap as much as possible and keeping the machine in optimal condition for as long as possible.
Step 3-Subordinating Everything Else To The Decision Made
Next make certain that no other aspect of the system interferes with the throughput (output in a specified time period) of the constraint.
Step 4-Elevating The Constraint
The fourth step entails that the constraints should be lifted or elevated by the way of acquiring additional capability or offloading some load onto other resources within the system.
In machine constraint, elevation of the constraint can be done by purchasing additional equipment or employing workers who possess additional skills in operating the machine.
Step 5-A Constraint Has Been Broken
If a constraint is broken in any of the previous step and another element of the system is now becoming a constraint or a limiting factor for our chosen constraint, then go back to the first step and rethink the strategy.
Theory Of Constraints And Six Sigma-A Winning Combination
The theory of constraints is one of the best TQM techniques because it saves a lot of time and effort. Project selection, the very first step of theory of constraint, helps a Six Sigma team to choose the right project because wasting Six Sigma resources on already strong links of a unit will yield nothing. On the other hand, choosing a weak link for implementing a Six Sigma project will further help in reducing your defect level, thus maximizing quality.
Secondly, the theory by recognizing the constraining element in the very beginning saves a lot of waste of the output of the constraint. Additionally, the Six Sigma team also comes to know about the tools and techniques that can replace the existing constraint and the ones which are functioning well and are not to be touched. However, replacement must be avoided at all cost, unless it is absolutely necessary to do so, because replacements again result in the waste of the constraint. It has been established time and again that, when the theory of constraints is applied with Six Sigma techniques, the results truly provide an efficient, bottom-line improvement.