Question.2981 - Perform PEST and SWOT analyses for a potential Six Sigma project at your workplace. Summarize the process in a short paper.
Answer Below:
Six Sigma refers to a marketing strategy that lays emphasis on the improvement of the profitability and the efficiency of an organization on the whole. It consists of a five step process in order to enhance these features of an organization. The process consists of Identification, Defining & Measuring, Analyzing, Improving & Controlling. Six Sigma is a well arranged, methodology driven by data for eradication of defects, quality or waste control of all types in various sectors of business including manufacturing, service, management etc. This method is based on the grouping of techniques of statistical quality control that is well established, simple as well as advanced methods of data analysis and the methodical training of all the staff at every level of the organization that is concerned in the activity at all levels of organization that is involved by the process which is targeted by Six Sigma. Six Sigma for Manufacturing directs the participants in the problem solving and techniques of process analysis that is relevant to the business setting of the real world. SWOT Analysis A SWOT analysis (Strengths, Weakness, Opportunities, Threats) is a type of analysis of the environmental factors that effects the performance of an organization. The Strengths and Weaknesses relates to the factors internal to the organization while Opportunities and Threats relates to the external environment. The factors can be either positive or negative. SWOT analysis is basically used in the strategy development and most often in the Define phase of the Six Sigma DMAIC strategy. SWOT analysis is very effective in the assessment of the environmental factors since it is provided in a categorized manner. The factors in the assessment of internal environment consist of corporate culture, functional relationships, competitive priority and system of reward measurement. On the other hand External factors of environment assessment include considerations towards economic, legal, cultural, competitive and political. The SWOT analysis of a Six Sigma Project may include the following factors: Strengths Advantages of Cost: Six Sigma gets higher profits when costs are low. Hence, a leader can use low cost as strength to weaken the rivals on price. Technology: Having superior technology is another strength which allows Six Sigma to meet the customer needs in a better way which cannot be imitated by the competitors as well. Weaknesses High Staff Turnover: One of the weaknesses for a Six Sigma is the High turnover of the staff. It affects the ability of the Six Sigma to compete since the expense for replacement of its valuable staff shall become high. Cost Structure: Having a weak structure of cost implies that the cost of Six Sigma is high as compared to the competitors. This poses as a weakness for the organization. Opportunities Innovation: A Six Sigma with the help of greater innovation can produce products & services that are unique and shall be capable to meet the needs of the customers. New Services: Six Sigma is capable to meet the needs of the customers in a better way with the help of new services. These services may lead to the expansion of Six Sigma’s business and increase their base of customers. International Expansion: Six Sigma is offered by new opportunities by the International markets by which it can expand the business and lead to sales increase. Threats International Competition: One basic threat to the Six Sigma is that there are a number of International competitors who are difficult to fight with since they are having a competitive edge which give them the advantage over Six Sigma. References Six Sigma, Introduction, Retrieved from: http://www.businessballs.com Jennifer VanBaren, The Definition of Market Analysis Within Six Sigma, Retrieved from: http://www.ehow.com Jiju Antony, A Swot analysis of Six Sigma, Retrieved from: http://www.deepdyve.com KE Bullington, Six Sigma Supply Environment Analysis, Retrieved from: http://www.ism.wsMore Articles From Operation Management
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