Benefits Organizations that successfully implement Six Sigma attain significant benefits that contribute both to the individual

and the organization. The individual that goes through the training of the Six Sigma will benefit significantly from the training. They will have improved knowledge and skills, the abilities to use wide range of tools and techniques and a status that is recognized worldwide (Six Sigma Group, 2012). With the organization the Six Sigma contributes to the organizations competitive advantage and changing the culture within the organization from reactive problem solving to proactive problem prevention (Six Sigma Group, 2012). In addition, Six Sigma also benefits the organization in all its sectors. Such as manufacturing, financial, health care, engineering and construction, research and development sector. 1. Manufacturing Sector: Ever since Six Sigma has been successfully implemented and used in the 1980`s by Motorola in their manufacturing sector. Other manufacturing organizations also began using Six Sigma in their manufacturing sector because of the benefits it offers. Some examples of other organizations are General Electric, Boeing, DuPont, Toshiba and Kodack (Kwak & Anbari, 2006). The quality performance measurements and the improvement programs of Six Sigma, aids in reducing cost and increasing employees involvement (Kwak & Anbari, 2006). These programs allow the employees to be involved in the process improvement teams, enabling employees to learn to appreciate that their work and the work of their fellow colleagues and departments aids to the success of the organizations as a whole. In addition, the process improvement programs examines the various steps in the process, taking into account the customers values, then later takes steps to eliminate unnecessary steps in the process, which later contribute in reducing cost, while increasing customer value. (Kwak & Anbari, 2006) 2. Financial Sector: In the financial sectors of an organization they are always pressured to reduce cash collection cycle time and variation in collection performance to remain competitive. (Kwak & Anbari, 2006). Six Sigma benefits the financial sector in improving accuracy of allocation of cash to reduce bank charges, automatic payments, improving accuracy of reporting, reducing documentary credits defects, reducing check collection defects, and reducing variation in collector performance. (Kwak & Anbari, 2006). However, probably the most important benefit

in this sector is the increase in customer satisfaction. Bank of America implemented Six Sigma to streamline operations, attract and retain customers, and create competitiveness over credit unions. (Kwak & Anbari, 2006). And they are now reaping the benefits in an increase of customer satisfaction by 10.4%, and a decrease in customer problems by 24% (Kwak & Anbari, 2006). How is this possible? Because, Six Sigma focuses on improving product delivery methods and customer service actives which impact customer satisfaction. 3. Healthcare sector: Six Sigma benefits this sector in reducing medical errors, improving timely and accurate claims reimbursement, streamlining the process of healthcare delivery and reducing inventory of surgical equipment and related cost. (Kwak & Anbari, 2006). Overall, six sigma can aid in improving service activities. For example, in the University of Texas MD Anderson Cancer Center, their service was reduced by 45min (Kwak & Anbari, 2006). 4. Engineering and Construction sector: This sector can benefit from reduced cost enabling the company to save up to millions of dollars in investments. Six Sigma program identifies and prevent the rework and defects in everything from design to construction to on-time delivery of employee payroll. Thus, aiding to optimize the management of cost and schedules (Kwak & Anbari, 2006). 5. Research and Development (R&D) sector: Organizations that implement Six Sigma in their R&D sector will gain many advantages such reduced cost, increase speed to market, and improved process (Kwak & Anbari, 2006). (Appendix) Limitations With all the benefits Six Sigma has to offer it still faces some issues, such as: 1. Issues in strategy: According to Hammer and Goding they argue that six sigma lacks in originality. It is nothing new and simply repackages traditional principles and techniques related to quality. (Kwak & Anbari, 2006). Organizations has to come to terms that six sigma is not the universal answer to all organizational issues. Organizations should not feel that this program is the most important management strategy. Organizations must accept both the weakness and the strengths of this system. 2. Issues in organizational culture:

There are organizations that do not completely understand the real obstacles of Six Sigma project. Some organizations address problems and issues that are easy to fix and later claiming Six Sigma method is a big success. Such an act is deceiving. (Kwak & Anbari, 2006). For the organizations to use the Six Sigma to its full potential in the organizational culture aspect, it is important that senior management have a strong commitment, support and leadership to face organizational culture issues only then can Six Sigma successfully be implemented and obtain successful results (Kwak & Anbari, 2006). But, there will always be an issue where organizations underestimate the program. 3. Issues in training of Belt Program There have been issues found where selection of less-capable employees for Black Belt assignments was associated with challenges to six sigma projects. (Kwak & Anbari, 2006). It is necessary for employees who go through the training be well informed of the latest trends, tools and techniques of Six Sigma, and communicate with actual data analysis (Kwak & Anbari, 2006). If not properly trained, the six sigma project cannot successfully operate.

Kwak, Y., & Anbari, F. T. (2006). Benefits, obstacles, and future of six sigma approach. Technovation, 26(5/6), 708-715. doi:10.1016/j.technovation.2004.10.003 Six Sigma Group. (2012). Benefits of six sigma. Retrieved from http://www.sixsigmagroup.co.uk/Methodologies-Tools/Benefits-of-Six-Sigma.aspx