How Six Sigma could help an organisation to reduce their cost

How quality could help an organisation to have more profit?
According to figure 1, it is the chart between sigma level of a company and the cost of quality that the company has to pay to fix the problem. From the graph, it is clear that the company, which is not focused on the quality and has a performance in level 2 of sigma, might have to pay 50% of their profit to fix the external and internal failure of their product, while the company that could perform well in their production line by reaching fifth to sixth level of sigma that company might have to pay less than 5% of their sale to fix the quality issue. Inconclusion, Six Sigma could help an organisation to reduce their quality cost and to satisfy the customer.

Figure 1Sources Six Sigma Handbook (Thomas Pyzdek &Paul A. Keller)

: 04 Dec 2014 23:25 |  Comments (0) |  Report a problem