Ethical Aspects of 6 Sigma Methodology
The entire concept of 6-σ (Six Sigma) is based on satisfying customers. Although the methodology is said to have been first proposed by Bill Smith of Motorola company (Wiki, 2006), statisticians have been aware of this concept long ago. Smith only was the first to apply it in production processes in 80's. Since then, the methodology has been used in many organizations and had saved millions (Wiki, 2006).
The principle revolves around putting the stress on measuring and harnessing dispersion in the production process (opposed to stressing the importance of mean average) since dispersion is the determinant of the number of defective outcomes. (I would not delve into statistical aspect since it is irrelevant to the scope of this paper, but I will have to mention some though.) Thus, the methodology is aimed at increasing the number of standard deviations (generally marked s) so that 6 these standard deviations fall within the acceptable limits from each side of target mean. In other words, supporters of the methodology strive to mold the production process in such a way that over 99.99% of the outcomes are within the acceptable limits, or to be more precise, 3.4 defects per million opportunities (Saxena, 2006). This, in turn can be achieved by either of the two options. First, which is very costly but beneficial in long term, is to control the production process so that the sample of many output units (products or services) forms a much higher and thinner bell-shaped curve, this way naturally decreasing dispersion and concentrating most outcomes near the mean. The other option, which is the target of this paper, is to shift the planned specifications or acceptable limits as well as the target mean so that more outcomes are within the limits. (This technique is surely much more complex than what is covered in this paper.)
From the point of view of the producer - the one who applies 6-s - the methodology is rather beneficial, because it reduces the number of defects and makes the operations more stable. However, from the point of view of the consumer, this might not be as good as it seems, although 6-s is aimed at customer satisfaction. The problem, however, is that for customers the target expected outcome is satisfied in fewer number of times because the producer is oriented at reducing variance by shifting the entire production. So, even though vast majority of outcomes are within the specified customer requirements, the best desired outcome occurs significantly fewer times.
The ethical problem is that customers still want the best desired product/service more than simply satisfactory. And so, instead of simply maintaining the production at a certain level and focusing on quality and the target mean, the producers shift the target mean but put more stress on keeping production within acceptable consumer specifications. Therefore, the price the producer pays for reducing defects (barring the financial expenses) is that consumers receive less products of their target expected quality. Now, why can't the producers simply make the product as they did before, focus on the target expected outcome, and reduce unacceptable variations using some other techniques? Instead, producers save millions while consumers less frequently receive the best product/service though with only 3.4 defects per million outcomes. Thus, it is an ethical issue whether producers have a moral right to turn to such saving techniques, taking into account that clients benefit quantitatively, but not qualitatively.
Bibliography
1. Six Sigma. (2006). Wikipedia - the free encyclopedia. Retrieved June 19th 2006 from http://en.wikipedia.org/wiki/Six_Sigma
2. Statistical Six Sigma Definition. (2006). iSixSigma LLC. Retrieved June 19th 2006 from www.isixsigma.com/library/content/c010101a.asp
3. Saxena, S.K. (2006). Introduction to Six Sigma. Discover 6 Sigma. Retrieved June 19th 2006 from www.discover6sigma.org/post/2005/10/introduction-to-six-sigma/
Author Bio
Sean Priestley is master administrator and manager of NeWavEssays custom essay writing service.
Article Source: http://www.ArticleGeek.com - Free Website Content
More Resources
Unable to open RSS Feed $XMLfilename with error HTTP ERROR: 404, exiting
Related Articles
Financial Projections in Business Plans
One of the most difficult sections to write in a business plan is the proforma and financial sections. After all it is most difficult to what exact costs you will incur or what level of sales volumes are actually achievable.
What is a Ponzi Scheme?
This is for those who don't believe me when I talk about the dangers of "mystery money" schemes.The terms "pyramid scheme" and "Ponzi scheme" are used almost interchangeably.
Business Ethics: An Oxymoron
An oxymoron: the juxtaposition of contradictory words or concepts. That is what we have with the term "Business Ethics".
Conflict: Not Necessarily a Bad Thing
I got yelled at tonight. Not the type of yelling that someone does when you've done something to tick someone off, but the kind of yelling that was a swift kick in the pants about something that I'm NOT doing.
The Deception Perception: Pay No Attention to the Man Behind the Curtain
The Deception PerceptionWithout a doubt, people would rather do business with someone they know, like, and trust. Credibility is critical.
How To Build A Business Ethics Program
Recent corporate financial scandals have highlighted the importance of business ethics and legal compliance. Yet a recent National Association of Corporate Directors (NACD) survey of 280 corporate CEOs and directors found that "only one of three directors felt that they were highly effective in ensuring legal compliance".
Communicable Corporate Diseases Hurting Business Sexcess!
Enron Executive goes to prison for 10 years, Martha Stewart is under house arrest, and Bill Clinton averages $150,000 per speaking engagement.It all comes down to decisions on the fly, no pun intended.
Work Ethics - A Paradigm Shift
Work ethics is a hot topic in today's business and educational worlds. Yet, how do we define this hybrid phrase with the word work meaning more than a specific outcome and the word ethics being more than the values that enhance that outcome?When we say we are going to work, work becomes the place of employment.
The Need to Survive; A Death Knell For Organizations
Changing the driving force upon which business decisions are based is crucial in order to not only restore ethics in business but to truly improve the lives of those whom they were meant to benefit: executives, employees and consumers. After all, weren't business activities meant to improve the state of existence of human beings on this planet?So what is this driving force that I am referring to? Well its the "fear of not surviving".
Is Your Management Style Lead By Intimidation?
So many women make the mistake of thinking that they have to be these big mean diva bosses, to get respect and cooperation from their staff and colleagues. They walk around the office huffing and puffing, never showing satisfaction at the work their staff does.
Laws and Ethics?. Who's Kidding Who?
Years ago I read an article by a renowned psychologist wherein he wrote his studies found one percent of all human beings would never lie, cheat or steal. One percent would always lie, cheat or steal and given the right set of circumstances, the rest of us would likely lie, cheat and/or steal.
The Armaments Industry and Holy (?) Roman Emperors
"The time for fixing every essential right on a legal basis is while our rulers are honest and ourselves united. From the conclusion of this war we shall be going down hill.
No Credit is Due: Bad Telemarketing
Just a few minutes ago I was debating what to write about this week -- something interesting, perhaps, or maybe it was about time to give some credit to snails, I thought. Then, by some random stroke of luck, fate or writer's lightning (a term I created just now), I received a phone call from a credit card company.
Vice of Buggery at FTC
At the Federal Trade Commission we have seen attorneys who suffer from the vice of buggery get promoted to higher and more important international divisions. Now then, are these attorneys who have personal sexual problems and are breaking the laws of sodomy not wanted in the main group of Federal Trade Commission Employees? Is the FTC worried about sexual harassment laws? Are they worried about on-the-clock Men's Restroom "Quickies" and the possibility of the need for an unflattering in-house employee investigation becoming public? Is the Federal Trade Commission afraid to fire these buggerists, for some employee unlawful termination suit? Is buggery so pervasive that the FTC has to invent new titles for these guys so they can be moved up in rank to other divisions? If so why doesn't the FTC adopt a "Don't Ask, Don't Tell Policy" to prevent special treatment of those who suffer from buggery? Can't the FTC get psychological help for these men who thrust their penis up another man's rectum? Obviously these human organs were not set up to do that.
Selling Truth as a Differentiator
The last few years have been a period of heightened scrutiny and scandal for the financial services industry. Most recently, the SEC issued a report on pension consultants regarding conflicts of interest and the objectivity of advice given to retirement plan sponsors.
The Only Thing You Get for Free in Life is Hungry!
My grandfather was a very wise man. Simple but wise.
Ethics In The Workplace
Workplace Ethics is a subject that we have all heard of. In fact, the subject of Ethics in general is something that most people are familiar with.
The Views of Karl Marx VS Max Weber
Compare and contrast the views of Karl Marx and Max Weber with regards as to what motivates people to work.Karl Marx:[1] Exploitation[2] Proletariat have to sell their labour-power[3] The machines of the industrial revolution eliminate creativity require only the workers own labour, work is alienated, workers alienated.
Business Ethics: An Oxymoron?
Why do I believe good PR and business ethics are inextricably linked? It comes down to definitions. Ethics is learning what is right and what is wrong and then doing the "right thing.
Is Good Neighborliness Good Business?
[Note: This story is not a criticism of Buddhism. It is a story of neighborly love.