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How Simulations Aid Six Sigma Project Executions

Apr 10, 2008
The fact that simulation technology is one of the best technologies ever developed is easily evident when we look at its widespread use in almost all types of industries, including both manufacturing and service sector business entities.

The effectiveness of simulation tools and techniques however, is proven when we look at how well and how easily they have integrated with Six Sigma, which is considered as the best available quality management tool by most industry experts.

For better understanding, let's look at exactly how simulation technology is aiding Six Sigma project executions and consequently allowing businesses to improve quality, reduce costs and streamline their business processes.

Verifying the Applicability of New Business Processes

Businesses constantly need to rework their business processes in order to suit changing customer needs and requirements, which is exactly where Six Sigma concepts and simulation tools are combined to get the best possible results. Simulation tools are most commonly used during Six Sigma DMAIC process (Define, Measure, Analyze, Implement, and Control) and the DMADV process (Define, Measure, Analyze, Design, and Verify).

They are basically used for verifying the applicability of all new business processes as might have been suggested during the DMAIC and DMADV project implementations. The simulation technique is quite useful because it accurately predicts which processes will deliver the desired results and those that will do just the opposite (i.e. lead to potential losses or inefficiency).

Based on these predictions, businesses can then decide whether or not to give their final approval for the suggested business process. All this certainly helps because it allows businesses to ensure that only those processes get selected for final implementations, which hold the most potential.

Making Accurate Business Forecasts

Six Sigma simulation tools are used for making accurate business forecasts, something that provides enough time to businesses for making the necessary changes or alterations. For example, businesses can benefit by getting accurate information about their future manpower requirements.

They will then be able to select the most appropriate time of recruitment and also the exact number of individuals that need to be recruited. This eventually will help in saving costs since businesses will no longer have to invest huge amounts in maintaining the bench strength. Another good example is the use of simulation tools for predicting future market demand, related to the goods or services offered by a business organization.

Such predictions certainly help a lot because they allow businesses to alter their existing production levels in line with the changing market trends.

IT (Information Technology) has been a major contributor to the development of Six Sigma simulation tools and techniques and since new technological breakthroughs are constantly happening in the IT sector, we too can predict that such tools will become even more advanced in the days to come. However, certainly no prizes for predicting the most likely beneficiaries, since it will obviously be businesses.
About the Author
Tony Jacowski is a quality analyst for The MBA Journal. Aveta Solution's Six Sigma Online offers online six sigma training and certification classes for six sigma professionals such as, lean six sigma, black belts, green belts, and yellow belts.
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