Introduction of Organizational Problem and Six Sigma

Organizations are able to achieve success if they are capable of consistently operating with efficiency. However, in the pursuit of revenues and success, firms face issues as well and these issues have to be resolved in order to prevent it from adversely affecting the firm. Thus, firms implement Six Sigma for resolving such issues. It can be said that Six Sigma is a method that provides management with a set of processes and tools for determining the issues that it is facing and resolving them. Through the use of these tools, management is able to increase the efficiency of its processes. In comparison with other methods, Six Sigma is recognized as more effective because it helps management in identifying the root cause and working on it. In this paper, Six Sigma will be implemented on the problem being faced by Apparel Inc. and it will be explained how the issue faced by the firm can be resolved (Allen, 2019).

            Apparel Inc. is an online sports apparel producing organization and it is facing the issue of low satisfaction among customers in addition to delay in the delivery of products. Due to this decrease in the quality of products and delays in deliveries, the firm has experienced a significant drop in sales. In addition to it, its loyal customer base has also been adversely affected as customers have stopped purchasing products from the e-commerce firm. Due to it, decrements in the profits and sales have been experienced by the firm. In order to retain customers and attract new ones, the organization has to focus on the issue and resolve it as soon as possible.

Objective of Organizational Problem and Six Sigma

            Considering the issue being faced by Apparel Inc. the objective of the senior managers within the firm is to determine the underlying causes of the issue and not only devise the solutions but also implement them in a timely manner in order to retain the customers. There has been a decrease in the satisfaction of customers in addition to the delay in the delivery of products as reported by customers and due to it, its sales have decreased. If the firm continues to experience a drop in sales, it will lose its position in the market and customers will begin to purchase products from other e-commerce organizations within the market.

Segments of Six Sigma

            In general, the process of Six Sigma is divided into several segments or phases. The division of the whole process into a number of segments enables the management to effectively implement different tools and processes in accordance with these segments. These segments include integration, standardization, control, improvement, analysis, and definition. All of these segments are different from each other and have different objectives. A tool of Six Sigma is 5 Whys and this tool is aligned with its processes and can be implemented for resolving the issue faced by Apparel Inc.

5 Whys of Organizational Problem and Six Sigma

Fundamentally, the 5 Whys is a method which is utilized to find the root causes of issues. However, it is important to note that without identifying the problem, it is not possible to determine its root causes with this method. The 5 Whys is quite a simple method which doesn’t include data segregation, regression analysis, hypothesis testing, and other advanced tools of statistics but it is a cost-effective and time-efficient method of determining the root causes of issues (Moaveni & Chou, 2017). Following is how this tool can be implemented to identify and resolve the issue faced by Apparel:

Team Formation of Organizational Problem and Six Sigma

            The very first step in the implementation of 5 Whys should be concerned with the creation of a team. This team must have people who have the skills and abilities to work on the resolution of the issue. For instance, it should have senior managers who understand the operations and processes conducted in every part of the firm. This team must have a leader as well who should be responsible for communicating the results and details of exploration with the senior management.

Problem Definition of Organizational Problem and Six Sigma

            There are several methods of identifying and defining problems and in this case, issues will be determined by acting on the feedback of customers and analyzing the strategies which are implemented by the competitors. By reading the reviews of customers and analyzing the strategies of competitors, the issues will be determined.

Implementing the 5 Whys of Organizational Problem and Six Sigma

            In this phase, the five levels of this tool should be answered. It is important to ensure that the team begins with the right question. It is important to answer the five questions for determining the root causes of the issues determined in the phase above. This phase is quite significant in completing the other phases of this process.

Addressing the root causes of Organizational Problem and Six Sigma

            Once the root causes have been identified, it is important for the team to discuss the issues and find the most effective countermeasures which can be implemented for resolving the issue. In this case, there are two measures which can be utilized for ensuring that customers are not purchasing products from other firms and Apparel Inc. is experiencing a decrease in sales.

Promotions and Bonuses of Organizational Problem and Six Sigma

            Customers are not satisfied with Apparel Inc. because the organization doesn’t provide customers with promotions and bonuses and that is the main reason why customers are purchasing products from other organizations. For instance, the firm doesn’t offer discounts to even those who purchase products for the first time from the firm. Usually, other firms in the market provide both first-timers and loyal customers with bonuses and promotions which play an important role in satisfying customers.

The second counter-measure is to implement new technology for tracking the products as they are delivered to customers. It would be analyzed by the organization by reading the reviews of customers they don't obtain their products on time and due to it, they are not satisfied. In order to track the products and their deliveries, new technology must be implemented which can help the organization in keeping the track of products as they are delivered to customers. Through this technology, employees within the firm can track the products and can notify the customers as their products are delivered to them. If there will be a delay in the delivery due to some circumstances then customers can just be notified about it.

Monitoring the Measures of Organizational Problem and Six Sigma

Once the countermeasures have been implemented to resolve the issues, the next phase is to monitor how they are affecting the organization and whether the situation is improving or not. Monitoring is an important aspect of the process of Six Sigma as it ensures the effectiveness and success of measures. It also helps in determining if the measures should be adjusted or not. In addition to monitoring, the performance of measures should also be evaluated and this process can be facilitated with the use of benchmarks or key point indicators.

Benchmarks of Organizational Problem and Six Sigma

Both key point indicators and benchmarks are effective tools for evaluating performance and determining whether some modifications are necessary for the existing countermeasures. In general, these tools are targets which should be met by outcomes and employees for ensuring success and effectiveness. In general, key point indicators are utilized for evaluating long-term performance while benchmarks are used for evaluating short-term performance. Therefore, in this case, benchmarks would be useful as these countermeasures are implemented for resolving the issues as soon as possible. If these issues are resolved quickly then the firm would experience significant losses in the future. For instance, more customers would begin to purchase from other organizations and it would adversely affect the firm (Hanna, 2016).

Modifying the Countermeasures

            The last step in the resolution of issues through the implementation of Six Sigma is to ensure that countermeasures are effective in resolving the issues and beneficial outcomes are being produced by them. If, however, benchmarks are not met by the outcomes then it would be important for the senior management to change the implemented countermeasures in such a manner that they produce effective outcomes. Once changes have been implemented within the countermeasures, it would again be necessary to set new benchmarks and determine if these changes have solved the problems and produced positive outcomes.

Conclusion of Organizational Problem and Six Sigma

Overall, it can be said that the problems being faced by Apparel Inc. are concerned with the lack of customer satisfaction and delay in the delivery of products. Due to these issues, the organization has experienced a significant drop in its sales. In addition to this decrease in sales, customers have also started purchasing from other organizations and due to it, the existing base of customers is negatively threatened. These problems are resolved through the implementation of Six Sigma along with tools and measures which are aligned with its segments. For instance, the method of 5 Whys is implemented for determining the root causes of problems prevalent within the firm. Once the root causes are identified and solutions have been implemented, benchmarks are utilized as a means of evaluating the performance and determining whether it is positive or negative.

 References of Organizational Problem and Six Sigma

Allen, T. T. (2019). Design for Six Sigma. Introduction to Engineering Statistics and Lean Six Sigma, 543-550.

Hanna, A. S. (2016). Benchmark performance metrics for integrated project delivery. Journal of Construction Engineering and Management, 142(9).

Moaveni, S., & Chou, K. (2017). Using the Five Whys Methods in the Classroom: How to Turn Students into Problem Solvers. Journal of STEM Education, 17(4).