The Value of Quality in Marketing terms

It is incumbent upon the marketing function to both understand and provide a holistic view of how the market defines the value of quality. This requires expanding the view of how value is created and delivered throughout the entire delivery system of the organization. It is essential to understand that value at the point of production does not necessarily translate into value at the point of consumption. Issues of product support, parts availability, service, warranty and so forth all figure prominently into how customers and markets define and evaluate the value offerings of competing suppliers. Consequently, the value information collected and provided by marketing must identify those factors that are critical to quality (CTQ) throughout the organization’s value stream.

            The marketing role also should include linking value information from the marketplace to internal processes throughout the organization that create and deliver value. This is the process so critical to the identification of Six Sigma projects, linking the organization’s processes (inputs) to competitive performance criteria associated with the CTQs (outputs). The tools used to identify the linkages must allow the organization to set project priorities.

            Once Six Sigma projects are under way, an important function in the analysis of information is the development of appropriate tracking metrics to monitor market-perceived changes in value based on changes brought about through Six Sigma projects.

Strategies of Six Sigma

The decades-old manufacturing theory is getting new life as it’s applied to business-process strategies. In this metric-conscious economy, many managers like the fact that Six Sigma is a highly disciplined, project-based methodology that can help companies focus on developing and delivering near-perfect products and services. Six Sigma concepts are proactive tactics based on the idea that rather than wasting time and money fixing products that come out wrong, and dealing with the customer-service fallout and refunds that result, companies should work toward achieving “zero defects”–or as close as possible to that mark–in the first place. Few would dispute that goal.

          Six Sigma has both management and technical components. On the management side it focuses on getting the right process metrics and goals, the right projects and right people to work on the projects and use of management systems to successfully complete the projects and sustain the gains over time. On the technical side the focus is on enhancing process performance (improving the average level of performance and reducing variation) using process data, statistical thinking and methods, and a disciplined and focused process improvement methodology .This is accomplished through the use of two Six Sigma sub-methodologies: DMAIC and DMADV. The Six Sigma DMAIC process (defines, measure, analyze, improve, control) is an improvement system for existing processes falling below specification and looking for incremental improvement. The Six Sigma DMADV process (define, measure, analyze, design, verify) is an improvement system used to develop new processes or products at Six Sigma quality levels. It can also be employed if a current process requires more than just incremental improvement.