Continuous Improvement, Six Sigma and Risk Management:How They Relate

摘要

The competitive business environment today is something that has never been seen before, as technology continues to challenge the way in which business has been done. As profit margins continue to shrink, it is imperative that companies have robust methods of process management to ensure peak efficiency. Continuous improvement, known as Kaizen in Japanese, is a natural step forward that is informed by the decisions made using risk management. The purpose of this article is to study the relationship between continuous improvement and risk management. In order to accomplish this task, proper definitions will be established, and proof will be provided of their relationship in real-world examples. This article represents the ideas of Lean Six Sigma andKaizen as methods to improve the processes in many different settings, as they become excellent tools for the continuous improvement phase. Six Sigma is a set of techniques that can detect and improve defects to reduce the variability in processes that may lead to undesirable inconsistencies. Moreover, the article looks at the barriers that stop companies from adopting these methodologies. Finally, the article discusses a method for the implementation of Kaizen and Lean Six Sigma in the form of A3.