Applying Six Sigma methodology to improve performance in organizations

Abstract

BACKGROUND AND OBJECTIVES: The six sigma is a common methodology that has applied successfully in many organizations leading to sustainable performance improvements in products and services. However, the applied methodologies have not pay attention to Multi Criteria Decision Making models, clustering algorithm and Balance scorecard model. The purpose of this model is to apply the six-sigma methodology in Tehran Municipality and show how the Balance scorecard model, clustering algorithm, Analytic Hierarchy Process and Technique for Order of Preference by Similarity to Ideal Solution can be applied in the methodology.METHODS: Define, Measure, Analysis, Improvement and Control as a common methodology of six sigma is applied in Tehran Municipality. Several unique elements that are exist in Tehran Municipality are identified and categorized based on the Balance scorecard model into indexes, goals and perspectives. Also, Analytic Hierarchy Process for weight extraction and Technique for Order of Preference by Similarity to Ideal Solution for ranking are applied. The improvement strategies are created based on the six sigma tolerances.FINDINGS: The findings show that the methodology can be elevated by Balance scorecard, Analytic Hierarchy Process and Technique for Order of Preference by Similarity to Ideal Solution. This formulation is done and applied in Tehran Municipality and can be used in other organizations for conducting improvement strategies. Based on the arbitrary data, the best district of Tehran city is district 9 by 89.75% and the worst is district 18 by 10.12% score. Also, Wards and K-mean clustering algorithms and six sigma control limits are used to cluster the districts into superior, somehow superior, moderate, somehow inferior and inferior clusters based on their performance. CONCLUSION: This manuscript helps to understand the way of integration the methodology, Balance scorecard, Analytic Hierarchy Process, Technique for Order of Preference by Similarity to Ideal Solution and six sigma tolerances for sustainable improvement of Tehran Municipality. The proposed formulation can be used in any organization to reach to sustainable improvement.

Keywords

• analytic hierarchy process (ahp)
• balance scorecard (bsc)
• six sigma methodology
• technique for order of preference by similarity to ideal solution (topsis)