BUSINESS EXCELLENCE – A JOURNEY BEYOND 6 – SIGMA

Across Eras, and through evolutions, from Stone Age to Modern Age, from Barter System to Cashless Era, from Agriculture and Hand-made Era to I 5.0 , Businesses across Sectors Re-invent themselves in a quest to stay Relevant amidst Socio Politico Economic ESG Legal Technological (SPEELT) Advancements and Changes. The adages, One has to keep Moving to stay Relevant and One has to be Faster than the Nearest to Grow. These certainly suit both People & Organizations – for I believe both People & Organizations are two sides of the same Coin and alignment is crucial to sustain positive momentum.

The Beginnings: Skill & Outcomes

Transition from Agriculture to Industrial Era can be considered as the beginning of a Formal Business Environment, colloquially known to be the advent of Trade Mechanism. Businesses were focused on Delivering Products with a little or no machinery. Sculptures and Monuments across the Globe are testimony to Control on Products & Aesthetics though Hand Made.

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Wood, due to ease of working, was mostly the base. Dependence was more on skill and fitment was the only requirement. Classy the outcomes where and still commanding huge values in Antiques Market – that’s the first level of Excellence, neither product nor process based, but sheer outcome based. People Skill was the basis of this Excellence and still makes one wonder how such achievements were possible then without proper so called Engineering Knowledge.

World has come a full circle. Even today, recognition accorded to Hand Made, Custom Built Products command the highest prices in their respective segments – across sectors, starting from Watches, Gems & Jewelries to Automobiles.

Stabilization: Product & Production

Thanks to World Wars, Consumption and Demand were so high, Mechanization was a necessity. Focus on making and delivering products faster, as availability became a key to succeed at the War Front. Excellence then was Speed all across – right from procurement to point of usage. Critical Requirements were – Product & Availability, on time every time.

Improvisation – Product & Performance

Post World War Scenario resulted in abundant unutilized Capacities in Mechanized Factories, compounded by Economic circumstances. Usage shifted from that of Need for Country to that of Need for People. Products were beginning to be made and marketed for Personal Use. Naturally, due to underutilized Capacities, Supply was more than that of Demand. Purchasing shifted to Buying to that of Selling. People began to Choose rather than Accept. Hence need for Product Differentiation arose. Quality became a Decision Factor. Second Stage of Excellence – Product Performance.

thought leadership 4.0Consolidation: Quality & Performance

When Performance is used as Leverage for Sales, naturally Consistency becomes important. Reliability will then be a result of Repeatability. Its easier said for Tangible Products, were Performance can be Measured. Therefore Measurements & Standardizations were introduced. Means and Ways to Measure Customer Satisfaction in Services were beginning to be introduced – using attributes. Belief was, if You Cant Measure, You Cant Improve. Measurements were the next level of Excellence – both during Process and Usage. Quality Control (QC) lead Quality Assurance (QA) became the norm that decided an Organizations Market Standing and Success.

This was aided by Consumer Era. Various Laws and Protection acts came in to protect the Users. Therefore became the Drivers of Product Quality induced Performance. Alongside, when World became a Single Market due to Globalization, Products and Services Standards were to be defined. ISO for Systems and Country Specific Product/ Services Requirements were introduced.

Differentiation: Value for Money, USP to UVP

As a result of Globalization, Protection gave way to Easy Access. Consumers needed something more than Quality – Cultural Aspects & Market Characteristics though played a role. Quality & Performance began to be Measured with respect to Price – Criteria can be as per People Priorities and Needs. Demographic Dividend induced Product Positioning (STP – Segment, Target, Position) was needed for Targeting Product based on Performance with respect to Price. Era of Positioning Excellence – whoever could rightly Position their Products or Services (Differentiated Offerings) as per well segmented Consumer Needs succeeded. Customers began to be the King in Business Cycle.

Value Proposition: UVP to EVP

Education induced Awareness further influenced the Demographic Dividend and their respective choices. As Consumers started moving up the Needs Triangle, Differentiation began to be Value Based more than that of Feature Based – shift from Mass to Class. Emotion and Engagement began to influence Decisions – Consumers identified & associated themselves with Brands. Era of Branding Excellence and Branding Premium, lead to further segmentation – Branded & Nonbranded Segment, Organized and Unorganized Segment apart.

Mass Customization: Beyond EVP

Advent of Consumer Needs identification tools, further lead to Super Positioning (Micro Segmentation). Ability to understand and leverage specific customer expectations improved the Market Standing of the Brands, as the markets began to consolidate around Customer Growth. This was also necessitated due to Dealer Point stocks of all Generic and Standard Products. In order to meet specific customer aspirations, which began as Premium Segmentation within a Segment, Automotive Industry introduced FMS (Flexi Manufacturing Systems) to meet low volume variety mix requirements. Later, consumer durables industry adopted such practices and offered customers to make their own designs within a Boundary.

Services Industry and in General Management too, FMS was introduced as Flexi Management Systems, including the choice of working days and hours. Thanks to COVID, work from home became an option and MBO (Management By Objectives) began to be advocated in real sense.

Consumerism: Safety & Security – Protection Laws

Regulatory environment evolved alongside changes in Demographic Preferences for products and services. Consumer Protection Acts ensured products and services meet the promised Quality and Performance. Naturally focus shifted to Process Management from that of Product Management. QA gave way to QC, with an objective to arrest process variations within permissible limits so as to ensure Products & Services are more than desirable levels. 6-Sigma came in handy both in Process Management and as a Management Tool easily recognizable by Stake Holders.

Across Business Processes, 6-Sigma as a Philosophy gained traction and got entrenched. Necessity to ensure Deliverables Consistently by controlling Process Variations, thanks to 6Sigma Philosophy, Business Management has become Metrics Driven.

Beyond 6-Sigma: Eternal Success

There is always a Question – Does Management Tool or Systems ensure Business Success and thus Sustainability? Going by the Success Rates across the Globe, only about 35% of Businesses demonstrate their agility to sustain Growth & Profitability. Majority of such Organizations are usually characterized by their ability to stay relevant by both Product & Process Innovation. Infact, 6-Sigma philosophy helps in Structuring even the Innovation Process.

Therefore, its a foregone conclusion that 6-Sigma helps to stay Optimal but for sure does not ensure Sustainability. Business Sustainability can only be ensured interms of adaptability and competitiveness to outperform the closest competitors and substitutes / alternates. 6-Sigma Philosophy when adopted in SPEELT Driven Organization, may at best help to understand the status, which probably can be used to Re-position & Re-orient for Growth & Profitability. Even if You are Excellent & Efficient, You cannot remain there for longindustry4o.com

It is to be remembered, even in the era of IOT and AI, there are many products which command a Premium when Handmade and are targeted to meet very personal consumer aspirations. It is then, Consumers chase such Brands and not the other very common way. Even when the delivery is longer, Consumers prefer to wait until serviced without even considering possibility of an alternate choice. Every Businessman dreams to be there, but a very few, I repeat – only a very few, make it real.

About the Author :

NITHYANANDAN DEVARAAJ

Dr. NITHYANANDAN DEVARAAJ (NITHIN) BE., MBA., Ph.D
Independent Board Member, Business Excellence Expert, Technical Due Diligence & Capability Assessor.
Managing Partner – SAAE Enterprises
President – Coimbatore Management Association
Past National Secretary – The Institute of Indian Foundrymen.
Former MD / CEO of a German & Japanese MNC
Chairman – Shri Avinashiappar Trust
Past Managing Director & CEO – Flow Link Systems (P) Ltd (
a Voith Group Company )

Dr. Nithin has about 35 + Years of Experience in Engineering Manufacturing organizations. He has worked for LMW Group, L&T, Hitachi & CRI Group. He is considered to be a Professional with a rare blend of Intrapreneurial Orientation, having been a Business Head across Engineering Manufacturing Organisations / Industries.

Dr. Nithin is a Member in Governing Council / Board Of Studies of Universities and Management Institutions as a Management Expert.

Dr. Nithin is part of various industrial associations and professional bodies; he is credited with playing a leading role in bringing land mark changes in Export Incentives, Classification of MSMEs, CPCB Norms, Waste & Disposal Management. He also plays a pivotal role in training and development of educated Youth seeking employment opportunities.

Dr. Nithin Leads a team that turned around a division and a Company, and in establishing large scale projects as bench marks in industry (This Business has won several awards at National & Regional Level which includes – Indian Foundry of the Year, Young Foundryman and Foundryman Awards, 4Star Award from CII, Green Award & Safety Award from Tamil Nadu Government & at National Level from IIF, First Indian Foundry in the segment to get OHSAS 18001 & ISO 50001 Certification and Many Kaizen awards.)

Dr. Nithin is a Managing Trustee of a Family Managed Trust involved in activities like rendering Food, Shelter, Education and Medicare. Noted for rendering services during Chennai, Kerala, Tanjore & Nilgiris Floods.

Dr. Nithin’s Academics:

  • Ph.D in Management Sciences
  • MBA in Finance & Marketing – Gold Medalist and University Topper
  • BE Mechanical Engineer with Distinction
  • An IRCA certified lead auditor and assessor for ISO 9001.
  • A qualified auditor for EMS, OHSAS & EnMS
  • L&T Future Leaders Training at IIM – C

Dr. Nithin’s Professional Associations:

  • Member & Industry Nominee, Coimbatore Disaster Management Council
  • A Guest Faculty to Premier Management Institutes & Was  Visiting Faculty to IIM – Calicut
  • An examiner for Management Qualifications & Assessor for Management Teachers
  • An acknowledged management trainer and consultant
  • Is a regular Business Column Writer.

Dr. Nithin is a Member of:

  • Foundry Development Council, Ministry of Commerce & Industries, India.
  • Institution of Engineers, All India and Coimbatore Management Association
  • Board of Studies in Universities & Premier Management Institutes

Dr. Nithin is Winner of:

  • The Outstanding Alumni & Distinguished Alumni Awards from PSG Institutions & Bharathiar University.
  • The CMA Golden Jubilee Year Best Manager award for the region.
  • The Best Management Student award and many accolades at National Level.
  • The Mother Teresa Award of Excellence for Young Business Managers.

Dr. Nithin’s Management Interests:

  • Management of Innovation, Corporate Strategic Planning and Manufacturing Management, Green Supply Chain

Dr. Nithin can be contacted at :

Mobile : +91 94879 46900 , +91 99653 11288

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Also read Dr. NITHYANANDAN DEVARAAJ’s earlier articles: