Six Sigma in Synergy with Risk Management

Abstract

Because of globalization, stiff competition, Rapid market change?higher environmental uncertainty and lower technology cycle time, it is inevitable to include risk management in the six sigma methodology no matter whether the organization is manufacturing concern or service concern. Risk management is to play a basic role in Define, Measure, Analyze, Improve and Control phase (DMAIC) and Define, Measure, Analyze, Design and Verify  phase (DMADV) in the supply chain. In this paper a need is established using exiting literature to include risk management into six sigma methodology and its potential benefits are described.

Keywords: Six Sigma, Risk Management, Supply Chain Management