Six Sigma can objectively be viewed as a fundamental strategy that is behind great successes in major business organizations in the world. The strategy is applauded for its pivotal reduction of process variation and enhancement of effectiveness and reliability (Nicoletti, 2013). It must be understood from the onset that the six sigma strategy, as a business integration strategy, has been in the market for quite some time now, having been introduced in 1985 by Motorola (Prashar, 2014). Large companies have been able to integrate the same in their day to day running of the organizations and the benefits have been great. Large companies have been able to angle themselves strategically because of their enormous financial capacity and ability to hire huge qualified personnel. The SMEs, on the contrary have fallen short of the abilities converse to their counterparts-the large companies.
Large business organizations that are associated with the use of six sigma have elicited competitive edge over their adversaries that are not in any way associated with the strategy. The success has been quantified in numerous ways. It has been undoubtedly elucidated that when six sigma strategy is used, it is equivalent to 3.4 defects in every million possible defect in a manufacturing or processing industry. That average is world-class in terms of manufacturing standards. The data and information obtainable in the course of applicability of six sigma in industries is used to categorically improve the production and service processes (Rocha, 2013).
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"Lack of Adoption of Six Sigma Methodology by Small and Medium Enterprises (SMEs) in UAE".
The SMEs in the United Arabs Emirate (UAE) have not been able to adopt, or fully adopt, the six sigma approach in their operationalization. One of the major reasons is lack of resources to implement the program. Six sigma in its entirety focuses on the elimination of defects that hinder delivery of services in organizations. The six sigma is a business strategy that is amenable to be applied in any stage or the level of organization; it focuses on the maximizing of the profits garnered. It involves application of quality management tools in the effort of producing high value goods at low costs. This increases the compliance of the needs for customers.
The forefront barriers to the adoption of six sigma program by SMEs in UAE, as firstly noted is lack of financial muscles by the SMEs management. Secondly, lack of awareness of the existence of this program is rife among the owners and managers of the already existing SMEs in the UAE region. Thirdly, there is lack of appreciation that the adoption of six sigma would add greatly, not only to the quality of the products but also to the standing of a specific SME. Other barriers are internal resistance, lack of properly constituted leadership, cultural barriers, lack of training, insufficient organizational alignment and lacunae in data collection among others. It must be noted that the barriers as enumerated may be viewed from the managerial deficiency in an organizational set-up (Ismyrlis and Moschidis, 2013).
This dissertation will be an explicit pointer into six sigma as a business strategy in SMEs in UAE region. The focus shall be in the banking sector, a specific focus in the privately owned financial institutions. the maiden objective of this research will be to address the barriers to adopting six sigma as a strategy of quality delivery in the banking sector in UAE. The addressee of this insightful research shall be the managers and owners of the banking institutions in UAE, preferably the private owners. Financial sectors are the dovetails in any economy.
