How Proper Six Sigma Training Can Improve Your Business
Six Sigma approaches to problem solving has come a long way from its humble beginnings in the late eighties/early nineties. Many fortune 500 companies have success stories to share beyond the Motorolas and the GEs who could be called the pioneers in this effort. As a result, Six Sigma training and certification is a rage among business owners simply because they are able to see the impact to their bottom lines as a result of any process improvement activity and the resultant cost savings. Questions still remains as to what this program is all about and how can your business profit from it? ………Read on…………..
Six Sigma generally refers to the set of various statistical tools which can help identify hidden issues and uncover root causes so that a leadership is better equipped to find a way out of tough problems helping them to address key business issues in the process. It offers the required metrics for reducing variability during process execution so that the ongoing improvements are enabled to stay ahead of competition at all times
Increase In Productivity
If your business is suffering because of the large workforce or due to difficulty in managing operations across various regions, cultures and languages, Six Sigma can provide you the required empowerment so that you can measure the exact time spent on indirect and direct activities and find out the underlying reasons behind low productivity in your business. Although, you may have employed several staff to increase work efficiency, the reasons for low productivity could be in several different operational issues ie supply chain, Manufcaturing, Service or insufficient training. With the application of a methodological approach using Six Sigma, you are able to get to the bottom of what the real issues are for insufficient productivity and then work to address/resolve this issue effectively and in a cost effective manner.
Lowering The Expenses
Any defective process can cost a lot of money. Earlier you catch those defects in the process, you are better off. The costs to fix the defects in the dowmstram processes go up expoenetially..In order to lower the expense in COGS(cost of goods sold), you need to understand the operations and work on improving it in an efficient way. The Six Sigma methodology in its core works in the following 5 steps for improving the process framework- Define, followed by Measure and Analyze, then Implement as well as the Control (or DMAIC). This process has statistically proved useful in reducing problems in a business with less than at least 3.4 defects in one million opportunities. If your company spends less money on reworking defective products, it could typically lower the cost of quality by at least 20% as well as increase your company’s operating revenue by as much as 50%. With this improvement accomplished across several sites, you will be able to transform the company’s operations to realize improved gross margins and enhance top line growth.
To conclude, it can be said that Six Sigma is a strategic and powerful methodology that can be used to efficiently measure the results of your business so that you can improve the performance levels and ultimately reach best-in-class levels in operational excellence.
Note : When GE got their processes to reach six sigma levels, their cost of qualitycame down to 3 to 5% of sales from 20 to 25% at the start of the program