SIX SIGMA: WHAT IT IS AND WHY IT’S IMPORTANT FOR YOUR BUSINESS
Is your company running as smooth as possible? Is your customer satisfaction rate as high as it can be? Is your money being spent on the right things? In order for any company to run smoothly it needs to have an efficient management strategy, and Six Sigma can help manage your business in all of these areas.
Six Sigma is a popular business management methodology that uses DMAIC for process improvement. Define, Measure, Analyze, Improve, and Control are the five factors that are involved with this methodology.
Six Sigma can benefit any type of organization. Whether it is to improve current processes, cut costs, or set standardized work guidelines, utilizing this methodology produces clear, measurable, data driven results.
INCREASED EMPLOYEE ENGAGEMENT & INVOLVEMENT
This is one of the biggest benefits applying Six Sigma can have on an organization. The methodology and practices are designed to help each employee improve their processes by increasing productivity resulting in increased value for their customers. Employees gain appreciation for the work they perform as well as a clear understanding of the overall impact it has on the company.
They also gain a better understanding of the operations throughout the company as a whole. This make it easier for employees at all levels and departments to understand why they are assigned certain tasks, and how they affect the output of a product or service. Employees are also better able to take part in the organization’s process improvement development, which can bring boundless ideas to the table and contribute to the company’s improvement planning.
FINANCIAL BENEFITS
Implementing this methodology improves internal work processes. This means that a company can reduce mistakes, defects, and reworks on the products or services they provide. Companies can also decrease the amount of overhead through completion of tasks in a timely manner.
By streamlining work processes and eliminating wasted steps, value is increased while internal expenses are reduced. It is estimated that a cost saving of up to 25% can be achieved by implementing Six Sigma strategy into a company. This frees up a lot of cash flow, enabling the business to invest in other areas and grow quickly.
IMPROVED CUSTOMER SATISFACTION
Customer satisfaction is the main focus of this methodology. It requires delivering a high value and quality product when the customer needs it, resulting in increased customer satisfaction. Systems used to gain important customer feedback include customer surveys, focus groups, and roundtable events. These types of initiatives provide companies with a clear view of where improvement opportunities lie within their business, as well as engage the customer in their process ensuring them that they are valued.
WHY IT MATTERS
It is important to choose the right initiatives from the start or you could end up squandering time on initiatives that will eventually have to be changed. The focus of your business should continually center on customer satisfaction, followed by the area that will have the largest savings financially and improve internal workflow.
The objective is to have competitive pricing, top quality, and first-rate service. Working by this methodology will help you to achieve all of these goals.