The use of Six Sigma in organizations is certainly beneficial. The term was mentioned in a previous blog post as a business process improvement approach so some of you may already have an understanding of it.
Six Sigma focuses on using data to analyze the problems encountered in business processes. The ultimate goal of this methodology is to reduce, if not totally eliminate product defects or lapses in services. While it is more commonly used in manufacturing companies, even entrepreneurs in other industries can benefit a lot from it. This is the reason why we would like to intensively tackle this topic so you can start using it for your own business and eventually reap the benefits of it through our Business Process Improvement service.
Why The Use of Six Sigma in Organizations Is Essential
If you run your own business, you probably know how important it is to reduce and possibly eliminate errors in your service and defects in your production output. So it is a wise step to use tools that can help to improve the efficiency of your business processes and your productivity. One of these tools is Six Sigma, a popular management technique that many businesses, both large and small, use to achieve efficiency and productivity goals.
In particular, here are some ways you can expect this process to work in your favor:
- Decrease output errors
If you manufacture your own product(s) the metrics, methodology, and philosophy of Six Sigma can be used to reduce output errors, thus reducing the cost associated with manufacturing.
Metrics are used to identify processes that may cause errors. Methodology, on the other hand, analyzes how a process delivers a product to customers. Finally, a customer-focused philosophy is implemented to help businesses make better decisions.
- Improve customer loyalty and acquire new ones
Every business wants to retain its customers, which is in fact one determining factor of commercial success. Obviously though, customer retention and loyalty only happens with high levels of customer satisfaction. If you run a one-man business, you probably will wonder why you don’t have repeat purchases or why your customers seem dissatisfied. It may be the tone of your voice when answering their inquiries or after-sale concerns, or it may be the length of time it took you to respond to their Facebook message.
Using Six Sigma, our Business Process Improvement service will make it easy to detect the mistakes in your business so you can always have happy and loyal customers who will be eager to refer you to others.
- Employee empowerment
For small businesses who have a number of employees, Six Sigma can foster deeper commitment among them so they feel responsible in participating in your improvement efforts. After all, this process invests in the utmost faith in employees of an organization no matter their position.
- Efficient use of resources
Six Sigma aims to reduce waste and preserve your resources so you can earn your maximum profit potential. For example, if you have a pastry business, what do you do with the cake cuttings? Do you simply throw them away or can you make a new pastry out of it? Our Business Process Improvement service will help you identify proactive ways to put to good use what were once considered wastes.
- Better time management
By preparing S.M.A.R.T. goals, applying the principles of Six Sigma to them and implementing the learning, performance, and fulfillment method, you can achieve better time management results in your business.
For example, under learning, you may want to identify the daily interruptions you face, which prevent you from doing your job well. Under performance, you can analyze your daily practices, which you think can help you achieve your business goals. Once you are able to distinguish between these factors, you can then come up with an action plan so you can be more efficient and happier with the product(s) and/or service(s) that you provide.
- Shorten cycle time
Customers always want a “breezy” transaction. With Six Sigma, you will be able to evaluate the amount of time it takes for you to fulfil customer orders. Is there any way you can still shorten the cycle time without sacrificing the quality? If yes, then work to make it happen.
DMAIC Cycle As The Principle of Six Sigma
The DMAIC cycle is the basic idea behind Six Sigma. These are the 5 steps that are repeatedly used in individual business processes in order to achieve the Six Sigma status.
D – efine
This first one is the fundamental step through which all other steps follow. You must first identify what problem needs to be addressed. By knowing your areas of concern, you can come up with ways to improve your business’ operations.
M – easure
This is the stage where data within the organization is gathered for further evaluation (i.e. the depth of the problem).
A – nalyze
The analysis stage is critical in that it requires the use of scientific and statistical methods.
I – mprove
After conducting the first 3 steps, you can now create and use a guideline to improve your business in general.
C – ontrol
This is the final step but it requires continuity. This is where the improvement processes are implemented to ensure that everyone in the business follows your new protocols.
In a wrap, Six Sigma is definitely one of the leading ways you can improve your business. So, if you want to achieve your business’ maximum possible effect, it’s about time you employ the Six Sigma principles or better yet contact KBIS for your Business Process Improvement and Six Sigma consultation today!