7 Ways Lean Six Sigma can benefit your Organization

Lean Six Sigma that allows enterprises to use data to eliminate defects in processes has become one of the most powerful frameworks to deliver better products and services and be efficient at the same time. This globally-recognized process improvement methodology was first introduced by Motorola in the early 80s and then popularized by GE, has found widespread acceptance among quality management professionals across the globe.

Six Sigma relies on the usage of two sub methodologies in: DMAIC (Define, Measure, Analyze, Improve and Control) which is used to improve existing processes and DMADV (Define, Measure, Analyze, Design and Verify) which is used to improve new processes.

Implementing Six Sigma in any business offers insights to identify hidden problems and uncover root causes, equip senior management (leadership) to get through tough situations. It also provides proper metrics to reduce variability while executing processes to enable improvement in on-going business operations. However, there are 7 surprising benefits that Six Sigma offers that will help your organization.

1. Enhanced Customer Satisfaction Levels:

Customer satisfaction or customer loyalty is one of the significant factors that determine the success of your organization. Your customers will stay loyal to you only when there is high level of customer satisfaction for your products or services. According to latest reports, enterprises that use Six Sigma methodology achieve 40% more ROI than those who do not use the methodology. Experts believe many customers do not return to do business because of dissatisfaction with their experience or the attitude of employees. The problem is, enterprises do not even know that there is dissatisfaction among their customers and hence decreased levels of customer loyalty.

In this regard, Six Sigma reduces the risk of having dissatisfied customers by identifying the root cause and addressing critical attributes of customer’s perception of satisfaction towards their service / product. With the help of Six Sigma training for your key personnel, it will help you to iron out the kinks in your processes and help you to restore the customer’s confidence with better quality and service.

2. Amplify Productivity:

Unless and until you are the master of people management and time management, it is difficult for you and your business to utilize people effectively at all times. And when it comes to manufacturers who manage large workforce at various geographical locations with different languages and cultures it becomes even more difficult. Six Sigma can break these barriers and empower you to specifically measure time spent on activities and identify root causes of low productivity. By collecting business critical data from various locations, Six Sigma will help you to address the real problem rather than beating around the bushes blindfold.

3. Reducing Project Lifecycle Time:

When an enterprise begins with a project, most of the times it runs beyond the original deadline due to change in project scope or a shift in management policy. With Six Sigma methodology in place, you can set up an exclusive team which has a mix of experienced professionals from all levels within the organization and from various departments. This team will then be tasked to identify critical factors that can negatively impact the project which may lead to run beyond its deadline. After finding out the root cause of the problems, the project manager can assign them to find solutions to these potential problems. In this manner, you can cut short the project lifecycle times up to 35%.

4. Slash your Operating Costs:

In any organization for that matter, defective processes cost you money. By having an in-depth understanding of operations in an organization with a view to improvement is one of the best ways to reduce costs. In Six Sigma methodology, improvement of processes is its core objective which consists of DMAIC (Define, Measure, Analyze, Implement and Control). In statistical terms, Six Sigma methodology reduces problems to 3.4 defects per million opportunities. As an organization, when you spend less time in fixing defective products, you will ultimately reduce the cost of achieving quality by 20% and increase the operating revenue by 50%. The same can be implemented across different locations and you can ensure your operations reach new levels of cost effectiveness

5. Better Time Management:

Enterprises implementing Lean Six Sigma methodology will be able to help their employees to manage their time appropriately which results in efficient business and employees who are productive than ever before. Employees are asked to set SMART (specific, measurable, achievable, results-focused, and time- bound) goals and the data principles of Six Sigma can be applied to those goals. There are three key areas where this can be implemented in learning, performance and fulfillment.

For example, in learning, one can analyze things by asking; how many times do interruptions take me away from my core work and how many of these interruptions require my attention? In a similar manner, in performance, employees who are trained in Lean Six Sigma may consider how their day-to-day practices are helping in their quest towards professional goals. With this kind of self assessment, one will be able to create an action plan and work towards it to become more efficient and achieve proper work-life balance.

6. Highly Satisfied Employees with Increased Motivation:

With Six Sigma, not only your customers are highly satisfied, but your employees as well. In fact, for a business to succeed it needs the workforce to act and respond in a right way – but employees will be obliged to do so only when there is sufficient motivation. Enterprises who can properly engage their employees have achieved 25 – 50 percent more productivity on a consistent basis. Empowering your employees with Six Sigma training will help them to learn new tools and techniques which allows their professional development to create a favorable environment in an enterprise that leads to highly satisfied employees with increased motivation.

7. Helps in Enterprise Level Strategic Planning:

Six Sigma is not just a process improvement methodology; it also plays an important role providing enterprise level strategic planning. After your business has its mission statement and conducted SWOT analysis, then Six Sigma will help you to focus on areas for improvement. For example, if your core business strategy is based on providing quality services in the market, then Six Sigma can be used to improve both internal and external processes by eliminating defects in your products and provide the best of quality in terms of both product features and services. Six Sigma will help you in your organization’s journey to be the best in what it does.

In today’s service-based environment, enterprises need to cater to the demands of complex business needs and in this regard Six Sigma can be a powerful and strategic process improvement methodology to maintain consistency in its performance. This change of culture through incorporation of Lean Six Sigma can be considered as a foundation for improved performance which leads to operational excellence.

Source: invensislearning.com