March 16th, 2018

Many organizations face financial challenges and increasing competition every day. Lean Six Sigma, a management methodology which allows companies to use data to eliminate defects in any process, enables companies to counter attack these issues and advance their business. Implementing Six Sigma within a business offers numerous benefits including effective project management and accomplishing business objectives faster and more efficient. Here’s how using Six Sigma methodology can benefit your company.

Increases Revenue

Lean Six Sigma can boost an organization’s profit and productivity by its integrating processes. Streamlined processes arise in products or services that are completed more efficiently and faster at no expense to quality. By developing the features of their service and products with the methodology, companies can see extensive, long-term revenue increases, and accommodating benefits for the company and for shareholders. For example, Barbara J. Desoer, global technology executive at Bank of America Corp, began implementing Six Sigma practices to her company’s IT department. Utilizing the Six Sigma methods to minimize work-load, the company was expected to generate $850 million in after-tax cost efficiencies of that year. Evidently, Six Sigma increases revenue by enabling your organizations to do more with less. Thus, Six Sigma allows companies to sell, manufacture, and supply more products or services using less resources.

Reduces Costs

Six Sigma can decrease an organization’s costs several ways. Six Sigma helps eliminate processes containing waste. Waste is anything businesses use that consume resources and produce no value. Six Sigma also resolves problems caused by a process. A Six Sigma process refers to defects in a product or service that costs your organization money. Six Sigma methodology can also help eliminate needless actions from an organization’s production process, resulting in saved dollars. In fact, in General Electric first five years of Six Sigma implementation, the company saved $12 billion over and added $1 to its earnings per share. Essentially, Lean Six Sigma enables organizations to correct and improve processes that hurt their valuable collateral.

Increases Efficiency and Effectiveness

Six Sigma also improves the performance of your organization several ways. It can maximize an organization’s work towards delivering an adequate product or service to its customers. It also allows an organization to divide resources/revenue produced from its newly improved processes towards growing its business. Plain and simple, Lean Six Sigma enables an organization to create efficient processes, so its employees can deliver more products or services with more satisfied customers.

Helps Establish Effective Employees & Teams

Six Sigma develops a sense of ownership and accountability for an organization’s employees. This increases their effectiveness at delivering results for any improvement they involve themselves in. Training key employees in Six Sigma ultimately equips an organization with the information and resources to continuously combat faults in the production process. More than less, this benefit is often overlooked by organizations who implement Lean Six Sigma. Ultimately, its underlying advantages dramatically increase the chances of continued success from the methodology.

All in all, there are many resources for planning and implementing a companies project/s. Many companies hire a consultant to help ensure projects run smoothly, since there are many variables to the methodology. Lean Six Sigma could be just what your company needs to achieve the next level of quality standards—and save money throughout the process, which is something any company can benefit from.