Six Sigma methodology is one of the best ways to improve the process and quality by identifying and minimizing the defects. Six Sigma methodology uses quality management tools and methods to develop the process.There are many benefits of implementing the six sigma process.
A process must achieve 3.4 defects per million opportunities with SixSigma methodology under customer specifications.
SixSigma methodology has two categories.
1) DMAIC (Define, Measure, Analyse, Improve and Control) is used for existing processes.
2) DMADV (Define, Measure, Analyse, Design and Verify) is used for new processes.
SixSigma methodology can help companies to avoid problems by:
1) Increase Productivity:
When an organisation operates in different countries, locations and culture Six Sigma can empower the business by identifying the root causes of very low productivity.
It can quickly identify access staff issues and supply chain problems that are holding up the production.
2) Reduce Costs:
By using the strategy of Define, Measure, Analyze, Implement and Control (DMAIC), it quickly identifies defective processes which cost a lot of money to the company.
By using this process improvement framework, any company can stop re-working on defective products which could easily reduce the overall costs.
3) Improves customer loyalty:
Implementing SixSigma Strategies can decrease the risk of any company by reducing the dissatisfied clients and increase customer loyalty.
Improving client feedback can improve the business and determine the success of any company.
4) Time Management:
By following the strategies in SixSigma, employees can manage their time effectively. All the users of SixSigma are asked to come up with SMART ( Specific, Measurable, Achievable, Relevant, Timely) intentions and apply the principles of SixSigma to these goals.
5) Greater and Improved Market Share:
According to research, the companies implementing SixSigma data-driven approach have reported a profit margin growth of 25% every year consistently.
These profits margins enable the companies to create products and services with new features and functions which will result in improved market share for their product in the industry.
6) Increase Employee Satisfaction:
Dealing with employee queries which are related to payment, terms of contracts, company regulations can destroy the production time and reduce productivity.
SixSigma can remove the errors related to overtime, premium time, over payments, under payments and vacation allowance by reducing the guesswork. This strategy allows employees to check their updated payroll data during their free time.
7) Increase Competitive Edge:
SixSigma can identify the primary components that can be standardized to improve the performance and provide the information needed to develop consistency across customer relations.
Whenever the company becomes excellent in customer facing activities, it puts any company ahead of their competitors in their industry.
8) Strategic Planning:
SixSigma can play a significant role when it comes to strategic planning.
When SWOT (Strengths, Weaknesses, Opportunities, Threats) analysis is carried out in any business, SixSigma can help you focus mainly on improvement.
9) Supply Chain Management:
SixSigma plays a crucial role in Supply Chain because it reduces the defect rate and improves quality. Six Sigma uses statistics to convert raw data into facts about how the processes of the organization are being run.
SixSigma processes are entirely carried out from the customers point of view. This process starts by identifying what is important to a client and then starts identifying the gaps in the process.
The usage of SixSigma has grown leaps and bounds in many industries. Many multinational corporations in the world are using SixSigma to reduce the defects, improve their processes and multiply their bottom-line profits.