Entrepreneurs who have little knowledge of the Six Sigma Methodology may be missing out on a valuable tool for reducing waste and increasing productivity and customer satisfaction. From its origins within Motorola, this approach to implementing lean manufacturing has taken the business world by storm. While it is not always universally applicable, many businesses have found that they benefit greatly from its implementation.
At its core, Six Sigma is a method for measuring efficiency, reducing waste, and increasing customer satisfaction. While there have been other systems used to accomplish those same goals, this system has won praise for doing so in a manner that is both consistent and reliable. Because these measurements are based upon quantifiable data, the system can be used by almost any business entity and is easily understood by investors and lenders as well.
Reduced Incidences of Defects
Regardless of the business type, the Six Sigma method is a proven way of reducing the number of defects experienced by customers. Since each level of measurement is based on the number of dissatisfied customers per million served, it provides a much more concrete way for businesses to judge how they are doing in this critical area. It provides ready analysis of problem areas, as well as benchmarks that can help companies continue to improve.
Improved Customer Loyalty
As a result of the focus on reducing defects, the company's emphasis is naturally on customer satisfaction. Satisfied customers generally end up being more loyal customers. Thus, customer loyalty and retention can be improved with this simple focus on improving efficiency in the areas of core competency. Simply put, the company that focuses on making a defect-free widget will experience greater loyalty from the widget-buying population.
Improved Efficiency
Of course, customers cannot be the sole focus of a business. There must also be an emphasis on satisfying each customer with a process that utilizes as few resources as possible. This efficiency is measured in terms of labor, time, and cost involved in each customer transaction. This method provides a simple way for businesses to quantify efficiency, while measuring those numbers in relation to overall effectiveness.
Increased Teamwork
When implemented properly, this system can reduce antagonism between the departments in a company, provide clear goals for everyone in an organization, and increase the effectiveness of all employees by promoting greater teamwork. When employees buy in to the concept and understand the company's mission in this area, greater productivity can be achieved across all levels of the company.
Maintaining Focus
Perhaps the greatest benefit of this methodology is its ability to focus attention on goals that can be tracked and measured on a daily basis. Often times, employees lose focus when goals are too expansive to be attained quickly. By placing the emphasis on effectiveness and efficiency, this problem is avoided as employees are able to continually see the positive results of their efforts.
Though not for everyone, the Six Sigma business improvement methodology continues to be a popular choice for many organizations that seek to implement consistent systems of tracking and measuring internal performance. For businesses still seeking a way to improve their performance, efficiency, and overall customer satisfaction, this just may be the perfect solution.
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