5 Benefits of Six Sigma Project Management
Six Sigma is one of the project management methods created on the basis of the statistical evaluation of process data, regular monitoring and creation of measures to increase the number of non-defective products, which ultimately should affect the increase in customer satisfaction.
The Six Sigma concept is one of the most popular project management methods. This method was invented back in 1986 by an engineer named Bill Smith while he was at Motorola. The main motive for the introduction of this technique was to reduce the number of defective products produced at the enterprise. This, in turn, increases the overall efficiency of the enterprise and the overall profit of the company. The goal of reducing defective products is achieved by following successive steps and using statistics.
5 Benefits of Six Sigma for Companies
- Demand Satisfaction
The customer gives an order for a certain set of products, and the company must meet this demand. Six Sigma aims to do just that, but at a faster pace. There are methods that are used to exceed the client’s expectations. The first step to achieve this is to reduce the number of defective items produced in the factory, as this will reduce the amount of time it takes to make a product, which will ensure that the customer receives their product sooner.
- Employee incentives
Employees of an organization will only work with enthusiasm if they are driven and understand that they bring value to the company. The Six Sigma method helps to develop employment, which will motivate employees to work harder in their positions. According to the results of the survey, it was found that companies that correctly implemented Six Sigma in their enterprises saw a 25-50% increase in productivity, since their employees were fully occupied with their work.
- Strategy planning
Six Sigma helps in planning various strategies for the company, not just in the manufacturing process. This can help a company realize its vision and stay true to its mission. Every business conducts a SWOT (Strength, Weakness, Opportunities and Threats) analysis that helps them identify their own qualities. In order to succeed, they need to focus more on their weaknesses and improve on them rather than just focusing on their strengths. Six Sigma can even help turn those weaknesses into strengths. For example, if the company’s vision is to sell quality products at reasonable prices, Six Sigma can be implemented to reduce the cost of goods by eliminating manufacturing complexity, improving supply chains, making deals with the cheapest suppliers, and so on.
- Supply chain management
Suppliers play a key role in the production or assembly process in every plant. They can increase or decrease the productivity of a company. If the goods delivered by them are delayed, it can delay all processes in the enterprise. Using the Six Sigma method, this problem can be eliminated.
- Less cycle time
Cycle time is defined as the amount of time required to complete one complete cycle of an operation from start to finish. If a company needs to assemble and produce products at a faster pace, they first need to reduce cycle times. Most companies tend to waste part of the time to start the process immediately without proper planning. By doing this, they end up dodging the deadline and hurting the relationship with the client. According to the rules of Six Sigma, a business must create a team of people at all levels of the company. These people will have the primary task of identifying and resolving problems that interfere with the assembly or production process. Once these issues are resolved, the company can reduce cycle times and build products faster.
Six Sigma is used by many companies around the world and is popular mainly because of its success. Organizations that have successfully implemented Six Sigma have already achieved or are in the process of achieving their goals.
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Business degree “Master of Business Administration” (MBA).