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Six Sigma Training And The Credit Crunch
- Categorized in: Six Sigma News
The present financial climate is a tricky one for every company. Even those who are not in the front line of potential casualties are going to be at least a little bit stretched. The front line – construction industry, luxury goods vendors, car manufacturers and so forth – are suffering because they are putting together expensive packages and depending on there being a market ready to receive and sell these.
At the moment, this is turning out not to be the case and industries are laying workers off, cutting down on hours and bringing in pay cuts in order to keep operating. It is a frustrating time to work in one of the above businesses.
Although other businesses are not as dependent on high-value purchases, the concept of trickle-down economics (although not coined for this specific situation) comes into play as, without the money being spent on high-value purchases, an economy becomes somewhat tighter, and standard retailers find less money coming in as people who would ordinarily be spending a bit more than others in their day-to-day shopping become more conservative in their purchase strategy, and as a result there is less money flowing through the retail sector. This places a pinch not only on the retailers, but on their suppliers with whom they will inevitably place smaller orders.
In order to weather this kind of storm, a business needs to have a strong cost/benefit sheet, spending as little money as they can while maximising their profits. This is where Six Sigma training comes into its own, with particular emphasis on Lean Six Sigma – allowing companies to have lower overheads while still keeping their sales as healthy as they possibly can.
If you use Six Sigma in its most effective form, you will produce quality goods with a minimum of spending, as a result of the business incurring less wastage and turning out more goods with less money going out to bring in raw materials.
The Six Sigma effect – correctly applied – offers businesses a potent shield against times of financial crisis. That it is correctly applied is of vital importance, as without close scrutiny a Six Sigma training program can fall down on people’s incorrect grasp of their own responsibilities.
Everyone involved in implementing a Six Sigma task needs to be fully tuned into what they are expected to provide to a business, and the system relies very heavily on strong leadership and intelligent deployment of staff. Without all of this, Six Sigma is just an expensive and complicated mess – as would be any training program.