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Business & Career Improvement
How Six Sigma Statistics Can Help You Save Your Business
Six Sigma statistics are a fundamental part of achieving real and lasting business improvements. Although a number of individuals are familiar with the basics of the Six Sigma methodology, the process of collecting data and giving it a comprehensive analysis can a be a bit more complex. People should know, however, that in addition to providing companies with a powerful philosophy on how to conduct business, this program is rooted in statistics and math.
Ultimately, the name of the program is derived from statistical analysis. The overall mathematical goal of this system is to get businesses performing at a rate where there are six standard process deviations as a defect rate; or in other words, less than 3.4 defects per million opportunities. This will allow clients to have consistent expectations for customer service and satisfaction. It also helps businesses lower their costs of operation and manufacture, thus increasing their profits.
The ability to improve your bottom line is likely the most attractive aspect of this formula. Companies can certainly start recognizing better profits by reducing their overhead, keeping more of their customers, and enhancing their commercial goodwill among other things. There is also, however, the opportunity to become an industry leader.
This is possible because companies with lean operations can keep their prices consistently low. With less to pay out in order to keep their operations thriving, commercial entities become better able to pass high-value savings on down to their clients. When your competition is not performing at this same level, they will not be able to match your prices without diminishing the quality of their goods or services.
More often than not, good companies are built on good concepts. Bringing these concepts to life requires a series of processes and applications that are usually established through trial and error. Once a business finds a formula that work effectively enough, it will not deviate from this standard until major problems arise.
This remains true even though there is regular profit loss as the result of many factors. Misuse of labor and a failure to use technical tools according to their maximum capabilities are both common forms of ‘hidden’ waste that can impact your bottom line. Disorganization in these areas also causes dissatisfaction among clients and this is how customers start moving towards other companies.
One large part of this program is quality control. By using statistical analysis, companies become better able to determine where their major quality control issues are starting and they can also find feasible solutions for remedying these problems. Although this program adheres to the concept of continual improvement, improvements are not attempted unless the need is backed by hard statistical data.
Being able to pinpoint why your company is not reaching its goals is the first real step towards attaining them. When you can identify where waste is occurring, how products must be improved in order to satisfy customers, and most importantly, how to maintain an optimally low overhead, it becomes much easier to progress, rather than remaining stagnant. With Six Sigma statistics, all of the necessary data for accomplishing these decisions will be available to you.