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Why Lean Six Sigma Is Necessary For the Health and Success Of Your Business
- Categorized in: Business Optimization, General Business Resources, Lean Six Sigma, Six Sigma (General)
If you have not yet heard about Lean Six Sigma and the benefits it provides, it is not likely that you are achieving your highest goals as a business owner. Quality control programs and ideas are vital for companies at every stage of development. The earlier that this superior commercial philosophy is implemented, the more successful any endeavor can be.
The idea of lean operations is based upon principles that help companies trim off any unnecessary expenses or outdated/ineffective practices. Not only do these strategies preserve more cash and thus, enhance profit margins, but they can also generate much higher levels of customer satisfaction. Ultimately, your efforts to improve company efficiency can enhance your business in nearly every area.
A lot of growing companies are reticent to alter their processes. They have not yet gone out of business so they assume that their operations are working. If something is not as effective as it should be, however, there are bound to be negative repercussions. These usually include profit loss, waning consumer interest and declining client satisfaction rates among many other things.
While you might not be able to pinpoint the exact areas of your company that are in need of improvement, Six Sigma professionals can. This is because most companies are wasting their viable resources in exactly the same ways. For instance, commercial entities that do not have good cash flow management programs are often paying their bills too early. By doing so, they are missing out interest rates that could be used to enhance their overall worth.
Most businesses are equipping themselves with all of the latest tools and technologies, but they are not using these resources optimally. A business might have several costly fax machines that require regular maintenance and rental fees as well as routine servicing. While they can use these to transport physical documents, they can enhance their operations by taking advantage of the electronic document transfer systems that they have access to as well. This will eliminate a lot of employee responsibilities as documents can be sent with just a few keystrokes. More importantly, costly and outdated equipment can be done away with. This is just a simple example of one of the many enhancements that can be gained with this quality control strategy.
Sometimes businesses have several people who are essentially performing the same function. While these trained professionals are invaluable members of the same team, they are not providing anything new when it comes to individual merit. Their labors could be effectively consolidated into one position. This frees up a staff member to apply his or her skills in another area. For struggling businesses, staffing redundancies like this are also a great way to reduce spending.
Ultimately, however, leaner operations are powerful and motivating for all parties as they help employees recognize their positions as vital contributors to company success. This requires good team leadership and managers that are empowered. These individuals must be equipped to inspire change at all levels of the business.
The implementation of a Lean Six Sigma program does not occur overnight. The benefits, however, can be recognized swiftly. Business owners, employees, and shareholders must first become convinced that change is a beneficial thing and that it is necessary for the success of a business. Areas that need to be revamped can be identified and then the proper tools and strategies can be employed.