It is common for organizations to experience problems. To prevent problems from ballooning out of proportion, it is crucial to use methods that improve the work flow and processes. One of the main reasons why organizations face many hurdles is waste in the form of excess processes, overproduction of products, and many others.
Lean and Six Sigma are systematic methods that are designed to improve the performance of an organization by eliminating waste or defects caused by motion, transportation, inventory, waiting, over-processing, over-production, skills, and defects. Defects, as defined by Six Sigma, are anything that does not meet the specifications of clients.
Why Is It Important?
In the business environment, organizations can benefit from the lean and Six Sigma methods because it allows them to reach their full potential. The core of this method is to create quality improvements at a constant pace; thus, optimizing business processes. As soon as a particular level of quality has been achieved, the organization then concentrates on other areas or levels of quality that need work. This is a continuous process, and it does not stop until all business processes are optimized.
There are many benefits of using the Lean and Six Sigma methods in an organization. The end result of using this method is to have an optimized and successful business.
Below are the benefits of adopting this method in the business environment:
- Create quality improvement decisions: Lean and Six Sigma stress the use of statistical techniques to reduce waste and improve quality. The tools allow those in management to make quality-improvement decisions that will create desirable effects on the quality of products and services that the business provides.
- Increase customer satisfaction: Customers are very important for the success of the business. Lean and Six Sigma are very helpful when it comes to dealing with competition because it results in better quality products. Providing better quality products often leads to increased customer satisfaction.
- Build loyalties: The success of any business largely depends on customer loyalty. Having a group of loyal customers is very crucial for businesses because it ensures consistent revenue even if there is a problem with the industry a business is involved in. In fact, Lean and Six Sigma have the ability to increase a businesses’ hold on their customers by providing quality services or products.
- Manage time: Using the Lean and Six Sigma methods can improve the time management skills of employees thus making them more productive. With these methods, employees are asked to create SMART goals thus they can be easily achieved within a given time frame. They also learn to identify tasks that rob them of their precious time from being productive at work. This efficiency at work allows employees to become more satisfied with their jobs and also maintain a good work-life balance.
- Supply chain management: The aim of the Six Sigma is to achieve a defect rate of below 3.4 million thus suppliers have a major role in achieving this target. To achieve this goal, it is important to decrease the number of suppliers to also reduce the risk for possible defects. Having a smaller number of suppliers helps improve the management of the supply chain.