Six Sigma gets touted as a leading technique for improving manufacturing processes. In truth, applying Six Sigma principles can benefit practically any type of business.
What Is Six Sigma?
Image via Flickr by University of the Fraser Society
Six Sigma is a data-driven approach to improving business processes. It was originally used at Motorola in the mid-1980s, but it became a more prominent approach to business improvement when Jack Welch began using it at General Electric in the 1990s.
Business leaders who follow Six Sigma principles place a lot of importance on identifying and removing defects in an attempt to continuously improve their organizations. The importance of verifiable data and measurable improvement makes it one of the most effective options for today’s businesses.
Six Sigma’s Key Principles
There are several key principles that make Six Sigma unique. While some of these principles were originally created to improve manufacturing processes, many businesses now find that they are relevant to all types of businesses.
Some of the most important principles used in Six Sigma include:
- Focusing on what the customer wants
- Taking a systematic approach to process improvement
- Relying on facts instead of assumptions
- Removing unnecessary steps that do not add value to a process
While some of these principles may seem vague at first, they have significant value to real-world business practices. Removing unnecessary steps, for instance, helps improve efficiency without negatively affecting the end product. This not only helps improve customer satisfaction, but it also lowers expenses so companies can earn profits while charging lower prices.
Lean and Six Sigma
Lean is a variation of Six Sigma that has gained prominence since the early 2000s. Lean, however, is somewhat more focused on the aspect of waste reduction. According to Lean, there are eight types of waste that companies should try to reduce:
- Transport, including data, people, and products
- Inventory, which invovles storage and documentation
- Motion, such as lifting and bending
- Waiting, the time spent waiting for data and products
- Over producing things that are not immediately needed
- Over processing materials that are not necessary
- Defects, including any scrap and required rework
- Skills that meet the needs of the business and consumer
Many companies find that they get the best results by combining elements of Lean and Six Sigma.
Applying Six Sigma Principles to Your Business
Although Six Sigma principles have tremendous value, not all business leaders and managers have enough experience to use them effectively. Even when managers have the proper training, some organizations find that they cannot get objective results because people are too involved in day-to-day operations.
Since familiarity can cloud a person’s objectivity, it’s often necessary to hire an independent contractor to make sure that Six Sigma principles are applied correctly. Ruota Consulting relies on Lean and Six Sigma to help its clients continuously improve their business processes and practices.
Operational excellence is never easy to achieve, but it is always possible. By applying Six Sigma principles to your organization properly, you can improve practically any process to lower costs and improve results.
