What Are the Benefits of Six Sigma Training?
When it comes to managing techniques, Six Sigma has proven to be effective for companies. What are the benefits of Six Sigma for your company?
Companies lose 20% of their productive capacity to organizational drag.
What does that mean? Poor processes waste time. They prevent people from getting things done.
Business leaders must identify variations in their operational processes to boost efficiency. That’s where Six Sigma training comes in.
Six Sigma helps organizations enhance business processes. It can increase performance, lower costs, and boost customer service.
Let’s explore the benefits of Six Sigma and how it drives better business results.
Boost Efficiency to Improve Processes
Six Sigma training teaches people how to make operational processes more efficient. Efficiency means doing the same thing but in less time. Six Sigma finds ways to reduce the operations process to drive bottom-line results.
To improve operational efficiency, Six Sigma will:
- Lower the number of machines used in the manufacturing process
- Automate operations whenever possible
- Identify and repair defects
Six Sigma’s goal is to lessen the amount of time needed for manufacturing and processing. It leads to higher process outputs and improves delivery timelines.
Increase Cash Flow
Six Sigma training can decrease an organization’s Days Sales Outstanding (DSO) number.
DSO is a way to measure the average number of days it takes for a company to collect payment from customers. Businesses want to have a low DSO number. A high DSO signals the company is taking a long time to collect final payments.
As DSO decreases, a business’s cash flow increases. Six Sigma reduces the number of disruptions in the following processes:
- Invoicing
- Accounts Payable
- Accounts Receivable
- Inventory Management
When these payment processes run smoothly, the DSO number goes down. That means businesses receive payments quicker.
Reduce Operational Costs
Implementing Six Sigma tactics leads to lean manufacturing. Improved efficiency means less time, labor, and money are wasted.
Lean Six Sigma training focuses on standardizing workflows. It creates less variation and reduces operational costs. Six Sigma increases the manufacturing cycle time to save businesses on operational costs.
Standardization is a competitive advantage, which the company can use to increase its market share. When operations become standardized, delivery-times decrease, and customer satisfaction increases.
Enhance Customer Service
Variations in operations lead to disappointment in final products. Customers are critical of defects in their final orders. One variation can cause a business to lose a customer for life.
Six Sigma targets operational processes to identify what causes variations. It aims to decrease variations and determine the cause of the problem.
Improved processes lower the number of operational variations. This leads to fewer unhappy customers. Six Sigma enhances a customer’s experience with the product, creating more loyal patrons.
The Benefits of Six Sigma and More
The importance of Six Sigma training is limitless.
Six Sigma identifies variations within the manufacturing process. It improves operational efficiency. It leads to more satisfied customers. Six Sigma is a vital training program that generates business growth.
So, now that you’re knowledgeable about the benefits of Six Sigma, what other business-related topics do you want to explore? Whatever you’re looking for, we’ve got it.
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