Benefits of Six Sigma in Business

Benefits of Six Sigma

There are many benefits of Six Sigma for business. Large and small companies alike have benefited from implementing Six Sigma projects. Lots of companies utilize Six Sigma to become more efficient, productive, and profitable through the reduction of variation. General Electric increased their annual revenue by three hundred million after implementing Six Sigma principals (Six Sigma, 2013). General Electric is a large company, but small companies have benefitted from Six Sigma processes too. In a case study by Six Sigma (2013) a small aerospace manufacturer wanted to reduce manufacturing costs by implementing Six Sigma principals. The company decided to send their key project engineers to Six Sigma training to become certified in identifying opportunities for improvement. After certification, their team utilized the four Six Sigma steps with DMAIC to improve their cycle time. By following the Six Sigma best practices the small aerospace company was able to improve their cycle times by forty-six percent and reduce variation by eighty percent (Six Sigma, 2013). By improving cycle times and reducing variation the small aerospace company became more effective and profitable. The case study shows that companies of all sizes can become more efficient and effective by utilizing Six Sigma principles. Six Sigma provides a logical sequence and framework for solving a problem. There are also benefits for Six Sigma outside of business too. Although Six Sigma has proven to be beneficial for businesses it can also be used in personal life too. For instance, a person could use Six Sigma’s DMAIC to navigate all types of life decisions from purchasing a new home, car, having a baby and so much more. Six Sigma helps to ensure consistent and predictable results by reducing variations, which can be beneficial for anyone implementing the process steps.

Recent Trends

A more recent trend in quality management combines principles of Six Sigma and lean systems, which is referred to as Lean Six Sigma (Russell & Taylor, 2017). The main idea is that quality can be better controlled by also aiming to reduce waste or added processes that do not add to the overall value of a production. Both Six Sigma and Lean Six Sigma are similar in that they aim to improve processes but differ in the way things are done and the primary focus. Some suggest that the two complement each other but others believe the two systems are incompatible (Russell & Taylor, 2017). The two systems are similar in the primary aim to make a process better than it was before. The systems may be viewed as incompatible due to the focus of the general idea that quality management systems focus on reducing variation and lean systems on reducing waste. Although there are differences between the two systems they both can help improve a process. Lean Six Sigma is the combination of a lean and quality management system, which attempts to combine the best of both systems. Overall Six Sigma is considered a quality management tool to reduce variation and Lean Six Sigma adds a philosophical approach for improvement and waste reduction (Russell & Taylor, 2017). Both approaches have the potential to make a company better-off than before implementing the changes. Quality management is more focused on reducing variation and improving quality for customers. Six Sigma is one effective method that uses proven steps for positive change, statistical computations for measuring and improving results, refining processes, and increasing the quality of products and services.