Launching and running a company, SME or an organization is a good venture. For instance, when running a Popsicle stick manufacturing company, waste in production must be minimized to realize good returns. To maximize return on investment, business owners find innovative ways of managing wastage.
Business profit margins depend on how your company manages time, materials, and money wastage. Solution? Try Lean Six Sigma.
What is lean six sigma?
Lean six sigma is a merger of Lean and Six Sigma processes to cut down production costs by:
- Eradicating waste: Removing activities that aren’t required to produce any products or services.
- Unraveling and solving issues: Identifying and getting rid of defects that cost your company money.
Simply put, Lean Six Sigma perfects the art of mass production, ensuring high-quality products are produced at minimal costs.
How does it work?
This technique works in two ways:
1. Lean Management
Lean management involves elimination of waste to improving efficiency in any production process. Anything deemed unnecessary is removed to save money, value and time for your business and end users.
In manufacturing, lean management can be broken down into two parts:
- Simplifying Manufacturing design: This deals with streamlining manufacturing systems by reducing cycle times and utilizing sitting inventory, making assets and materials more productive in return.
- Improving manufacturing systems: Deals system improvements with the aim of enhancing workplace functionality and enhancing systems outside production, such as product performance and customer relations.
Today, every business strategy must be realistic, measurable, and achievable. These two parts of lean management are supported by verifiable, quantifiable data, offering you crucial information to make informed decisions.
2. Six Sigma
Unlike lean management that aims to streamline manufacturing, Six Sigma focuses on perfecting parts developed in the production process. Six Sigma makes use of data obtained at the lean process to tweak production lines to produce superior products.
For instance, once you’ve identified and streamlined wastages in your production line, the focus turns to produce high-quality products. That can only be achieved if you optimize your production line to generate defect free products.
Companies face cutthroat competition and rising costs every day. Without a strategy, your business can be brought down to its knees. Lean Sigma Six gives you the right opportunity and approaches to combat these challenges and expand your business. That is achievable through:
- Increased profit margins
- Reduced costs
- Improved efficiency and effectiveness
- Nurturing your employees
- Improved customer relations
Lean Six Sigma is ideal for SMEs, SMBs, companies and large organizations. In fact, small and medium enterprises can achieve success similar to big businesses since they can move faster thanks to fewer parties involved, few resources, and reduced levels of red-tape.
It’s worth noting that Lean Six Sigma does not focus on revenues and reducing costs only, but also engages all stakeholders involved leaving a positive impact. Employees become the best human resources since they understand and appreciate the importance of work efficiency and ways to improve your business.
As a result, employees build business confidence and capability moving your business to the next level. With motivated employees, happy customers, seamless production, and reduced waste your business thrives. Don’t you think so?