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Benefits of Using Lean Six Sigma in Organizations

By Tanuja A Akkannavar

 

To sustain in the market for a long time providing quality products and services on estimated time is a compulsion factor for every organization today. In order to minimize organizational issues that are blocking the process of achieving objectives, also to create better working conditions for employees Lean Six Sigma can be used in any firm.  The present Indian market considers Lean Six Sigma as a most powerful tool that boosts the organization’s business. Some of the popular Indian Companies that believe Lean Six Sigma is the most effective way to increase product quality and practices six sigma in their organizations are Amazon, Nestle, Wipro, Dell, and Motorola and so on.

The Basics of Lean Six Sigma –

1. Identifying Organizational Problems –

Before beginning the process of accomplishing organizational objectives, a company has to identify organizational problems and their root causes. These problems may affect the process of providing standard products and services to customers.

2. Methodology –

After identifying the blockages a company has to use different sets of techniques and frameworks to minimize or completely eradicate the issues and implement effective solutions.

3. Evaluating the Results –

After implementing solutions a company has to evaluate the range of Advantages Company has gained using different methods as a problem-solving tool.

Principles of Lean Six Sigma –

1. Prioritizing Customer –

One of the core elements supporting successful business is prioritizing customers and their demands. Everything about a company or business revolves around customers which include market position, revenue, profit and demand for a product. Always keep your customers first on the list because they are one who decides the run of any business in the market.

2. The Value Stream –

Identify the value stream, the techniques that can be used in implying Lean Six Sigma is an effective way. All the techniques used in providing quality products will be interconnected, hence understanding the value and methods of Lean Six Sigma is most important for a company.

3. Eliminate Blockages –

After valuing stream, a company can easily identify the upcoming problems. Hence a company has to work on eliminating problems that may disturb the smooth flow of organizations' activities to complete the objectives.

4. Communicate –

Every employ of an organization should be completely aware of the steps followed in attaining goals. Also, they should be informed about the methods of Lean Six Sigma that a company is using in order to improve working conditions and provide quality products and services to the customers.

5. Customer Demands –

A company should be well aware of the customer demands, they should design their objectives which helps them in meeting customer demands. Working according to the customer needs can increase the market value of a company.

Benefits of Lean Six Sigma –

1. Lesser Customer Complaints –

By identifying customer needs and prioritizing them decreases customer complaints. Lean Six Sigma mainly helps in understanding the customers and their demands, with the minimized customer complaints the loss a company may face also reduces.

2. Cost Reduction –

The method of Lean Six Sigma can help an organization is reducing its risks which will automatically reduce the expenses of a company. Also, by achieving customer satisfaction a company can reduce losses that have occurred before.

3. Customer Loyalty –

By offering standard products and services and maintaining its quality will develop a loyal connection between a company and its customers. An increasing number of loyal customers will result in a successful business of a firm.

4. Effective Use of Time –

Delivery of products and services on time is also an important element of Lean Six Sigma. By implementing this method and being on time in providing services, can help a company save time and focus more on organizational developmental activities.

5. Improves Effectiveness –

By understanding customers and their needs a company can concentrate more on improving their goods and services. This will increase the efficiency and effectiveness of a product or service and eventually the demand for that product will increase. The Lean Six Sigma methods of providing effective services will be a company achieve its goals smoothly and easily.

Lean Six Sigma improves the company’s efficiency and transforms its working conditions. By developed workforce culture and customer understanding an organization can reduce its expenses and losses. Adding to this, providing quality goods and services demands for such products will increase which will help a company in accomplishing its objectives.

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