We all know by now that Six Sigma can reap a lot of savings and benefits for the company. But we are also aware that to embark on a Six Sigma initiative can be costly. The trainings alone command a high price. Because of this, people think that Six Sigma are only for big companies. This is not the case however.
In fact, small and medium-sized organizations need to go into Six Sigma. Six Sigma tools can provide major opportunities for cost savings. According to an article in the Quality Digest,
Smaller enterprises typically have ad hoc business processes. Error rates often hover in the 20- to 30-percent range, and opportunities for performance improvement are proportionately high. Moreover, because of its manageable size and relatively few entrenched “silos,” a smaller business environment is generally more conducive to new business process thinking than a large corporate setting.
Because many small to medium-sized enterprises operate their business processes at the 2 to 3 sigma level, an improvement of even 1 sigma represents a huge step in improving customer satisfaction and reducing costs. Through a better understanding of their core processes, smaller businesses can make significant improvements rapidly.
The article went on to encourage small and medium-sized businesses. Six Sigma is doable and achievable if you focus your efforts on it. The following are just some of the elements needed for success:
1. Visible management commitment
2. Keen sense of urgency
3. Clear definition of customer requirements
4. Shared understanding of core processes and key customers
5. Honesty in measuring current performance
6. Discipline in prioritizing the critical few improvement projects
7. Communicating success stories and proving that the approach works
8. Rewarding and recognizing the performers
9. Institutionalizing the approach
