Six Sigma capitalizes on any situation by making some changes in company practices in order to bring effectiveness to company operations. In order to make these changes smoothly without affecting current business processes, it is very important to analyze the different business processes and recognize their purposes. This way, it becomes easier to compare the source and the consequence of the company's processes with each other. But at the same time, this may not always be possible.
That's because company processes are usually divided into many more secondary processes that are at times more complicated than the parent process itself. Therefore, it may seem relatively easier to make changes in order to implement the Six Sigma strategy in a company having one or two secondary (sub) processes. However, if a company has more than six to seven processes, it becomes very difficult to bring about the necessary changes in the business processes. This simply means that as the sub-processes increase, it will become more difficult to bring about changes.
This desperately calls for the Design of Experiment (DOE), since DOE can easily handle great amounts of information, which is usually created during the implementation of the Six Sigma strategy. Since it usually becomes very difficult to handle such large amounts of information, a tool such as Design of Experiment (DOE) can do wonders in this respect.
Importance of DOE
Design of Experiment is responsible for analyzing any information, which is usually generated during the implementation process. After analysis of the information, DOE simply gives a quantified result, which then helps in defining the changes or the alterations that are to be made for the company to improve its quality of products and services.
One should remember that Six Sigma does include some trial and error experiments, which are absolutely essential for the strategy to be effective in order to achieve the desired results. That's simply because if the concepts are not clearly experimented with and defined, it can take a huge toll on the company, which may then lead to redundancies.
Another important aspect to be kept in mind is that the DOE tool helps Six Sigma experts select the best alternative, since selecting any option without a thorough analysis can ultimately lead to failure to achieve set goals.
One of the best things about DOE is that it helps in identifying the main source that is causing variations or inconsistencies in company processes. Thereafter, once the variations are identified, they are easily eliminated.
Thus, it can be said that Design of Experiment (DOE) forms an integral part of the implementation of Six Sigma in any organization.
Sales And Marketing The Six Sigma Way
Earlier pricing policies were based mostly on supply and demand, but due to increased competition, pricing has gradually shifted towards providing value to customers. With the help of Six Sigma statistical tools, price analysts can make accurate predictions about the level of interest shown in a product or service that is made available at a specific price.
These calculations help in adapting a price tag that effectively balances the two main factors involved, i.e. consumer interest and revenues generated through sales. Businesses can also use it for comparing their pricing policies with that of their competitors in order to pinpoint shortcomings and devise innovative solutions for making improvements.
Improving Sales Through Optimized Products And Services
By implementing Six Sigma, businesses can improve the efficiency of their business processes, which in turn will enable them to offer better quality and cost-effective products or services to their customers. This results in increased customer satisfaction, allowing the business to develop customer loyalty, something that is necessary for the long-term success of any business enterprise. Having a long list of loyal customers helps because the business can hope to maintain its profitability even when there is a downward trend in the industry.
Six Sigma can also be used for designing and developing new products or services based on specific customer needs and requirements. Six Sigma helps because it is quite effective in converting vague customer demands or requirements such as "high quality", or "reasonable price" into measurable terms, which can then be incorporated into the proposed product or service. When such products or services are launched, the probability that they will fail to get customer attention is quite less because most consumers prefer buying products that take care of their needs and requirements and are available at reasonable rates. Since customer needs and expectations have already been taken care of through the use of Six Sigma concepts, it is quite certain that the newly designed products or services will be a great hit amongst customers.
Six Sigma does help in improving sales, but it is not something that can be achieved without the full support of employees. Senior management needs to understand this and make sure that proper Six Sigma training is provided to all the employees associated with the implementation project. It is only after all the above stated factors are taken into consideration that a business can hope to make drastic improvements in its existing sale volumes.
Tony Jacowski has sinced written about articles on various topics from University, Six Sigma and Information Technology. Tony Jacowski is a quality analyst for The MBA Journal. Aveta Solution's Six Sigma Online offers online and certification classes for six sigma pro. Tony Jacowski's top article generates over 90500 views. to your Favourites.
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