How Six Sigma Reduces Cost of the Process?
How Six Sigma Reduces Cost of the Process?
Six sigma's methods have been used as a proven route to error-free processes and waste reduction.
Accountants as well as those preparing to become a CPA have begun learning this methodology



The Origin Of Six Sigma:

 Six sigma  is  a  set  of practices.  Jack  Welch, the  former  CEO  of  General  Electric, implemented  Six sigma  for  the  first  time.

Great results  came from that. According to  the  1997  GE  Annual Report,  Six sigma  added  $300  million  to GE's  bottom  line.

 In  its  first  five years,  Six sigma  saved  GE  $10  billion.

Due  to GE's  achievements,  the  value  of  Six sigma  training  and  certification  became  widely  known.

 This  concept  quickly  spread  to  private  and  public  firms  in  industries  such  as  manufacturing,  finance,  and  automotive,  as  well  as  in  government  and  military  organizations.

 Six sigma's  methods  have  been used  as  a  proven  route  to  error-free  processes  and  waste  reduction.

Accountants  as  well  as  those  preparing  to  become  a CPA  have  begun  learning  this  methodology  as  part  of  their  accounting  academia  and  exam  preparation  as  six  sigma  has  proven  to  be  beneficial  for  any  business  entity  that  entails  a  product  or  service.


How  does  Six sigma  help  companies  reduce  process  cost?

Imagine  buying  a plastic  toy. The  melted material  is  fed  into  the  machine.

 The  plastic  goes  into  a  mold  and becomes a  toy.

Do you know  what will happen  if  there  is  variability  in  the  time  that  you  open  the  mold?

The  product  may  change  in  different  ways if  you  open  it  too  early  or late. Timing  and temperature  are very  important  in  manufacturing  a  product  that will satisfy  the  customer.

 Depending  on  the  product,  there  can  be  hundreds  of  processes.

 Each  process has  its  own  key  points that it can control.  This  is  why  Six sigma  is  so  important  and  why  qualified  inspection  and  process  auditing  are  often  strongly  recommended.

 People are  stuck  in  a  rut.

It  takes  an  outside  perspective  to  point  out  issues.


ISEL Global helps the businesses and professionals to integrate the six sigma green belt tools and methodologies for better business growth.