Successful Business Strategy Does Not Include Bankruptcy

Most companies would much rather ride out the recession than face problems such as filing bankruptcy, but the real question is can your business use the Six Sigma method? The answer is yes, any business can adopt this methodology if they have the determination and know-how to make it a success. During the recent recession, it seems that everyone is cutting costs somehow. It is almost certain that somewhere, a business is struggling to stay afloat an unclear economy. This has not only affected big businesses, but small business as well. Many companies have had to make the decision to either try and stay afloat or file bankruptcy.

Within the Six Sigma methodology, and also within the DMAIC framework, the first place to start is design; figure out the problem, does the company have too much overhead, too much inventory? It is a lot like a teacher defining a lesson plan. Decide on the objective and start an outline. This is a good place to start because if company processes were not broken, they would working to gain success for the business. When sales are down, profits are down, and this makes for an unsuccessful business.

The next stop is to measure; collect facts and data not opinions. Gather your business team to work together and brainstorm. The key to the solution for your business most often always lies within the numbers. In order to find the solution, meticulous data should be kept and complied into one place to make the next step in the process easier. The third stop is to analyze the data. Take the current state of the numbers and analyze them, look at what the numbers are saying, or in some cases, not saying. This area also exposes where improvements should be concentrated on. The Six Sigma methodology employs various tools to help your team analyze the data from your sales and expenses in order to find the answers you need to prosper in a difficult economy.

The fourth step is improvement and focuses on the development and implementation of a swift plan of attack. With the knowledge of collected data and the results, you can easily direct your resources to the areas in need of change and the best way to make the changes. Inventoried items are a perfect examples of this. Remove or lessen the production of non performing products, while increasing production and stock of items deemed "hot items" by your buying customers.

The final step in the DMAIC process of the Six Sigma Methodology is control. Control what is happening after the changes have been implemented in order for your hard work to pay off. This is important because your team has worked very hard to solve a problem facing your company. If a solution is found, but not properly carried out, it is worthless. Everyone must work together in order to insure that the changes that have been implemented stick! Whether your business is struggling, or even if it is currently successful, the Six Sigma system can and does work as long as the correct steps are taken with the determination to make it a success.