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How Will Six Sigma help My Business?

The accounting department is affected when a Six Sigma project is implemented.  Six Sigma costs are necessary for the overall improvement of the organization. If they were not, executives and business management would not use their services.

The investment of using Six Sigma methods is great.  Companies continue to benefit long after the Six Sigma project is completed.

Some of the costs of using Six Sigma professionals are general. These would include the office supplies, training, travel and support costs.  The suggested project will have a budget that will include all of these plus salaries and other costs.  The accounting department will usually put these expenses onto the record books of the departments receiving the Six Sigma benefits.   The business will benefit overall, however, from any quality improvement plan suggested by a Six Sigma professional.

Companies must keep good track of their Six Sigma expenses to make sure they are benefiting from the solutions being implemented. Once Six Sigma professionals and expenses have been paid, the business should see a boost in profitability as customer and employee satisfaction increase.  Higher quality items will be produced, requiring less product maintenance or replacement costs, reduced warranty costs and increased sales rates.  Employee satisfaction leads to less turnover, lower healthcare costs, greater employee productivity and better attendance.  Customers enjoy the high quality of the products or services and will return for repeat business and recommending the company to everyone they know.  This is one key element of improving sales rates and profitability within the business.

All of these will bring a higher profit to the organization after a Six Sigma plan has been completed and paid for.  There are many ways that a Six Sigma plan can affect a organization overall, cutting costs in unexpected areas. In general, anything that cuts costs to the organization is beneficial to that organization.  When a plan helps a organization avoid paying for work that's done more than once due to initial errors, it has saved the business money.  Instead of letting men and women go, a plan might suggest cross training and allowing employees to expand their knowledge of the organization and its procedures.  This allows the organization to spend less on training and insuring new personnel. It also gives the workers a higher sense of value in the organization, which in turn, encourages them to work harder and increase their personal productivity and quality.

Anything that a Six Sigma program does to save the organization money will bring support for the plan.  The company is always looking for ways to reduce costs but improve qualityPsychology Articles, satisfying both customers and employees.

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