Six Sigma was first adopted by large corporations like Motorola, Allied Signal, and General Electric. These large companies with thousands of employees, billions in revenue and complex organization charts successfully pioneered Six Sigma use, but also created the false impression that it can only benefit major corporations.
The fact is, the same concerns that motivate large organizations to apply Six Sigma quality improvement are shared by small businesses. Businesses of all sizes want to eliminate output that does not perform to customer specifications. Just like large corporations, smaller businesses aim to eliminate processes that result in reworking, rebuilding or resubmitting defective outputs. Businesses want to eliminate variation to consistently provide a high-quality product or service to their customer.
Some argue that quality is even more important to smaller businesses than to large corporations. While a large corporation may have sufficient cash reserves to cover a multitude of quality issues, small businesses typically don’t have this luxury. For example, if a large retailer consistently provides low-quality customer service it can still attract and retain customers by offering quality products at low prices. If an automobile manufacturer has millions of its vehicles recalled, it can launch an expensive advertising campaign to convince consumers of its dedication to quality.
Small businesses have a narrower margin of quality error than large corporations appreciate, because they can’t rely on cash to help them overcome defects in quality. If customers are dissatisfied with the goods, services or the customer service that a small business provides, they will soon go elsewhere and the business can deteriorate and die.
Obstacles to applying Six Sigma
If the benefits for both small and large companies are similar, then so are the obstacles. Both types of organizations oppose increasing costs even in the pursuit of pursuing improved quality. Both large and small businesses tend to fear changing what may be long-standing processes, and both fear the possible disruptions in daily operations that could result from providing employees Six Sigma training. Both large and small businesses require the courage to replace a process that may be working adequately with a newer one based on Six Sigma methodology.
Small business benefits from Six Sigma
Like large corporations small businesses also receive benefits when Six Sigma methodology is properly used including:
- Identifying waste
- Eliminating defects
- Increasing profit margins
- Increasing customer satisfaction
- Increasing employee satisfaction
- Growing and expanding the business
Small business advantage
When implementing Six Sigma techniques a small business’s size can work in its favor. The success of a Six Sigma initiative depends upon how well it is accepted, understood and implemented at all levels of the company. Small companies with fewer employees can implement Six Sigma processes faster because they don’t have to penetrate the layers of management in a dense organizational chart to reach and train their employees.
The Six Sigma methodology is not only for worldwide conglomerates with complex manufacturing processes and global operations. Six Sigma can benefit small businesses that use repetitive processes, and can enhance small businesses that seek to increase profitability and customer satisfaction by reducing defects and process variance.
