Operating Cost Reduction with Six Sigma
Discover how Six Sigma methodologies can deliver substantial cost reductions of 12-20% across your operations. Our proven approach combines rigorous data analysis with practical implementation strategies, tailored specifically for UK manufacturing and service sectors.
The Role of Six Sigma in Cost Management
Define
Measure
Analyse
Improve
Control
Six Sigma’s DMAIC framework drives efficiency by systematically reducing defects, waste and variation. When integrated with Lean and Kaizen principles, organisations typically achieve substantial savings—like the 25% overhead reduction seen in the automotive sector.
Key Six Sigma Tools for Cost Reduction
Value Stream Mapping
Visualise entire processes to identify non-value-adding activities and their associated costs. This end-to-end mapping highlights expensive bottlenecks and wasteful steps.
Failure Mode Effects Analysis
Proactively identify potential failure points that drive up costs. Prioritise interventions based on financial impact and probability to focus resources on high-value improvements.
Statistical Process Control
Monitor process variations to identify cost drivers. SPC charts reveal out-of-control processes that consume excess resources and require immediate correction.
Root Cause Analysis
Drill down to fundamental issues behind resource-intensive steps using techniques like 5 Whys and Fishbone diagrams to ensure solutions address core problems.