How Lean Six Sigma Maximizes ROI of an Enterprise

Today, enterprises that adhere to Lean Six Sigma process improvement methodology and train their employees in Six Sigma certification categories such as Yellow Belt, Green Belt, and Six Sigma Black Belt Online stand a chance to survive in this highly competitive market. Six Sigma ensures compliance with high industry standards and reduces errors and deficiencies in processes.

On average 51% of enterprises across the globe invest in training for employees every year.

Average Training Hours Employees Receive:

Year
Hours of Training
2009 35 Hours
2010 28 Hours
2011 35 Hours
2012 24 Hours
2013 37.5 Hours
2014 40.7 Hours


Source: Training Magazine’s 2014 Industry Report

Enterprises spend close to ~USD 1200 for training an employee each year.

Year Average Training Expenditure per Employee
2013 $1208
2012 $1195
2011 $1182
2010 $1228
2009 $1081

Lean Six Sigma is one of the most widely-recognized process improvement methodologies across the globe.

Process Improvement Methodologies Percentage
Lean 50.2%
Lean Six Sigma 48%
Business Process Management 42.4%
ISO 34%
Six Sigma 33.1%

Enterprises achieved 65% of higher project savings by adhering to the Six Sigma methodology

Challenges towards Employing Process Excellence Methodologies

  • 2% believe competing priorities for time and resources take precedence
  • 8% don’t see the value at all
  • 5% think Six Sigma is an unnecessary overhead
  • 5% had some other reasons

Top 5 Areas where Process Excellence is Applied

Areas Percentage
General Business Operations 68%
Customer Service 45%
Supply Chain 42%
IT 39%
Manufacturing 38%

In an enterprise where on average when an employee adheres to Lean Six Sigma process improvement methodology achieved 40% more ROI than those who did not use it.

Cost vs. Savings

  • Yellow Belt – 3:1
  • Green Belt – 5:1
  • Black Belt – 7:1

In today’s competitive environment, businesses that have a formal Lean Six Sigma program and who have adopted DMAIC methodology require Lean Six Sigma Black Belt certified professionals to produce 65% of higher project savings which in turn achieves 40% more savings than those who apply traditional and archaic programs to complete their projects.

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Diego Rodriguez works as a Six Sigma Black Belt professional for a leading manufacturing company. He possesses ample experience in various aspects of quality management, such as Lean, Six Sigma, Root Cause Analysis, Design Thinking, and more. His primary focus is to conduct tests and monitor the production phase and also responsible for sorting out the items that fail to meet the quality standards. Diego’s extensive work in the field has resulted in being an honorary member of quality associations globally. His areas of research include knowledge management, quality control, process design, strategic planning, and organizational performance improvement.

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