How well are you able to predict future scenarios for your company? When conducting your day-to-day business operations, you may not always have the future in mind. In fact, it may be too much of a hassle to think on multiple time planes. The oft-spoken adage, we’ll cross that bridge when we get to it, seems to apply here. However, thinking about the future, while managing the present, is essential to achieving and driving success.
Using Six Sigma methodology, you can make accurate and justifiable business decisions based on available data. Six Sigma is all about facts and using facts you can maximize your success for the future. Scenario analysis is integral to predicting potential future customer needs. This will also allow you to predict future problems and needs. Today, learn how to improve your predictions with Six Sigma.
Improving Scenario Analysis with Six Sigma
The majority of supply chain practitioners can utilize Lean and Six Sigma tools for waste elimination and process improvement. But, most businesses tend to view these as tools solely aimed at solving manufacturing quality and efficiency issues. In fact, you can apply both Six Sigma and Lean to more general business processes. This can be tricky, however, as accumulated waste is not always evident, requiring much effort to resolve. For many organizations, a lack of standardization can mean big problems. With no company-wide accepted methods for accurate prediction-making, staff will lack any universal understanding of how metrics like forecast accuracy bolster change. But, with Six Sigma, you can improve your predictions by as much as 85% or more. All it takes is a little effort.
Standardizing Your Prediction Processes
First of all, you must establish a standardized set of calculations for forecast accuracy reporting and improving the tools involved. This will enable you to cultivate scenarios which breed ideal forecast accuracy. Using powerful analytical tools like DMAIC, ANOVA, and Root Cause Analysis, you can gain a greater understanding of your business. These techniques will reveal which areas are on target and which less than perfect. Have your Six Sigma Black or Green Belts teach your staff how to recognize signs and root causes of poor scenario analysis accuracy. This will empower them to resolve these problems and drive lasting process changes. You could even create a Green Belt project focused on improving scenario analysis accuracy.
Six Sigma Workshops Can Improve Predictions
Teamwork is always important in Six Sigma, so forecast process mapping workshops and brainstorming sessions can also help generate ideas. Focused discussions can draw attention to unrecognized issues and potential solutions once you identify, prioritize, and assign relevant action items. Once you get the creativity flowing, you can devise solutions for other related problems too. Operations metrics like inventory levels and customer service are just as important.
Making accurate predictions can also help foresee problems affecting the entire organization. With ideas bouncing off one another, your staff can help each other overcome issues affecting your scenario analysis capabilities. No one can know what the next day holds, so we cannot overstate the importance of being able to make predictions. Using Six Sigma, you can improve the accuracy of yours.
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