In a global economy, operational and policy issues in organizations in one country can significantly impact other countries. Due to such ripple effects, organizations need to focus on their ability to analyze and improve business processes, and that is how the benefits of Six Sigma come in.
Organizations with Six Sigma certification can improve their financial processes and utilize resources optimally. Six Sigma benefits accounting and finance in an organization in the following ways.
Six Sigma enables departments to be more focused on the efficiency of operations hence minimizing billing and reconciliation errors. It also contributes to minimizing errors during invoice processing and optimizes cash flows. For instance, the Coast Guard Finance Center in the US implemented Six Sigma to improve its accounts payable processes and this improved customer satisfaction due to reduced errors.
If you are an accounting and finance professional wishing to enhance your ability to reduce operational errors, consider the Lean Six Sigma certification. The certification program from 6Sigma.us will equip you with statistical knowledge on how to approach tasks analytically rather than relying on guesswork.
The company has highly-trained and experienced professionals, including president Peter Peterka, a leading Lean Six Sigma methodology consultant. By being certified, you will be better positioned to analyze and solve problems, increase employability and advance your accounting and finance career.
Continuous value addition
Six Sigma is regarded as an improvement system. To attain lean thinking, the accounting and finance staff define the service or product value in the customers’ eyes. It allows organizations to create new processes and workflows as they also improve the existing ones and work on long-term results.
Applying Six Sigma in finance and accounting in organizations has long term-effects on value addition, such as increased customer satisfaction. It improves budgeting, auditing, cash management, cost accounting, credit analysis and compliances.
The ultimate goal of a firm is profit maximization and cost minimization. When organizations apply Lean Six Sigma to inefficient business processes, production costs are reduced. The Six Sigma practices help to reduce errors and defects in production processes and reduce rework that may consume company resources and time without value addition.
The techniques also help organizations to eliminate unnecessary steps in the production processes, hence reduce production costs. In their quest for quality revolution, different companies have leveraged the benefits of Six Sigma for cost reduction.
For instance, between 1987 and 1994, Motorola managed to cut its manufacturing costs by up to $1.4 billion due to implementing the Six Sigma methodology. The cost reduction has continued over the years. Other companies that have implemented the methodology include Honeywell, GE, and Ford.
Lean Six Sigma helps companies to eliminate waste and variance and enhances the efficiency of processes. Organizations that use the principles of Six Sigma can manufacture, distribute and sell more products of higher value while utilizing fewer resources.
Accountants can determine where and how lean methods are affecting budgets. Whether inventory spending, labor rates, gross margins, or costs remain constant, declining, or increasing, the accounting and finance department will know. Therefore, Six Sigma and lean manufacturing can help organizations to save money.
With Six Sigma, business owners must analyze their existing processes and make informed decisions before taking any action. The decisions are based on facts and lead to better quality and profit maximization. A business will generate more money if its products or services are more qualitative. Sigma enables organizations to identify complex and problematic business aspects and guide accounting staff in solving them.