Did you know, one of the world largest defense contractors is using six sigma methodologies to streamline their business process since the 1990s? The world’s largest defense contractor has been using Six Sigma methodologies to streamline their business processes. For more than 25 years the organization has been applying these methodologies and strategies to achieve their goal of corporate sustainability. You might wonder how Six Sigma strategies that have been originally designed to reduce and eliminate errors in manufacturing processes be used for corporate sustainability. In this article, we will talk about Some Strategies Six Sigma for Sustainable Growth.
This organization provides a strong example of how implementing Six Sigma methodologies can broaden the horizons of the organization to address issues regarding the sustainability within the organization.
The strategic development of powerful metrics and a detailed plan of action inherent to the Six Sigma environment has helped the organization make impressive progress toward corporate sustainability goals. Apart from this, implementing sustainability goals as a part of corporate culture has helped this organization maintain and grow its success.
In the year 2013, after the release of the company’s sustainability report the president and the CEO of the organization said that their commitment towards sustainability continues to accelerate their business strategy.
For the six sigma project, it is important to set metrics identifying goals that align with corporate mission and values. To apply the methodologies to improve sustainability ratings and triple bottom line performance, the organization divided its project into 4 areas such as; Operational Efficiency, Resource Efficiency, Product Performance and Supplier Sustainability.
Cost Reduction using Six Sigma Methodology
In organizational efficiency, re-examining physical space allowed the organization to accomplish the same outcomes with minimum physical space. Using less space helped the organization save energy and other resources used previously. By implementing this, the organization reduced 20% of its total costs.
In resource efficiency, Six Sigma strategies helped the organization to reduce the use of water and carbon emissions by almost 20%. Also, landfill materials was decreased by 36% and energy consumption was reduced by 12%.
In product performance, the organization has developed partnerships to build alternative waste disposal options, energy options and address climate adaptation challenges.
In supplier sustainability, setting transparency as a goal was the basis of the relationships between the organization and its suppliers. By improving the processes which are used to guide decision making with regard to the company partners and vendors, the organization has set higher standards for social and business conduct across the different partners of the organization.
Six Sigma strategies can help develop and monitor the metrics created for the projects with clear goals. The company has made huge contributions to the communities. The organization has also donated over $25 million to civic programs around the world.
Hence, as you can see, Six Sigma which is mainly known for the reduction and elimination of errors in manufacturing processes can also be used for corporate sustainability. So, have you deployed Six Sigma yet?
Image Source: Industry Week
Compiled by Faber Priyal & Faber Mayuri