Six Sigma is a process management methodology focused on continuous improvement of products and services. Understand the benefits of Six Sigma in asset management!

The search for improvement of operational processes, reduction of failures and increase in the quality of services and products is an objective present in the agenda of any organization. A tool widely used by companies is Six Sigma, a process management philosophy focused on continuous improvement of products and services. Six Sigma in asset management aims to reduce equipment and facility failures and increase customer satisfaction.

In this article, we’ll explore how Six Sigma can help manage company resources and the benefits it offers.

What is Six Sigma?

Six Sigma — an internationally adopted process management methodology — helps companies reduce the chances of operating errors and thereby increase customer satisfaction. It is able to identify points of improvement and assist managers in implementing actions to improve quality driven by operational results.

The word “Six” comes from English, meaning six. “Sigma” originates from a letter of the greto alphabet and is used in statistics as a measure of variation. When applied to the corporate world, it relates to how often an operation needs to consume more than the minimum resources for a process to be performed to meet the customer’s needs and expectations.

The number six is related to a mathematical scale used to calculate the company’s performance level. This way you can get more objective feedback. In this qualitative scale, 1-sigma represents a low level, in which there are many flaws and low quality, and 6-sigma points to the top of operational excellence, in which failures are found at the rate of 3 per million.

How does Six Sigma work?

The goal of Six Sigma is to reduce the number of defects in a process, improving the quality of the final product. The methodology is divided into five stages:

  • definition: specific targets are defined for the desired improvements;
  • measurement: metrics are established to monitor and measure processes;
  • analysis: what the system is delivering and what one wishes to achieve are evaluated;
  • improvement and increase: ways are sought to solve the faults or gaps found;
  • control: improvements are monitored to track results over time.

What are the benefits of Six Sigma?

Implementing Six Sigma can bring a variety of benefits to asset acquisition, storage, use, maintenance, and disposal/replacement, helping to improve operating throughput. Understand each of them.

Cost reduction

One of the main advantages of Six Sigma is cost reduction. This is possible due the continuous improvement process reduces the amount of waste, which results in savings.

In addition, the data collected assists in taking management when it comes to cost cutting. Instead of reducing expense from items that could compromise the quality of operations, the focus is on what can really add value to customers.

Increased operational efficiency

Improved operational efficiency is achieved when processes are optimized and errors are reduced or even eliminated. This makes the process more efficient and increases productivity.

Increased customer retention

In addition, increasing the quality of products and services raises customer satisfaction, which can lead to increased customer retention and profitability.

How can Six Sigma in asset management generate strategic advantages?

Asset management is a process that aims to maximize the return of the company’s assets. Six Sigma in asset management can be key because its continuous improvement method helps identify and eliminate waste, resulting in increased operational efficiency. In addition, data collected by the Six Sigma method can be used to make strategic decisions about the management of the company’s assets in order to increase the performance of equipment and facilities.

For asset monitoring, a maintenance management system becomes crucial, helping to define and track metrics related not only to equipment, but also to the work performed.

Manusis4 is a maintenance management software that can help you implement Six Sigma in asset management. Request a demo and learn how it works!