Finance is one of the most important segments of a business, which deals with the fixation of assets and liabilities. One of the main responsibilities of finance professionals is to judge the value for money over a time period that can define the purchasing power of the business. Businesses that incorporate Six Sigma principles into their financial procedures have an improved capability of handling errors and defects, along with reducing the time and energy of the work force towards utilization in productive areas. There are a variety of benefits that businesses can have by owning a Six Sigma certification in India; some of which are listed below.
- Six Sigma helps in determining the financial positioning, investment opportunities, and exponential business growth.
- Six Sigma helps to reduce the time in closure of finance books, and brings accuracy in preparing various statements. Moreover, it also assists in proper control and measurement of dashboards.
- Six Sigma improves timely employment of procedures, and ensures quality and judicious work under a required workforce, to attain profitability; thus attaining faster achievement of goals in a cost-effective manner.
- Six Sigma helps in calculating the absolute value of any project with respect to the margin of return to derive net profit over the years; thus boosting the shareholder value of the business.
- With concepts like LIFO and FIFO, Six Sigma helps to reduce costs in the financial segment by monetizing budget towards all operational projects. This means that project completion is made cost-effective with the usage of adequate resources and supplies under a given point of time.
- Six Sigma’s data analysis approach helps to analyze the root cause of problems, rectifying them, and implementing proper solutions; thus driving continuous improvement in finance and accounting for consistent growth.
- Banking services, mutual funds, and insurance companies, which all fall under the financial sector, can improve customer relationships and company loyalty among shareholders through effective Six Sigma procedures.
After understanding the above mentioned benefits, if you are tempted to provide your finance professionals with professional Six Sigma certification in India, you can approach TQMI – the premier consultancy organization in India specializing in the field of quality management since the past two decades. Now, if you are wondering how you can measure the financial benefits of your Six Sigma projects, then the following five areas can help.
- Time – Practitioners can measure personnel time required for a process before and after implementation of Six Sigma. The net savings in time multiplied by hourly pay rate of the staff can be considered as the savings.
- People – With new improved processes involving Six Sigma, the number of people required for completion of a task is significantly reduced, which can be claimed as project benefits.
- Revenue – If the improved project leads to new products/services and sales, the revenue can be claimed as project benefits too.
- Errors – Improved processes means reduced errors. Practitioners can then multiply the cost per error with the annual amount of reduced errors to gain the value of benefits.