Six Sigma Finances

Defects occur in every industry. That is a fact.

But it certainly doesn't mean that we should just sit back and accept that as the status quo. Quite the contrary. And while we often focus our attention on the production side of operations, especially here given that ADIS AUTOMOTIVE GROUP is a tier1 manufacturing conglomerate, the finance side of all group operations is another key area that benefits to great effect from sixsigma optimization.

It may seem highly ambitious, but Six Sigma is often said to be about reducing defects to <3 per million opportunities; for an organisation’s finance department, where the margin for error needs to be small, this is a highly beneficial outcome.

Many of us have heard the horror stories for example when rounding errors surface in businesses. Confusion, bad decisions and turmoil often follow and both brand, and for traded companies share prices, can take a significant nose dive. It is with this in mind that when it comes to handling matters involving money, there’s a need for a high degree of accuracy and precision.

With such grave consequences if gotten wrong, it is not hard to see why Six Sigma is perfect for a finance department as much as it is for mass production lines. Luckily for Adis, the management and finance teams contains many 6σ blackbelts and this knowledge right from the top is powerful and influential across each company within the group.

Six Sigma is industry agnostic so it's powerful toolset is as apt in finance as it is logistics, and with its ability to significantly reduce defects or errors, a finance department can implement changes and indeed use tools from its enormous catalog to identify KPIs, track patterns and seasonality, and measure financial performance before reacting.

Once this quantity of data is understood, the streamlining of processes can begin and steps to accomplish tasks can be reduced. An optimized finance department ought to collect just the data they need -saving time and effort in both collecting and collating it - and use that data to help guide the company's future growth by allowing it to make educated decisions. Afterall, as the old adage goes, 'a decision made on assumption repeats past mistakes.'

If you're looking for a level of organizational control that is unrivalled in your supply chain, then look no further than the Adis Automotive Group who implements a lean six sigma approach across it's whole organization from the coordination of raw material deliveries thru it's internal support services right to the shipment of finished goods.

Posted On:
June 27, 2023

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