Quality, Costs and Profit: Gain / Increase competitive advantage

24/11/2016

Customers are the centre-focus of every business. They are the reason for company’s existence. Except a company provides value that customers are willing to pay for, it cannot generate or increase sales. And it is only when this value is created at minimal cost, can it maximize profit for its owners.

Customers, more than ever before, demand (and appreciate) quality. However, due to increasing level of competition and the depressed state of the economy, this demand is putting more pressure on company’s profit margin. Therefore, how well a company is able to position itself will determine how fast and far it can go in today’s business environment.

With “Lean Six Sigma” methodology, a company is able to improve/sustain quality and achieve declining cost. We impact this knowledge and build the capability in organisations. These fuel consistent delivery of values to customers with continuous reduction in production cycle time and defect/ waste level. When you shorten cycle time, reduce defects and deliver value to customers; output increases (courtesy of saved time and increased yields), waste reduces, cost comes down, profit margin widens, customers get more pleased, sales rises, capacity underutilisation (if any) reduces, net profit soar, company’s value appreciates, shareholders rejoice, among others. You achieve these without having to work extra harder. The methodology is process-focussed, data-driven, IT-supported and project-oriented.

This problem-solving methodology can add up to millions of naira in annual cost savings and sales increase. These benefit all the stakeholders (customers, employees and shareholders). The knowledge will help you defeat competition and increase market share. Because the methodology is data-driven, you can separate between what you think and what the problem really is; avoid “solutions” that don’t solve the real problem. It is a veritable tool of operation strategy and can be used to bring continuous improvements in every aspect of your operations. In the long run, it will enable you do your business better, faster, cheaper, more efficiently and profitably.

Improving customer value proposition and efficiency are necessities in today’s highly competitive marketplace. You need not reduce quality or quantity to sustain or widen profit as the consequences have, almost always, been a decline in growth rate and performance level.

Call or mail us for further clarification on the methodology and how it will benefit your organization. We look forward to discussing with you.