Criteria changes and lean Six Sigma

In these difficult economic times, organizations are looking at all possible means to operate profitably. As demand for products and services drops and customers expect the lowest possible price, organizations are feeling urgent pressure to cut costs as a response to lower revenues and decreased margins.

However, many companies are missing the mark by cutting resources indiscriminately when they should be revamping their business processes to achieve improved, sustainable business results.

Many businesses react to such pressure by going into panic mode. Cost-cutting targets—often in proportion to the budget or staff headcount—are handed down from senior management to various departments. With across-the-board cost cutting comes the risk of throwing out the good along with the bad. In the rush to cut back, there’s always the danger that an “anything goes” mentality may prevail, with little focus on determining what adds value to customers and what can be considered waste.

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