How to Use Lean Six Sigma Programs to Build Cash Flows

Using Lean to Build Cash Flow
Using Lean to Build Cash Flow

How to Use Six Sigma Programs to Build Cash Flows

Six Sigma is a set of tools and techniques used for process improvement. This article explains how Six Sigma programs could be used to boost cash flow.

Cash flow is a key data set within any organization or business. Without the right cash flow, you won’t be able to expand your company or invest in new areas when you need to. It is highly possible to build cash flow using Six Sigma programs. In doing so, businesses can increase efficiency and improve cash reserves. There are a few ways that this could work.

Ultimately Six Sigma programs will work to help companies maximize their level of efficiency and ensure that issues with waste and variation are greatly reduced.

For it to work and be truly effective within the workplace, everyone needs to be on board. It can be beneficial from a management point of view and in turn, increase productivity and the quality of work from employees. This is why lean management has grown and is now widespread across a variety of different industries. It is used in various businesses like manufacturing, marketing, and software development. It is a universal tool in management and results in a positive impact on a business’s performance due to the core values that it champions. 

Certain skills will help lean managers increase productivity within their team. Some of them are:

Selecting The Right Projects

First, you need to make sure that you are selecting the projects where Six Sigma will prove to be effective in your business model. It’s important to understand that something like root cause analysis will not necessarily deliver the benefits that you need. Improving cash flow, even when using the correct programs will take time. 


Focusing on improvement projects is essential for Six Sigma work. You need to ensure that you can link potential savings in costs to the implementation of Six Sigma. You should also make sure that you are analyzing the financial benefits of new projects before you actively pursue them. 


There are always techniques such as Pareto analysis that will ensure that you have the information you need. This will help you determine whether an investment will provide the benefits to cash flow that you want. 


When used correctly Six Sigma programs will allow you to analyze your procedures to see which defects and inefficiencies are holding your business back. Certain defects are going to impact the quality of the products that you produce which will ultimately result in more losses further down the line. 


Alternatively, over-processing in your model could create unnecessary costs that will negatively impact your cash flow. If you remove these issues, then you will immediately build up your overall cash flow, due to greater levels of efficiency. 

Defining Measures

You must ensure that you effectively define financial guidelines when you are working to improve your cash flow. In doing so, you can correctly assess that you set the right expectations while putting your priorities in place. It will also ensure that you only spend where necessary. 


One example would be if a manufacturer is unable to provide a low-cost part or that part is discontinued. You could use a Six Sigma program to launch an improvement project and locate the right new provider so that your lead time and gross margins remain unaffected. 

Use Lean Six SIgma for Cash Flow Improvements

Finding The Ideal Program

Finally, there are many programs that use Six Sigma to build cash flows. It’s important to choose the right one for your company. One option would be Leanscape. This is a smart choice for various businesses because of an effective price point and the guarantee of access to high-quality programs. As well as this, the level of accessibility makes it an ideal option for those new to this type of tool. 


Know more about how to use six sigma to build cash-flows. Click here.

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