BPO is an arduous business to run. There are tight deadlines, heavy workloads and highly demanding clients. However, how do BPO companies rise from all of these challenges? One way is Six Sigma.
In this blog you will learn what Six Sigma in BPO means, how it works, and how it can dramatically improve outsourcing companies.
What Is Six Sigma?
Six Sigma is a methodology that improves companies in the way that they work. The purpose of Six Sigma is to reduce defects, eliminate waste and improve quality. Six Sigma collects data and follows a structured approach to uncover problems and address them.
By using Six Sigma, BPO companies improve speed, reduce costs, and serve customers more effectively.
Why Use Six Sigma in BPO?
BPO companies undertake a variety of tasks including, customer service, data entry, and technical support. When mistakes occur, they can affect the whole process. Six Sigma addresses this problem.
Here's how Six Sigma in BPO creates benefits:
- Reduce day-to-day errors
- Improve quality and turnaround time
- Reduce waste, time, and money
- Improved customer satisfaction
- Improved business performance
Six Sigma makes a real change by fixing small things a step at a time.
The DMAIC Process
Six Sigma uses a five-step method, called DMAIC. Here’s what it is:
Define - Identify the problem
Measure - Determine how things work today
Analyze - Look for things that are not working well
Improve - Think of changes to make
Control - Ensure that changes are sustained
This simple approach allows for easy application of Six Sigma in any BPO environment.
Real Life Example
Let’s have a real example. A company called MedicEd was having long waits and high costs. They applied Six Sigma tools to review their workflow. After the improvements were put in place, they decreased their waiting time from 5 minutes to 1 minute, allowing a savings of over $1.5M.
This is a clear example of the application of Six Sigma in BPO that made a tangible difference.
Who Is Involved in Six Sigma?
In a BPO business, everyone is included:
- Senior Management initiates Six Sigma
- Team Leaders and Managers lead the teams
- Staff carry out the improvements
There are various training levels to Six Sigma called belts, like martial arts:
White Belt – Foundational knowledge
Yellow Belt – Contributes to projects
Green Belt – Manages smaller projects
Black Belt – Manages larger projects
Master Black Belt – Coach and trains others
Learning Six Sigma
Interested in learning Six Sigma? Well, luckily, it is very easy to start. The Council for Six Sigma Certification (CSSC) offers a range of classes for beginners and professionals for free and very low costs.
Here's a breakdown:
White Belt – FREE
Yellow Belt – $99
Green Belt – $159
Black Belt – $229
There are also advanced certifications available if you want to take them even further.
Six Sigma Tools
Six Sigma has a few helpful tools to help you improve work:
PDCA (Plan-Do-Check-Act) – Cycle to improve anything
Value Stream Mapping – Identifies delays in a process
FMEA – Helps you identify concerns before they become serious
Kanban – An easy visual, work management board
These tools will make work easier and more organized for you in any BPO.
Last Thoughts
Six Sigma in BPO is more than solving problems. It is working smarter, faster and more efficiently. Fewer mistakes will allow BPOs to scale more quickly and ensure customer satisfaction.
If you are currently working in the BPO space and want to improve the way your team works, Six Sigma is a great option to start improving team performance.
FAQs
1. What is Six Sigma?
It is an approach for improving work by reducing defects and improving your processes.
2. Why is Six Sigma valuable for BPO companies?
Helps improve service delivery, saves money, and responses are faster.
3. What does DMAIC stand for?
Define, Measure, Analyze, Improve, Control—it is just a five step process.
4. Can I learn Six Sigma for free?
Yes! CSSC has a free, beginner level and paid courses which are inexpensive.
5. Is Six Sigma designed for small BPO companies?
Yes. Often small adjustments and changes can make a big difference over time.
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