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Vishwadeep Khatri

Bench and Mark 4 - Cost Cutting

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Bench's company has been working hard and making small cost reductions year on year while Mark's company created a new offering that brought down the cost drastically. Mark's team used the power of DFSS. 

 

DFSS (Design for Six Sigma) is a methodology that is used for designing new products and services. This methodology is not very popular as only companies with long term thinking can make good use of it. A small number of our clients ask for DFSS and then make sure they design robust products and services to take a lead in the market place. 

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Guest Praveen Gupta

That's true.. i haven't seen or heard companies using DFSS methodology.

 

I am curious to understand how this methodology can improve costs in service industry.

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cost cutting using DFSS is a systematic approach involving DMADV (Define, measure, Analyze, Design, validate) methodology.

involving QFD in the define stage will incur comparison with competitors and coming up with frugal innovative design in the design phase using new technologies and methods.

when DMAIC methodology fails to provide the intended result, we resort to DFSS (Design for six sigma) 

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Absolutely true... If organization starts passing cost benefit to customer by cutting down their profits, without innovating new ideas to perform their operation at reduced costs, then in couple of years they will lose the race and will be out of industry.

 

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Guest Raj Bharath G

If we observe in the year 2014 they are exceeding the client expectation but later stage there is no consistent in the performance, we can see a downfall trend in the cost savings.

At least Bench need to investigate the problem area when he observed there is a decrease in the cost saving % for the consecutive year. One of the initial thing for the problem solving is understanding the root cause,( i.e.,why there is a inconsistency in the cost saving/meeting the client expectations).

 As Mark applied DFSS( Design for Six Sigma), as it is a proactive approach (DMADV, DCCDI & IDOV) which helps to minimize the defects and variations at their roots. 

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