Six Sigma and Asset Management

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Introduction to Six Sigma in Asset Management

Six Sigma in asset management can be described as the process of applying the Six Sigma methodology in your attempt to effectively manage all your available finances, investments and assets. Six Sigma actually refers to an extremely popular methodology or quality approach which is now used by thousands of companies worldwide regardless of their sizes as a means of reducing or completely eliminating problems associated to product and service quality. While it is true that this methodology has the same objectives with the popular lean approach especially in the field of improving process, boosting productivity, reducing waste and increasing customer satisfaction, Six Sigma is actually more quantitative, data driven and is created by statistically basing on the principles of lean. This makes it one of the most useful approaches in the field of investment, asset and financial management. The ability of Six Sigma to improve and measure the operational and financial performance of a company through statistical and data analysis while also instantly identifying and getting rid of defects is also a huge help in ensuring that all the investments, finances and assets of the business that you are currently running are properly managed.

What to Expect from Six Sigma in Asset Management?

Six Sigma in asset management is definitely one of those fields that you should master if you plan to become the most effective CSSBB or Certified Six Sigma Black Belt holder. One of the many things that this field can do for you is to let you understand about the different types of risk when trying to invest assets in your business organization. These include credit, market, speculative, subjective, interest rate and objective risks. It allows you to use measurement and analysis tools and techniques that are essential in analyzing risks including the risk versus return relationship, standard deviation and value at risk.

Applying Six Sigma in the field of asset management also allows you to take advantage of the DMAIC approach which stands for Define, Measure, Analyze, Improve and Control and considered as one of the most useful approaches in the field of implementing the methodology in various aspects of running an organization. This also works perfectly well with asset management. The Define stage of this approach allows you to establish financial, asset or investment goals that will allow you to make improvements based on the strategies used by your business as well as the demands of customers. This stage is a bit hierarchical and may include improving the employed return on capital at a specific level of your business strategy, reducing defects at a project level associated to improvement and increasing the performance of assets at maintenance and operations departmental level.

The Measure stage of DMAIC when planning to implement Six Sigma in asset management involves keeping track of data that are linked to business processes with the help of the most reliable metrics that are essential in reaching your established goals in the first stage. The Analyze stage encompasses the use of root cause analysis and statistical tools as a means of identifying the most effective ways on minimizing the identified gap between your desired objective and the current metrics. The Improve stage is all about properly optimizing business processes through effective analysis with the help of change management and project management strategies as a means of guaranteeing effectiveness.

The last stage of this approach which is the Control stage involves monitoring and controlling processes as a means of correcting variances prior to the appearance of defects. You will need to strictly follow adjustment procedures and policies, incentives and compensation standards, organizational structure, budget and asset management and information systems implementation as a means of ensuring that sustainability is achieved. When trying to implement Six Sigma in asset management, it is also essential for you to take note of the following attributes of the methodology since these are useful in boosting maintenance and reliability:

  • Publishing clear charters as a means of eliminating misconceptions and problems linked to communication
  • Confirming asset improvement opportunities and prioritizing those that can offer the highest level of support to the needs and requirements of your business
  • Establishing effective cross-functional teams as a means of bringing in relevant and useful multiple input from stockholders
  • Improving documents as a means of supporting continuous and efficient asset and investment improvement
  • Implementing the most effective control measures to ensure that improvements continue to stick together
  • Auditing and communicating actual achieved value

Importance of Six Sigma in Asset Management

Assets, investments and finances are among the most useful components of a business organization. Without these, it would be impossible for your business to continue thriving. This is the main reason why you need to implement an effective methodology which will allow you to effectively manage your assets, investments and finances and improve your performance through it. One of the best methodologies that you can implement is Six Sigma. Six Sigma in asset management is really important considering the fact that the methodology aims to achieve quality and the most optimum performance so reaching for your most desired level of success will become easier.

Six Sigma Black Belt Certification- $150 |  Six Sigma Master Black Belt Certification- $150
Six Sigma Master Implementer- $150  |  Six Sigma Green Belt Certification- $85

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