Best Practices

The impact of Six Sigma

In a new study on Six Sigma the savings to cost ratio ranged from 2.6 : 1 through to 2 : 1. As for cost savings as a percentage of revenues, the average was 1.7%. This study showed clearly the impact of Six Sigma and its ROI. As a rule of thumb a company with $100 million in sales could expect $1.5 million of direct savings per year of implementation. (Costs and Savings of Six Sigma Programs: An Empirical Study, Quality Management Journal, October, 2012)
Nov. 9, 2012

 

In a new study on Six Sigma the savings to cost ratio ranged from 2.6 : 1  through to  2 : 1.  As for cost savings as a percentage of revenues, the average was 1.7%.  This study showed clearly the impact of Six Sigma and its ROI.

As a rule of thumb a company with $100 million in sales could expect $1.5 million of direct savings per year of implementation.

(Costs and Savings of Six Sigma Programs: An Empirical Study, Quality Management Journal, October, 2012)

About the Author

Denis Leonard

Denis Leonard has a degree in construction engineering an M.B.A. and a Ph.D. in quality management. Denis is a Fellow of the American Society for Quality, a Certified Quality Manager, Auditor and Six Sigma Black Belt. He has been an Examiner for the Baldrige National Quality Award Board of Examiners a Judge on the International Team Excellence Competition and a Lead Judge on the National Housing Quality Award. A former Professor of Quality at the University of Wisconsin, he has experience as a quality manager in the homebuilding industry as well as construction engineer, site manager and in training, auditing and consulting with expertise in strategic and operational quality improvement initiatives. His work has achieved national quality, environmental and safety management awards for clients.

Denis is co-author of 'The Executive Guide to Understanding and Implementing the Baldrige Criteria: Improve Revenue and Create Organizational Excellence'.

http://www.BusinessExcellenceConsulting.net

[email protected]

Full listing of blogs https://www.probuilder.com/author/denis-leonard

Sign up for Custom Builder Newsletters