What are the financial & other benefits of Six Sigma?
The financial benefits from a Six Sigma project can be astounding, cost savings in GE, Motorola and Allied Signal are well documented and run into $Billions. • Motorola: (5 fold growth in sales with profits climbing to 20%, cumulative savings pegged at $14billion,stock price gains 21.3% annually) • Allied Signal: (market value compounded 27% per year, savings $600million per year, 6% productivity increase and record 13% profit in 1998) • GE: (savings $750 million 1998, $1.5billion 1999, profit margins at 15% after years at the 10% level) Other benefits include: • Generation of sustained success • Sets performance goals for everyone • Enhanced Customer Value • Accelerates the rate of Improvement • Promotes learning & “cross-pollination” • Executes strategic change. What are the main considerations for a Six Sigma project ? The main considerations for Six Sigma can be categorized as follows: • Is Six Sigma right for our Business at this time? • What is the cost of Six Sigma? • How long d
