Six Sigma: How Much Can You Save?

Yes, there is no reference to how long a company will save on the successful implementation of Six Sigma. And there is a benchmark cost of implementation of Six Sigma techniques and methods. Before zeroing in the decision to go into the Six Sigma management must understand the financial commitments necessary for Six Sigma and economic benefits would accrue in the implementation. It is just like any other project where the cost-benefit analysis made by experts and the project is implemented if it is deemed economically viable.

It has been reported on the Internet and newspapers, the news that most companies that implement Six Sigma quality control has significantly their net profits. General Electric saved data from more than 12 billion dollars over five years, while Honeywell reported a gain of more than 800 million U.S. dollars. Motorola reported a saving of 1.4 billion billing manufacturing costs alone for the period 1987-1994, through Motorola has saved more than $ 15 billion over the last decade, the use of Six Sigma.

Without doubt, the reports are very encouraging for new businesses to jump into the process of Six Sigma, but stop! These companies have never mentioned how much they actually spent on the implementation of Six Sigma process. Therein lies the rub. Not one company has stated how he quantified the savings and cost savings.

With reports of disasters like Enron and WorldCom, what confidence can we have on this report? You must decide before jumping on the bandwagon Six Sigma, but we need to work with the adoption of Six Sigma companies work with integrity and reported that the financial savings after deducting all the costs involved and the savings Net earnings for the company as a direct result of implementing Six Sigma.