iSixSigma

Six Sigma Saves the Fortune 500 $427 Billion

Let me introduce you to the iSixSigma published report, Six Sigma Saves a Fortune. Featured in the January/February issueof iSixSigma Magazine. The research is sure to interest the entire Six Sigma community – advocates as well as naysayers.

Press release:

“Over the past 20 years, use of Six Sigma, the popular business improvement methodology, has saved Fortune 500 companies an estimated $427 billion, according to research published in the January/February 2007 issue of iSixSigma Magazine.

“The estimate is based on reported savings linked to Six Sigma in public documents. “Our data also showed that corporate-wide Six Sigma deployments save an average 2 percent of total revenue per year,” added Michael Marx, research manager for iSixSigma.”

We have real numbers that estimate Six Sigma savings to be quite significant. A management philosophy that has saved nearly a half a trillion dollarsat Fortune 500 companies alone since 1987 is quite an accomplishment.

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So if you’ve been reading the negative press Six Sigma has been getting lately (Fortune article, Dilbert comic, and the recent WSJ article) don’t be too quick to judge Six Sigma. Let these savings numbers speak for themselves.

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Comments 3

  1. Ron

    Hi Michael,

    My most recent blog entry is on this story… hope you don’t mind!

    Cheers,
    Ron

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  2. Mike

    Charles Holland of QualPro is still at it. His data was published in the most recent edition of Chief Executive magazine. You can find it at Chief Executive Magazine.

    It amazes me they can publish an article from a direct competitor and call it "news." I’ve already fired off a message to the editor. :)

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  3. aint that easy

    The article I’ve linked is but one of many claiming that implementation of Six Sigma improves stock price.

    Most of the statements regarding the conflation of correlation and causation in QualPro’s analysis are true. Just as the claims made by much of the Six Sigma community arguing the opposite 7 years ago conflated cause and correlation. However, I sure didn’t see tier 1 providers of Six Sigma services angrily pointing this out in 2000.

    In fact, the Six Sigma community sounds an awful lot like many of the CEOs they are beginning to ridicule: they are more than willing to take credit for the successes, but blame their failures on exogenous factors.

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