Personnel savings in six sigma projects

logically speaking take into account a few things
– will the personnel involved in all non value added stuff which you improved and tehreby shall never be required again
– if for example you reduce number of calls coming at a given point which are dependent on total subscribers you may reduce the headcount for few months but these people shall be required as the number of subscribers increase, typical case of linking projects savings which are short term
– if there is an automation done which reduced the personnel completely and which takes care of long term as well you may take the savings of their salaries
else can put the savings at the end of the year seeing that these personnels were not required at all and the process worked smoothly
hope it suffice
 

I would think this is a question that should be answered by your finance people. They are in a better position of knowing what the rules being used to count savings for Six Sigma projects and what the accounting rules your company is using. All we could do is make guesses based on what our finance people have decided. Those guesses will only be helpful if we happen to have made all the same choices on the accounting rules, not a highly likely event.

On eyear or three years, depends on how your company wants to make the determination. My comapny uses one year savings in all aspects.

Naveed,
My experience is that it is typically baselined against the previous years performance…
Bob J