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Project Savings Over Time

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  • #32486

    AJ
    Participant

    How are other companies tracking project savings year to year?
    We only report project savings for the 12 month period immendiately following implementation, even though (theoretically) the savings continue ad infinitum.
    It would appear from examination of publicly reported 6 Sigma savings year over year, that most companies are doing likewise. However, if we are to promote the true value of the 6 Sigma methodology, is it not appropriate to roll up project savings for EVERY year that a given project still contributes to the bottom line?
    After all, if the project had never taken place, then the savings realized in year three (for example) would never have happened.

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    #87296

    Schultz
    Participant

         Counting it for one year following the end of the project investigation is  how we also do it.  Sometimes we have found some hanging fruit in the first few months before the project was completed but have ignored counting it.  There are all sorts of advantages and disadvantages in every way. I don’t think it will change.

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    #87911

    Hemanth
    Participant

    Hi everyone,
    I was looking for information on how savings are reported. It seems like the other two participants follow the method of reporting the savings achieved in the current year. However, there is this cummulative effect from the past year’s projects. Should we report them as well? The effect for us would be staggering, but to make apple to apple comparison we would like to know how other companies report their savings.
    Thanks in advanceHemanth

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