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Rewarding Recognizing Black Belts Green Belts

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Viewing 29 posts - 1 through 29 (of 29 total)
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  • #42865

    Neo
    Participant

    If anyone can help me on what methods are used/effective in recognizing & rewarding black belts and green belts, it would be most helpfulIf financial rewards are used, how are they determined? if performance linked bonuses are used, how are they calculated?Which is better: financial or non-financial recognitions?
    etc.

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    #135523

    qwert
    Participant

    For a completed black belt project we calculate the reward bonus at 15% for the first $100,000 and 20% for the portion that is above $100,000. This is a one time bonus for the project and is not paid every year.We take the position that if big bonuses are good incentive for senior management then they should be just an effective for everyone else.

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    #135525

    BTDT
    Participant

    qwert:This is very interesting, I’d like to talk with you about this. Could you contact me at 6SigmGuru(at)gmail(dot)com?Cheers, BTDT

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    #135548

    qwert
    Participant

    After thinking about it some more I can’t imagine working somewhere that does not have an incentive program like ours. MBB and BB are the change agents of the company. Other than a few of the senior managers that “get it” who else strives to make improvements? If you do not receive some sort of additional financial benefit from saving the company millions then look up the word “chump” in the dictionary and tape your picture next to it.

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    #135549

    Zero_Cool
    Member

    qwert,
    WOW…THIS IS GREAT…There might have many SS project in your plant. This is a great oppurtunity with high payback….Could you tell us what kind of manufacturing your involve in.
    Zero_Cool 

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    #135551

    BTDT
    Participant

    qwert:I’m interested in talking with you more about methods to make implementations work well. It sounds like you know more about this than just the comp program.Cheers, BTDT – 6sigmaguru(at)gmail(dot)com

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    #135552

    Adam Bowden
    Participant

    WOW – can I come and work for your company – after generating
    $40m in benefit last year I ish that they had the same program here –
    this year the bonus barely covered the “shoe leather” replacement :-(Regards,Adam

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    #135557

    march
    Participant

    What about who do not achieve targets ? You ask them for damage ? Your MBB/BB are covered by assurance, in case of failure ? 

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    #135624

    Jim Wasiloff
    Participant

    Dear qwert,
    I am currently engaged in leading deployment of Lean Six Sigma and Design for Six Sigma in a defense enterprise and would be very interested in learning more about your incentive process.  Can you also provide info on the company or business domain / sector you are referring to?  Thanks

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    #135628

    Back
    Participant

    Dear neo.
    For a completed black belt project we calculate the reward bonus at 30% x Total Benefit for the first year. This is a one time bonus for the project and is not paid every year.
    The parts are:8% to BB; 7% to Process Owner; 6%to GB; 4%YB and 5% to Sponsor.
    Sorry for my English.
    Bast regards,
    Back.

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    #135649

    Black Belt Boy
    Participant

    Wow,
    I work at Dana and my reward is keeping my job.
    I get no rewards for doing my job, except get more savings!
    (Maybe that’s why Dana is where there at).
    Anyone have any openings?
    As a matter of fact, no one gets raises anymore.

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    #135654

    Elbrin
    Participant

    Dave, is that you????

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    #135658

    Black Belt Boy
    Participant

    Sorry, this is not Dave.

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    #135672

    Griswold
    Participant

    Black Belt Boy,
    I think you are probably working for a company that is challenged like many others.  Savings is no longer a nice to have – it is survival at the very least.  There are those companies that if they do not increase their revenue by finding costs savings, the revenue line and the expense lines will cross – and that ain’t good.  The manufacturing world is exiting the country rather rapidly – many reasons for that.  So Continuous Improvment is not a nice to have – it is a must have.  A bonus structure needs to take into consideration the health of the company.  Certainly the doers need to be recognized and rewareds. 
    It is no surprise that the Six Sigma world is being applied less and less in the manufacturing world and more and more in the transactional world….because there is simply less manufacturing!  But the opportunities in the rest of the business world seem limitless.  That’s why we shouldn’t say, “Lean Manufacturing” anymore – it is, to me, “Lean Business.”  It applies and works everywhere. 
    Okay I am digressing here.  Bottom line a reward system should be fair to all.  And a struggling company needs as much of that money as possible, but must also recognize that if you are good at saving them money, and they don’t reward you adequately – you will do the same as many manufacturing companies – go somewhere else!

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    #135675

    Black Belt Boy
    Participant

    Thanks for your input.
    I’m not asking or care for rewards for savings.
    It’s the savings I’m concerned about.
    We already had to restate earnings due to accounting practices.
    The push to save money has caused a climate of make the numbers show a savings and don’t go back to see if the savings worked or see if the fix caused a worse problem.
    One example from the lean group was to install some equipment inline to reduce manpower, great savings! But, the equipment keeps breaking, maintenance downtime is spent trying to fix them and production has gone done.  Now, do you subtract these from the manpower savings? Or does this become another project for someone? What happens when the project can’t be controlled in a year (after the savings is booked), it becomes another project!
    I don’t see that as right, at other places I’ve had to have a secondary metric to keep the first one honest. An example is increase production output, second metric is keep or reduce the current scrap level.  Anyone can increase production and increase scrap at the same time.

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    #135680

    Griswold
    Participant

    You are absolutely right.  The problem sounds like you found a solution to one thing and created a problem to another.  Which in the Continuous Improvment world means you do not have an elogant solution.  Thus the old adage, test on a small scale.  This also happens when you treat common cause variation as special cause.  You fix something that is inherent in the process instead of working to reduce the variability of the process – then determine things such as manning needs.
    If you have a Control Chart of maintenance cost (per hour/per week/month whatever).  It would be interesting to see if you had a shift since the change.  It sounds like you have, and it is not a positive one.  You apply those cost against the reduced manning cost and you have an immediate look at your level of success.  The real danger, at least it sounds like it, is now your maintenace cost is increasing and the concern becomes just how long will it be before you have a catastrophic problem that costs huge dollars.  This could conceivably wipe out any savings you reached.  God I hate to sound so negative, but it can happen.  The powers that be need to clearly understand what real improvement is.  There is a tuition for everything – in this case increased maintenance.  You don’t want to pay an Ivy League College cost for a community college education!

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    #135750

    velveteen belt
    Member

    I developed an extensive Six Sigma comp policy and lucrative payment model that is being pitched to our execs.  Reply if you want a template to do the same, but only if you’re comfortable causing waves :)

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    #135751

    Griswold
    Participant

    I’m interested.

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    #135765

    BTDT
    Participant

    Veleteen Belt:I also find this veeeery interesting.Would appreciate a copy of the incent/comp proposal before the tsunami.6sigmaguru(at)gmail(dot)comCheers, BTDT

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    #135769

    Rajvada
    Participant

    I have been entrusted to develop BB/GB reward policy for my company. I would appreciate if you can share the information you have already worked upon.
    Regards
    Rajvada
    [email protected]

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    #135771

    velveteen belt
    Member

    I’d be glad to share it in hopes that others are successful at establishing similar comp plans.  As I see it, there doesn’t appear to be a lot of information on the subject as it relates to BB/GB reward compensation.  Of course, I am equally interested in gathering detailed information from others and so I will be very motivated to share it with those of you who can trade substantial info.  As a reminder, I have a fully written policy explaining definitions, calcs, approval/validation process, as well as a payment model that calculates based on  alternative accounting methods.
    Best Regards,
    Velveteen Belt

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    #135774

    Vinay Goyal
    Member

    I have worked for companies those have a fairly good bonus plan for 5 years, one time to nothing. The best reward for me was job my personal job satisaction and hands on experience. When I am loking for a job, I can speak with facts and do not need to fabricate a story.
    We do six sigma projects everyday in our life but we do not document and quantify improvements and retrun on investments.
     
     

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    #135807

    Zero_Cool
    Member

    A NOBLE DEED … Hope your effort are not forgotten and be in vain.

    Zero_Cool
     
     

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    #135857

    velveteen belt
    Member

    Zero,
    Like many of us, I’m not after “nobility”… I’ll gladly take the money, preferably after I’ve designed the payout system :)
    Velveteen Belt

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    #136628

    Aldo
    Participant

    Dear All
    I am from Brazil and i am starting as Black Belt. My first SS project is about improve productivity in bend(fold) area of sheet metals. My Champion wants to know how to reward the team. Can you help please?
    Thanks in advance.
    Best Regards,
    Aldo
     

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    #136630

    velveteen belt
    Member

    Try…
    10% bonus of total savings to BB in a 1 time payment following 6 months of validated savings after close of the CONTROL phase.  Don’t let him talk you into placing a cap on the % related to the BB’s salary (such as 10% of savings up to 25% of the BB’s salary).
    Velveteen Belt

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    #142656

    Ashman
    Member

    Velveteen Belt,
    How do I get ahold of you to see the information you are talking about?

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    #142658

    velveteen belt
    Member

    You can reach me at [email protected]
    Veleveteen Belt

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    #142664

    melvin
    Participant

    Qwert:
    It is the BB’s job to save money ($ millions even) for their company.  I would consider someone that receives a bonus as large as the one that you mention as being very fortunate.  Most companies do not do this to the extent that your comapny does.  What do they receive if they have zero or very little savings?
    Hey, here’s a good money savings idea:  Reduce/eliminate the bonus – probably save hundred of thousands…..
    Sincerely,
    “Chump”
     
     

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