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Six Sigma Consultancy Charges

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  • #39349

    Six Sigma
    Member

    Hi!,
    Would like information on two accounts from the readers of Isix Sigma -:
    1. The average consultancy charges on a per day basis charged by  Top Notch Six Sigma consultants like GE, for implementation of Six   Sigma at an organisational level.
    2. Avg BB to GB ratio for a service organisation having around 4000 employees.
     

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    #119533

    Ken Feldman
    Participant

    1.  For SS training the average for the larger consultancies might range from $2,000-$3,000 per day.  For full deployment consultant activities, it might range from the $2-3K up to $10-15K per diem for such famous SS consultants as Stan Jack and Mike Carnell.  But then again, they wrote the books on the subject.  Since a number of SS consulting organizations are in financial trouble right now, you might be able to get them for $1,500 per day.  Small independents will usually take what ever you offer them but are very limited in the case of a large deployment.  Your spelling indicates that you are not US based.  There are some US based SS consultancies with significant overseas operations and wide deployment experience in large multi-nationals.  You might want to investigate them.
    2.  Seems to be about 1% BB and in my last service organization it was 15% GB.  Seems to vary by organization and consultant advice.

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    #119537

    New VGB
    Participant

    Representing  the  third-world my charge  per day is between $100-200.A really poor  consultant .I’m an engineer with very long  experience  in Industry and  change  management (inclusing  ISO,TQM…..).CQM,C(T)SS-GB…..etc (have  already published  more than 25  papers (3 of them in the  international ASQ Forum),2  books….etc).Really Unfair World,would  you agree  with me??

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    #119538

    Ken Feldman
    Participant

    $100-200 per day may be very lucrative if you live in the third world.  What is the relative cost of living where you are and what is the relative cost of labor?  I have had great difficulty, in the past, trying to get my usual daily rates in countries where the exchange might be a 30 to 1 ratio of exchange.  If the local costs of living and labor are comparitively low compared to the US, then local companies are not in a position to pay what appears to be steep rates.  A typical US consultant per diem might be equivalent to a manager’s monthly salary.

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    #119542

    New VGB
    Participant

    1:30 too much Exaggeration.Allow  me  to  tell you the  following  2  facts:An average*US or an  European  consultant  (living in middle  east -for  example- is  charging  (for  the  same  local required consultancy  job) 1000-1500 $ daily (10 times  more than the  local one).**Cost of  Living:one  impressive  example (in Jordan  for  example) a medium (decent) medium flat  would  cost in average  between $50000-70000?Do you think this   “cheap”?Finally let us  be  reaalistic  and  admit the  fact it is  UNFAIR. Thank You for  your  kind  reply and  attention.  

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    #119548

    Mikel
    Member

    What’s your point?

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    #119552

    Peppe
    Participant

    I suggest to apply the same strategy the top companies are using for manufacturing. Recruit low cost country consultants, at their local price, so that companies can save so much money. This could be the first real saving of  a good six sigma project.
    Rgs, Peppe

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    #119554

    New VGB
    Participant

    Agree.I have  no point.thank you.

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    #119577

    Mike Carnell
    Participant

    New-VGB,
    The cost to have us on site is actually zero. Our current deployment broke even in less than six months and the previous deployment 3 digit ROI over the first twelve months. If you are getting those types of results and billing the rates you stated (actually at your rate you should break even sooner) then you are under pricing yourself and that is your issue. Coming on to a public forum and complaining about unfair doesn’t make any sense. Nobody here can do anything about your issue. it is between you and your customer.
    It is a sales & marketing issue so treat it like a SS project and figure out why you aren’t getting what you think you are worth. I truely doubt it is your location – check your insertion point into the company. We have delivered in over 20 countries and our pricing does not change. If you can prove to yourself that it is location then the price to live where you do is costing you $1800 – $1900 per day and that is a choice you are making.
    BTW I have a signed contract in the Middle East at the same price I charge anywhere else.
    Published papers have nothing to do with your value as a consultant.
    Just my opinion.
    Good luck.

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    #119578

    Mike Carnell
    Participant

    Peppe,
    I have never seen this strategy. Do you have the names of those “top’ companies and the results that the consultants are delivering?
     

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    #119587

    New VGB
    Participant

    Agree.Thank  you for the  enlightenment,please note that I’m not  complaining but only wish to enrich the  discussion and  to put  a  new issue for debating (as  I believe THIS  it  an international  FORUM

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    #119620

    Mike Carnell
    Participant

    New-VGB,
    Maybe you can enlighten me. How does repeatedly making the remark (since it wasn’t complaining) to people who have no control over your situation, enrich the discussion?
    If you are looking for a debate on an issue that people on this sight cannot control you are wasting their time and yours. What you do with your time is up to you. I won’t be wasting my time on an issue that I believe is completely within your control.
    Good luck.

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    #119637

    New VGB
    Participant

    Agree.Ofcourse I don’t  intend to   waste  your  valuable  time.May be I should  address this  topic  to those who  are interested to “brainstorm”  some  new  ideas  in this  regard.I believe  that this  Forum is  an  excellent  venue for  discussion and  new  ideas (it is not  a  business site?).If you wish you may “ignore” my message (if you feel it  is  wasting  your  time).For  me  it is  an excellent  opportunity  to  enrich  my knowledge  and  experience.Anyhow  I have  always  admired  your  sound  logic and  your  reasonable  approach.Thank You. 

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    #119639

    Mikel
    Member

    Is there an actual point to all this drivel coming from you?
    Yes this is a business forum and somewhat of an international forum (this is kind of like the discussion of whether you are an American company doing business around the world, a multinational, or a global company). I don’t know what that has to do with this ramble you are on.
    Get to your point assuming you have one.

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    #119640

    Dayton
    Member

    Now that was being just plain rude.  
     
    I think that New-VGB is trying to say that there is a dichotomy between services needed, services rendered, and the capacity for economic benefit from and justification for those services within the non-US business community.   He is really pointing out the need to prorate the price/cost of services rendered against the capacity for the businesses in these non-US areas to financially benefit from the services. 
     
    It’s more a situation of pricing/costing against benefit derived in the nation receiving the services versus pricing/costing on a basis of what the services would bring in the contiguous US – taken as a cost-benefit basis and ratio. 
     
    I rather liked his parochial application of Keynesian macroeconomics to US based Six Sigma consultancies operating in ex-US and non-Western European business sectors.
     
    But, New-VGB if I mistook your premise and misarticulated the direction of your thoughts, please step-in and clarify.
     Vinny

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    #119641

    New VGB
    Participant

    Thank You Vinny .You have advocated my idea  much better than I could  do.In any case it was difficult  for  me  to face Stan (the  heavy-wieght Champion of this  forum).You have  proved that I was wise when I selected you as  “the virtual friend” and believe me when I say that I’m enjoying  this  debate . Stan should have the special  credit of  making several “rude funny remarks” (straightforward).Appreciate your comment.  

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    #119642

    Dayton
    Member

    OK.   Good.  Now that I understand your position better, I have to say that I don’t agree with you.  You need to look also at the prorated cost to benefit analysis based on the expense and sophistication of services needed and rendered versus only on your unique situational economic conditions. 
     
    The US based consultancy has not reduced its internal costs by operating in a non-US based environment.   If anything it has added to its costs due to travel and general operations in a less supported infrastructure.
     
    You should look to your domestic consultancies for assistance, as they would have cost/price profiles more in line with your economics.  It is opportunity for you and others in your area versus trying to bring in US-based assistance and expecting the pricing and costing to be adjusted to your economics. 
     
    Now if you need conceptual or start-up assistance for your fledgling domestic consultancies, recognize that as such and pay the going rate – the US going rate because that’s where the providers are basing their costs.  
     
    Globalization is a two-way street.
     
    Your virtual buddy,
     Vinny

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    #119643

    Mikel
    Member

    Vinny hasn’t proved that you are wise – that’s much too big of a leap of faith.
    I think it is very rude of you to say I’m rude. I’m still responding to your “unfair” contention. Life is unfair – the alternative sucks – what you gonna do?
    Would you rather be struggling to make your life better or prancing around in a thong on SoBe with a bottle of tequila like Darth?

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    #119645

    Son of Stan
    Member

    Vinny, here is your very own Dr. Vinny Virtual Buddy Rigorous PhD Program Savior of the World GiantMedical Device Doll.  Please feel free to forward to your new cyber buddy. 

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    #119646

    Son of Stan
    Member

    Vinny, here is another virtual buddy doll for your pal, Darth.

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    #119648

    Dayton
    Member

    SOS,
     
    You are very thoughtful and too, too kind.    The likeness is astounding.   Proportionally my head is actually a little larger and my hair a bit more unruly but otherwise spot on.  I’m certain that my little cyber-buddy will be thrilled.
     Vinny

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    #119649

    Dayton
    Member

    SOS,
     
    On the other hand, the actual Darth is a bit more diminutive than depicted although his head to torso ratio looks about right since he is one of the more intelligent and large-brained folks – that is if you buy into his theory of intelligence as a factor of a positive ratio of brain weight and volume to spinal cord weight and volume.   
     
    Of course it could be an artificially inflated ratio created by the visual impact of a much too large and mostly empty helmet.   But then the Lean Sigma group only hires the real deal so I’m betting that beneath the dark helmet lurks a massive brain pan. 
     Vinny

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    #119653

    New VGB
    Participant

    Agree

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    #119654

    New VGB
    Participant

    Thank You .I will try  to follow  your  advice.

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    #119661

    Dayton
    Member

    There was no advice in either posting and nothing that you should follow.    You agreed with two divergent perspectives.   Pick one and advocate it or not, but don’t agree with both – it appears that you read and understood neither.
    Vinny

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    #119662

    Dayton
    Member

    Would you rather be struggling to make your life better or prancing around in a thong on SoBe with a bottle of tequila like Darth?
     

     
    Easy question.  SoBe, SoBe.  Prancing around with Darth in thongs and fighting over end-of-bottle tequila worms.  
     
    Ahhh, the life of the Neo-Hemmingway, Neo-James “Sonny” Crockett metrosexual in smarmy SoBe.  
     Vinny

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    #119663

    Mike Carnell
    Participant

    New-VGB,
    You need to check out this link. This is the advice you seem to need more than anything.
    http://www.scottstratten.com/movie.html
    Good Luck.

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    #119664

    Ken Feldman
    Participant

    THERE IS NO WORM IN TEQUILA.,  THE WORM IS IN MEZCAL. 
    MIDNIGHT TONIGHT IS THE PREMIER OF MY MOVIE AND I FIND OUT WHY I AM SUCH A LOVEABLE MOVIE CHARACTER.  SEE YOU ALL AT THE THEATER TONIGHT.
    Here is a real shot of me at the beach last weekend.  Notice I DO NOT wear a thong but do wear my cool gold chains.  The chicks dig the look.  I have removed the cape to allow me to soak up the rays.

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    #119665

    vidyut
    Member

    new -vgb
    do try / marketl your services to  companies in US.
    Both should benefit, if you are as good as the other.

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    #119666

    Dayton
    Member

    While THERE IS NO WORM IN TEQUILA., Darth does indeed rule SoBe.    Vinny

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    #119711

    New VGB
    Participant

    Thank You.I really appreciate  that.

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    #119712

    New VGB
    Participant

    Thank You.I appreciate your  advice.Let  me  know  your  email (if  you wish) to send  you some  material.

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    #119716

    vidyut
    Member

    Send to sigmaqualityatyahoodotcom

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    #119750

    Mike Carnell
    Participant

    You are welcome.

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