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Six Sigma – finacial impact in banking

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  • #24374

    Bart
    Participant

    Hello,
    do you have any examples of financial impact that Six Sigma affected financial institutions. I am interested in creating some kind of benchmark which I need to prepare for my CEO.
    Best regards,Bart

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    #58503

    bb_banking
    Participant

    Don’t waste your time and energy benchmarking. Simply present the following opportunity.
    Non six sigma companies operating at 3 to 4 sigma typically spend between 25-40% of there revenue fixing problems. Companies operating at 6 sigma spend less than 5% of ther revenues fixing problems. The dollar cost of the difference is huge. Look at GE and the gap between 3 and 4 sigma costs them $8 to $12 b year.
    Having said,  estimate the % revenue that your company spends time fixing problems across all channels. Keep in mind, your audit, compliance and regulatory concerns drive a lot of inspection costs as well.The number would also have to include wasted capacity (opportunity cost) at least from your front line associates as well
    Rest asured, the numbers will speak for itself and benchmarking will play little in the decision to use 6s.
    Good Luck
    Also, try out the link below.  Has some info that may be of benefit as well.
    http://www.celent.com/PressReleases/20021213(2)/SixSigma.htm
     
     

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    #58552

    charu
    Participant

    BB_Banking,
    I was not able to access the article with the link you metioned. I believe it is only for client access. If you can send us the article some other way, that would be very helpful.

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