iSixSigma

where is the money

Six Sigma – iSixSigma Forums Old Forums General where is the money

Viewing 10 posts - 1 through 10 (of 10 total)
  • Author
    Posts
  • #39811

    ASK
    Participant

    Hi,
    I’m a black belt and working on a company that implented six sigma for 5 years now. Based on my observation, we cannot hit our target ( bottom line – money ) if we will just do hardcore six sigma projects.
    Our company wants a hard savings not avoidance, if you have experience on having huge hard savings in your area, please share it to us.
    thanks,
    ask

    0
    #122094

    Tony Wang
    Member

    For most of SS project on improving product quality, there are little hard saving. If you want to get a huge saving, you can focus on the purchasing and supplier chain. Becasue the material volme is large, and the amount is also very big whatever the material cost, freight etc. I had been done a project to reduce inbound freight. I get a big benifite from that project. I think you can get success by optimize supply chain, buy some component from low cost country and reduce inventory etc.
    I hope it can do help to you!
    Best Regards
    Tony Wang

    0
    #122095

    ASK
    Participant

    tony,
    Thanks for your immediate reply, but in our company, purchasing has their own target which is even bigger than our target so we cannot touch that particular area for six sigma.
    we are doing reduction of inventories and we had two projects with 1.5 million dollars soft ( not considered as hard savings ) savings.
    ask

    0
    #122098

    Tony Wang
    Member

    I think you can involved in purchasing department. Purchasing manager can be the sponsor or process owner in this project. So the benifite can attribute to both of you.
     Besides of that, you try to look for the neckbottle duirng the production. If there is one neckbottle, take a solution to solve that can result a big saving. If your company has many subfactory or branches, integrate their telephone system can save much money.
    Best Regards
    Tony Wang

    0
    #122105

    ASK
    Participant

    Where are the “experts” on this forum, I need your help?
    thanks
    ask

    0
    #122114

    Mikel
    Member

    For starters, ask the idiots who run your company if $1.5 cash flow brings value to your company.
    Second the money depends on what your company does and what kind of market they play in. The conversation you need to have is around strategy. Who are we and who do we need to be; what subset of all of our processes are critical to making this happen; where is the flow of materials, service, information, or cash being disrupted? Get through this conversation with those who run the business, everyone will understand where the projects are. Find someone smart in Finance that can help put $ to the projects. Get professional help if needed.

    0
    #122189

    ASK
    Participant

    Thanks Stan

    0
    #122202

    A.S.
    Participant

    To get the more financial benefits through six sigma project the first step is you have to identify the matrices / measurables.By doing global bench marking,identify the gaps as an opportunity.The same opportunity can be taken as project goal.
    Try to involve every one in six sigma.Cost reduction through too many channels never help you.

    0
    #122203

    A.S.
    Participant

    To get the more financial benefits through six sigma project the first step is you have to identify the matrices / measurables.By doing global bench marking,identify the gaps as an opportunity.The same opportunity can be taken as project goal.
    Try to involve every one in six sigma.Cost reduction through too many channels never help you.

    0
    #122244

    McD
    Participant

    Stan is absolutely right, not only on understanding the strategy, but on getting the bean counters involved.  For any savings to be credible, they need to be validated by the controller’s department.  If they are big, then an external auditor is sometimes called for.
    There is another harsh reality that most of us generally have to face … nine times out of ten hard savings means headcount reduction.  If you are unwilling to swing the axe, you will be foregoing many opportunities.
    –McD
     

    0
Viewing 10 posts - 1 through 10 (of 10 total)

The forum ‘General’ is closed to new topics and replies.