Six Sigma opportunity.

home || services || about us || contact us || e-mail

2% of gross sales as additional PBT each year for 5 years.

Six Sigma performance is:

• 3.4 defects per million opportunities or less.

• Less than 5% of gross sales to correct defects.

Most North American organizations are operating at about 3 Sigma performance.

• About 66,800 defects per million opportunities.

• 25% of gross sales used to correct defects.

Defects include anything that is not perfect. Often the biggest opportunities are outside manufacturing. Some examples of defects:

• Service that did not meet the customer's expectations.

• Unanswered phone.

• Invoice errors.

• Missed discounts.

• Late or early delivery.

• Overtime.

• Scrap or waste.

• Rework or recycle.

• Typos.

• Late filing of reports or applications.

• Low yields.

• etc.

Six Sigma Opportunity.

Difference between 25% of gross sales for defects and 5%.  That is 20% of gross sales as potential additional PBT (profit before taxes).

Assume you could only get half of that or 10% and it took 5 years to make those improvements.     

2% a year of gross sales as additional PBT.

Many other benefits are possible with successful Six Sigma implementation.

Contact us to get started.

Adams Associates

10A Bayou RD

Lake Jackson, TX 77566

979-297-5198

cadams@adamssixsigma.com

|| newsletter archives ||

home || services || about us || contact us || e-mail