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 Cost Benefits Case Study

The table below identifies by company, the yearly revenues, the Six Sigma costs (investment) per year, where available, and the financial benefits (savings). There are many blanks, especially where the investment is concerned. I've presented as much information as the companies have publicly disclosed. Source: iSixSigma.com >>>

 

Table 2: Six Sigma Cost And Savings By Company
Year Revenue ($B) Invested ($B) % Revenue Invested Savings ($B) % Revenue Savings
Motorola
1986-2001 356.9(e) ND - 16 4.5
Allied Signal
1998 15.1 ND - 0.5 9.9
GE
1996 79.2 0.2 0.3 0.2 0.2
1997 90.8 0.4 0.4 1 1.1
1998 100.5 0.5 0.4 1.3 1.2
1999 111.6 0.6 0.5 2 1.8
1996-1999 382.1 1.6 0.4 4.4 1.2
Honeywell
1998 23.6 ND - 0.5 2.2
1999 23.7 ND - 0.6 2.5
2000 25.0 ND - 0.7 2.6
1998-2000 72.3 ND - 1.8 2.4
Ford
2000-2002 43.9 ND - 1 2.3
Key:
$B = $ Billions, United States
(e) = Estimated, Yearly Revenue 1986-1992 Could Not Be Found
ND = Not Disclosed
Note: Numbers Are Rounded To The Nearest Tenth
 
 

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