"Is Six Sigma Beneficial for Midsize Companies?"
Kathy Williams
Strategic Finance
November 2006, pp. 23-24
A recent report by the Aberdeen Group titled "Lean Six Sigma Benchmark Report" has found that "midsized" companies (defined as companies having revenues under $1 billion) save approximately 50 percent more ($1,281,000 vs. $825,000) per Six Sigma project than do larger companies. Midsize companies also saw an increase in Earnings Before Interest, Tax, and Amortization (EBITA) of 15 percent and an 18 percent increase in revenue.
The companies that follow the rigors of Six Sigma achieved better results. These are the companies that:
- Have formal Six Sigma programs in place
- Have adopted the DMAIC model
- Require Black Belts to have completed two projects or one project with savings in excess of an established amount
- Require Six Sigma project results to be validated by the finance area
- Have produced real financial savings
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