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The impact of Six Sigma

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The impact of Six Sigma


November 9, 2012

 

In a new study on Six Sigma the savings to cost ratio ranged from 2.6 : 1  through to  2 : 1.  As for cost savings as a percentage of revenues, the average was 1.7%.  This study showed clearly the impact of Six Sigma and its ROI.

As a rule of thumb a company with $100 million in sales could expect $1.5 million of direct savings per year of implementation.

(Costs and Savings of Six Sigma Programs: An Empirical Study, Quality Management Journal, October, 2012)

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