RE: Six Sigma

[Paul Beven <paul.beven@lineone.net>]

Before we wrap-up,please let some black-belt experts answer Deming's
question:how do you *measure and verify* the the real improvements and
so-called billions savings( see his comments in ppm program in OOTC).
Around 10 years ago, major companies reported saving 10 billions in COQ
programs.


In GE, the method of measuring the financial impact of improvements is called Quality Net Income (QNI). This was developed by the accountants based on Generally Accepted Accounting Principles (GAAP). Each project's QNI must be fully auditable - and a sample are subjected to this process to verify the results.

I cannot answer for what happened years ago - but despite some concerns it appears to be a not unreasonable tool.

Instead of people knocking, why not accept that whilst not perfect, six-sigma is acting as a vehicle for the dissemination of some of Demings (and others) key ideas within GE eg Understanding Variation and Systems Thinking.

Regards

Paul Beven
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