Activity Based Costing
What is it and how can reengineering teams use it? From BPR OnLine Resource Center.
An Ontology for Activity-Based Cost Management
Establishing a core cost ontology can improve communication of ABC across all organizational departments. Then cost ontology is defined and followed by how it is to be used in cost management. From University of Toronto.
Calculating COPQ Using Weighted Risk of Potential Failures
The Cost of Poor Quality (COPQ) is the initial financial analysis conducted for a Six Sigma project. The challenge comes when no measurements are available at initiation of a project. Here is an appraoch for meeting that challenge. From Pankaj Sharma.
Calculating Return: A Strategic Measure Of IT Value
Determining the value of an IT investment is paramount to your project's green light. Find out why executives are looking to traditional management theory. (PDF file) From Baseline Magazine.
Calculating the Cost and Savings of Six Sigma Quality
One of the most distinct differences between Six Sigma and other quality management systems is the link to business finances. For the greatest business benefit, calculate financial benefit before, during and after. From iSixSigma.
Capturing Financial Benefits From Lean Manufacturing
Organizations are quick to adopt the Lean or Six Sigma religion, but management is sometimes underwhelmed with the bottom-line savings. What often gets lost is the discipline in tying activities to clearly defined and auditable financial results. There are several lessons that can be learned that can help organizations translate transparent intentions into visible financial results. From Terence Burton and iSixSigma.
Dollar Savings For Stock Reductions
From the iSixSigma Discussion Forum: "How do I quantify a real dollar value for the reduction of stock on hand?" From iSixSigma.
Hard and Soft Savings: What Counts Can Be Counted
Organizations using Six Sigma measure success in terms of hard savings, and are less impressed with soft savings. But it pays to consider both when evaluating a Six Sigma project. Sometimes soft savings are harder than management realizes. From iSixSigma.
Involving Finance in Six Sigma Do It Early and Fully
How confident can a company be that claims of Six Sigma benefits actually impacted the bottom line? BHP Billiton Base Metals found an answer through the early and full involvement of its finance department in its deployment of Six Sigma. From Cristian Ulloa.
Linking Quality to Business Finances
Learn why linking Quality to financial results benefits everyone in the business. From iSixSigma.
Measuring Quality'$ Return on Investment
To improve your organization's bottom line, improvement action must address processes and systems and action must focus on prevention of mistakes. Learn more about quantification. From Quality Digest.
Monitoring Return on Investment for Internet Initiatives
The Internet channel has seen the migration from an exploratory revolution of new functionality to creating a viable profitable business, but it is no longer feasible to place additional technological enhancements on the web without considering the payback model in which returns and/or cost savings can be generated. From Richard Bellanca and iSixSigma.
Poor-Quality Cost Concept and Practice
The evolution Of poor-quality cost models and descriptions of important concepts. From H. James Harrington.
Quantify the Benefits of Six Sigma Projects
Create Six Sigma project charters that are compelling to business leaders by capturing all quantifiable benefits of eradicating a business problem. This checklist will help you do so. From Charles Waxer and iSixSigma.
Six Sigma Costs And Savings
In the world of Six Sigma quality, it takes money to save money. You can't expect to significantly reduce costs and increase sales using Six Sigma without investing in training, organizational infrastructure and culture evolution. But if you do invest, the savings are significant and should catch the eye of any CEO or CFO. This article include real data from real companies -- how does your company compare? From Charles Waxer and iSixSigma.
The ABCs of Cost
Budgets are easy to fraction, but do companies really understand their true costs of doing business internally, or with suppliers and customers? Activity-based cost management (ABC/M) has been around for a decade, but it's hardly a household term. Read more about it here. From Line56.
What Is The Cost Saving From The Reduced Inventory?
For my first six sigma project, I am trying to control our material and components inventory. With more frequent delivery of some local suppliers, I hopefully will lower the inventory level of some components, the related cost saving includes warehouse rental, inventory carrying cost, and so on. What about the direct saving from the capital freed from the inventory? If I reduce the inventory value from $1000 to $700, can I include that $300 in my cost saving? or just a percentage of it? I heard of Oppotunity Cost, but I don't know if it is applicable to this case... Many helpful suggestions are provided for other readers tackling inventory Six Sigma projects. From the iSixSigma Discussion Forum.
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