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Articles
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QICID: 19572
Title: Six Sigma and the Bottom Line
Copyright: 2004.ASQ
Author: Bisgaard, Soren; Freiesleben, Johannes
Organization: University of Massachusetts-Amherst, Amherst, MA; Ringier AG, Zurich, Switzerland
Subject: Cost of quality (COQ),Six Sigma,Design for six sigma (DFSS),Return on Investment (ROI),Quality improvement process (QIP),Accounting,Business results,Upper management;
Series: Quality Progress, Vol. 37, No. 9, September 2004, pp. 57-62
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Abstract: The cost of poor quality is a key criterion for the selection of Six Sigma projects. The economic effects of Six Sigma can be impressive, but must be evaluated relative to a company's cost structure and revenues. While defects and other quality metrics are not easily translated into monetary units, using a managerial accounting framework modified to the quality context will help quality professionals communicate effectively with upper management. Money spent on Six Sigma must be considered an investment, not a cost.
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