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The Savings Conundrum

Mr. Parag Mehta
in General Discussions

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      Majority of Six Sigma projects focus on cost reductions, resulting in hard savings. Corporations prefer seeing financial savings as the bottom line and are cautious addressing the intangibles associated with soft savings. (Soft savings are financial benefits that may occur as a result of a Six Sigma project, but might not be attributed as a direct outcome of the project). How important it is do understand the value of soft savings rather that the preferred option of calculating a dollar/rupee impact? In the long term can all soft savings translate to hard savings?

 

 

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