CHAPTER 1 The ROI of Lean Six Sigma for Services
"The lack of initial Six Sigma emphasis in the non-manufacturing areas was a mistake that cost Motorola at least $5 billion over a four year period."
—Bob Galvin, former CEO of Motorola
Service operations now comprise more than 80% of the GDP in the United States and are rapidly growing around the world. Even within manufacturing companies, it's common to have only 20% of product prices driven by direct manufacturing labor—the other 80% comes from costs that are designed into the product or costs associated with support and design functions (finance, human resources, product development, purchasing, engineering, etc.).
Moreover, in service applications, the costs related to work that adds no value ...
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