Tag: accounting

Let’s face it – without meaningful data there cannot be meaningful data analysis. Data is typically collected as a basis for measuring success and, ultimately, taking action. However, unless data is viewed realistically – separating opportune signals from probable noise – the actions taken may be inconsistent with the data collected in the first place. […]

As a Black Belt, I know it is easy to fall into the trap of working only on projects that cut costs. I also know that this type of “accounting” is a slippery slope that can cloud essential business goals by creating unfounded visions of savings. Don’t get me wrong – cutting expenses is important. […]

By Jeffry J. Smith How can practitioners create a rigorous accounting method for measuring the financial benefits from their Six Sigma projects? The key here is being able to translate measured operational benefits into dollars, either in the form of cost reduction, inventory reduction or a revenue increase. The following five areas should be measured […]

Ms. Collette D’Bills, patient accounting, has gathered data related to accounts receivable, entering it to an Excel spreadsheet. In fact, she has several years’ worth of data in her Excel files, but has not been able to understand what it means, except to see that accounts receivable sometimes go up and sometimes go down. At […]

Effort accounting is needed in software and IT for the simple reason that labor is generally the most important controllable element of cost. Labor cost (effort hours times prevailing labor rate) is an essential and fundamental element of efficiency measurement. Six Sigma projects in software and IT (especially DMAICs) are often focused on driving down […]