By Hamilton L
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Example text
40 percent), a wholly owned subsidiary of Aber Diamond Corporation of Toronto, Ontario. The implementation of business practices for the Rio Tinto group of companies is defined in the corporate document, The Way We Work, and includes social responsibility as a central tenet. Rio Tinto’s elements of social responsibility such as safety, occupational health, and the environment would be included in the Corporate QFD alongside the financial goals. Improvement efforts in all segments of the business would now roll up into the Corporate QFD.
Changed metrics from volume of product to dollars and margin. • Grew sales by shifting production and resources to high margin products. • Used profits to fund more R&D to develop higher margin products. • Overhauled daily tracking systems to record dollar sales, not weight, and altered bonus plans to reward profits and cash flow, not volume. 10 Incentives, Compensation, and Certification The visibility of corporate metrics is only half the story in making lean Six Sigma successful. During the 1997 annual meeting of all GE executive in Boca Raton, a memo from Jack Welch (Chairman and CEO), Paolo Fresco, and John Opie (Vice Chairmen and Executive Officers) announced that all executive band promotions were “frozen” until candidates had received Green or BB training.
A common example of horizontal analysis is the comparative balance sheet or comparative income statement seen in annual reports. It is customary to report absolute changes in addition to percentage changes. The comparative income statement for SoftCo in Fig. 8 shows increase in nearly all indicators as a reflection of the tremendous growth of the company in the past year. Even though there is a large percentage increase in loss from foreign exchange, the absolute amount shows that it remains as the smallest expense.
