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ng and reporting database added Use of performance metrics at SBU and sites Ongoing munication, training and education Benefits ? Average Cycle Time reduced 5070% ? Process performance now meeting customer requirements of decisions in 45 days. ? Hard savings of $192,000. Reduction in extended shortterm disability payments. 70% reduction in Independent Medical Evaluation fees paid to Supplier. Reduction of ongoing administrative fee paid to Supplier. 13 Recognition and Reward for Six Sigma 14 Recognition Vehicles Company T ? Written feedback via ? Written feedback via recognition board ? Verbal feedback via Voice mail Oneonone Shift meetings ? Company totems ? Gift certificates/luncheons/coffee/donuts ? Annual recognition program ? Quiz money ? Performance evaluation ? Customer trips ? Career plans 15 Recognition and Reward at General Electric “ As with every initiative, we backed Six Sigma up with our rewards system” Jack Welch, CEO ?40% of annual bonus related to Six Sigma activities ?Stock option grants for Black Belts ?Green Belt certification required for promotion “With Six Sigma permeating much of what we do, it will be unthinkable to hire, promote or tolerate those who cannot, or will not, mit to this way of work” Jack Welch, CEO General Electric USATODAY 2/27/98 16 Black Belt Compensation at Company Z ? Base Pay Potential increase at time of selection Retain current salary grade Common job code for fulltime participants Normal group performance review and merit pay ? Incentive Compensation Special plan for Black Belts Target award at 15% of base pay Performance rating on 0 150% of scale Measured against key project objectives Participation ends at end of Black Belt assignment 17 Six Sigma Recognition Program Company K 18 Black Belt Recognition ? Selection Six Sigma Pin ? Certification $5,