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financial savings as the bottom line and don't like bothering with the intangibles associated with soft savings. Before completely dismissing them when evaluating a potential Six Sigma project, keep in mind that soft savings are more beneficial and "hard" than may first be realized.

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Hard savings are traditionally much easier for management to understand and that's why these they are so desirable. It 's easier to give the green light on a project that results in increased revenue/sales, lower overhead costs, and reductions in unit costs.

One way to shift this way of thinking about hard vs. soft savings is by not thinking of them as hard or soft at all, but rather as a spectrum. This spectrum has four categories; each labeled individually yet represented as a whole (think 1-4).

A sample project, using this way of thinking, would go as follows:
• Category 1; this represents a hard savings in the current financial period that's documented on the budget. It must be hard if it's worked into the budget. Keep this in mind when putting together your spectrum.