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a cheap toy from the Far East, so our consciences are clear! The Happy Bird, Happy Drinking Bird, Drinking Bird, Tippy Bird, Sippy Bird, Dippy Bird or any one of a number of ridiculous names is a cheap novelty toy (Figure 12-1). It is also a serious scientific curiosity! First of all a little note, don t jump straight into massacring the bird have a little play with it, because it is a lot easier to see what is going on before you hack it (Figure 12-2).

Following is a brief list of typical capital costs; also known as the initial investment:.

Site development and preparation (including demolition and clearing if needed) Equipment purchases, including spare parts, taxes, freight, and insurance Material costs (piping, electrical, telecommunications, structural) Building-modi cation costs (utility lines, construction costs) Permitting costs, building inspection costs Contractor s fees Start-up costs (vendor, contractor, in-house) Training costs

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After the initial investment has been calculated, the reoccurring costs, savings, and revenues from the waste minimization alternative must be determined. The concept is to reduce waste disposal and raw material costs based on the implementation of the alternative under analysis. For example, if a company considers the installation of a cardboard baler, the annual operating costs of the baler (such as labor and utilities), the annual cost savings from reduced disposal costs, and the revenue from the sale of the baled cardboard must be considered. Reducing or avoiding present and future operating costs associated with solid waste storage and removal are critical elements of the solid waste minimization process. Due to increased solid waste disposal costs (around $30 $80 per ton in the United States); many companies are nding that the cost of waste management has become a signi cant factor in their cost structures. Some common reoccurring costs include

revenue monitoring. The goal here is the rapid improvement in profit and sustainable business growth. Many winners of national and regional quality awards have gone on to stumble because they focused on process improvement, defect reduction, and cost reduction without aligning those efforts with customer satisfaction, employee development, business growth, and profit improvement. The Six Sigma Business Scorecard places new emphasis on the latter. I applaud Praveen for leading business outside of the lines by developing this dynamic hybrid. His powerful formula demands that institutional leadership be held accountable for achieving dramatic rates of improvement, while investing in the intellectual capabilities of all employees. I am sure that you will enjoy and learn as much as I did from The Six Sigma Business Scorecard. It is an important work that offers key solutions to the challenges of our times. A. William Wiggenhorn Chief Learning Officer CIGNA Philadelphia, Pennsylvania

recycling streams, resulting in less waste being sent to the land ll for disposal and lower hauler charges. These include disposal fees, transportation costs, and predisposal treatment costs. Input material cost savings Options that reduce scrap, reduce waste, or increase internal recycling tend to decrease the demand for input materials. Changes in utility costs Utility costs may increase or decrease depending on the installation, modi cation, or removal of equipment. Changes in operating and maintenance labor/bene ts An alternative may increase or decrease labor requirements and the associated bene ts. This may be re ected as changes in overtime hours or as the number of employees. Changes in operating and maintenance supplies An alternative may result in increased or decreased operating and maintenance supply usage. Changes in overhead costs Large projects may increase or decrease these values. Changes in revenues for increased (or decreased production) An alternative may result in an increase in the productivity of a unit. This will result in changes in revenue. Increases in revenue from by-products An alternative may generate a by-product that can be sold to a recycler or sold to another company as raw material. This will result in increased revenue.

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