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waste groups. Second, the regression analysis showed solid waste generation is reduced by ISO 14001 certi cation of the eight manufacturing groups, indicating the usefulness of the certi cation to decrease environmental impact. Several trends were also observed. A trend is visible between average waste generation and solid waste disposal costs per ton for these groups as displayed in Table 16.10 and Fig. 16.13.

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0 0 Regression coefficient for landfill disposal cost ($/ton) 1 2 3 4 5 6 7 8 9 Average waste per company for the 8 waste groups (tons) 500 1000 1500 2000

Figure 16.13 Waste group comparison of the average solid waste per company versus the regression coef cient for land ll disposal cost.

However, the department should pick those measurements that are relevant to improving the sales process To be profitable, a business must be able to get a sales price higher than the cost of the product as well as sales volume to capitalize on the economy of volume In addition, the number of new sales orders is a good indicator of the strength of the business Therefore, the ratio of new business to total sales.

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Examining the t values, allows for a comparison of the land ll disposal cost effects on the eight manufacturing waste groups. Wood and lumber manufacturers indicated the highest absolute value at 3.73 followed by transportation equipment manufacturers at 3.38. These two waste groups achieve greater waste reduction from increased waste costs, indicating they are more sensitive to the economic impact of waste generation. On the contrary, electronic manufacturers and chemical manufacturers were least sensitive. As shown, the greater the average waste per company a waste group generates, the more costly the regression cost coef cient. This indicates solid waste generation is economically driven. The more waste a company within the groups generates the more sensitive to disposal costs. Investigating ISO 14001 certi cation also indicted the more average waste a waste group generated the more sensitive to waste reduction the group. Table 16.11 and Fig. 16.14 display these ndings. As shown by the t value analysis for ISO 14001 certi cation, transportation equipment manufacturers and chemical manufacturers achieve the largest relative solid waste reductions from certi cation. This indicates these two waste groups achieve the largest relative waste reduction gains from the attainment of ISO 14001. An analysis of variance (ANOVA) was conducted to examine the difference in the average waste per company for the eight manufacturing waste groups. This was conducted to examine if signi cant differences existed in the amount of waste these waste

TABLE 16.11 WASTE GROUP COMPARISON OF THE AVERAGE SOLID WASTE PER COMPANY VERSUS THE REGRESSION COEFFICIENT FOR ISO 14001 CERTIFICATION AVERAGE SOLID WASTE PER COMPANY PER ABBREVIATION YEAR (TONS)

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Wood and lumber manufacturers Metal manufacturers Food manufacturers Chemical and rubber manufacturers Paper manufacturers and publishers Textile and fabric manufacturers Electronic manufacturers Transportation equipment manufacturers

provides a good measurement for the future health of the business. Measuring operational excellence, however, may involve several measurements, including the sales volume and the number of confirmed orders compared with the total orders placed. Similarly, a multitude of measurements can exist for the leadership: feedback by employees, the ability to inspire creativity, financial performance measurements, and planning effectiveness. The financial measurements alone are numerous and include the growth rate, profitability, cost of goods, return on net assets, return on investments, and debt/equity ratio. The Six Sigma Business Scorecard s BPIn measurements are standardized across the board. However, for internal purposes the measurements that the team selects should relate to management s ability to improve the performance. The seven categories of the Six Sigma Business Scorecard are generic enough to be the same for various companies with different measurements. One of the challenges in improving business performance is to maintain the effectiveness of improvement efforts. In many companies, thousands of Six Sigma projects have been initiated. However, only about 10 to 20 percent of those projects have been successfully completed. Many of the success stories are attributed to manipulation of the information by consultants or the assigned project leaders. The successful project reflects on the departmental processes and the rate of improvement.

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