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Created with Fabric.js 1.4.5 Sime Darby's FY 2016/17 LSS Target of RM 775 mil PropertyRM 33 mil MotorsRM 264 mil E&URM 21 mil GHO & APSRM 23 mil IndustrialRM 190 mil PlantationRM 245 mil Setting the target of RM 775 million Sime Darby's FY 2016/17 target of RM 775 mil Why RM 775 million? The Groups Lean Six Sigma target of RM 775 million over 5 years ending FY 2016/17 is made up of contributions from every core Division, Allied Products & Services (APS) and Group Head Office functions.This target represents the hard savings value that we aim to achieve through LSS projects and initiatives.The value of hard savings is derived from projects with tangible monetary benefits such as cost savings, waste reduction, and increased profits. Sime Darby also encourages soft savings from LSS projects. Soft savings have financially intangible value, such as safety, quality, and service level.The Divisional roadmaps and targets are endorsed by the respective managing directors or EVPs. The Groups Lean Six Sigma target of RM 775 million over 5 years ending FY 2016/17 is made up of contributions from every core Division, Allied Products & Services (APS) and Group Head Office functions.This target represents the hard savings value that we aim to achieve through LSS projects and initiatives.The value of hard savings is derived from projects with tangible monetary benefits such as cost savings, waste reduction, and increased profits. Sime Darby also encourages soft savings from LSS projects. Soft savings have financially intangible value, such as safety, quality, and service level. The Groups Lean Six Sigma target of RM 775 million over 5 years ending FY 2016/17 is made up of contributions from every core Division, Allied Products & Services (APS) and Group Head Office functions.This target represents the hard savings value that we aim to achieve through LSS projects and initiatives.The value of hard savings is derived from projects with tangible monetary benefits such as cost savings, waste reduction, and increased profits. Sime Darby also encourages soft savings from LSS projects. Soft savings have financially intangible value, such as safety, quality, and service level.The Divisional roadmaps and targets are endorsed by the respective managing directors or EVPs. Sime Darbys RM 775 million target is a value that is benchmarked against world class businesses that are renowned for their use of Lean Six Sigma methodologies.In 2007, iSixSigma reported that 53% of Fortune 500 companies recorded LSS benefits of 2% of total revenue per year.At General Electrics (GE), a leading LSS enterprise, the average benefit recorded over the first 4 years of LSS deployment was 1.2% of total revenue.Based on this knowledge, Sime Darby has set a realistic and progressive target towards 1% by FY 2016/17.
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