Case Studies
Case Study 1: Healthcare System
Executive Summary:
For every $1 invested in our consultancy services, the healthcare facility can expect a return of $4.04 for every dollar spent, driven by cost reductions, revenue gains, and efficiency improvements.
The ROI calculation demonstrates that leveraging Lean Six Sigma and Agile methodologies, can deliver an exceptionally high return by improving process efficiency, reducing errors, enhancing patient satisfaction, and lowering operational costs—resulting in significant long-term gains.
Client Profile:
Healthcare Facility: A mid-sized hospital or healthcare clinic.
Consulting Duration: 6 months.
Annual Revenue of Hospital: $50,000,000 (annual revenue based on services provided).
Problems Encountered:
The hospital spends $100,000/month on administrative tasks (intake, registration) and patient intake process typically results in delays and overstaffing.
For Service Delivery, a project to implement new electronic health record (EHR) systems typically takes 12 months.
Patient Satisfaction boosts revenue gains by 5% only.
Errors & Compliance: Medical billing errors lead to $100,000/year in rework costs.
Problem Objective:
Enhanced project delivery in areas such as patient intake, billing, and treatment process.
Cost Reduction on administrative waste: reduction by 25%
Enhance Service Delivery: time savings by 50%
Patient Satisfaction & Revenue Gains: revenue boost by 5% by 10% improvement in patient satisfaction
Reduction in Errors & Improved Compliance (reducing errors medical errors, billing mistakes and improving compliance with regulations to directly improve both patient safety and reduce costly penalties): 50%
Project Benefits Using Lean Six Sigma and Agile Principles and Methodologies:
Cost of Our Consulting Services(example): Lean Six Sigma + Agile cost $70,000 for a 6-month engagement
ROI Calculation for Our Consulting Services:
ROI = (Total Value Delivered − Project Cost)/Project Cost × 100
ROI = (2,900,000 − 70,000)/70,000 × 100 = 4,042 %
Case Study 2: Manufacturing Facility
Executive Summary:
For every dollar spent, the facility will see a return of $3.85 in savings, resulting in an ROI of 385%. This makes it a highly favorable investment for improving system reliability and securing long-term benefits.
Problem Statements/Background:
Current Unplanned Downtime Costs: $200,000 annually (frequent system breakdown and unplanned downtime due to HVAC failures, other equipment downtime, etc.).
Current Maintenance Costs for Unreliable Systems: $250,000 annually (including labor, parts, and emergency repair costs, high maintenance costs due to reactive repairs).
Lost Productivity Revenue Due to Downtime: $100,000 annually (if downtime causes delays in production or operations).
System Reliability Issues (e.g., equipment breakdowns): Equipment reliability is currently at 80% (meaning 20% of the time equipment is down due to failures).
Average Cost of Critical System Failure (e.g., HVAC, electrical, or production systems): $25,000 per failure incident. Let’s assume the facility experiences 10 critical system failures annually.
Problem Objectives:
Reduction in Unplanned Downtime: 30% reduction
Improved Maintenance Efficiency: 25% reduction on maintenance cost
Increased Equipment Reliability: 20% revenue recovery
Cost Avoidance for Emergency Repairs: 25%
Improvements by Applying Lean Six Sigma and Agile Methodologies:
Reduction in Unplanned Downtime = $60,000 (30% of $200,000)
Maintenance Cost Reduction (Emergency Repairs) = $62,500 (25% of $250,000)
Lost Revenue Due to Downtime = $20,000 (20% of $100,000)
Cost Avoidance for Critical System Failures = $100,000 (40% of 10 failures × $25,000)
Total Savings = $242,500 annually
Cost of Our Consulting Services(example): Lean Six Sigma + Agile cost $50,000 for a 3-month engagement
ROI Calculation for Our Consulting Services:
ROI = (Total Savings from the Project − Consulting Costs)/Consulting Costs × 100
ROI = (242,500 − 50,000)/50,000 × 100 = 385%
Case Study 3: Supply Chain and Logistics
Executive Summary:
The company can expect $59 in return through cost savings, process improvements, increased revenue, and enhanced operational efficiency for every $1 spent on our consultancy services. The ROI calculation demonstrates the significant financial impact the company achieve in logistics and supply chain operations.
The client benefits from both hard savings, such as reduced fuel costs and labor savings, as well as soft benefits like increased customer satisfaction and faster project delivery, to name a few.
Client/Project Profile:
Industry: Supply Chain and Logistics company (A third-party logistics provider or large warehouse distributor).
Project Duration: 6 months.
Annual Revenue: $100,000,000 (based on total value of goods transported and managed annually).
The company handles 1,000 orders per month at an average cost of $50 per order for handling,
Problem Statements/Background:
Inefficient Inventory Management: Results in overstocking and stockouts, leading to $250,000/year in lost sales and excess inventory holding costs.
Process Efficiency in Order Fulfillment: The order fulfillment process is taking an average of 3 days on average which is too long due to inefficient warehouse operations, costing the company time and money.
Logistics Optimization: The company has a 6-month timeline for implementing new warehouse management software (WMS), which often results in delays and unproductive downtime.
On-Time Delivery & Customer Satisfaction: The company has an on-time delivery rate of 80%, which leads to customer dissatisfaction and lost contracts.
Problem Objectives:
Inefficient inventory management: reduce waste and overstocking by 30%
Process Efficiency in Order Fulfillment: reduce fulfillment time by 20% (from 3 days to 2.4 days).
Logistics Optimization: A quicker feedback, continuous improvement, and more adaptable workflows by a reduction of 2 months.
On-Time Delivery & Customer Satisfaction: to improve the on-time delivery rate to 95% from 80%.
Benefit Results of Streamlining The Processes Using Lean Six Sigma and Agile Principles:
Inefficient inventory management = $75,000 (30% of $250,000)
Process Efficiency in Order Fulfillment: $240,000 ($20,000/month x 12 months). The reduction in processing time saves $20,000/month in labor and logistics.
Logistics Optimization: $40,000 in overhead costs (extra personnel, opportunity costs of delays). Faster Software Rollout: Quicker system implementation means better inventory tracking and smoother operations.
On-Time Delivery & Customer Satisfaction = $75,000 (15% of $500,000) reduced fuel costs.
Impact on Revenue: Improved on-time delivery results in 5% increase in customer retention, which increases revenue by $5,000,000/year (5% of $100M annual revenue).
Total Savings = $5,430,000 annually
Cost of Our Consulting Services(example): $90,000 for a 6-month engagement
ROI Calculation for Our Consulting Services:
ROI = (Total Value Delivered − Project Cost)/Project Cost × 100
ROI = (5,430,000 − 90,000)/90,000 × 100 = 5,933 %
Case Study 4: Construction
Executive Summary:
Based on data-driven results, our Lean Six Sigma and Agile consulting services offer a compelling return on investment (ROI) for construction companies. For every $1 spent on consultancy, companies can expect up to $48 in return—through cost savings, increased efficiency, higher quality, and enhanced project delivery. This ROI is driven by the significant reductions in waste, improved resource management, and the ability to deliver projects on time and on budget. Additionally, these methodologies lead to higher client satisfaction, repeat business, and improved revenue generation, offering a strong foundation for long-term success.
Client Profile:
Project Duration: 6 months.
Annual Revenue: $50,000,000 (from revenues generated from construction projects and contracts for residential, commercial, or infrastructure development)
Consulting Fees: $10,000/month for Lean Six Sigma and Agile project management consultancy (total of $60,000 for 6 months).
Project Goals/Objectives:
Project Delays Reduction: 10-15%
Reduction of Resource Management: defects reduction by 30%
Enhancing Quality and Reducing Rework: 30%
Safety and Reducing Accidents: reduce incidences by 50% (The company experiences 10 accidents/year on construction sites, leading to significant medical and insurance costs.)
Communication and Collaboration Improvement: 30 %
Project Results Using Lean Six Sigma and Agile Methodologies:
Project Delays Reduction = 20% reduction on a $10 million project or $2 million in potential cost overruns, labor, and materials.
Resource Management Utilized = 30% or $500,000 by reducing resource wastage and idle time results. Better resource allocation leads to fewer delays, more effective project management, and lower operational costs.
Enhancing Quality and Reducing Rework = reducing defects by 40% on a $500,000 project results in $200,000 saved in rework costs, labor, and material.
Safety and Reducing Accidents = saved the company $150,000 or 50% in medical costs, insurance premiums, and lost work time. Fewer accidents result in a safer work environment, reduced insurance premiums, and higher worker morale.
Communication and Collaboration Improvement = improvement by 40% or $100,000 in savings by having better communication or smoother collaboration leads to due to fewer misunderstandings and project delays, thus, faster decision-making and more efficient problem-solving. This improvement results into project timeline improvement and overall productivity.
Total Savings = $2,950,000 annually
Consulting Fee:
$60,000 (for 6 months of Lean Six Sigma and Agile consulting).
ROI Calculation for Our Consulting Services:
ROI = (Total Value Delivered − Project Cost)/Project Cost × 100
ROI = (2,950,000 − 60,000)/60,000 × 100 = 4,817%
Case Study 5: Finance and Insurance
Executive Summary:
For every $1 spent on our consultancy services, the company can expect a $3.83 return through improved processes, cost savings, faster project delivery, and enhanced customer satisfaction.
The ROI calculation demonstrates how our team can deliver both hard savings (e.g., reduced costs) and soft benefits (e.g., improved customer satisfaction, faster decision-making), which can be scaled across other departments and operations within the company.
Our consultancy will yield a substantial return, making the investment worthwhile by improving efficiency, reducing costs, and optimizing customer-facing processes—such as loan processing, compliance checks, claims management, and customer onboarding—while offering long-term value.
Client Profile:
Industry: Finance company ( bank, insurance, or investment firm)
Annual Revenue: $50,000,000 (e.g., revenue from services such as loan origination, wealth management, insurance premiums, etc.).
Consulting Fees:(total of $60,000 for 6 months).
The finance industry is highly regulated, and errors in transactions, account management, and compliance can be costly. Lean Six Sigma focuses on reducing errors and improving compliance, especially in areas like fraud detection, audit processes, and reporting.
Problem Statements/Background:
Process Improvements : Inefficiencies in the loan approval process cause delays and manual work, leading to $200,000/year in operational costs due to prolonged processing times.
Error Reduction and Compliance: Manual processing errors in account reconciliation and transaction matching lead to $100,000/year in rework and penalties due to compliance issues.
Process Efficiency in Customer Onboarding: The customer onboarding process for new accounts takes 10 days on average, resulting in delays and lost opportunities.
Financial Technology or FinTech (e.g., mobile banking apps, automated investment platforms) Implementation
Implementing a new mobile banking app for online transactions is typically a 12-month project with delays and inefficiencies.
Improved Decision Making with Data Analytics: Slow and inaccurate reporting leads to poor investment decisions and delayed risk assessments, costing the company $150,000/year in missed opportunities and reactive risk management.
Project Goal/Objectives:
Process Improvements: to eliminate 30% of inefficiencies
Error Reduction and Compliance: reduce error rates by 50%
Process Efficiency in Customer Onboarding: reduce the process by 50% or to 5 days.
Financial Technology or FinTech ((e.g., mobile banking apps, automated investment platforms)) Implementation: project to be completed in 9 months
Improved Decision Making with Data Analytics
Process Streamlining Results/Benefits:
Process Improvements = $60,000 (30% of $200,000). Reduced loan processing time leads to faster approvals, improved customer experience, and reduced labor costs.
Error Reduction and Compliance = $50,000 (50% of $100,000)
Process Efficiency in Customer Onboarding = $30,000 (based on an estimated $5,000 per account). Quicker onboarding leads to faster revenue generation as customers can access services sooner, resulting in increased customer retention and referrals.
Financial Technology (FinTech) Implementation: The reduced time-to-market saves $100,000 in development costs and accelerates revenue generation from the app.
Improved Decision Making with Data Analytics = $50,000
Total Savings = $290,000 annually
Cost of Our Consulting Services(example): $60,000 for a 6-month engagement ($10,000/month for Lean Six Sigma and Agile consulting
ROI Calculation for Our Consulting Services:
ROI = (Total Value Delivered − Project Cost)/Project Cost × 100
ROI = (290,000 − 60,000)/60,000 × 100 = 383 %
Case Study 6: Technology and IT
Executive Summary:
Through improved processes, cost savings, faster project delivery, and enhanced customer satisfaction, the company can expect a $3.83 return.The ROI calculation demonstrates how both hard savings (e.g., reduced costs) and soft benefits (e.g., improved customer satisfaction, faster decision-making), can be scaled across other departments and operations within the company by improving efficiency, reducing costs, and optimizing customer-facing processes—such as loan processing, compliance checks, claims management, and customer onboarding—while offering long-term value.
Client Profile:
Industry: IT and Technology company (e.g., a software development company, IT consulting firm, or IT service provider).
Project Duration: 6 months.
Annual Revenue: $25,000,000 (revenue generated from services such as custom software development, IT services, system integration, or consulting).
Consulting Fees: $12,000/month for Lean Six Sigma and Agile project management consultancy (total of $72,000 for 6 months).
Problem Statements/Background:
Faster Software Development: The company’s average software development cycle for a new product takes 12 months, delaying the time-to-market and increasing costs.
Reduced Defects and Increased Quality: The company experiences 5% defect rate in its software products, leading to costly rework and delays. In the tech industry, defects and bugs in software products or IT systems can lead to higher support costs, lower customer satisfaction, and delayed releases.
Increased Team Efficiency: The IT development team is experiencing low productivity due to poor communication, unclear priorities, and inefficient project management practices.
Cost Savings from IT Process Optimization: The company spends $300,000/year on IT support due to repetitive issues, delays in troubleshooting, and inefficient system management.
Improved Customer Satisfaction: Customer satisfaction scores are low due to slow updates, delayed releases, and product defects.
Project Goal/Objective:
Faster Software Development: development time reduction by 30% (12 months to 8.4 months)
Reduced Defects and Increased Quality: defects reduction by 50%
Increased Team Efficiency: workflow efficiency increase by 25%
Cost Savings from IT Process Optimization: support cost reduction by 20%
Improved Customer Satisfaction: increase customer satisfaction by 20%
Project Completion and Execution Benefits After Implementing Lean Six Sigma and Agile Methodologies:
Faster Software Development = $500,000 (The company can start generating revenue 4 months earlier, resulting in an additional $500,000 in sales (based on average revenue per product of $500,000).
Reduced Defects and Increased Quality = $200,000 (in rework, customer support, and delayed project timelines)
Increased Team Efficiency = $1,000,000 (worth of work in less time, which would otherwise take longer.)
Cost Savings from IT Process Optimization = $60,000 (20% of $300,000) Reduced downtime and quicker issue resolution lead to fewer disruptions and higher employee productivity.
Improved Customer Satisfaction = $500,000 in additional revenue from repeat customers and referrals.
Total Savings = $2,260,000 annually
Consulting Fee: $72,000 (for 6 months of Lean Six Sigma and Agile consulting).
ROI Calculation for Our Consulting Services:
ROI = (Total Value Delivered − Project Cost)/Project Cost × 100
ROI = (2,260,000 − 72,000)/72,000 × 100 = 3, 039%
Case Study 7: Consumer Products Industry
Problem Statement:
ABC Consumer Goods Corporation faces challenges in the following areas:
High Production Costs: Inefficiencies and waste in manufacturing lead to increased costs (estimated at 15% above industry average).
Slow Product Development Cycles: Their product development process is slow, leading to longer time-to-market for new products.
Inconsistent Customer Satisfaction: Delivery delays and product defects cause customer dissatisfaction, leading to increased returns and lost sales.
Supply Chain Issues: Poor supply chain management contributes to excess inventory and stockouts, resulting in missed opportunities and higher storage costs.
Proposed Solutions and Expected Outcomes:
Lean Six Sigma Implementation (Waste Reduction, Process Improvement)
Target: Reduce production waste by 20% through the elimination of non-value-added activities and defects.
Financial Impact: Estimated savings of $1,500,000 annually due to improved production efficiency and waste reduction.
Agile Methodology (Faster Product Development)
Target: Decrease product development cycle time from 12 months to 8 months (33% reduction).
Financial Impact: Faster time-to-market for new products will lead to $3,000,000 in additional revenue from earlier product launches and improved market competitiveness.
Strategic Management Consulting (Customer Satisfaction & Profitability)
Target: Improve customer satisfaction by reducing product defects and delivery delays by 25%, leading to lower returns and higher sales retention.
Financial Impact: Improved customer loyalty and retention will generate $2,000,000 in additional revenue.
Supply Chain Optimization (Cost Reduction and Inventory Management)
Target: Optimize supply chain to reduce excess inventory by 15% and stockouts by 10%, reducing storage costs and missed sales opportunities.
Financial Impact: Savings of $1,200,000 from better inventory management and reduced stockouts.
Total Projected Benefits (Revenue & Cost Savings):
Total Financial Benefit: $7,700,000
Cost of 6 Months Consulting Engagement: Lean Six Sigma + Agile + Strategic Management: $500,000
ROI Calculation for Our Consulting Services:
ROI=(Total Savings from the Project-Consulting Costs)/Consulting Costs × 100
ROI = (7,700,000 − 500,000)/7,700,000 × 100 = 1,440%
