1. Organization.

The Cost Control Department establishes the Six Sigma Project Economic Benefit Evaluation Team, which is responsible for developing accounting methods, solving specific problems in project benefit accounting, and reviewing the economic benefits of each project team.

Group leader: Cost Control Department Manager

2. Responsibilities:

2.1 The benefit evaluation team leader is responsible for coordinating the accounting of the economic benefits of Six Sigma projects.

2.2 The Six Sigma project team is responsible for providing data related to the accounting of economic benefits of the project and ensuring the authenticity and reliability of the data; predicting the economic benefits of the project when the project is established.

3 .Principle

3.1 Six Sigma project financial evaluation should follow the principle of financial prudence. In principle, only the direct economic benefits are accounted for, and the benefits shall not be double-counted.

For potential, long-term benefits, only if you can provide real data, can be recognized, but to qualitatively describe in the project and acceptance report;.

3.2 Direct economic benefits of the project = Cost savings (increased revenue) after project implementation - Increased costs of project implementation.

3.3 Cost savings after project implementation are routine cost savings directly related to the evaluated project that can be measured in a specific amount (ongoing after project completion), including savings in material costs, labor costs, appraisal costs, internal failure costs, and external failure costs; and

Increased revenue is the increase in sales and other revenues resulting from the implementation of the project.

Increased cost of project implementation refers to one-time inputs directly related to the evaluated project that can be measured in specific amounts and will not be incurred after the completion of the project, including inputs of equipment, tools and instruments, labor costs and related expenses of the project team, and inputs for daily operation, including materials, labor and related expenses that need to be increased in daily operation as a result of the implementation of the project.

3.4 Regular Accounting of Project Benefits

At the time of project establishment, the project team will make benefit forecasts, predicting the benefits for one year and the total benefits of the project life cycle; the project cycle of less than one year will be calculated according to the actual life cycle. The Economic Benefit Evaluation Team only guides the calculation method of the prediction and does not confirm the calculation data.

After the completion of the project, the Economic Benefit Evaluation Group will calculate the actual benefits for one year and forecast the total benefits of the project life cycle.

3.5 When forecasting the total benefits of the project life cycle, the fixed assets newly invested in the project are calculated on the basis of the original value; when forecasting or accounting for the economic benefits for a certain period of time (three months or one year or other), the fixed assets invested are included in the calculation on the basis of depreciation, and the depreciation period is equal to the life cycle of the project but the maximum period is not more than three years.

4 accounting process

Establishment of the project → Benefit prediction → confirmation of the prediction method → completion of the project → actual benefit accounting → project evaluation → end

5, accounting process

5.1 Six Sigma project team to provide project introduction and accounting data required:

The data in the table is filled in by the 6σ project team according to the actual situation of the project, signed by the black belts and advocates of this project and reported to the economic benefit accounting team.

5.2 The project's economic benefit accounting team accounts for the direct economic benefits of the project after reviewing the basic data submitted by the Six Sigma project team, and returns the results of the accounting table to the project team within one week. If the basic data cannot be reviewed, the benefit team may not issue opinions on the economic benefits of the project. (Annex 3)

--- Unit labor cost, at 45 yuan/hour for R&D, 35 yuan/hour for management, and 12 yuan/hour for employees.

--- Failure costs, including the repair costs of repairable defective products and the manufacturing costs of non-repairable defective products (including the cost of repeated inspections).

--- Cost savings = total actual or design cost at original level (manufacturing cost + failure cost) - total actual or design cost after improvement (manufacturing cost + failure cost); --- Cost savings = total actual or design cost at original level (manufacturing cost + failure cost); --- Cost savings = total actual or design cost at original level (manufacturing cost + failure cost) - total actual or design cost after improvement (manufacturing cost + failure cost).

--- Project Inputs, the one-time inputs added to the project as a result of implementing the project, including equipment (fixed assets and purchased software equipment, etc.), labor (labor costs directly invested by the project team personnel), and other related costs (training, travel, transportation, etc.); --- Net Project Benefits = actual or design gross costs at the original level (manufacturing costs + failure costs) - actual or design gross costs after improvement (manufacturing costs + failure costs); and

--- Project Net Benefits = Project Cost Savings - Project Increased Costs.

5.3 The Six Sigma Project Economic Benefit Evaluation Team regularly reviews the Six Sigma projects of each division in accordance with the requirements of the Six Sigma Promotion Team.