Six Sigma Pricing

Many organizations use Six Sigma disciplines to decrease the costs of manufacturing or service processes. They can use the same tools to increase revenues.

by

ManMohan S. Sodhi

and

Navdeep S. Sodhi

by

ManMohan S. Sodhi

and

Navdeep S. Sodhi

From the Magazine (May 2005)

Many companies have become good at managing costs and mastering manufacturing efficiencies. The TQM and Six Sigma movements have seen to that. But the discipline so often brought to the cost side of the business equation is far less common on the revenue side. As a result, many companies continue to leak cash from the top line.

A version of this article appeared in the May 2005 issue of Harvard Business Review.

ManMohan S. Sodhi is a professor of operations and supply-chain management at Bayes Business School in London. He is the coauthor (with Navdeep S. Sodhi) of the HBR article “Six Sigma Pricing” and (with Christopher Tang) of the book, Managing Supply Chain Risk (Springer).
NS

Navdeep S. Sodhi is managing director of Sodhi Pricing in Minneapolis. He is the coauthor (with ManMohan S. Sodhi) of the HBR article “Six Sigma Pricing” and the book with the same title.

Six Sigma Pricing

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