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soft savings." Remember that not all Six Sigma projects producing mainly soft monies should be dismissed. There are plenty of successful projects with a focus on soft savings.

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Every company may analyze hard and soft savings differently so you want to be sure that everyone on board understands and adheres to your set of guidelines regarding how these are defined and analyzed/measured.

A preliminary estimate needs to be done, and while companies may define the parameters differently, there are some basics that make deciding which category a potential savings falls into much easier. Remember, that when evaluating financial savings, it should be done by the financial reporting period used by the company.