For the naysayers of Six Sigma, Lydall, Inc. has this to share. Despite the losses, the company is able to cut costs because of Lean Six Sigma. 
Lydall, Inc. announced financial results for the first quarter ended March 31, 2009 with a decreased net sales by $32.4 million in the first quarter of 2009 compared with the first quarter of 2008..
Our Lean Six Sigma program continues to generate productivity gains and remove costs from the organization. We expect Lean Six Sigma will also assist the Company in reducing its working capital, particularly our inventory levels, resulting in improved cash generation as we moveforward in 2009.
Dale Barnhart, President and Chief Executive Officer, says, “We continued cost reductions in the first quarter of 2009, including a further reduction in our global workforce by approximately 7.5%, primarily from headcount reductions at the Company’s Thermal/Acoustical global automotive operations. We also made the difficult decision to reduce the annual base salaries by 3% of all executive officers and most domestic salaried employees of the Company and its subsidiaries, effective as of March 16, 2009. In addition, the Company’s matching contributions to its sponsored 401(k) plan will be suspended, beginning with the first payroll of May 2009, for all non-union, domestic employees.”
Related posts:
Lydall Attributes Success to Lean Six Sigma
Lean Six Sigma at Lydall, Inc.
