The Process to Estimate Economical Benefits of Six Sigma Projects

Jan Kosina

Abstract

This paper seeks to define the process for the continuous evaluation of the financial benefits during Six Sigma project life time. The financial criteria are critical success factors of a Six Sigma project. The process has been developed as part of the six sigma project monitoring in order to estimate proper allocation of the resources taking in account the expected project benefits as well as evaluationof real achievements. The evaluation of the finacial benefits based on the quality costs is not sufficient in the real life and has to be accomplished with key financial performance indicators of the business to visualize the results. The evaluation based on the savings seems to be too difficult especially for green belts. The early involvement of the finance department in the project definition as well as ongoing evaluation is key. The defined process has been applied to real business enviroment.

References

Bisgaard S., De Mast J., 2006. After Six Sigma – What’s Next?, Quality Progress, March 2206, pp. 30-36.

Bisgaard, S., Freiesleben, J., 2000. Economics of Six Sigma Programs, Quality Engineering”, Vol. 13, Issue 2, pp. 325 – 331.

Freiesleben, J., 2004. How Better Quality Affects Pricing, Quality Progress, February 2004, pp. 48-52.

Juran J. M., De Feo, J. A., 2010. Juran´s Quality Handbook, Sixth edition, New York: McGraw-Hill Professional, 1136 p., ISBN: 978-0-07-162973-7.

Král, B., 2010. Manažerské ú?etnictví. Praha: Management Press, 660 p., ISBN: 978-80-7261-217-8.

Mader, D. P., 2009. 3.4 per million. The Right Decission, Quality Progress, November 2009, pp. 50-51.

Miller, J. R., Morris, J. S., 2000. Is Quality Free or Profitable?, Quality Progress, January 2000, pp. 50-53.

Nave, D., 2002. How To Compare Six Sigma, Lean and the Theory of Constraints, Quality Progress, March 2002, pp. 73-78.

Nenadál J., 2004. Měření v systémech managementu jakosti. Praha: Management Press, 335 p., ISBN:80-7261-110-0.

Snee, R. D., Rodebaugh, W. F., 2002. The Project Selection Process, Quality Progress, September 2002, pp.78-80.

Authors

Jan Kosina
kosinajan70@seznam.cz (Primary Contact)
Author Biography

Jan Kosina, Continental Automotive Czech republic External postgraduate student VSB-TU Ostrava

Head of plant quality

Continental Automotive, plant Trutnov

External postgraduate student VSB-TU Ostrava, dissertation led by prof. RNDr. Josef Tosenovsky, CSc.

Kosina, J. (2013). The Process to Estimate Economical Benefits of Six Sigma Projects. Quality Innovation Prosperity, 17(1), 16–27. https://doi.org/10.12776/qip.v17i1.148
Copyright and license info is not available

Article Details

Improving Team Collaboration in Patient Transfer Processes by Co-Workers’ Perceptions and Suggestions

Lilly-Mari Sten, Pernilla Ingelsson, Ingela Bäckström, Marie Häggström
Abstract View : 196
Download :55

Modelling of an Additive 3D-Printing Process Based on Design of Experiments Methodology

José Alberto Eguren, Aritz Esnaola, Gorka Unzueta
Abstract View : 760
Download :414

New Paradigm of Lean Six Sigma in the 4th Industrial Revolution Era

Sung Hyun Park, Su Mi Dahlgaard-Park, Dong-Chun Kim
Abstract View : 1345
Download :811

Lean Six Sigma Approach to Improve the Production Process in the Mould Industry: a Case Study

António M.H. Pereira, Miguel R. Silva, Mercedes A.G. Domingues, José C. Sá
Abstract View : 2473
Download :1549