The Process to Estimate Economical Benefits of Six Sigma Projects
Article Sidebar
Issue
Vol. 17 No. 1 (2013)
Submitted
3 April 2013
Published
15 July 2013
Keywords:
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quality improvement, Six Sigma, quality costs, project savings, economics of Six Sigma
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
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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
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
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