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Method to Estimate Project Benefits; Aligning KPIs

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In association withIn association with Valeocon Management Consulting 

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iSixSigma Europe  -  February 7, 2007  -  Vol. 4, #3  -  ISSN: 1551-7969

In This Issue

An Analytical Method for Estimating Project Benefits

Estimating potential project benefits have not always been subjected to same level of analytical rigor of typical Six Sigma work. Project teams can help themselves over this hurdle with a straightforward method for calculating potential benefits.

To estimate project benefits in the Define phase, the project team must develop a clear understanding of the following:
  • What is the measurable Y that project proposes to improve?
  • What is the current performance of this Y?
  • What is the achievable or targeted performance of this Y after improve phase?
The crux of the cause-and-effect thought process for estimating and computing project benefits lies in asking the following question: "If we can improve our project Y from the current state to the improve state, then what benefits will follow?" By using this analytical framework, Six Sigma project teams can obtain a more accurate and comprehensive computation of project benefits.
http://europe.isixsigma.com/library/content/c070207b.asp

Quantify the Benefits of Six Sigma Projects

We've all been there before... you have identified a problem area within your business and now you are chartering a green belt or black belt Six Sigma improvement project. But the problem is... you're unsure if you've captured all of the potential benefits of eradicating a business problem. If this situation sounds familiar, this article is for you!

Use the following checklists found in this article as a guide to help build Six Sigma project charters that are compelling to business leaders. It will help support and justify why the business should focus on the problem, devote resources and modify processes.
http://europe.isixsigma.com/library/content/c011112a.asp

New Six Sigma Job Openings


Six Sigma AdLinks
Project Manager/Experienced Black Belt
World's Largest Operator of Container Terminals, €50-60K Net + Travel & Living Expenses
iSixSigma Recruiting | Worldwide-Various
http://jobs.isixsigma.com/employers/viewjob.asp?ID=5351


Process Excellence Program Manager/MBB
World's Largest Operator of Container Terminals, Full Expat Package
iSixSigma Recruiting | Netherlands-The Hague
http://jobs.isixsigma.com/preferred.asp?ID=5350


Project Engineer-Green Belt
Ripe4 Resourcing Ltd | Netherlands-Eindhoven
http://jobs.isixsigma.com/apply.asp?ID=3314

Business Process Improvement Specialist
Ripe4 Resourcing Ltd | United Kingdom-South East
http://jobs.isixsigma.com/apply.asp?ID=3304

Production Manager - Six Sigma-South East
Ripe4 Resourcing Ltd | United Kingdom-Essex
http://jobs.isixsigma.com/apply.asp?ID=4523

Black Belt
Roundpeg Associates | Germany-Dusseldorf
http://jobs.isixsigma.com/apply.asp?ID=4542

Consultant Trainer
Roundpeg Associates | United Kingdom-Various
http://jobs.isixsigma.com/apply.asp?ID=2344

Six Sigma/Lean Sigma Black Belt
Ripe4 Resourcing Ltd | United Kingdom-London
http://jobs.isixsigma.com/apply.asp?ID=3298

Six Sigma Black Belt
Roundpeg Associates | Netherlands-Almelo
http://jobs.isixsigma.com/apply.asp?ID=4546

Six Sigma Consultant
Nexsus (UK) Ltd | United Kingdom-Various
http://jobs.isixsigma.com/apply.asp?ID=4481

Master Black Belt
Aspire Resourcing | United Kingdom-Scotland
http://jobs.isixsigma.com/apply.asp?ID=2143

Six Sigma-Green Belt
Recruit Associates Ltd | United Kingdom-London
http://jobs.isixsigma.com/apply.asp?ID=6542

Recent Quality Discussions

Aligning KPIs
I have to align KPIs for different companies, making different products with different processes (in assembly line, one-piece flow, manual conveyor, and bench). One of the tasks is 'first time OK,' do you have some possible definitions which can be used in practical daily work?

"We might consider 'first time ok' for any product which is not exceeding cycle time for example, but I guess it will be very time expensive. Any advice? Thanks.
http://europe.isixsigma.com/forum/showmessage.asp?messageID=1947

Researching Six Sigma Certification Programs in Europe
Could you suggest any 'Six Sigma Black Belt' certification programs in Europe? Thanks a lot!
http://europe.isixsigma.com/forum/showmessage.asp?messageID=1942

Completing a Gage R&R
When constructing a gage R&R test, do you need to measure the product or can you use a representation of the product? This question is key to a discussion with a supplier of a recently commissioned facility. The supplier claims that their facility is capable by producing a satisfactory gage R&R result, by measuring a representation of the product.

"However, when we use the facility to measure the product, it does not meet our gage R&R requirements. This is where we have an impasse, the supplier stating that their facility is capable and us with a facility that can not measure our product accurately. Are there any guidelines for determining what constitutes the measured object in a gage R&R?
http://europe.isixsigma.com/forum/showmessage.asp?messageID=1945

Using Change Management Tools
I am in the early stages of a large project that will involve a considerable amount of process change, re-alignment and possible BPM/R.

"Is there a formula/template that can assist in planning for adequate resource/justification for additional resources? It would be rather helpful if anyone has any tips. Many thanks.
http://europe.isixsigma.com/forum/showmessage.asp?messageID=1683

The Latest News & Press Releases

  • Hertzler Systems Partners with Minitab, Hyperion, ISSSP, and Raptor International to Present Six Sigma Software Showcase Tour
  • Minitab Launches Release 15 of Minitab Statistical Software
  • Instantis Unveils EnterpriseTrack™ 5.0
  • Ford Motor Company Selects Penske As Logistics Provider for UK Facility, Penske to Draw Upon Six Sigma and ISO Standards to Develop and Deploy Repeatable Processes
  • Covance Reports 4Q EPS of $0.59 & Sixth Consecutive Year of 25% EPS Growth, Continues Six Sigma
http://europe.isixsigma.com/ne/news/

Upcoming Conferences & Training Events

Additional conferences & training events:
  • Introductory and Advanced Crystal Ball - London, United Kingdom [Feb 13]
  • Lean Six Sigma Green Belt Training - Mumbai, India [Feb 17]
  • The Six Sigma Green Belt Program - Madrid, Spain [Feb 19]
  • Lean Six Sigma Green Belt for Manufacturing - Ontario, Canada [Feb 19]
  • TRIZ Six Sigma Upgrade Green Belt-to-Black Belt (English) - Portoroz (close to Trieste, Italy), Slovenia [Feb 20]
  • Lean Workshop Series - New York [Feb 26]
  • The Six Sigma Green Belt Program - Mexico City, Mexico [Mar 5]
  • SQCpack EZ webinar - World Web Event [Mar 6]
  • Lean Six Sigma Black Belt(Dutch Speaking Event) - Wageningen, Netherlands [Mar 6]
  • Introductory and Advanced Crystal Ball - London, United Kingdom [Mar 7]
http://europe.isixsigma.com/ne/events/

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Get all your managers, team leaders and key players on the same page for training, for project planning, for individual instruction and more with a Memory Jogger Flash Drive for everyone in your organization.

Hurry - this low introductory price of just under $99 is valid only for a limited time for iSixSigma readers. Be sure to use Promotion Code issflash when placing your order.

Order Now or call 800-643-4316 or 603-893-1944 for immediate service.

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