How can you justify the financial benefits of Six Sigma projects?

1 Define the problem and the goal

The first step to justify the financial benefits of Six Sigma projects is to clearly define the problem that needs to be solved and the goal that needs to be achieved. You should use data and facts to quantify the current state of the process, the gap between the current and the desired performance, and the potential savings or revenue that can be generated by closing the gap. You should also align the problem and the goal with the strategic objectives and priorities of the organization, and show how the Six Sigma project will contribute to them.

3 Communicate the results and the value

The third step to justify the financial benefits of Six Sigma projects is to communicate the results and the value of the project to the stakeholders and the organization. You should use clear and concise language, charts, graphs, and tables to present the data and evidence that support your claims. You should also highlight the achievements, challenges, and lessons learned from the project, and how they can be used to improve future projects. You should also emphasize the intangible benefits of the project, such as customer satisfaction, employee engagement, innovation, and culture change.

4 Validate and sustain the improvement

The fourth step to justify the financial benefits of Six Sigma projects is to validate and sustain the improvement that has been achieved by the project. You should use statistical methods and tools such as control charts, capability analysis, and hypothesis testing to verify that the improvement is significant, stable, and consistent. You should also implement control plans, standard operating procedures, audits, and reviews to ensure that the improvement is maintained and does not deteriorate over time. You should also monitor and report the financial performance of the process after the project, and document any additional savings or revenue that are realized.

5 Seek feedback and recognition

The fifth step to justify the financial benefits of Six Sigma projects is to seek feedback and recognition from the stakeholders and the organization. You should solicit feedback from the customers, employees, managers, and sponsors of the project, and use it to evaluate the success and satisfaction of the project. You should also acknowledge and appreciate the contributions and efforts of the project team and the process owners, and celebrate and reward their achievements. You should also share and showcase the best practices and the lessons learned from the project, and inspire and motivate others to pursue similar projects.

6 Continuously improve and innovate

The sixth step to justify the financial benefits of Six Sigma projects is to continuously improve and innovate the process and the organization. You should not be complacent or satisfied with the results of the project, but rather seek opportunities and challenges to further enhance the quality and efficiency of the process. You should also leverage the knowledge and skills that you have gained from the project, and apply them to other processes and areas that can benefit from Six Sigma. You should also foster a culture of continuous improvement and innovation, and encourage and support others to initiate and participate in Six Sigma projects.

7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?