This content is not included in
your SAE MOBILUS subscription, or you are not logged in.
A System for Making Probability-Based Estimates of 6 Sigma Project Savings
Technical Paper
2004-01-1754
ISSN: 0148-7191, e-ISSN: 2688-3627
Annotation ability available
Sector:
Language:
English
Abstract
Managers and Continuous Improvement Champions frequently use dollar savings resulting from continuous improvement projects as justification for making full-time allocation of Six Sigma personnel, project experimentation costs, and manufacturing interruptions caused by improvement efforts. Improvement projects which are aimed at avoiding failures carry great, but tacit, savings. When used to justify continuous improvement project costs, these savings are frequently challenged, labeled as “soft,” and ignored while performing Return on Investment (ROI) computations. This paper describes and demonstrates a system for making probabilistic estimates of problem avoidance savings. A calculation spreadsheet and the author's experiences using this procedure in a global product development organization are related.
Recommended Content
| Technical Paper | Program Level Design for Six Sigma |
| Technical Paper | Unifying Value Methodology and Robust Design to Achieve Design for Six Sigma |
| Technical Paper | The Role of Design for Six Sigma in Successful Product Development |
Authors
Citation
Frimenko, J., "A System for Making Probability-Based Estimates of 6 Sigma Project Savings," SAE Technical Paper 2004-01-1754, 2004, https://doi.org/10.4271/2004-01-1754.Also In
References
- Duncan A.J. Quality Control and Industrial Statistics Homewood, IL Irwin 1986
- Feigenbaum A.V. Total quality Control New York McGraw-Hill 1983
- Juran J.M. Gryna F.M. Bingham R.S. Jr. Quality Control Handbook New York McGraw-Hill 1979
- Vardeman S. B. Statistics for Engineering Problem Solving Boston, MA. PWS Publishing Company 1994
- Crosby P. B. Quality is Free New York Mentor 1980