One of the most distinct differences between Six Sigma and other quality management systems is the link to business finances. Financial benefits of potential process improvement projects are quantified and used to help select and prioritize process improvement projects. Financial benefits are re-evaluated during the analyze phase to ensure that the cost of improvements suggested will be supported by the benefit of the project. And finally, the financial benefits are verified once the project enters the control (for DMAIC) and verify (for DMADV) phases.
The rigor associated with linking Six Sigma projects to business financials helps connect everyone within the business -- not just the quality department and related personnel. The entire organization, including the CEO, CFO, line managers, employees, and shareholders, looks to Six Sigma to increase cost savings, productivity, and incremental revenue. It also helps differentiate substantial process improvements from insignificant 'fluff' projects that have little long-term benefit for the business
Calculating the Cost and Savings of Six Sigma Quality
