| Measuring Six Sigma benefits on a regular basis is | | | | any. |
| necessary because it is only then that a business will | | | | Other Important Measurement Components |
| be able to assess the effectiveness of the ongoing | | | | Another component that requires constant monitoring |
| Six Sigma implementation project. Keeping the project | | | | and assessments is the operational performance |
| on the right track is vital for its success, and this is why | | | | benefit that represents the improvements made in the |
| businesses need to constantly monitor its progress. | | | | overall efficiency of the organization. Measuring |
| Another reason is that deviations and errors can be | | | | performance benefits is necessary because it |
| fixed only if they are identified at an early stage; left | | | | indicates efficiency improvements of both the |
| unchecked, such discrepancies can easily lead to the | | | | employees as well as the existing business processes. |
| termination of the entire project. | | | | To make things easier, businesses can select a few |
| What To Measure | | | | Key Performance Indicators (KPIs) and concentrate |
| Six Sigma offers a wide range of benefits, so much | | | | their efforts on measuring these rather than wasting |
| so that it would not be feasible or productive to | | | | their time on measuring each and every individual |
| measure each and every component. This is why | | | | component. For better assessments, businesses need |
| businesses need to concentrate their efforts only on | | | | to keep updating their KPI list on a regular basis |
| those benefits that offer the most value. For example, | | | | because overall efficiency being contributed by a |
| direct financial benefits that accrue to the organization | | | | business process may change with time. |
| as a result of the implementations should be given | | | | Inability to do this may result in faulty measurements |
| preference. | | | | that may not represent the true state of affairs of the |
| For better results, businesses should make different | | | | organization concerned. |
| assessments for different financial benefits that may | | | | Measuring Six Sigma benefits may not result in any |
| include components such as cost reductions, cost | | | | direct monetary gains, but it is still important because it |
| avoidance, increase in capacity, revenue growth, | | | | functions as an effective control system, allowing the |
| retained revenue, improved investment income, and | | | | management to assess the overall progress of the Six |
| improved risk management. | | | | Sigma implementation project. This is why such |
| Using individual assessment plans is necessary | | | | measurements have now become an integral part of |
| because only then will a business be able to identify | | | | Six Sigma implementations and are increasingly being |
| the root cause that might be preventing the | | | | integrated into the overall management system |
| implementation project from achieving the set goals | | | | existing in a business organization. |
| and objectives. | | | | Without these measurements, ensuring the success of |
| Opting for an overall assessment plan might be | | | | Six Sigma implementation projects will become virtually |
| relatively easier, but should be avoided because then it | | | | impossible. |
| would become quite difficult to identify root problems, if | | | | |