Using Business and Financial Measures in Six Sigma


Overview/Description
Target Audience
Prerequisites
Expected Duration
Lesson Objectives
Course Number
Expertise Level



Overview/Description
Six Sigma improvement begins with assessing the current performance of an organization's processes and products, and comparing it with the desired performance. An important part of this assessment is choosing a set of measures that will provide a comprehensive picture of how the company is achieving its goals of customer satisfaction, organizational learning and improvement, internal process performance, and bottom-line financial growth. This course examines two categories of key measures: business performance measures and purely financial measures, exploring how these measures reveal the current state of the business and point to gains achievable through Six Sigma. This course explores how business performance measures such as balanced scorecard, key performance indicators (KPIs), and lagging and leading indicators can be used to align Lean Six Sigma initiatives toward organizational goals. It also explores the critical role of customer loyalty in business success. Turning to purely financial measures of success, this course explores how these financial measures are crucial in determining whether the potential returns of Six Sigma projects will outweigh the required investment. It provides practice in using the formulas associated with these measures, including market share, cost-benefit analysis, return on investment (ROI), net present value (NPV), and hard and soft costs and benefits of Six Sigma projects. This course is aligned with the ASQ Certified Six Sigma Black Belt certification exam and is designed to assist learners as part of their exam preparation. It builds on foundational knowledge that is taught in SkillSoft's ASQ-aligned Green Belt curriculum.

Target Audience
Candidates seeking Six Sigma Black Belt certification, quality professionals, engineers, production managers, frontline supervisors, and all individuals charged with responsibility for improving quality and processes at the organizational or departmental level, including process owners and champions

Prerequisites
Proficiency at the Green Belt level with Six Sigma projects, and with business and financial measures, as scoped in the ASQ - Six Sigma Green Belt Body of Knowledge (BOK)

Expected Duration (hours)
2.0

Lesson Objectives

Using Business and Financial Measures in Six Sigma

  • identify the important attributes of key performance indicators
  • recognize steps carried out during the three phases of a Six Sigma effort
  • recognize how leading and lagging indicators are connected to organizational goals and strategies
  • identify the importance of understanding the financial impact of customer loyalty
  • calculate revenue growth, market share, and margin from a given dataset
  • distinguish between types of project costs and benefits
  • sequence the steps in cost-benefit analysis
  • calculate ROI in a given Six Sigma scenario
  • use the net present value (NPV) calculation to decide whether to implement a potential Six Sigma project
  • match components of the present value formula to descriptions
  • Course Number:
    oper_37_a02_bs_enus

    Expertise Level
    Everyone