MAIC was developed, and this evolved into DMAIC, where D stands for define, M stands for measure, A stands for analyze, I stands for improve and C stands for control. Experience shows that D is the essential phase for achieving dramatic improvement quickly, and C is the most critical phase for realizing return on investment in six sigma projects. The define phase requires the implementation of many tools, and the control phase can aid in sustaining improved result, which requires the use of internal controls as well as management involvement. The success of DMAIC methodology depends on working well on the right projects. The right project is the one that has a significant return on investment. Sometimes people get training in six- sigma but cannot find projects or sometimes a company commits to six- sigma but does not allow time to work on projects. Getting projects started is easy; the difficult part is completing and closing those projects. Thus the right first priority is to identify the right projects to work on which will have an impact on the bottom line and generate savings for the business. Several potential projects must be identified and evaluated based on a cost and benefit analysis. A simple measure, like the project prioritization index (PPI), can be used to prioritize projects according to the following equation.
PPI= (benefits/cost)x(probability of success / time to complete the project in years )
At minimum, the PPI should exceed 2 to ensure a return on investment. Initially one can find many projects with PPI greater than 4 thus making it somewhat easier to realize savings.
Six Sigma Tools:
The six sigma methodology incorporates numerous tools. The unique and useful six sigma tools include...
... middle of paper ...
...ing and implementing the six-sigma initiative well in the organization.
Dr.T.Sree Krishna MBA.,M.Phil.,Ph.D., Associate.Professor, Department of Management Sciences, RVR&JC College of Engineering, Chowdavaram, Guntur-522019. Email:firstname.lastname@example.org, Ph no 09490187889.
Smt.M.Manjusha MBA, Assistant.Professor, Department of Management Sciences, RVR&JC College of Engineering, Chowdavaram, Guntur-522019.Email:email@example.com, Ph no: 09505858518.
2. AR. Aryasri- management science.
3. Dr.Mrs.M.M. Kumthekar, Nandkumar Hukeri- Mnagement science-elcrotech publication
4. Praveen, Gupta, Arvin Sri – Stat Free Six Sigma – Sulthan Chand Publications.
5. EPIC Workshop, message of Brussels, June 2011
6. Fourth International Conference message on Lean Six Sigma Glasgow, March 2012
7. GI Fachtagung SW Management, 2010, Aachen
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