Page 28 - The Six Sigma Project Planner

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2.1.2 Quality Improvement (CTQ )
Score Interpretation
9 10x or greater improvement in CTQ metric
5 5x to 10x improvement in CTQ metric
3 2x to 5x improvement in CTQ metric

1 Statistically significant improvement in CTQ metric, but less than
2x magnitude
0 Project’s impact on CTQ metrics undefined or unclear

2.2 Stakeholder: Shareholder

2.2.1 Financial Benefits
Score Interpretation
9 Hard net savings (budget or bid model change) greater than
5
$500K. Excellent ROI.
5 Hard net savings between $150K and $500K. Excellent ROI.
3 Hard net savings between $50K and $150K or cost avoidance
greater than $500K. Good ROI.
1 Hard savings of at least $50K or cost avoidance between $150K
and $500K. Acceptable ROI.

0 Project claims a financial benefit but has hard savings less than
$50K, cost avoidance less than $150K, or unclear financial
benefit.

2.2.2 Cycle Time Reduction
Score Interpretation

9 Cycle time reduction that improves revenue, bid model, or budget
by more than $500K. Excellent ROI.
5 Cycle time reduction that improves revenue, bid model, or budget
by $150K to $500K. Excellent ROI.
3 Cycle time reduction that improves revenue, bid model, or budget
by $50K to $150K or creates a cost avoidance of more than
$500K. Good ROI.
1 Cycle time reduction that results in cost avoidance between
$150K and $500K. Acceptable ROI.

4
Critical to quality.
5
Return on investment.

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