Assessing the financial impact of 6-Sigma in an automotive company

This paper reports on an assessment of an ongoing 6-Sigma program conducted within a UK based (US owned) automotive company. It gives an overview of the management of the 6-sigma programme and the 23 in-house methodology used. The analysis given in the paper pays particular focus to the financial impacts that individual projects have had. Three projects are chosen from the hundreds that have been completed and are discussed in detail, including which specific techniques have been used and how financially successful the projects were. Commentary is also given on the effectiveness of the overall program along with a critique of how the implementation of 6-Sigma could be more effectively managed in the future. This discussion particularly focuses upon issues such as: project selection and scoping, financial evaluation and data availability, organisational awareness, commitment and involvement, middle management support, functional variation, and maintaining momentum during the rollout of a lengthy program.