Project Portfolio Selection for Six Sigma

This book focuses on the essential but somewhat neglected topic of the selection of Six Sigma projects. There is little material available on the process of making Six Sigma projects an integral part of the bottom line of a company, and often this is a weak point in many fledgling improvement programs. The methods presented here will not deal specifically with project management or with team development methods, but will concentrate solely on the proper selection of the projects. Since specific project accounting systems will vary from company to company, this book demonstrates a variety of possible approaches which can then be adapted by the reader. As companies become more mature in their Six Sigma programs, it is almost a certainty that companies will demand more benefits with less resources, and with verification that their methods are financially sound. Author William D. Mawby shows in detail how the current methods can be improved through the application of well-developed methods from operations research and financial engineering, which treat the project selection problem from the viewpoint of a portfolio-selection problem. These techniques range from fairly straightforward extensions of the ranking methods by multicriteria to sophisticated mathematical programming methods that allow one to select portfolios with exquisite control and specificity. All of the methods will, in general, produce Six Sigma project portfolios that out-perform their counterparts selected through non-portfolio type methods. Implementing these project selection methods will put your Six Sigma program on a sound financial basis to ensure that it continues to be the go-to approach for your company far into the future.