CHAPTER 6 Phase 1: Readiness Assessment
Almost two years into its Six Sigma initiative, a Fortune 500 company with over 10,000 employees was at a crossroads. Some initial projects had generated up to $750,000 per project, and incremental operating profit per Black Belt per year had originally been in excess of $500,000. But now the project pipeline was drying up and the fiscal return per project had dropped below $100,000. Project duration had been a problem from the outset: on average, projects had taken 6 months or longer to complete. Most current projects were not related to strategic objectives because individual managers or Black Belts were allowed to select their own projects without a formal process to evaluate the selections against ...
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