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Six Sigma Program ROI Directly Related to Investment Size

Quality Digest
Mon, 11/14/2005 - 22:00
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A new survey of 1,200 Six Sigma professionals shows that the more companies invest in their Six Sigma projects, the greater the return. Companies that invested less than $500,000 were most likely to break even, at best, while companies that invested $2,000,000 or more were most likely to see a two- to five-fold return on that investment, according to the survey published in iSixSigma magazine. About a quarter to a third of the companies that invested $2,000,000 or more saw a six-fold return, says Michael Cyger, publisher of the magazine.

Top management’s support of Six Sigma programs was also important to their success, the survey found. “The single most important factor in success is executive support,” comments Michael Marx, iSixSigma research manager. “The higher the level of executive commitment, the more successful the program.”

Fifty-six percent of respondents who rated their programs as “poor” said their executives were uncommitted. Conversely, nearly 87 percent of respondents with successful projects said their executives were somewhat to highly committed. This commitment may be tied to executive compensation.

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