Costanzo Ferraro @inventisinc  Reputation - 0 Rank - Aluminum | I have been asked to put together a feasibility of introducing Six Sigma at a petrochemical sbu in the Middle East involved in fertilizer production. I need to look at two levels of stats: first, the ROI on training, and second, the ROI on implementation 6S throughout our various plants. I am currently studying the CSSBB and I am uncertain which metrics would best suit the purpose. The first level I need to calculate the following: 1. the ROI on training a workforce of 800 in SSYB
2. the ROI on training 6 in-house trainers in SSGB / SSBB
3. the ROI on training 45 supervisory personnel in SSGB
4. the ROI on training 22 department managers in SSBB Fortunately, the SBU is part of a conglomorate and we have qualified BBs and MBBs that could fly over and train us. However, red tape means the SBU would have to pay our cousin SBU for the privilege of training. The question here is, what values should I consider for my ROI figures to be valid. I can carry out the calculations, though I am looking for guidance on what values I must consider. Secondly, we have various departments (operations, maintenance, etc) each with their annual targets, strengths and weaknesses. I want to show how 6S could be applied to these respective areas and improve matters? For example, turnaround is a major issue during unplanned and planned shutdowns. What 6S matrix can I use to show how turnaround could be improvied if we had personnel appropriately trained in 6S? Thank you for your time. CGTF |
Mike Paulonis @paulonis  Reputation - 8 Rank - Aluminum | The answer that you probably don’t want to hear is that ROI on six sigma training is negative. If you just train folks and do not have a deployment model and infrastructure to back it up, there won’t be any return on the training investment. I see that your second “level” is implementation. You really shouldn’t think of implementation as separate from training. Training is within implementation. You need implementation to have ROI. Some very rough rules of thumb are that full-time BB’s should be able to generate $500K-$1M/year in value. Part time GB/YB project leaders can probably generate $100K-$200K/year. These are rough numbers, but when averaged out over a full deployment and multiple years, they tend to work pretty well. I have seen many mid to large companies in many types of businesses report results in this range. I am concerned when I see that your BB targets are “department managers”. Chances are good that department managers are not going to be able to gain the project experience to become effective BB’s while still being department managers. Your BB’s should be your high-leadership, high-energy, change agent individual contributors. I don’t know what you mean by a “6S matrix” to show something about turnaround improvement. It may be important to note that improving turnaround would primarily involve Lean analysis and tools. For some, six sigma includes Lean by default. For others, Lean is something additional or separate. If turnaround is a key improvement area, make sure that Lean is a primary component of your training program. |
Stan Mikel @Stan Reputation - 0 Rank - Aluminum | You left out that a program run by someone who knows nothing will fail. Don’t waste your time on this guy, he is doomed to failure. |
November 8, 20100
Stan Mikel 556 days ago.
