How to Calculate Sigma Level in Cost Reduction
- October 24, 2002 at 7:23 pm #30624
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Here is a cost reduction project.
Current Cost = 150
Project Target = 135
Best Case Scenario = 125.
Question is.. What is starting & ending Sigma level for the project?
0October 24, 2002 at 8:30 pm #79973
If SS was that easy everyone would be doing it!
First you have to define what a defect or defective is. And statistics or probability doesn’t work well with only one data point. I think your project needs to be broken down to things such as what am I trying to improve (CTQ’s) how good am I today (baseline) what constitutes improvement (spec limits, goals etc.) This is a very basic explanation but if you buy a book or take a class that gives you the process concepts I think you will see how it fits into your project or program.
just my opinion0
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