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ROI for Quality Initiatives

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Viewing 9 posts - 1 through 9 (of 9 total)
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  • #37987

    mohit
    Participant

    I have just joined IBM and have some quality(6 Sigma) related work tasks to do in the next few months.
    Can anyone help me with understanding the best way to calculate ROI for any quality related Initiative. How do we calculate ROI for improvements in human competency, process improvements etc
    Thanks in advance 

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    #113079

    sreedher
    Member

    Hi mohit,
    calculating ROI based on enhancing human competency is a difficult task…which means project goal / objective based on increase human competency level from ____to____.  Seldom came across this objective statement.  I think Human competency is a factor in success to achieve Y and as a new comer to six sigma (as you mention) take some thing which is clearly measurable and improvable.  Process improvements seems best suit.  Your question is small but answers are classified, well select some book by name ‘Quality costs’ that shall answer your queries.
    rgds
    sreedher
    MBB, SKIL

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    #113109

    mohit
    Participant

    Thanks Sreedher.
    Would you also have any idea on Quality Net Income. Any book that I can buy or read online?
    I was working on developing a model to measure ROI for quality initiatives. Any ideas on how to get started?
    Thanks again.
    Mohit 

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    #113587

    Stewart
    Member

    Hi Mohit,
    I also work for IBM and would be willing to help you out in this area.
    Best regards.

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    #113715

    mohit
    Participant

    Thanks Stewart. I will mail you a document which I am preparing. Have a look and we can take it forward from there.
    Thanks again.
    RegardsMohit
     

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    #113719

    Ja
    Participant

    Hi,
    Would you please share the document with me also…
    I think there sould ba a way to calculate human competency as there are some ways on calculating Emotional Intellegence… But this is a very interesting projetc…
    Thanks for sharing…
    Jon Abbas
    [email protected]

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    #113821

    Zalki
    Participant

    Hi Mohit,
    Currently, my company also implement a 6 sigma project in HR department. I do not know how to vcalculate the ROI on human competency. Can you please share your project with me. So we can discuss and overcome some critical problem.
    My email: [email protected]
    Thanks for your sharing.

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    #116285

    Suneeth
    Member

    Some of the ways could be to evaluate improvement in competency levels. In good old days individuals were compensated basead on their experiece levels,etc.The norm has now changed to evaluating competency.Competency can be laid out in bands ; the number of resources moving up each each band because of some improvement initiatives can be a good measure.
    Thanks,
    Suneeth

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    #116304

    Adam L Bowden
    Participant

    5:1 ROI
    …. that is the benefit is typically 5* more benefit than the cost of the investment based upon experience.
    Regards,
    Adam

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Viewing 9 posts - 1 through 9 (of 9 total)

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