The Benefits of Integrating Finance With Six Sigma

With the participation of the finance department at the beginning of such initiatives, a large amount of support and benefits can be achieved.

The Finance Department as a Business Partner

Often, people feel that the finance team is all about bookkeeping and accounting, and that audits and financial reports. However, if the finance team is in the selection of Six Sigma projects involved, they can prioritize a number of improvementsProjects that are managed by different departments.

The owners of the process is the potential for improvement, then heads to the financial team for feasibility study, they turn into the project pipeline will be placed on the allocation of them to the Black Belt. This saves time by Black Belts to begin the projects, which require immediate attention.

While the DMAIC process to the finance department review teams with an improvement in the benefits of the projectand on the calculation of benefits. After changing the project to the process owner can a review be conducted to assess the expected benefits of the project gathered on the basis of data in the entire process.

Black Belts do not have the time, the acquired benefits to be calculated. Once the project is executed, an initial review to be done after about six months to check whether the expected benefits to be achieved. In this way, determine what variances. The Black Belts and process ownerscan then change to bring in the expected improvements.

After about a year to carry out a review may be carried out and a new base with the help of improved KPIs. From there it's just about the additional benefits.

The finance department may, before the inclusion of black belts, and so the project can go after the belt to the next project support to be included.

Benefits of involving the Department of Finance

Integrity:Project team calculated the benefits that have accrued from the project. However, there is every possibility that the potential which can be determined, rather than the real ones.

The Finance team provides integrity for the calculation of these benefits. They are realistic and allow the teams to improve the KPIs, without having to worry about the financial results.

Once the KPIs to improve, the bottom line results are bound to improve.

Standardized assessment:The finance department can ensure that accruable all project and field improvements, a standard method for calculating the benefits from the project have, and compare the results with no contradictions.

Avoid recording false benefits: The finance team will be the factors that keep the outside of the project limits during the calculation of benefits that can be missed by the process owners.

Budget Mechanism: A new project has to be included in the budget to ensurethat the improvements will be reflected in KPIs.

Examinations: The project benefits are available for testing. Internal teams may also be allowed to conduct tests to verify and calculate the benefits.

Accountability: The finance department is responsible and accountable for the proper reporting and project results and benefits achieved.

Proactive Finance team: Having been involved throughout the project, the Finance Department isBenefit for the understanding of the company even better with all the associated factors.

By including the finance department from the start of the Six Sigma project is the knowledge about the financial viability of the project expressed. Then the finance department can achieve the better results than in previous years to feel safe.