Normative approach to Six Sigma project selection

摘要

This paper introduces the notion of expected utility and how to implement it in Six Sigma. Moreover, it intends to bridge the gap between process variation and the economic impact in order to have a clear view of economical consequences. It is agreed that the key for the success of any manufacturing firm is to select the most profitable project. There is a significant awareness in the Six Sigma community of the need for a tool that incorporates uncertainties, is data driven, and takes into account all financial aspects. Having an outstanding process quality is not necessarily an economical objective.