Provides a linkage between process improvement projects and bottom-line impact on the organization, which is often a necessary component in obtaining full support from management and other project stakeholders. This tool is sometimes referred to as a COPQ (Cost of Poor Quality) analysis.
|When to Use||Purpose|
|Pre-project||Assist in project identification by providing initial estimates of cost savings and timelines for potential projects. This tool is often used as an input in the Project Prioritization Matrix.|
|Start of project||Prepare initial estimates, or, if initial estimates have been made earlier, modify as needed to reflect new information.|
|Mid-project||Update initial estimates of expected benefits once a process performance baseline and improvement goals have been determined.|
|End of project||Update the financial analysis tool to show actual financial benefits (amounts and timelines) after the improvements have been implemented.|
No data requirements exist because you only use this tool to collect and organize data.