Financial data are often required to get full support from management and
other project stakeholders. This form is sometimes referred to as a COPQ (Cost
of Poor Quality) analysis.
form answers the questions:
- For a proposed project, what
are the expected financial benefits and the time frame for realizing those
- Once a process has a baseline,
what are the updated benefits and timeline expectations?
- For a completed project, what
are the actual financial benefits, and the actual time frame for realizing
- Include process experts and
finance representatives on the team whenever possible.
- Determine the potential
savings categories using company guidelines. For example, labor, materials, and
inventory are commonly used to determine the gross savings for the project.
- Determine the cost
categories for implementing the project. These categories are used to estimate
the cost of the project and to calculate the net savings.
- Record the financial data.
- Finance representatives
should validate all benefit amounts and sign off on the analysis.
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