Return On Investment

Any Change Programme must be considered as, and deliver, a return on investment. The average value to the organisation of a Lean Six Sigma project has been estimated as £100,000 from research carried out by Lean Six Sigma consultant Mikel Harry.

Research carried out by the DTI, looking at 500 lean projects across a variety of industries over 5 years showed that the financial benefits of process improvement were to give a 100% ROI in 1 month, with the average realised benefit to the organisation being £150K. Typically, a Black Belt runs 3-4 projects per year, so the added value target should be at least £250K for the first full year of operation for each Black Belt. This will depend on the opportunity within the organisation, and against this the costs of training and employment must be weighed.

Sigmapro studied ROI with a major client during a recent programme, and even taking into account all the costs of training, support and salaries of personnel involved, the company was able to achieve a 4:1 return on the total investment in the first year alone.

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