Benefits of Integrating Finance with Six Sigma
With the involvement of the Ministry of Finance in such initiatives from the beginning, a large number of assistance and benefits can be achieved.
Ministry of Finance as a Business Partner
Often people feel that the financial team is about bookkeeping and accounting, and making audits and financial statements. However, if the financial team is involved in the Six Sigma project selection, they can prioritize various increasing projects that will be carried out by different departments.
The owner of the process finds opportunities for improvement, forwarding it to the financial team for a feasibility study, which in turn will put them into the project pipe to allocate it to a black belt. It saves a time of black belt that allows starting with projects that require immediate attention.
Throughout the DMAIC process, the financial team can review the team to improve project benefits and approve the calculation of benefits. When transferring the project to the owner of the process, the review can be made to assess the expected benefits of the project based on the data collected in the entire process.
Black belt does not need to be included in time to calculate the benefits obtained. After the project is executed, the review can be made after about six months to verify whether the benefits are expected to be achieved. This helps identify any deviation. Black belt and process owner can then make modifications that can bring the expected increase.
After about a year in implementation, the reviews can be done and the new baseline set uses an improved KPI. From there, this is just about additional benefits.
The Ministry of Finance can be involved even before the black belt involvement and so it can support the project even after the belt switches to the next project.
Benefits involving the Ministry of Finance
Integrity: The project team calculates the benefits that can be worn from the project. However, there are every possibility that they will calculate potential than the original.
The financial team provides integrity on the calculation of these benefits. They are realistic and allow the team to focus on increasing KPI without having to worry about financial results.
After the KPI increases, the essentially is bound to increase.
Standard calculation: The financial team can ensure that all projects and improvement areas have standard calculation methods for benefits taken from the project, and compare results without inconsistencies.
Avoiding the recording of the wrong benefits: The financial team will consider the factors outside the project limit while calculating the benefits, which might be passed by the process owner.
Budget mechanism: A new project must be included in the budget to ensure that repairs in the KPI are maintained.
Audit: Project Benefits are available for audit. The internal team can also be allowed to conduct an audit to review and calculate the benefits.
Accountability: The Ministry of Finance is responsible and responsible for appropriate reporting and to calculate the results of the project and the benefits achieved.
Proactive Financial Team: After being involved throughout the project, the Ministry of Finance will find it useful in understanding business even better with all related factors.
By involving the Ministry of Finance from the beginning of the Six Sigma project, knowledge of the financial feasibility of this project was manifested. Then, the financial team may feel confident to achieve better results than in previous years.