Evaluation of the Success of Six Sigma Projects by Data Envelopment Analysis

Abstract

Six sigma provides a methodology for problem solving by using project management tools systematically. Theprimary aim of six sigma applications is minimizing defects. Minimizing defects will ensure the outputs andcustomers’ satisfaction increase and the costs decrease. However, the number of the firms that state that theycouldn’t get the results from six sigma programs as they expected is not few. The main reason for failure of sixsigma programs is not to balance the costs with gains of six sigma projects. So, evaluating the performance of sixsigma projects is an important issue for the firms that apply six sigma programs.In this paper, data envelopment analysis was used to evaluate the performance of six sigma projects which isstated as critical success factor for six sigma programs. Data envelopment analysis which is based on linearprogramming helps to determine the efficient and inefficient decision making units by comparing the relativeefficiencies of decision making units. Recently, there are some papers in the literature which apply dataenvelopment analysis for evaluating the performance of R&D and software projects. There are also some paperswhich discuss the application of data envelopment analysis in the selection of six sigma projects. Howeverevaluating the performance of six sigma projects with data envelopment analysis was not discussedcomprehensively in the literature. This paper is original by showing that data envelopment analysis which can beused in evaluating the performance of organizations can also be used for evaluating the performance of six sigmaprojects. The application of data envelopment analysis for evaluating the performance of six sigma projects wasshown by a case study.