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If an alternative involves an equipment modi cation or purchase, an analysis on the equipment should be conducted. The team should investigate whether the equipment is available commercially and then contact the manufacturer for more information. Performance of the machine should also be addressed, including cost, utility requirements, capacity, throughput, cycle time, required preventative maintenance, space requirements, and possible locations in the facility in which the equipment could be installed. In addition, whether production would be affected during installation, should also be evaluated. The vendor or manufacturer could provide more information

regarding potential shutdowns Required modi cations to work ow or production procedures should be analyzed as well as required training and safety concerns related to the equipment purchase or modi cation From an operational standpoint, attention should be given to how the alternative will improve or reduce productivity and labor force reductions or increases If a waste minimization alternative involves a process change or a material change, the affected areas should be identi ed and feedback gathered from the area managers, employees, maintenance staff, and engineers (if applicable) With the process changes, training requirements should also be discussed Also, the impacts on production, material handling/storage, and quality should be addressed A material-testing program is highly recommended for new items with which the engineering team may not be familiar, to analyze quality and throughput impacts.

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A design of experiment (DOE) that tests the changes versus the current material is an excellent method to gauge impacts A DOE is the design data gathering tests where variation is present, whether under the full control of the experimenter or not Often the experimenter is interested in the effect of some process or intervention, such as using a new raw material, on some outcome such as quality From an economic standpoint, traditional nancial evaluation is the most effective method to analyze alternatives These measures include the payback period, (discounted payback period), internal rate of return, and net present value for each alternative If the organization has a standard nancial evaluation process, this should be completed for each alternative The accounting or nance department would have this information To perform these nancial analyses, revenue and cost data must be gathered and should be based on the expectations for the alternatives.

This is more complicated than it sounds, especially if a project will have an impact on the number of required labor hours, utility costs, and productivity, not to mention initial investments A comprehensive estimation of the cost impacts (revenues and costs) per year over the life of the alternative is required to begin the analysis The rst step of the economic evaluation process is to determine these costs These costs include capital costs (or initial investment), operating costs/savings, operating revenue, and salvage values for each waste minimization alternative Capital costs are the costs incurred when purchasing assets that are used in production and service Normally they are non-reoccurring and used to purchase large equipment such as a baler or plastic grinder Capital costs include more than just the actual cost of the equipment; they also include the costs to prepare the site for production.

7. Develop plans to utilize technology to automate the data collection and analysis. 8. If multiple profit centers exist, establish an aggregated Six Sigma Business Scorecard for the corporation. 9. Identify key processes for improving business performance. 10. Identify input, in-process, and output process parameters. 11. Establish data collection methods for these process parameters. 12. Collect data and calculate the error rate, cycle time, and cost for each department. 13. Plot trend charts and present the data with respect to established goals on a weekly basis. 14. Publish the weekly BPIn and monthly Six Sigma Business Scorecard reports. 15. Review business performance using Six Sigma Business Scorecard results. 16. Identify measurements with the greatest variance and adverse performance. 17. Investigate for root causes of the variance and waste in those areas. 18. Initiate remedial actions to improve the performance. 19. Monitor impact on the BPIn and profitability.

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