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Using simulation to select and evaluate potential Six Sigma projects

The DuPont Company has chosen the Six Sigma methodology as "the way we do business". Six Sigma's demand for quantifiable bottom line results is an excellent business discipline. At the same time, for many multi-stage production and supply chain operations, it is difficult to quantify the impact of a given project on overall earnings. Simulation is used in DuPont to help select projects which have high potential for increasing earnings. When the projects meet their immediate goals, simulation is used to quantify the contribution of that project to overall earnings improvement. A case study of a large multi-step chemical operation will be reviewed.