Lean Six Sigma Belts Defined: A Key to Accurate Benefits Estimation

In the world of Lean Six Sigma, belts play a crucial role in the deployment and implementation of projects aimed at improving processes and reducing waste. While many people are familiar with Green Belts and Black Belts, there is another belt that deserves attention - the Money Belt. In this article, we will explore what the Money Belt is, its functions, and why it's essential for the success of Six Sigma deployments.

The Money Belt: A New Role in Lean Six Sigma

In recent years, some Six Sigma organizations have introduced a new role - the Money Belt. The primary function of the Money Belt is to provide an independent and objective evaluation of financial benefits projections and actual results achieved by Six Sigma projects. This role is often assigned to financial analysts or accountants who are chosen by the chief financial officer (CFO).

Benefits Estimation and Accounting: A Critical Function

Accounting for project benefits is a significant weakness in many Lean Six Sigma deployments. Most belt training programs give insufficient attention to the tools and techniques required for this role, which can lead to inaccurate results and undermine the credibility of the entire process. The Money Belt helps to maintain truthful accounting for results by providing an independent evaluation of financial benefits projections and actual results.

Key Responsibilities of the Money Belt

The Money Belt is responsible for ensuring that all aspects of benefits estimation and accounting are properly managed. This includes defining the benefits categories to be considered, determining the methods of calculation to be used, and identifying the benefits horizon to be included. The Money Belt must also ensure that all financial projections and results are verifiable and credible.

Benefits of Having a Money Belt

Having a dedicated Money Belt can have significant benefits for Lean Six Sigma deployments. It helps to maintain accurate accounting for project results, which is essential for measuring progress and identifying areas for improvement. Additionally, the Money Belt provides an objective evaluation of financial benefits projections, which can help to build trust among stakeholders.

In conclusion, the Money Belt is a critical role in Lean Six Sigma that is often overlooked. By providing an independent and objective evaluation of financial benefits projections and actual results, the Money Belt helps to ensure accurate accounting for project results. This role is essential for maintaining credibility and building trust among stakeholders. If you are considering implementing Lean Six Sigma in your organization, it's crucial to define this role and assign a dedicated individual to manage benefits estimation and accounting.

Lean six sigma belts defined