Module 5 · Lesson 15 of 17
Cost-benefit and implementation selection
This lesson and the entire Lean Six Sigma Black Belt academy are free of charge — no fees, ever.
Learning objectives
- Explain the purpose of cost-benefit and implementation selection in a garment-factory improvement project.
- Apply the described method to a representative shop-floor situation.
- Recognize the common mistakes and how to avoid them.
Concept
Final selection considers verified benefits, one-time and recurring costs, risk, capacity, timing, and uncertainty.
Include equipment, integration, training, maintenance, downtime, consumables, quality savings, labor redeployment, avoided loss, cash timing, payback, and sensitivity.
Released minutes are not cash unless redeployed to output or reduced overtime/headcount.
Garment-factory example
Compare a folder attachment, workstation redesign, and automated unit using annual defect/rework savings and style-change constraints.
Method
- Validate quantities with finance.
- Avoid double counting.
- Calculate net annual benefit and payback.
- Model base/best/worst cases.
- Record nonfinancial CTQs.
Common mistakes
- Treating released minutes as booked savings without redeployment.
- Ignoring maintenance and ramp-up loss.
Knowledge check
Pick one answer per question. Explanations appear after you submit.
1. Released minutes become cash when:
2. A financially attractive option still must pass:
Author: NOSK.life · Last reviewed: 2026-07-21