Six Sigma Project Savings Tracker Worksheet (Excel Export)
Every improvement programme eventually gets asked what it saved. This worksheet keeps the baseline defect rate, the improved rate, volume and cost per defect for each project in one place, and totals the annual savings. Edit the example rows, add your own and export to Excel.
| Project | Owner | Phase | Annual volume (units) | Baseline defect rate (%) | Improved defect rate (%) | Cost per defect | Annual saving | Defect reduction | |
|---|---|---|---|---|---|---|---|---|---|
$16,380 | 65.6% | ||||||||
$7,497 | 37.5% | ||||||||
$0 | 0% | ||||||||
$5,760 | 75% | ||||||||
$0 | 0% |
Savings here are gross run-rate estimates. Finance should validate which are hard (cost removed from budget) and which are soft or cost avoidance before reporting.
Savings from live ERP data
Optional: we can discuss pulling scrap and rework cost per operation into this view.
Optional. The tool and every export work without this. No spam.
How to use it
Add one row per project. Enter the DMAIC phase, annual volume and defect rate before and after improvement as percentages. Enter cost per defect as the loaded cost of scrap, rework and handling per defective unit, ideally agreed with finance. Saving and percentage reduction are calculated for you. For projects still in Define or Measure, leave the improved rate equal to baseline so no saving is claimed early.
- One row per project
- Enter rates as percent, such as 2.4
- Agree cost per defect with finance
- Update after the Control phase with measured results
How savings are calculated
Annual saving equals volume times the reduction in defect rate, times the cost per defect. A project with 120,000 units, a baseline of 3.2 percent and an improved 1.1 percent, at $6.50 per defect, saves 120,000 x 0.021 x 6.50, which is $16,380 a year. Defect reduction is the baseline minus improved rate as a share of baseline. It makes projects comparable across lines with different starting rates.
Making savings credible
Use measured post-improvement rates from the Control phase rather than predictions, and hold the result for several months. Separate hard savings, such as lower scrap spend or reduced overtime, from cost avoidance. Do not double count: if two projects target the same defect on the same line, the combined reduction cannot exceed the total baseline. Record the date and data source in your project file so the number survives an audit.
Common mistakes
Claiming full savings at the end of Improve before the gains are proven is the most common. Using selling price instead of the cost of a defect overstates the benefit. Another is ignoring added costs, such as new inspection or tooling. Include one-off project costs elsewhere so you can show payback. In an ERP, scrap and rework cost by operation can be pulled from production transactions, which gives a better cost per defect than an estimate.
Frequently Asked Questions
What counts as a hard saving?
A saving that shows up as lower spend or higher revenue in the accounts, such as reduced scrap purchases, lower overtime or avoided freight. Capacity freed up that is not used is cost avoidance and is usually reported separately.
How long should I measure before claiming savings?
Many programmes wait for at least three months of stable data after the Control phase starts. Longer is better for seasonal or low-volume parts.
Can I track several defect types per project?
Add a row for each defect type with its own cost per defect, and give the rows a related project name. Make sure the defect types are mutually exclusive.
Does this replace a project charter?
No. It tracks outcomes. Keep a charter with problem statement, scope and goals for each project, and use this sheet to total the results across the portfolio.
If you want baseline defect rates and cost per defect drawn from your ERP production history, we can scope a private report for your CI team.
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