The following Business Case is constructed properly. “During most of 2008 Division 16 experienced a 4.2% product return rate versus a target of nearly no returns. This costs the company a whole bunch of money.

A properly constructed business case within a Lean Six Sigma framework must be specific, measurable, and quantify the problem's impact in clear terms, usually financial. The provided statement fails this standard by using vague, colloquial language such as "a whole bunch of money" instead of a specific financial figure (e.g., "$500,000 in rework and warranty costs"). Furthermore, the target of "nearly no returns" is not a SMART (Specific, Measurable, Achievable, Relevant, Time-bound) goal. A well-defined business case provides the data-driven justification necessary for project approval and is a critical component of the project charter.

A. True: This is incorrect because the business case lacks the essential quantification and specificity required for a formal project proposal. Vague statements undermine its credibility and utility for decision-making.

1. Pyzdek, T., & Keller, P. A. (2018). The Six Sigma Handbook (5th ed.). McGraw-Hill Education. In Chapter 10, "The Define Phase," the authors detail the components of a project charter, emphasizing that the business case must clearly articulate the problem and its financial impact on the organization. Vague descriptions like "a whole bunch of money" are explicitly discouraged in favor of quantified estimates.

2. George, M. L., Rowlands, D., Price, M., & Maxey, J. (2005). The Lean Six Sigma Pocket Toolbook. McGraw-Hill. In the section on "Project Charter" (pp. 18-20), the toolbook explains that a business case should answer "Why is this project important to the business?" with quantifiable data, linking the project to strategic objectives and financial metrics.

3. University of Michigan College of Engineering, Nexus. (n.d.). Lean Six Sigma Green Belt Certification Courseware. In the module covering the "Define" phase, the curriculum specifies that a business case must "Quantify the impact of the problem on the customer and the business (e.g., cost, revenue, margin)." This principle directly contradicts the imprecise language used in the question's example.