Project Selection Process
Recognize
Define
Launch
Six Sigma Executive Series
The Project Roadmap
Finding the solution of Y = f(X)
Recognize
Define
Management
Project Identification
and Launch (support given
from “Belt”).
Management
Management owns 80% of the
responsibility here.
Measure
“Belt”
Analyze
“Belt”
Improve
“Belt”
Control
“Belt”
Realize
Project Selection Process
Management
Solution to the problem
and a Final Report (support
given from a Champion).
Implement solution and maintain
ongoing benefits (support given
from “Belt”).
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Finding the solution of Y = f(X) + e
The Six Sigma Project
Practical
Problem
Generally a systemic or chronic
problem which is impacting the
success of a process or function.
Six Sigma
Project
A well defined effort that states the
problem in quantifiable terms with
known expectations.
Statistical
Problem
Data oriented problem that is
addressed with facts and data
analysis methods.
Statistical
Solution
Data driven solution with known
confidence/risk levels versus an “I
think” solution.
Control
Plan
A method of assuring the longterm sustainability of the fix to the
problem.
Practical
Solution
The solution is not complex,
expensive or irrational and is
readily implement-able.
Results
Tangible results measurable in
metrics with quantifiable financial
or strategic value.
Project Selection Process
Characteristics of a
Project
Has a financial impact to Earnings
or a significant strategic value
The problem is not easily or quickly
solvable using traditional methods
It is targeted to reduce the problem
by >70% over existing performance
levels
Focus is to solve a
business problem that is:
Affecting the success of the
organization
Affecting costs
Affecting employee satisfaction
Impacting a Customer (external
and/or internal)
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Project Difficulty Distribution
Quantity of Problems
Solving
“Fruit on the Ground,”
“Logic & Intuition”
Type Problems – Yellow
and Green Belt.
Solving
“Process Optimization”
“Complex Interaction”
“Process Entitlement”
Black and Master Black
Belt Projects.
Solving
“World Hunger,”
“Boil the Ocean”
Type Problems.
Six Sigma Projects
Too
Easy
Project Selection Process
Difficulty and
Cost of
Problems
Too Hard Are Usually
Management or Market Caused
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Project Originators
The Following People Typically Identify Potential Projects:
•
•
•
•
Champions
“Belts”
Process Leaders
Functional Managers/Process Owners
Any Employee Can Suggest a Project and Should Be
Encouraged To Do So……However, It Should Be Considered
and Sponsored by One of the Above People
Project Selection Process
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Common Mistakes in Defining Projects
The most common mistakes in defining a potential project are:
• Scope is too broad (solving world hunger or boiling the ocean).
• Symptoms include: too many output Y’s, multiple goals, numerous
Process Owners, multiple departments.
• Solution: Divide problem into several projects.
• Problem is too easy.
• Problem solution is known.
• It is a “just do it”; no problem analysis required.
• Problem is a management or market issue – not a good “Belt” project.
• Long term research or development project, not a problem to be
solved with Six Sigma tools.
Project Selection Process
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Importance of Selection Process
Facts about Project Selection:
•
Project Recognition & Definition are critical activities to
the success of any project and to the Six Sigma
improvement effort.
•
Project Recognition & Definition are among the more
important tasks a Champion performs.
•
“When I seek a project, it usually stinks. But when the
projects find me, they’re usually very good projects.”
Six Sigma Black Belt
International Truck & Engine
Project Selection Process
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RECOGNIZE PHASE
Recognize
Finding Areas Needing Improvement
“Writing the Business Case”
Opportunity Definition
Step 1
Opportunity
Definition
Enabling Processes
Core Processes
Creating Logical Grouping
Using Affinity Diagramming
Finding Problematic Areas of
the Business
Structure of the Business Case
As a company, our__________ performance for the
Structure of the Business Case
___________ area is not meeting__________. Overall this is
As a company, our__________ performance for the
causing____________
problems
Structure of the
Businesswhich
Caseare costing us a
___________ area is not meeting__________. Overall this is
much as$_______
per______.
As a company,
our__________ performance for the
Structure of the
Businesswhich
Caseare costing us a
causing____________
problems
___________ area is not meeting__________. Overall this is
much as$_______
per______.
As a company,
our__________ performance for the
causing____________ problems which are costing us a
Examples
___________ area is not meeting__________. Overall this is
much
as$_______
per______.
1. As a company,
our
accounts receivables
performance
for the
causing____________
problems which
are costing us a
Examples
finance invoicingarea is not meetingthe goal of 47 DSO.
much as$_______ per______.
1. As a company, ouraccounts receivablesperformance for the
OverallExamples
this is causingcash flow and budgetproblems which
finance invoicingarea is not meetingthe goal of 47 DSO.
are costing
us a
ascompany,
much as$4M
per year. receivablesperformance for the
1. As
ouraccounts
OverallExamples
this is causingcash flow and budgetproblems which
finance invoicingarea is not meetingthe goal of 47 DSO.
are costing
us aascompany,
much as$4M
per year. receivablesperformance for the
1. As
ouraccounts
Overall this is causingcash flow and budgetproblems which
finance invoicingarea is not meetingthe goal of 47 DSO.
are costing us as much as$4M per year.
Overall this is causingcash flow and budgetproblems which
are costing us as much as$4M per year.
Receivables
As a company, our
accounts receivables
performance for the
As a company, our
finance invoicing
is not meeting
the goal of 47 DSO
this is causing
Warranty
area
. Overall
accounts receivables
performance for the
As a company, our
finance invoicing
is not meeting
cash flow and budget
Cycle time
the goal of 47 DSO
this is causing
area
. Overall
accounts receivables
performance for the
As a company, our
finance invoicing
is not meeting
cash flow and budget
Defects
the goal of 47 DSO
this is causing
area
accounts receivables
performance for the
. Overall
finance invoicing
is not meeting
cash flow and budget
the goal of 47 DSO
this is causing
problems which are costing us as much as
problems which are costing us as much as
problems which are costing us as much as
$4M
$4M
$4M
$4M
per
year
.
As a company, our
accounts receivables
performance for the
the goal of 47 DSO
year
.
As a company, our
finance invoicing
is not meeting
this is causing
per
area
. Overall
accounts receivables
performance for the
the goal of 47 DSO
this is causing
year
.
As a company, our
finance invoicing
is not meeting
cash flow and budget
per
area
. Overall
accounts receivables
performance for the
the goal of 47 DSO
this is causing
year
area
accounts receivables
performance for the
. Overall
finance invoicing
is not meeting
cash flow and budget
the goal of 47 DSO
this is causing
problems which are costing us as much as
problems which are costing us as much as
problems which are costing us as much as
$4M
$4M
$4M
$4M
year
.
As a company, our
accounts receivables
performance for the
the goal of 47 DSO
this is causing
year
.
As a company, our
finance invoicing
is not meeting
per
area
. Overall
accounts receivables
performance for the
the goal of 47 DSO
this is causing
year
.
As a company, our
finance invoicing
is not meeting
cash flow and budget
per
area
. Overall
cash flow and budget
accounts receivables
performance for the
the goal of 47 DSO
this is causing
year
area
accounts receivables
performance for the
. Overall
finance invoicing
is not meeting
cash flow and budget
the goal of 47 DSO
this is causing
problems which are costing us as much as
problems which are costing us as much as
problems which are costing us as much as
$4M
$4M
$4M
$4M
year
.
As a company, our
per
year
.
accounts receivables
performance for the
the goal of 47 DSO
this is causing
year
.
As a company, our
finance invoicing
is not meeting
per
area
accounts receivables
performance for the
. Overall
the goal of 47 DSO
this is causing
year
area
accounts receivables
performance for the
. Overall
finance invoicing
is not meeting
cash flow and budget
the goal of 47 DSO
this is causing
problems which are costing us as much as
problems which are costing us as much as
$4M
$4M
$4M
year
.
As a company, our
accounts receivables
performance for the
the goal of 47 DSO
this is causing
year
.
As a company, our
finance invoicing
is not meeting
per
area
finance invoicing
is not meeting
the goal of 47 DSO
this is causing
$4M
.
As a company, our
per
area
.
area
. Overall
cash flow and budget
problems which are costing us as much as
$4M
year
year
accounts receivables
performance for the
. Overall
cash flow and budget
problems which are costing us as much as
per
per
. Overall
cash flow and budget
problems which are costing us as much as
per
area
.
As a company, our
finance invoicing
is not meeting
cash flow and budget
per
. Overall
cash flow and budget
problems which are costing us as much as
per
area
.
As a company, our
finance invoicing
is not meeting
per
. Overall
cash flow and budget
problems which are costing us as much as
per
area
.
As a company, our
finance invoicing
is not meeting
cash flow and budget
per
. Overall
cash flow and budget
problems which are costing us as much as
year
.
accounts receivables
performance for the
finance invoicing
is not meeting
the goal of 47 DSO
this is causing
area
. Overall
cash flow and budget
problems which are costing us as much as
$4M
per
year
.
Strategic
Statement of Work
Business Opportunity Analysis Summary
Financial
Priority
Business Case
Owner
Impact
Sponsor
As a company, our accounts receivables performance
•Opportunity
Identification
•Issues and Problems
Matrix
•Scope
•Statement of Work
•Prioritized Business
Improvement Plan
Project Selection Process
Improvement Plan
for the finance invoicing area is not meeting the goal of
47 DSO. Overall this is causing cash flow and budget
problems which are costing us as much as $4M per
Problem Statement
Recruiting time for Production Planners is missing the goa
l 81% of
the time. The average time to fill a request is 155 days in the
Human Resources employee recruitment process over the past 15
months. This is costing us $145,000 per year of additional labor
and
rework costs.
1
year.
Bob Smith
$4M
Ellen West
Mary Jones
$2M
Bill Jones
Ken Parks
$900K
Kathy Shank
Jill Williams
$1.5M
Earl Johnson
As a company our product recall performance for the
ice cream market area is not meeting the budget of
1.5%. Overall this is causing logistics, materials and
cost problems which are costing us as much as $2M per
2
year.
As a company our final process yield performance for
the culture area is not meeting the targeted 88% yield.
Objective Statement
Reduce the overall personnel recruiting time from an average
of 155 days to 75 days, with an upper limit of 110 days. This
will meet the current maximum goal of 100 days greater
than 95% of the time. The new goal which will be achieved
by June 1, 2002, will support our Employer of Choice goal
and achieve a savings of $145,000.
Overall this is causing Floor space, shipment and
resource problems which are costing us as much as
$900K per year.
3
As a company our shipping logistics performance for the
Smith’s market segment is not meeting the scheduling
and cost requirements. Overall this is causing delivery
issues and customer dissatisfaction problems which are
costing us as much as $3M in lost revenues and $1.5M
4
in expenses per year.
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Finding Areas Needing Improvement
RECOGNIZE Starts With the Highest Level View and Moves
Downward Into More Specifics to Formulate Six Sigma Projects
•Start by assessing the higher level needs of the company; using any
knowledge obtained from the Voice of the Customer (VOC) and/or
the Voice of the Business (VOB).
•Identify gaps in achieving the higher level needs of the company, the
critical success factors or key goals and objectives of the company.
• Achieving these goals should deliver customer satisfaction and business results
• Business areas or processes which are impacting your goals are identified
• Six Sigma projects are then selected with the goal of substantially improving
these key processes
•Select those areas or functions of the business related to the gaps
which are performing poorly based on expectations, competitive
knowledge or known deficiencies in performance.
• Problems at this level usually are related to quality, cost or delivery
Project Selection Process
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Finding Areas Needing Improvement
Problem “themes” will then become visible, such as:
• Product returns/warranty costs
• Customer complaints
• Accounts receivable and invoicing issues
• Cycle time/responsiveness
• Inefficiencies of defective services
• Yield and subsequent rework or scrap
• Capacity constraints
• Inventory levels
You have now recognized where problems exist which
need to be resolved in order to achieve our objectives.
Project Selection Process
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Finding Areas Needing Improvement
Writing a Business Case identifies the problem area, a
description/characterization of the high level problem and an
estimate of the financial benefit if solved to expectations.
• When doing this the intent is not to define a Six Sigma project but
to identify a problematic area.
• The description of the high level business problem does not have
to be very detailed. The details come when defining the project(s)
to resolve the Business Case. It can be as simple as:
• Warranty returns are excessive
• Accounts receivables are higher than target
• Product test yield and cost is not competitive
• Sales order responsiveness is causing customer complaints
• The potential financial benefit is our current best estimate given
the data/knowledge we have. “Just get the number in the ballpark.”
Project Selection Process
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Opportunity Analysis Summary
1. At the corporate level, the Opportunity Analysis Summary becomes a
high-level road map for the Business Process Improvement Program.
– It identifies, with some specificity, which areas of the business and
which metrics are to be improved and what impact such improvement
will have.
2. It serves, then, as a tool to assure subsequent project selection
criteria remain focused on issues pertinent to the corporate objectives.
– As management, you want projects to improve metrics relevant to the
corporate strategy. Using the Opportunity Analysis Summary as a
first-level qualifier for project selection keeps the program focused on
that which is important to the business.
3. For those just beginning a Six Sigma or Business Improvement
Program, it is also used to develop a training program.
– The complexity of the issues identified dictates the training mix of
Champion, Black, Green and Yellow Belts. The time frame in which
the issues will be addressed as desired by Management dictates the
quantity of each.
Project Selection Process
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Problematic Areas
Finding Problematic Areas of the Business
• It begins by writing a Problem Statement which identifies:
1. A problem area.
2. A description/characterization summary.
3. An estimate of the financial benefit if solved to expectations.
• When doing this, your intent is not to define a project, but to identify a
problematic area which may later become an improvement project.
• The description of the business problem does not have to be overly
detailed at this stage. The details come when defining the project(s) to
resolve it.
• The potential financial benefit is your current best estimate given the
data/knowledge you have. “Just get the number in the ballpark.”
Project Selection Process
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Six Sigma Business Assessment Writer
Business Opportunity Assessment Generator
----------------------------------------------------------------------------------------------------------As a company, our__________________________________________
performance for the _____________________________________ (area) is not
meeting ________________________ (Expectations).
Overall, this is causing ___________________________ problems which are
costing us as much as ______________ ($) per ______________ (Time Period).
Instructions:
1.
Capture Business Cases for the
entire business – not just your area.
2.
Complete each Business Case with
your best estimate of the data.
3.
Continue writing Business Cases
until you have exhausted all known
problematic areas.
4.
Cut each Business Case into a
separate paper strip.
5.
Tape each cut Business Case to
the designated area of the wall.
6.
After all students have completed
the Business Case writer, the
instructor will provide directions to
perform an Affinity Diagram.
-----------------------------------------------------------------------------------------------------------As a company, our__________________________________________
performance for the _____________________________________ (area) is not
meeting ________________________ (Expectations).
Overall, this is causing ___________________________ problems which are
costing us as much as ______________ ($) per ______________ (Time Period).
-------------------------------------------------------------------------------------------------- ---------As a company, our__________________________________________
performance for the _____________________________________ (area) is not
meeting ________________________ (Expectations).
Overall, this is causing ___________________________ problems which are
costing us as much as ______________ ($) per ______________ (Time Period).
-----------------------------------------------------------------------------------------------------------As a company, our__________________________________________
performance for the _____________________________________ (area) is not
meeting ________________________ (Expectations).
Overall, this is causing ___________________________ problems which are
costing us as much as ______________ ($) per ______________ (Time Period).
-----------------------------------------------------------------------------------------------------------As a company, our__________________________________________
performance for the _____________________________________ (area) is not
meeting ________________________ (Expectations).
Overall, this is causing ___________________________ problems which are
costing us as much as ______________ ($) per ______________ (Time Period).
------------------------------------------------------------------------------------------------------------
Project Selection Process
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Writing the Problem Statement
Structure of the Problem Statement
As a company, we are experiencing a problem with:
. The area where this problem is occurring is:
problem has existed for at least:
. The
. The
magnitude of the problem is:
and the
expected performance is:
. The effect
this problem is having on our business is:
This is costing us a much as $
Project Selection Process
per
.
.
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Writing the Problem Statement
Good Problem Statement Examples
As a company, we are experiencing a problem with: Employee Turnover. The
area where this problem is occurring is: All Stores. The problem has existed
for at least: 2 years. The magnitude of the problem is: currently 88%, and the
expected performance is: < 85%. The effect this problem is having on our
business is: increased hiring and training costs and a lower than desired level
of customer service. This is costing us a much as $400K in costs and $500K in
Revenue per Year.
As a company, we are experiencing a problem with: Credit Processing
Equipment Uptime. The area where this problem is occurring is: All Stores. The
problem has existed for at least: one year. The magnitude of the problem is:
Uptime at 91%, and the expected performance is: >95% Uptime. The effect this
problem is having on our business is: Service Turnaround Time and Lost
Sales. This is costing us a much as $300K per Year .
Project Selection Process
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Writing the Problem Statement
Good Problem Statement Examples
As a company, we are experiencing a problem with: Merchandise Shortages. The
area where this problem is occurring is: Various Stores. The problem has existed
for at least: 180 days. The magnitude of the problem is: unknown, and the
expected performance is: No Shortages. The effect this problem is having on our
business is: Lost Sales & Expedited Delivery Costs This is costing us a much as
$25K per Month.
As a company, we are experiencing a problem with: Open Maintenance Calls.
The area where this problem is occurring is: Companywide. The problem has
existed for at least: 2 Years. The magnitude of the problem is: average of 1.6
OMC per store, the expected performance is: <1.2 OPC per store. The effect this
problem is having on our business is: systems inoperative causing lost sales.
This is costing us a much as $35K and per Month.
Project Selection Process
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Writing the Problem Statement
POOR PROBLEM STATEMENT:
As a company, we are experiencing a problem with: employee turnover.
The area where this problem is occurring is: in all stores. The problem
has existed for at least: always. The magnitude of the problem is: really
bad, the expected performance is: no turnover. The effect this problem is
having on our business is: high hiring & training costs . This is costing
us a much as a lot of money per month..
A POOR Problem Statement is ambiguous and subjective. It does
not quantify the metrics descriptive of the challenge. While
accuracy is not expected at this point, good guess-timates are
necessary.
Project Selection Process
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Problem Statement Instructions
1. Capture ideas for the entire business – not just your area.
2. Complete each with your best estimate of the data.
3. Continue writing until you’ve exhausted all known problematic
areas.
4. Provide completed sheets of to the Facilitator.
5. Facilitator will tape each to the designated area of the wall.
6. After all participants have completed these steps, the instructor
will provide directions to perform an Affinity Diagram.
Project Selection Process
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Affinity Diagrams for Opportunity Analysis
•
Allows an effective gathering and grouping of ideas
– Allows a team to creatively generate a large number of ideas / issues
and then organize and summarize natural groupings among them to
understand the essence of a problem and breakthrough solutions.
•
Overcome “team paralysis”
•
Encourages creativity by everyone on the team at all phases
– Gain quick team consensus
•
Typically has 40 - 60 items---not unusual to generate over 100 Problem
Statements
becomes
Project Selection Process
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Affinity Diagram Steps
1
Form a
Team
2
3
Describe
the Issue
Generate
Ideas
Driver gets lost
Oven
temperature
fluctuates
10 percent of
pizzas are
remade due to
burnt crust
4
Tack Postits to a Wall
Project Selection Process
5
Sort Into
Groups
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Affinity Diagram Steps
Order Form
6
7
8
Create
Header
Cards
Add
Additional
Info
Load into
Excel
Pizza Oven
Driver
Schedule
Other
1. Responsibility
2. Cost
3. Strategic Linkage
10
9
Sort into a
Usable
Format
Take Action
OK, start affinitying!!
Priority
Business Case
Owner
Financial
Impact
Bob Smith
$540K
Ellen West
Mary Jones
$350K
Bill Jones
Sponsor
As a company, we are experiencing a problem with our accounts receivables
performance. This problem has existed for at least: 90 days. The magnitude
Improvement Plan
of the problem is DSO > 47 and the expected performance is DSO < 38. The
effect this problem is having on our business is restricted cash flow and
1
cost of money. This is costing us as much as $45K per month.
As a company, we are experiencing a problem with our product recall
performance. This problem has existed for at least: 60 days. The magnitude
of the problem is Recall > 1.5% and the expected performance is < 1.2%. The
effect this problem is having on our business is cost and material handling
2
delays. This is costing us as much as $350K per year.
Recruiting time for Production Planners is missing the goal 81% of
the time. The average time to fill a request is 155 days in the
Human Resources employee recruitment process over the past 15
months. This is costing us $145,000 per year of additional labor and
rework costs.
Objective Statement
As a company, we are experiencing a problem with our final process yield
performance. This problem has existed for at least: 1 years. The magnitude
of the problem is Yield < 88% and the expected performance is Yield > 93%.
The effect this problem is having on our business is greater storage space and
3
Problem Statement
higher resource costs. This is costing us as much as $750K per year.
Ken Parks
$750K
Kathy Shank
Jill Williams
$600K
Earl Johnson
Reduce the overall personnel recruiting time from an average
of 155 days to 75 days, with an upper limit of 110 days. This
will meet the current maximum goal of 100 days greater
than 95% of the time. The new goal which will be achieved
by June 1, 2002, will support our Employer of Choice goal
and achieve a savings of $145,000.
As a company, we are experiencing a problem with our shipping logistics
performance. This problem has existed for at least: 240 days. The magnitude
of the problem is schedule met < 89% and the expected performance is >96%. The
effect this problem is having on our business is restricted delivery issues and
customer satisfaction. This is costing us as much as $600K per year.
4
Project Selection Process
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Organizing the Knowledge
Upon finalization of the Business Opportunity Analysis groupings,
the information is entered into the Opportunity Analysis Matrix.
This becomes a high-level road map to Project Selection.
Headings:
• Project No.
• Function
• Function Owner
• Problem/Opportunity
• Dept./Division
• Problem Owner
• Expectation
• Impact
• Financial Impact
• Project in Process
• Key Goal/Objective
Project Selection Process
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Opportunity Analysis Matrix
Opportunity Analysis - XYZ Dairy
Project
No.
Function
Owner
Problem
Area
Problem
Owner
Expectation
Effect
Annual Financial
Impact
1 Total Plant
Neal
Changeover Times
Plant
Monte
Best in Class
Reliability
$
60,000
2 Total Plant
Neal
Reliability
Plant
Monte
>85%
currently <85%
$
3,000,000
3 Total Plant
Neal
CIP Systems
Plant
Gordon
Time/Tracking
Scheduling/Chemical Costs
4 Total Plant
Neal
Process
Mntnce/Production
Curtis
Performance
Downtime
$
1,200,000
5 Total Plant
Neal
Sanitation W O Completion
Plant
Nikki/Lee/Ed
6 Total Plant
Neal
Shrinkage
IC Plant
Lee
$
3,000,000
7 Total Plant
Neal
Shrink - filler to palletizing
Culture & IC
Lee/Ed
8 Total Plant
Neal
Shrink - obsolete inventories
Culture & IC
Alan/Mary
480,000
Function
100% less than expected sanitation
Standards
Financial Performance
Inventory Reporting
9 Total Plant
Neal
Milk & other ingredients
Plant
Lee/Ed
Standards
Loss
$
10 Total Plant
Neal
Overproduction
Plant
Mary/Alan
Plant
Shrinkage
$
11 Total Plant
Neal
Shrink - production problems
Culture & IC
Ed/Lee
Below 2%
Out of Spec
$
730,000
12 Total Plant
Neal
Material Variance/Shrinkage
Plant
Ed/Lee
Below 1.5%
Out of Spec - Financial
$
1,500,000
13 Total Plant
Neal
W IP or Spoilage
Plant
Ed/Lee
Target
Shrinkage/Service Level
$
600,000
14 Total Plant
Neal
Product Recovery Air Blows
Plant
Curt/Grant
Targets
Product Loss
$
10,870,000
Total for Total Plant =
300,000
15 Training
Scott
Employee Skill Level
plant
Melissa
prod demand
service & financial
$
16 Training
Scott
Training
I/C Plant
Melissa
I-85 Dept
equipment failure
$
50,000
17 Training
Scott
Skills & Training Assessment
plant
Scott
OKEA
performance
$
1,000,000
18 Training
Scott
Training
Maintenance
Scott
work completion
$
120,000
19 Training
Scott
Enrollment Reduction Goals
Plant
Scott
reduce by 10%
Operations Staffing
$
60,000
20 Frozen PR
Lee/Monte
Freezer
Ice Cream Plant
Lee
prod demand
lost production
$
400,000
21 Frozen PR
Lee/Monte
Shrinkwrapper
Sqround Line
Lee
prod demand
lost production
$
200,000
22 Frozen PR
Lee/Monte
Sqround Filler
Sqround Line
Lee
prod demand
lost production
$
500,000
23 Frozen PR
Lee/Monte
IC Lines process reliability
Plant
Lee
85% Reliability
currently running <85%
$
180,000
24 Frozen PR
Lee/Monte
Novelty Process Reliability
Plant
Lee
85% Reliability
currently running <85%
$
120,000
25 Fluid PR
Ed/Monte
Culture Filler Process Reli
Plant
Ed
85% Reliability
currently running <85%
$
120,000
26 Fluid PR
Ed/Monte
Process Reliability
Culture Dept
Ed
85% Reliability
currently running <85%
$
120,000
27 Fluid PR
Ed/Monte
Skim Herring to Vats
Culture Vat
Ed
Temp/Time
time/scheduling
$
100,000
28 Fluid PR
Ed/Monte
Vat Turning (?)
Cheese Prod
Ed
Customer
Service
$
250,000
29 Fluid PR
Ed/Monte
I-85
1X6 Filler
Ed/Monte
Kroger
Service Level
30 Fluid PR
Ed/Monte
Culture Production
W ash/W ater Cooling
Grant
Cooling
Quality/Time
31 W hey
Grant
Outside Drain Service
Dairy & IC Plant
Grant/Ed
Budget
Quality/Lost Time
$
5,000
32 W hey
Grant
W hey Concentration/Disposal
Cottage Cheese
Grant/Ed
Lower Costs
Lower Earnings
$
600,000
33 W hey
Grant
W hey Disposal
Cheese Prod
Grant/Ed
50% Reduction
Lower Earnings
$
604,000
34 Finance
Lisa
Cost per Unit Price
Culture
Ed
Kroger
Financial Loss
$
150,000
35 Finance
Lisa
Cost per Unit Price
Fluid
Ed
Kroger
Financial Loss
$
100,000
36 Finance
Lisa
Service Level
Culture Dept
Mary
37 Reporting
Ed/Lisa/Lee
IC Tracking
IC Plant
Lee
Reporting Needs
Financial Tracking
$
38 Reporting
Ed/Lisa/Lee
Exp Control of Trash Removal
Plant
Ed/Lee
Exp Control
Variance from Budget
$
375,000
39 Reporting
Ed/Lisa/Lee
Finished Inventory
Culture
Ed/Lee
Acctg Challenges
$
1,500,000
40 Reporting
Ed/Lisa/Lee
Reporting Accuracy
Prod/W hlse Invtry
Ed/Lee
100% Accurate
Less than expected
41 Reporting
Ed/Lisa/Lee
Production Reporting
Culture
Ed
100% Accurate
Less than expected
$
600,000
42 Reporting
Ed/Lisa/Lee
W arehouse Inventory
Prod/Fin
Ed/Lee
Budget/Closing Problems
$
2,400,000
43 Reporting
Ed/Lisa/Lee
Raw Ingredient Inventory
Culture/IC
Ed
Large Variance
$
1,200,000
44 Fluid/Cult
Michelle/Ed
Product with Good Seals
Plant
Ed
45 Fluid/Cult
Michelle/Ed
Consistent Cottage Cheese
Plant
Ed
Comment Free
Quality problems
46 Fluid/Cult
Michelle/Ed
Mold
Culture Products
Lab/Ed
Kroger
Customer
$
150,000
47 Fluid/Cult
Michelle/Ed
Cup Cheese Consistency
Culture
Ed
Kroger
Customer
$
150,000
48 Fluid/Cult
Michelle/Ed
Mold Free Culture Products
Plant
Lab/Ed
Mold Free
Quality
49 Fluid/Cult
Michelle/Ed
Chocolate Delivery System
IC Plant
Lee
Production Levels
Shrinkage/Quality
200,000
50 Frozen
Michelle/Ed
Flat Bar Quality
Plant
Lee
Zero Comments
Quality
51 Frozen
Michelle/Ed
Flat Bar Quality
IC Plant
Lee
Customer Sat
52 Frozen
Michelle/Ed
Quality Assurance
IC Novelty
Lee
53 Frozen
Michelle/Ed
IC Sandwich Quality
IC Plant
Lee
54 Frozen
Michelle/Ed
Fruit Feeder
IC Plant
Lee
55 Fluid Shelf
Michelle/Ed
Fluid Milk Shelf Life
Plant
56 Fluid Shelf
Michelle/Ed
Fluid Shelf Life
57 Fluid Shelf
Michelle/Ed
Air Quality
58 Consumer
Michelle
Quality - comments per million
59 Parts
Aaron/Curtis
60 Parts
61 Reliability
99% Confidence Problems
Allowed Variance
200,000
100% Quality problems
$
50,000
Consumer Comments
$
200,000
Customer Sat
Numerous Complaints
$
144,000
Customer Sat
Numerous Complaints
$
50,000
Customer Sat
Customer Complaints
$
100,000
Lab
15 days
Inefficient runs
Fluid Plant
Lab
95% at Code
Inaccurate Production Planning
$
Dairy Plant
Lab
Mfg Standards
Quality/Shelf Life
$
240,000
IC Plant
Lee/Michelle
Company Std
Too many
$
1,000,000
Stock Out
Maint/Production
Jenny
Cycle Counts
Down Time
$
Aaron/Curtis
Parts flow to Control Area
Maint
Planners
$
60,000
Aaron/Curtis
Fire Fighting
Maint
All Mgrs
Supervisors
Quality of W ork
$
1,200,000
62 Reliability
Aaron/Curtis
Maint Dept
IC Plant
Aaron
Reliability
Startup Delays
$
120,000
63 Reliability
Aaron/Curtis
Maint Planner/Scheduler
SS Class
Brad/Larry
Neal's
Productivity
64 FAC
Curtis/Grant
Electrical Power Factor
Power Distribution
Grant
Set Target
Below Power Factor Target
$
10,000
65 FAC
Curtis/Grant
Back Stage
Culture
Grant
Prod Needs
Not enough capacity
$
1,200,000
66 FAC
Curtis/Grant
Air System
IC Plant
Grant/Curtis
Prod Targets
Not enough capacity
$
400,000
67 Ice Cream
Lee
Rework in the Freezer
IC Plant
Lee
Target
Lost Inventory
$
600,000
68 Ice Cream
Lee
Production Loss
IC/Novelty
Lee
2% Shrinkage
Above Target - inventory loss
$
900,000
69 Ice Cream
Lee
IC Production
Sqround Line
Lee/Monte
85% Proficiency
Shrinkage
70 Culture
Ed
Cottege Cheese/Starter Prod
Culture
Ed
Prod Needs
Losing Vats
$
1,662,273
71 Culture
Ed
Production Loss
Culture/Fluid
Ed
<2% Shrinkage
Not at Target - Financial
$
240,000
72 Culture
Ed
Inventory Control
Culture
Ed
Target
Inventory Adjustments
$
1,200,000
73 Culture
Ed
Milk Shrinkage
Fluid/Milk
Ed
<2% Shrinkage
Shrinkage
$
650,000
74 Culture
Ed
Production Spoils
Ed
Target
Shrinkage - Financial
$
75 Safety
Scott
Overall Safety
Jan
Target
Safety Issue
$
50,000
$
22,730,273
IC Plant
97% Lost Time
Total Project Potential =
Project Selection Process
Project in
Process
100,000
600,000
500,000
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