Project Selection
Training Materials
OSSS LSS Black Belt v9.0 - Control Phase
Project Selection Process
1
Copyright OpenSourceSixSigma.com
Course Contents
Class Presentation
Recognize Phase
• 57 slide PowerPoint Presentation
• Opportunity Definition
• Facilitator Guide
• Problematic Areas
• Facilitator Notes
OSSS LSS Black Belt v9.0 - Control Phase
Project Selection Process
2
Copyright OpenSourceSixSigma.com
Course Contents
Problem Statement Creation
Affinity Diagramming
• Problem Statement Objectives
• Step-by-Step Process
• Examples – Good and Bad
• Affinity Diagramming Outputs
OSSS LSS Black Belt v9.0 - Control Phase
Project Selection Process
3
Copyright OpenSourceSixSigma.com
Course Contents
Define Phase
Launch Phase
• Steps for Defining a Project
• Identify People Associated with Projects
• Champion Project Worksheet
• Obtain Approvals and Launch DMAIC
• Objective Statement Creation
• Development of Project List
• Link to Corporate Strategies
OSSS LSS Black Belt v9.0 - Control Phase
Project Selection Process
4
Copyright OpenSourceSixSigma.com
Course Contents
Templates
• Problem Statement Template
• Opportunity Analysis Matrix – Template
• Opportunity Analysis Matrix – Sample
• Project List – Template
• Project List – Sample
• Champion Project Worksheet – Template
• Champion Project Worksheet – Sample
• Project List – Template
• Project List ‐ Sample
OSSS LSS Black Belt v9.0 - Control Phase
Project Selection Process
5
Copyright OpenSourceSixSigma.com
A SMALL SNEAK PEAK…
OSSS LSS Black Belt v9.0 - Control Phase
Project Selection Process
6
Copyright OpenSourceSixSigma.com
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”).
Copyright OpenSourceSixSigma.com
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)
Copyright OpenSourceSixSigma.com
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
Copyright OpenSourceSixSigma.com
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
Copyright OpenSourceSixSigma.com
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
Copyright OpenSourceSixSigma.com
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
Copyright OpenSourceSixSigma.com
TM
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
•Opportunity
Identification
Issuesand
andProblems
Problems
•Issues
Matrix
Scope
••Scope
Statementof
ofWork
Work
••Statement
PrioritizedBusiness
Business
••Prioritized
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.
Copyright OpenSourceSixSigma.com