Project Selection Process Copyright OpenSourceSixSigma.com 1 OSSS LSS Black Belt v9.0 - Control...

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Project Selection Process1OSSS LSS Black Belt v9.0 - Control Phase

Project Selection Training Materials


Project Selection Process

Course Contents

2OSSS LSS Black Belt v9.0 - Control Phase

Class Presentation

• 57 slide PowerPoint Presentation

• Facilitator Guide

• Facilitator Notes

Recognize Phase

• Opportunity Definition

• Problematic Areas



Course Contents


Problem Statement Creation

• Problem Statement Objectives

• Examples – Good and Bad

Affinity Diagramming

• Step-by-Step Process

• Affinity Diagramming Outputs



Course Contents


Define Phase

• Steps for Defining a Project

• Champion Project Worksheet

• Objective Statement Creation

• Development of Project List

• Link to Corporate Strategies

Launch Phase

• Identify People Associated with Projects

• Obtain Approvals and Launch DMAIC



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



A SMALL SNEAK PEAK…




Management

“Belt”

“Belt”

“Belt”

“Belt”

Project Identification and Launch (support given from “Belt”).

Solution to the problem and a Final Report (support given from a Champion).

Implement solution and maintain ongoing benefits (support given from “Belt”).

The Project Roadmap

Realize

Control

Improve

Analyze

Measure

Define

Recognize

Management

Management

Fin

din

g t

he s

olu

tion

of

Y =

f(

X)

Management owns 80% of the responsibility here.



Results

The Six Sigma Project

PracticalSolution

ControlPlan

StatisticalSolution

StatisticalProblem

Six SigmaProject

PracticalProblem

Generally a systemic or chronic problem which is impacting the success of a process or function.

A well defined effort that states the problem in quantifiable terms with known expectations.

Data oriented problem that is addressed with facts and data analysis methods.

Data driven solution with known confidence/risk levels versus an “I think” solution.

A method of assuring the long-term sustainability of the fix to the problem.

The solution is not complex, expensive or irrational and is readily implement-able.

Fin

din

g t

he s

olu

tion

of

Y =

f(X

) +

Tangible results measurable in metrics with quantifiable financial or strategic value.

Characteristics of a ProjectHas a financial impact to Earnings or a significant strategic valueThe problem is not easily or quickly solvable using traditional methodsIt 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 organizationAffecting costsAffecting employee satisfactionImpacting a Customer (external and/or internal)



Project Difficulty Distribution

Solving“World Hunger,”“Boil the Ocean”Type 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.

Difficulty and Cost of

Problems

Qu

an

tity

of

Pro

ble

ms

Too Hard -Are Usually

Management or Market Caused

TooEasy

Six Sigma Projects



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

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 Originators



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.

Common Mistakes in Defining Projects



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 BeltInternational Truck &

Engine

Importance of Selection Process

TM

RECOGNIZE PHASERECOGNIZE PHASE

Finding Areas Needing Improvement Finding Areas Needing Improvement ““Writing the Business Case”Writing the Business Case”

RECOGNIZE PHASERECOGNIZE PHASE

Finding Areas Needing Improvement Finding Areas Needing Improvement ““Writing the Business Case”Writing the Business Case”

Recognize



Opportunity Definition

Strategic

Step 1


Enabling Processes Core Processes Enabling Processes Core Processes

Structure of the Business Case

As a company, our__________ performance for the

___________ area is not meeting__________. Overall this is

causing____________ problems which are costing us a

much as $_______ per______.

Examples

1. As a company, our accounts receivablesperformance for the

finance invoicingarea is not meeting the goal of 47 DSO.

Overall this is causing cash flow and budgetproblems which

are costing us as much as $4M per year.





much as $_______ per______.

Examples









much as $_______ per______.

Examples









much as $_______ per______.

Examples





As a company, our accounts receivables

performance 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 year .






$4M per year .






$4M per year .






$4M per year .






$4M per year .






$4M per year .






$4M per year .






$4M per year .






$4M per year .






$4M per year .






$4M per year .






$4M per year .






$4M per year .






$4M per year .






$4M per year .






$4M per year .






$4M per year .






$4M per year .

Receivables Warranty Cycle time Defects

Strategic

•Opportunity Identification

•Issues and Problems Matrix

•Scope

•Statement of Work

•Prioritized Business Improvement Plan

• Opportunity Identification

• Issues and Problems Matrix

• Scope

• Statement of Work

• Prioritized Business Improvement Plan


Enabling Processes Core Processes Enabling Processes Core Processes Enabling Processes Core Processes Enabling Processes Core Processes





much as $_______ per______.

Examples









much as $_______ per______.

Examples









much as $_______ per______.

Examples









much as $_______ per______.

Examples





Finding Problematic Areas of the Business






$4M per year .






$4M per year .






$4M per year .






$4M per year .






$4M per year .






$4M per year .






$4M per year .






$4M per year .






$4M per year .






$4M per year .






$4M per year .






$4M per year .






$4M per year .






$4M per year .






$4M per year .






$4M per year .






$4M per year .






$4M per year .

Receivables Warranty Cycle time Defects

Creating Logical Grouping Using Affinity Diagramming

Objective StatementReduce the overall personnel recruiting time from an averageof 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.

Problem StatementRecruiting 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 laborand

rework costs.

Improvement Plan

Objective StatementReduce the overall personnel recruiting time from an averageof 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.

Problem StatementRecruiting 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 laborand

rework costs.

Improvement Plan

Statement of Work

Priority Business Case Owner

Financial

Impact Sponsor

1

As a company, our accounts receivables performance

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

year. Bob Smith $4M Ellen West

2

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

year. Mary Jones $2M Bill Jones

3

As a company our final process yield performance for

the culture area is not meeting the targeted 88% yield.

Overall this is causing Floor space, shipment and

resource problems which are costing us as much as

$900K per year.

Ken Parks $900K Kathy Shank

4

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

in expenses per year. Jill Williams $1.5M Earl Johnson

Business Opportunity Analysis Summary

Project Selection Process Copyright OpenSourceSixSigma.com 1 OSSS LSS Black Belt v9.0 - Control...

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