Project SelectionProject SelectionProject SelectionProject Selection
Six Sigma FoundationsContinuous Improvement TrainingSix Sigma FoundationsContinuous Improvement Training
Six Sigma Simplicity
Key Learning PointsKey Learning PointsKey Learning PointsKey Learning Points
Ask yourself the Question: Is the project VIABLE now? Is the project SIGNIFICANT? Is there a MOTIVATED Team?
Ask yourself the Question: Is the project VIABLE now? Is the project SIGNIFICANT? Is there a MOTIVATED Team?
Six Sigma Simplicity
Project Selection remains the single most important element of the
process.
Project Selection remains the single most important element of the
process.
Six Sigma Simplicity
Project SelectionProject Selection
Organizations must develop a process to define strategic focus area and then effectively scope them into manageable DMAIC improvement projects
Six Sigma Simplicity
Process map on selecting CI projectsProcess map on selecting CI projectsProcess map on selecting CI projectsProcess map on selecting CI projectsDetermine the needs of
key customers and strategic business needs
Identify project opportunities
Prioritize projects opportunities
Store project ideas for future reference
Viable CI Project now ?
Determine metrics and
goals
Determine a baseline and bottom line
benefits
Signifiant contribution
to QMS?
Scope the project
Create a project charter
and overall plan
Motivated team?
Project execution
applying CI methodology
Project reports-out to upper management
Communicate and leverage
success
No No
No Yes
YesYes
Six Sigma Simplicity
Example: Break out core processesExample: Break out core processesExample: Break out core processesExample: Break out core processesFunction Head
countWIP Backlog Cycle
time6S Waste Feedback
Accounts 3 20 days 1 hour C Waiting, Motion
Needs quicker data
Dispatch 2 1 day 1 hour D Scrap Incorrect paperwork, hockey sticks
Assembly 10 4 weeks 1 week E Scrap, Motion Not enough parts
Manufacture 50 1 week 1 week B Transport, Rework, over production
Tooling down
Purchasing 8 2 months 1 week C Over production, rework, transport, waiting
Reducing cost
Engineering 20 4 months 1 month C Rework, waiting, motion
Unclean orders
Applications/Order Entry 10 5 days 1 day E Scrap Workload
Determine the needs of key customers and strategic business needs
Six Sigma Simplicity
Process/Activities
Value added2% - 15%
Non-value added85% - 98%
Essential Non-essential
EliminateMinimize
Non- Value added / Value added work
Now Categorize into the 7W’s!
Identify project opportunitiesIdentify project opportunitiesIdentify project opportunitiesIdentify project opportunities
Six Sigma Simplicity
Cost 7W’s ThroughputWaiting X
Transportation X
Motion X
X Defects XX Overproduction
X Process, long cycles
x Inspection
Identify project opportunitiesIdentify project opportunitiesIdentify project opportunitiesIdentify project opportunitiesCombine 7W and TOC.
Six Sigma Simplicity
The Six S’s Cost Throughput
Sort Separate Motion, Transport Waiting
Straighten i.e.: Inventory – put in order
Over production,Looking, Waiting
Shine Scrap Don’t impede flowStandardise Over processing
Safety Scrap Waiting
Sustain Discipline Eliminate waste(*Safety – 1st in everything.)
Identify project opportunitiesIdentify project opportunitiesIdentify project opportunitiesIdentify project opportunities6S is the foundation for CI. Target 6S at the worst areas.
Six Sigma Simplicity
Prioritize project opportunitiesPrioritize project opportunitiesPrioritize project opportunitiesPrioritize project opportunitiesXY matrix - exampleXY matrix - exampleXY matrix - exampleXY matrix - example
Goal Total Y Meet EMA profit plan – 15 % over 2001Reduce EMA working capital from € 29.5 M. to € 26.5 M.
Ranking goals and CIP per goal 3 4 3 3 3 3 3 2,5 2,5 2,5 2,5CIP Projects CIP Ranking per effect on Y(x) Total Total Total
X1 Implementation DOS Engineering 2 0 0 5 0 8 10 75 10 0 10 10 75 150
X2 Implementation DOS Test Field 1 0 0 5 0 8 10 72 10 0 10 10 75 147
X3 Implementation DOS Assembly and Repair 1 0 0 5 0 8 10 72 10 0 10 10 75 147
X4increase processtime for manufactor GASPAC
parts 8 0 0 0 9 10 10 111 0 0 0 10 25 136
X5 Implementation DOS QA 0 0 0 5 0 8 10 69 0 0 0 10 25 94
X6Reduction of manual effort of preodering for
duplicate orders7 8 1 0 0 0 10 86 0 0 0 0 0 86
X7 Reduction / Standardization of raw material 0 8 10 0 0 4 3 83 0 0 0 0 0 83
X8Reduce cycle time of panel documentation from
45 to 25 days5 0 0 5 0 5 10 75 0 0 0 0 0 75
X9Increase avalibility of tools for manufactoring a
Gaspac0 0 5 0 0 5 10 60 0 0 0 0 0 60
X10 Implementation DOS Reliability 0 0 0 5 0 10 0 45 0 0 0 0 0 45
example only
Six Sigma Simplicity
Project Desirability MatrixProject Desirability Matrix Project Desirability MatrixProject Desirability Matrix
The three attributes of a potential project can be visualized on the following matrix:The three attributes of a potential project can be visualized on the following matrix:
Low Med Hi
EFFORT
Low
Med
Hi
IMP
AC
T
Low
Med
Hi
Probability of Success
Six Sigma Simplicity
Project DesirabilityProject DesirabilityProject DesirabilityProject Desirability
Here are three Attributes for evaluating Project Desirability:
Business impact Effort required Probability of success
Here are three Attributes for evaluating Project Desirability:
Business impact Effort required Probability of success
Meaningful & ManageableMeaningful & ManageableMeaningful & ManageableMeaningful & Manageable
Six Sigma Simplicity
Business ImpactBusiness ImpactBusiness ImpactBusiness Impact
Improve Corporate credit ratings
20% RONA / 15% Primary working capital to sales
Implement and sustain Quality Mgm’t System
15% Operating Profit / 15% OP % Sales
Acquisition growth of $X.X B
Organic growth of $X.X B
Top Level Goal Deployment (example)Top Level Goal Deployment (example)Six Sigma Simplicity
Examples of Little or No Business ImpactExamples of Little or No Business ImpactExamples of Little or No Business ImpactExamples of Little or No Business Impact
Creating or revising a reportCreating or revising a report Installing a measurement systemInstalling a measurement system Quantifying the performance of a processQuantifying the performance of a process Improving a supplier’s performance without Improving a supplier’s performance without
any arrangement to create benefits for the any arrangement to create benefits for the OrganizationOrganization
Reducing cycle time of a non-bottleneck Reducing cycle time of a non-bottleneck operationoperation
Creating or revising a reportCreating or revising a report Installing a measurement systemInstalling a measurement system Quantifying the performance of a processQuantifying the performance of a process Improving a supplier’s performance without Improving a supplier’s performance without
any arrangement to create benefits for the any arrangement to create benefits for the OrganizationOrganization
Reducing cycle time of a non-bottleneck Reducing cycle time of a non-bottleneck operationoperation
Six Sigma Simplicity
Effort RequiredEffort RequiredEffort RequiredEffort Required
Definition - This includes not only Black Belt time, but also
the time that will be required of the team members, and any expenditure of money.
Typical High Effort - installing a new computer system improving profitability of an entire product line
or channel “fixing” the annual planning process
Definition - This includes not only Black Belt time, but also
the time that will be required of the team members, and any expenditure of money.
Typical High Effort - installing a new computer system improving profitability of an entire product line
or channel “fixing” the annual planning process
Six Sigma Simplicity
Definition of Probability of SuccessDefinition of Probability of SuccessDefinition of Probability of SuccessDefinition of Probability of Success An assessment that takes into account
the various risk factors - Time - uncertainty of the completion date
Effort - uncertainty of the investment required
Implementation - uncertainty of roadblocks
Typical Low Probability of Success - won’t show the benefits within a year
depends upon completion of other risky projects
requires help from extremely busy people
is not aligned with your Company objectives (QMS)
An assessment that takes into account the various risk factors - Time - uncertainty of the completion date
Effort - uncertainty of the investment required
Implementation - uncertainty of roadblocks
Typical Low Probability of Success - won’t show the benefits within a year
depends upon completion of other risky projects
requires help from extremely busy people
is not aligned with your Company objectives (QMS)Six Sigma Simplicity
Project Desirability MatrixProject Desirability MatrixProject Desirability MatrixProject Desirability Matrix
The desirability of a project increases as you move from the lower right to the upper left, and as the circle gets largerThe desirability of a project increases as you move from the lower right to the upper left, and as the circle gets larger
Low Med Hi
EFFORT
Low
Med
Hi
IMP
AC
T
Low
Med
Hi
Probability of Success
Increasing Desirability
Six Sigma Simplicity
Scope the projectScope the projectScope the projectScope the project
Project Selection Aligned with Strategic Plan Not solving world hunger
(Scope) Significant Business Impact Supported by & with Data Agreed to by:
Champion Process Owner Financial Controller
Project Selection Aligned with Strategic Plan Not solving world hunger
(Scope) Significant Business Impact Supported by & with Data Agreed to by:
Champion Process Owner Financial Controller
Champions should "pick battles big enough to matter, small enough to win"
Six Sigma Simplicity
Project SelectionProject SelectionProject SelectionProject Selection
Six Sigma FoundationsContinuous Improvement TrainingSix Sigma FoundationsContinuous Improvement Training
Six Sigma Simplicity