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Project Selection

Project Selection. Six Sigma Foundations Continuous Improvement Training. Key Learning Points. Ask yourself the Question: Is the project VIABLE now? Is the project SIGNIFICANT? Is there a MOTIVATED Team?. Project Selection remains the single most important element of the process.

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Project Selection

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  1. Project Selection Six Sigma Foundations Continuous Improvement Training Six Sigma Simplicity

  2. Key Learning Points • Ask yourself the Question: • Is the project VIABLE now? • Is the project SIGNIFICANT? • Is there a MOTIVATED Team? Six Sigma Simplicity

  3. Project Selection remains the single most important element of the process. Six Sigma Simplicity

  4. Project Selection • Organizations must develop a process to define strategic focus area and then effectively scope them into manageable DMAIC improvement projects Six Sigma Simplicity

  5. Process map on selecting CI projects Determine the needs of key customers and strategic business needs Determine metrics and goals Scope the project Project execution applying CI methodology Identify project opportunities Determine a baseline and bottom line benefits Create a project charter and overall plan Project reports-out to upper management Prioritize projects opportunities Signifiant contribution to QMS? Yes Communicate and leverage success Viable CI Project now ? Yes No No Motivated team? Yes Store project ideas for future reference No Six Sigma Simplicity

  6. Determine the needs of key customers and strategic business needs Example: Break out core processes Six Sigma Simplicity

  7. Identify project opportunities Non- Value added / Value added work Process/Activities Value added 2% - 15% Non-value added 85% - 98% Essential Non-essential Minimize Eliminate Now Categorize into the 7W’s! Six Sigma Simplicity

  8. Identify project opportunities Combine 7W and TOC. Six Sigma Simplicity

  9. Identify project opportunities 6S is the foundation for CI. Target 6S at the worst areas. Six Sigma Simplicity

  10. Prioritize project opportunities XY matrix - example example only Six Sigma Simplicity

  11. Project Desirability Matrix The three attributes of a potential project can be visualized on the following matrix: Probability of Success Hi Low IMPACT Med Med Hi Low Low Med Hi EFFORT Six Sigma Simplicity

  12. Project Desirability Here are three Attributes for evaluating Project Desirability: • Business impact • Effort required • Probability of success Meaningful & Manageable Six Sigma Simplicity

  13. 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 Business Impact Top Level Goal Deployment (example) Six Sigma Simplicity

  14. Examples of Little or No Business Impact • Creating or revising a report • Installing a measurement system • Quantifying the performance of a process • Improving a supplier’s performance without any arrangement to create benefits for the Organization • Reducing cycle time of a non-bottleneck operation Six Sigma Simplicity

  15. Effort 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 Six Sigma Simplicity

  16. Definition 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) Six Sigma Simplicity

  17. Project Desirability Matrix The desirability of a project increases as you move from the lower right to the upper left, and as the circle gets larger Increasing Desirability Probability of Success Hi Low IMPACT Med Med Hi Low Low Med Hi EFFORT Six Sigma Simplicity

  18. Scope 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 Champions should "pick battles big enough to matter, small enough to win" Six Sigma Simplicity

  19. Project Selection Six Sigma Foundations Continuous Improvement Training Six Sigma Simplicity

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