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