Scoping Projects

&

Project Roadmap

March 2006

Frank OprandyDirector – Process Management

East Alabama Medical Center

How to scope & create a project roadmap to run excellent Six Sigma projects

•How to use a charter with a multidisciplinary team to scope projects

•How to use select Change Management tools to assist in managing scope

•How to develop and use a Six Sigma (DMAIC) project roadmap for your organization

•Example of a real live Six Sigma (DMAIC) roadmap that sequences project team activity to ensure smooth project flow and results in project completion

Outline

• What is the Purpose of A Charter:

– Clarifies what is expected of the team

– Keeps the team focused

– Keeps the team aligned with organizational priorities

– Transfers project from champion to improvement team

Charter

Project ChampionTeam Member ATeam Member BTeam Member CTeam Member DTeam Member ETeam Member FTeam Member G

ChampionBlack BeltGreen BeltSMERoleRoleRoleRole

10%100%100%

20%20%20%20%20%

What ‘pain’ are we experiencing? What is wrong? What is the impact “pain” on our customers? What is the impact “pain” on our business? What is the impact “pain” on our employees? How extensive is the problem? What is wrong or not working? When and where do the problems occur? Does it make strategic sense to address this problem?

Opportunity Statement

From a business perspective, why should we do this? Does this project align with other business initiatives? What is the focus for the project team? What impacts will this project have on other business units and employees? What benefits will be derived from this project? Has the value of the benefits been quantified?

• What authority do we have?• What processes are we addressing?• What is not within scope?• What are the starting and ending points of the process?• What components of the business are included?• What components of the business are not included?• What, if anything, is outside the project boundaries?• What constraints must the team work under?

Project Scope

• What are our improvement objectives and targets?• What does the team expect to accomplish?• How will the team’s success be measured?• What specific parameters will be measured?• What will be the tangible, “hard” deliverables/results? • What will be the intangible, “soft” deliverables/results?• What will be the timetable for delivery of results?• What are the values the project team will use to make it

happen?

Goal StatementOrganizationOrganizationOrganizationOrganizationOrganizationOrganizationOrganizationOrganization

Business Case

Team Charter Name

Team Selection

Charter

Opportunity Statement

Project Scope

Goal Statement

Business Case

Team Selection

Team Charter NameCharter

I. Opportunity Statement What ‘pain’ are we experiencing? What is wrong?

II. Business Case  From a business perspective, why should we do this? Does this project align with other business initiatives?

III. Project Scope What processes are we addressing?  Project Title Starts: Project Title Stops:  In Scope: Out of Scope:

IV. Goal Statement

What is this team looking to accomplish? What is the team shooting for?

Goal:1.  Target(s):1.

V. Team Selection & Roles

What functions, disciplines, departments are touched by this project? Who will care that we are doing this? Who will fill which role?

1. Champion2. Business Lead3. Process Management Lead4. Team Members

VI. TimelineWhat needs to happen and by when?

1. Milestones2. Deliverables3. Owners

Charter

Key Considerations/Potential Pitfalls• Is the problem based on observation (fact) or assumption (guess)?

• Does the opportunity statement prejudge a root cause?

• Can data be collected by the team to verify and analyze the problem?

• Is the opportunity statement too narrowly or broadly defined?

• Is a solution included or implied in the statement?

• Would customers be happy if they knew we were working on this?

Charter - Opportunity Statement

Poor Example:

Our customers are angry with us and late in paying their bills.

Improved Example:

In the last 6 months (when), 20% of our repeat customers have been over 60 days late (what) paying our invoices. The current rate of late payments is up from 10% in 1990 and represents 30% of our outstanding receivables (magnitude). This negatively affects our operating cash flow (impact/consequence).

Other Examples:a. Sixty percent of all CT software upgrades have not met expected delivery dates within the last six months. This resulted in unscheduled costs and lost productivity for our customers.

b. Incoming callers to the Hospital Business Office experience hold time of 25 seconds or more with hold times being especially long during the morning hours. The hold timeissue is causing many customers to complain and results in lost collections.

Charter - Opportunity Statement

The business case should address these questions:

– Does this project align with other business initiatives?

– What is the focus for the project team?

– What impacts will this project have on other business units and employees?

– What benefits will be derived from this project?

– Has the value of the benefits been quantified?

– Why must we do this project now?• Gains Initial Approval

• Establishes Financial Expectations

• Provides Boundaries During Project

• Serves as One Measure of Project Success

• Gains Initial Approval

• Establishes Financial Expectations

• Provides Boundaries During Project

• Serves as One Measure of Project Success

Business Case Development

The business case describes the benefit for undertaking a project

Charter – Business Case

•Incremental Revenue

• Volume » Increased capacity » Improved service or outcome quality » Improved throughput» Improved clinical processes

• Price

•Decrease Cost• Rework reduction

• Labor efficiency

• Operating expenses (fixed and variable costs)

• Reduced plant and equipment depreciation or lease expense

Charter – Business Case

CAP tool – In Frame/Out of FrameCharter – Scope

CAP tool – span of control

Out of Our Control

In Our Control

Within Our Influence

Charter – Scope

Charter – Scope

• The goal statement should address these questions:

–What does the team expect to accomplish?

–How will the team’s success be measured?

–What specific parameters will be measured?

–What will be the tangible, “hard” deliverables/results?

–What will be the intangible, “soft” deliverables/results?

Charter – Goal Statement

We don’t know what we don’t know.

If we can’t express what we know in the form of numbers,we really don’t know much about it.

If we don’t know much about it, we can’t control it.

If we can’t control it, we are at the mercy of chance.

110100100010000100000

1993 1994 1994 1996Q1 Q2 Q3 Q4

Process Defects-Per-Million OpportunitiesProcess Defects-Per-Million Opportunities

Charter – Goal Statement

1. Champion

2. Business Lead

3. Process Management Lead

4. Team Members

a. Name…Dept

b. Name…Dept

….

….

….

x. Finance

y. IT

z. Patient Safety/Clinical Quality

Charter – Team Selection & Roles

• How do you want the Champion to work with the team?

• Is the team’s role to implement or recommend?

• When must the team go to the Champion for approval?

• What authority does the team have to act independently?

• What and how do you want to inform the Champion about the team’s progress?

• What is the role of the team leader (Black/Green Belt) and the team coach (Black Belt or Master Black Belt)?

• Are the right members on the team? Functionally? Hierarchically?

• Team members are responsible for communicating team findings to their respective business units

Charter – Team Selection & Roles

Charter – Project Timeline (Roadmap)

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Define Phase

High Level Process Maps

CAP/ Communications

Measure Phase

Define Performance Standards

Validate Measurment System

Updated Charter

Measure Phase Tollgate Review

Define Performance Objective

List of Vital Few Xs

CAP/ Communication

Improve Phase

Discover Variable Relationships

Validated Process Change

Updated Charter

Improve Phase Tollgate Review

Process Control Plan

Translation Opportunities

CAP/ Communication

Project Closure

Develop Project Storyboard

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4Project Schedule

Charter – Project Timeline (Roadmap)

• Should be preliminary, high-level project plan with dates

• Should be tied to phases of DMAIC process

• Should be aggressive– Don’t miss the “window of opportunity.”

• Should be realistic– Don’t force yourselves into corrective rather than preventive

solutions.

Charter – Project Timeline (Roadmap)