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Copyright OpenSourceSixSigma.com
Project Selection Process1OSSS LSS Black Belt v9.0 - Control Phase
Project Selection Training Materials
Copyright OpenSourceSixSigma.com
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
Copyright OpenSourceSixSigma.com
Project Selection Process
Course Contents
3OSSS LSS Black Belt v9.0 - Control Phase
Problem Statement Creation
• Problem Statement Objectives
• Examples – Good and Bad
Affinity Diagramming
• Step-by-Step Process
• Affinity Diagramming Outputs
Copyright OpenSourceSixSigma.com
Project Selection Process
Course Contents
4OSSS LSS Black Belt v9.0 - Control Phase
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
Copyright OpenSourceSixSigma.com
Project Selection Process
Course Contents
5OSSS LSS Black Belt v9.0 - Control Phase
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
Copyright OpenSourceSixSigma.com
Project Selection Process
A SMALL SNEAK PEAK…
6OSSS LSS Black Belt v9.0 - Control Phase
Copyright OpenSourceSixSigma.com
Project Selection Process
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.
Copyright OpenSourceSixSigma.com
Project Selection Process
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)
Copyright OpenSourceSixSigma.com
Project Selection Process
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
Copyright OpenSourceSixSigma.com
Project Selection Process
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
Copyright OpenSourceSixSigma.com
Project Selection Process
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
Copyright OpenSourceSixSigma.com
Project Selection Process
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
Copyright OpenSourceSixSigma.com
Project Selection Process
Opportunity Definition
Strategic
Step 1
Opportunity Definition
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.
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.
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.
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.
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 .
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 .
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 .
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 .
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 .
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 .
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 .
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 .
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 .
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 .
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 .
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 .
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 .
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 .
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 .
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 .
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 .
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 .
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
Opportunity Definition
Enabling Processes Core Processes Enabling Processes Core Processes 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.
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.
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.
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.
Finding Problematic Areas of the Business
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 .
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 .
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 .
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 .
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 .
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 .
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 .
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 .
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 .
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 .
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 .
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 .
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 .
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 .
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 .
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 .
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 .
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 .
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