Professional Documents
Culture Documents
A. Chapter Objectives
B. Six Sigma Projects
C. Characteristics of a Good Six
Sigma Project
D. Project Selection
E. Project Completion Cycle
F. Key Success Factors
G. Barriers to Team Success
H. Project Description and
Objectives
I. Project Authorization
J. Project Review
K. Determining Project Baselines
4-1
CHAPTER OBJECTIVES
Understand the primary
sources for project selection
and the characteristics of a
good Six Sigma project.
Become familiar with the nature
of projects.
Provide an understanding of the
components of a project
including description, selection,
scope, success factors,
planning, authorization and
review.
Provide an understanding of the
different types of project
baselines and their calculations.
4-2
Projects are the means by which processes are changed they are
the bridge from PLANNING to DOING.
A Six Sigma Project is a problem scheduled for solution that has a
set of metrics that can be used to establish project goals and
objectives and monitor the projects progress.
There are many dimensions to successful Six Sigma projects
including:
selection of a good project
assigning the right Green/Black Belt
project completion on a timely manner
project support
management review
The RIGHT PROJECTS and the RIGHT PEOPLE are essential
elements for successful Six Sigma projects.
4-3
There are 2 types of problems one where the solution is known and
one where the solution is unknown.
Six Sigma is aimed at the problem where the solution is not known.
We need one or more measurements to quantify the magnitude of the
problem as well as establish projects goals and objectives.
When a problem has a known solution, the project should be
completed by:
assigning a project manager
providing the required resources
utilizing solid project management techniques
Six Sigma techniques are not necessarily needed here.
However, the project and the company will benefit from the use of Six
Sigma measurement and monitoring techniques.
4-4
CHARACTERISTICS OF A GOOD
SIX SIGMA PROJECT
Typical characteristics of a good Six Sigma project:
The PROJECT is clearly linked to business priorities and should address
at least 1 element of the organizations key business objectives:
Quality
Cost
Lead-time Reduction
Customer Service
Flexibility/Simplification
Delivery
Cycle Time
Material / Inventory Control
4-7
CHARACTERISTICS OF A GOOD
SIX SIGMA PROJECT
Projects should be properly scoped, enabling completion in 4 to 6
months. Organizations typically lose interest in projects that run
longer than 6 months.
KEY POINT: Projects lasting longer than 6 months
should be divided into sub-projects of shorter duration.
Projects must have the buy-in and commitment from the
Champion and process owners.
KEY POINT: People will support a project that they see
is clearly important to the organization.
Projects will, in fact, benefit from the 5 phase Breakthrough
Strategy (DMAIC).
4-8
THE NATURE OF A
SIX SIGMA PROJECT
The Nature of a Six Sigma Project
CTQ
Other areas
of potential
opportunity
CTQ
CTC
CTD
4-9
PROJECT SELECTION
Projects must have strategic relevance and be linked to core
business issues.
Best Approach 30,000 ft. VIEW of key operational indices.
Traditional 30,000 ft. indices include:
4-10
Frequency of
Non-conformance
DEFINE
MEASURE
ANALYZE
IMPROVE
CONTROL
PROJECT SELECTION
Projects should be
prioritized based
on business
benefits.
Opportunities are
identified at Senior
Management and
Site levels.
SITE LEVEL
Operational Needs
CTQ
Relevant Process
Prioritize Projects from
Pool
4-12
PROJECT SELECTION
Think BIG, then narrow down.
Focus on the big picture, select and implement
the project, then go back to the big picture.
Keep repeating and focus on customer needs at
each big picture review.
4-13
KEYS TO PROJECT
SELECTION SUCCESS
Select projects that are manageable dont try to boil the
ocean.
Select projects that are achievable.
Minimize reliance on other sites.
Select projects with significant impact on cost savings and
quality.
Select projects with historical data.
4-14
PROJECT SELECTION
PROCESS
Select Projects
(Champion, RBB, BB)
PROJECT LAUNCH
4-15
PROJECT SELECTION
4-16
PROJECT SELECTION
Generic criteria for selection of Six Sigma Projects:
High volume production lines, where small improvements in volume
will have a large impact on savings. The focus would be on scrap and
rework reduction, increase in cycle time and reduction of missed
opportunities.
Products with a low profit margin where reducing product cost will
result in higher profits and/or increased volume.
Areas where productivity increases will result in reduced manpower.
Areas where revised workflow will result in lowered inventories.
Improve availability, efficiency and effectiveness of machines and
equipment (Productive Maintenance).
Efficient use of raw material, by means of product and tooling design,
reduction of engineering scrap and process optimization.
4-17
4-19
4-20
4-21
KEY PROJECT
SUCCESS FACTORS
Process is operating at targeted level and customers are
satisfied with performance.
Data collected in advance with a minimum number of scope
changes after launch.
Long-term process performance sustained.
Project costs contained within estimated levels.
Completed on schedule with minimum disturbance to normal
work flow.
4-22
BARRIERS TO TEAM
SUCCESS
Team not supported by management.
No Champion
Champion is not meeting with Green Belt or Black Belt.
Few or poor management reviews.
Project scope is too large.
Green Belt or Black Belt and team not given adequate time to work on
project.
PROJECT DESCRIPTION
AND OBJECTIVES
A good problem statement is the
foundation of a concise project
description and, ultimately, a
successful project.
A well defined problem statement
can significantly improve your
ability to resolve the problem.
Must establish a clear linkage
between problem statement,
problem objective and baseline
measurements.
4-25
4-27
4-28
PROJECT REVIEW
KEN
ADA
4-29
PROJECT REVIEW
CHAMPION
Once a project has started, a minimum of 4 project
reviews are required by the Champion.
These reviews, should occur after completion of the
Define and Measure phase, Analyze phase, Improve
phase and Control phase.
Reviews are conducted by, the responsible Green Belt or
Black Belt via the related PowerPoint presentations
prepared for each project.
Suggested/Proven approach is for Champion to conduct
monthly project review sessions for all active projects.
4-30
DETERMINING PROJECT
BASELINES
One of the critical functions of a Black Belt or Green Belt is developing
project baselines. Your Champions role (in conjunction with your
IE/Finance function) is to assure that these costs savings are validated.
Project baselines consist of the following:
DETERMINING PROJECT
BASELINES
1. SCRAP
Data will come from the Scrap Report report which will establish how much scrap,
in dollars and in units/pieces, was generated during a representative period of
time.
Method To Establish A Project Baseline Measurement:
Calculate a ratio of the item's quantity being measured from the Scrap report
compared to the quantity (or equivalent dollar value) of GPMO (Good Product
Moved Out) for the same items during the same period of time.
Once a projected scrap reduction ratio is determined, the ratio will be applied
against future GMPO which can be calculated by multiplying the EAU for those
items by frozen cost of the same item.
4-32
DETERMINING PROJECT
BASELINES
2. REWORK
Reduction of material to be salvaged will reduce
rework hours. Savings are calculated by hours
reduced multiplied by related overhead rates and
labor rates. Inventory dollars will also be reduced.
3. IDENTIFIABLE FOH EXPENSE REDUCTION
This is a savings as a result of reduction in native
expenses that could include personnel,
equipment, fixtures, tools or utilities.
4. CYCLE TIME REDUCTION
This is a cost savings as a result of surpassing
the standard. In this situation, there is an
improvement to the standard hours on the Bill of
Material (BOM). Refer to productivity
savings, when the improvement does not
surpass the Bill of Material (BOM) std.
4-33
DETERMINING PROJECT
BASELINES
B. PRODUCTIVITY SAVINGS
Will generate two types of savings cycle time improvement (or improvement
of std. hours of production) and cost avoidance savings (i.e. not having to
purchase additional capacity due to improving productivity).
PLEASE NOTE:
Plant I.E. (Mfg.) and or Finance (transactional) function is
responsible for deriving and verifying savings.
If savings are planned or reported as cost reduction, do not
double count/claim as Six Sigma saving or vice versa.
Capital investment should NOT be subtracted from savings
and should be paid-off within 2 years.
Six Sigma savings will be updated as the project progresses
through each phase.
4-35