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How to set up goal in project charter?

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  • #46337

    Ricky Wang
    Member

    Before DMAIC, how could one set up a target number for a project? I used to see many samples that include, say, 20% improvement, or increase sigma level from 3 to 4, in their charter. However, before DMAIC, how to justify such a choice?

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    #152899

    Vidyadhar
    Member

    Six Sigma is about breakthrough improvement. 20% improvement on baseline would be good if a metric is performing at 80 – 83 %yeild.
    It is good to look at data from from similar products & services to decide your goal. Looking for ideal target seems to be the best choice even though it is questioned. for example if your level of accuracy is at 90%. then look for an ideal target to take it upto 100%.If you set ur goal at 100%, there is a high probabilty of reaching somewhere close to it.To know what target to choose post the current level of performance on the metric.

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    #153540

    Ricky Wang
    Member

    However, “benchmarking” is done during “M”, not “D”. Project charter is the first document that is required to be finished. Without “benchmarking”, how are the employees supposed to set up a goal and finish the charter? Another problem is, for most cases, it is very difficult to find peers to compare with. The goal of a six sigma project is usually very specific inside a company.

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    #153541

    qualitycolorado
    Participant

    Ricky,If you have been taught that benchmarking can only be done in the “D” (Define) phase, your instructors were incorrect. Benchmarking is useful for setting goals and can definitely be done in the “Define” phase. Also, process-based benchmarking (how other organizations acutally organize and operate the process) is a good candidate for benchmarking in either the “Analyze” or “Improve”phases.Additionally, Six Sigma is often aided by a companion discpline, “Process Mangement”. Part of process management is the the concept of defining macro and micro processes, assigning ownership, and creating responsibilities of the owners on an on-going basis (NOT just during improvement efforts).Essential to this is the ideas that the process owners will “own” the current operation of the process, including its metrics. Consequently, they should be able to 1) identify processes that need improvement, 2) charter a Six Sigma improvement project, and 3) set goals for the project based on customer need, competitive comparison (benchmarking, and/or business requirements.If your organization is not coupling Six Sigma with process management, it may be something you would wnat to look into.Best regards,
    QualityColorado

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    #153543

    Adam
    Participant

    It is common to go back and forth between the phases.  True, a project charter is the first document completed, but it is a living document.  At the end of every phase you should have an “updated” project charter, with more specific metrics and goals as you go along. During the define phase you should have completed a cost of poor quality and done a gap analysis to determine the project is worth doing.  From this you determine where you need to go to make it a worthwhile project.  That should be your starting point. But as I mentioned earlier, your charter should be changing constantly as you uncover and analyze data.

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    #153549

    goodie
    Participant

    Ricky,
    We use the 90-50 percent rule in our company.
    if your current performance is below 3 sigma, then you have a lot of space for improvement in your process, so your goal will be to reduce defects by 90%.
    If your existing process performance is greater than or equal to 3 sigma, you will be asked for 50% improvement.
    in summary:
    below 3 sigma =90 % improvement.
    > or = 3 sigma= 50% improvement.
    but you need to know first the current performance of your process and make sure you passed the MSA before you could use your historical data.
    Goodie.

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