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SELECTION OF PROJECTS

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  • #28962

    C.Vasantharayalu
    Participant

    COMPANY WHICH DO START SIX SIGMA INITIATIVES, WHAT ARE THE BEST METHODS AND WAYS FOR IDENTIFYING PROJECTS. BECAUSE THEY HAVE TO BE GEARED OUT OF REGULAR PRACTICES.

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    #72992

    john beaudoin
    Participant

    Do you work for a company that is starting 6-Sigma?  If you do, then you must have some reasons for wanting to do this.  What are those Reasons?  If the reasons are more than, “because other companies are doing it”, then you should have some areas of improvement that you want to address.  Also, implementing 6-Sigma will require some trainers, consultants, etc.  They are a good resource as they will be working directly with your company to help you identify good projects.  Training projects should not be too difficult and should be geared to learn the tools.

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    #73040

    Mike Carnell
    Participant

    I am not trying to be condescending but it doesn’t seem English is your first language (Since you speak two you are further ahead than I am – sorry). I am having trouble figuring out what your question is. Can you clarify? (For what it is worth my editor isn’t convinced I speak English either).

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    #73045

    TJ
    Member

    I’m a firm beliver in the fact that Six-Sigma implementation should be about supporting your business strategy. Six-Sigma/DMAIC is a tool that, if implemented correctly, should enhance your ROI, Customer Sat, etc. A good way to select projects is to look at your company’s business strategy and then use what is a “Cascade” approach. For example if Shareholder Value Return (SVR) is a the key business objective then look at what the key contributors or key “X’s” are that contribute of SVR, therefore if Y = SVR, then
    Level 1: SVR = (ROI, Customer Satisfaction, Revenue, Goodwill……….)
    Now lets say that Cust Sat is the focus of 6Sigma then we make Cust Sat the next level Y, then
    Level 2: Cust Sat = (Product, Service, Sales……)
    If you work in the Service are then look at Service Satifaction and list the key “X’s” that contribute to service satisfaction.
    Level 3: Service Satisfaction = (Time to answer phone calls, time to fix widgets from the time of complaint………etc)
    Now you may want to scope a project from “Time to anser phone calls” or “time to fix widgets”, etc).
    Use this cascade approach until you think that you are at a level whereby you can select well scoped project. Once you have worked on one “X” then take select the project form the next most important “X” that effects Service Satisfaciton.
    Your organisation should have high level measureables that can help you with cascade for example in the case of Cust Sat you may wish to look at things like “Warranty”, “Number of customer complaints” etc. If you don’t have such measurable then it is important that you implement these measurable so that you can get data on which areas to focus on.
    If each key area of your organisation scopes project starting from the Business Strategy, then over a period of time sum total of all your projects, WILL have a positive impact on your Business Metrics, be it Cust Sat, Cost, etc.
    I find this a great way to select project and hope this helps in your project selection.
    TJ

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    #73050

    Ted Bunch
    Member

    If I understand your question correctly (and I’m not entirely certain I do) You wish to know what tools / methods are utilized to determine what is a good Six Sigma project?   Looking at the balance sheet and taking a stroll thru the plant is a good way to start.  Start off with some Value Stream Mapping and identify what your bottlenecks are. Where do you see little mini-inventory piles? Are you using push or pull systems?  How does Lead time stack up against Inventory turns? Knowing how your Takt time stacks up against demand and doing Value Stream Mapping will show you your pace items. You said “COMPANIES WHICH DO START”. As a Lean guy, Six Sigma to me is not a starting tool, but a higher level tool for complex problem solving. When you find the problems, you must also identify the appropriate type of solutions.
    Kaizen : The quick fix (low hanging fruit) Process mapping,C&E  etc
    Lean: Removing waste, Six Sigma : Fine tuning the systems. Cells, 5S, Kanban, single piece flow, TPM, standardization, Value added vs non value added, Visual 5 S, cost reduction.
    Six Sigma -Using statistical tools, DOE, FMEA, DMAIC, Gage R&R, DPMO  etc for complex problem solving. Process capability, predictability, and stability, defect prevention, redction of variation.
    Pareto your main issues. Look at the top 3 and start with the customer in mind. Look at your metrics.  What are you measuring?  Are you measuring the right things? If you aren’t measuring, you are only guessing.
    Assuming you are applying the appropriate solution to the problem, it is recommended that you do not attempt to eat the whole elephant in one sitting.  Start small and progress. Try to find a project you can get your hands around. Keep it manageable. Attempting to solve world hunger out of the gate frequently ends in failure. 
     Ted Bunch

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    #73065

    RR Kunes
    Member

    Project selection is one of the most important points of a succesful six sigma company. Many six sigma implementation forget to create a high level six sigma council.
    The purpose of this council is to monitor improvement activities, select potential BB and GB candidates, but more than anytthing else to select projects.
    Based on this the council should consist of the president of the company the MBB’s, the Presidents direct reports. As a company progesses through its fiscal years needs change. At the beginning of the year productivity issues are paramount. In the last half of the year cash flow priorities rule.
    Selection of BB projects should be based on corporate priorities. These prioritiesshould be tied to senior management bonus structure.
     

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    #73109

    Ali Askari
    Participant

    C.VASANTHARAYALU,
    Here are my comments on Project Selection and Six Sigma. have a read.
     
    https://www.isixsigma.com/forum/showmessage.asp?messageID=10737
    Ali Askari

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