Project Selection

Quick reference

• 00:05 Hello again, I'm Ray Sheen.
• 00:07 Now, these next few modules will focus on the define phase of the DMAIC process.
• 00:12 You'll hear me mention some of the topics that have already been discussed, but
• 00:16 now I'm applying them specifically to the define phase.
• 00:20 And the first topic to discuss is project selection.
• 00:25 >> To select a project, you must first determine what are the possible projects.
• 00:28 Let's look at a few of the best practices for doing that.
• 00:31 Lean Six Sigma is a process improvement methodology.
• 00:35 Therefore, you want to start with something that needs to be improved,
• 00:39 a product or process where defects or errors are occurring.
• 00:43 If everything is going great within the process,
• 00:46 then there no need to do a Lean Six Sigma project.
• 00:48 Keep in mind, Lean Six Sigma is not an innovation approach.
• 00:52 The methodology relies on collecting and
• 00:55 analyzing the data from an existing product or process.
• 00:58 If one doesn't exist, you can't use this approach.
• 01:01 There's a companion methodology called Design for Six Sigma that can be used for
• 01:05 innovation, but that's a very different approach.
• 01:08 Another reason for looking at products and
• 01:11 processes where you currently have problems is that stakeholders will easily
• 01:15 support fixing a problem that they can see.
• 01:17 It's much harder to get support for preventing a hypothetical problem.
• 01:21 If you're working in a manufacturing or operations environment,
• 01:24 there are probably inspection and
• 01:26 test data available concerning the fabrication and assembly processes.
• 01:30 Start with that quality data.
• 01:32 If defects are occurring, you have a candidate for a Lean Six Sigma project.
• 01:36 But there may be other types of operational defects beyond
• 01:39 quality defects.
• 01:40 One that I have often seen is the manufacturing cycle time,
• 01:43 where that supplier order to delivery time is too long to support the normal lead
• 01:48 times in the industry.
• 01:50 This is the operational defect that can be addressed with Lean Six Sigma.
• 01:54 Sometimes I hear people say that Lean Six Sigma is a manufacturing methodology and
• 01:58 doesn't apply to any other parts of the business.
• 02:01 Well, I strongly disagree.
• 02:03 Some of the most dramatic improvements that I have seen with Lean Six Sigma is
• 02:07 applying the methodology to administrative or support processes.
• 02:10 Errors and mistakes can happen in any department or business area.
• 02:14 If they are occurring, you have a candidate for a Lean Six Sigma project.
• 02:18 In particular, focus on any process that is customer-facing and
• 02:22 interacts with customers.
• 02:23 Does that generate complaints?
• 02:26 So let's say we have a list of potential projects,
• 02:29 based upon customer complaints and defect data.
• 02:32 How do we choose which one to focus on?
• 02:36 One obvious criteria is to see which one is causing the biggest problem.
• 02:40 Which product or process has the most defects?
• 02:43 Which business process creates the most customer complaints, ordering,
• 02:46 billing, or delivery?
• 02:48 Don't forget to check with your employee and business associates,
• 02:52 which processes give them the biggest problems.
• 02:54 It will also be important to have stakeholder support,
• 02:57 especially when preparing to implement a solution.
• 02:59 So if a stakeholder has a hot button issue, that is also a good place to start.
• 03:04 But also look at the business strategy.
• 03:07 What is the business trying to accomplish this year?
• 03:09 Selecting a project that improves the business capability and
• 03:13 one of the strategic thrust for the business will ensure stakeholder support.
• 03:17 One other way to get support, I know this sounds crass, but
• 03:20 what are the stakeholders' bonuses based upon?
• 03:23 They'll be much more supportive of doing projects that improve the key
• 03:27 performance indicators that directly affect their personal bottom line.
• 03:31 Another criteria to consider is whether there is easy access to product or
• 03:35 process data.
• 03:36 If not, the project will likely take longer and be more expensive,
• 03:39 since the team will need to devise a measurement system in the measure phase,
• 03:43 build it, and then test it before they can begin to collect data.
• 03:47 Whereas if data is already being collected, you may be able to get through
• 03:51 the measure phase very quickly and into the analyze phase.
• 03:54 Another helpful criteria is to determine the availability of subject matter experts
• 03:59 to be on the team.
• 03:59 While this is not a showstopper for project selection, a team without subject
• 04:04 matter experts will need to educate themselves on the product or
• 04:07 process technology.
• 04:08 And this will take additional time and possibly money.
• 04:11 The last point I want to make concerning project selection is that this is not
• 04:15 a good methodology for a crisis project.
• 04:18 When the house is on fire, we don't want to take the time to validate our
• 04:21 measurement system, determine the root cause of why a fire started.
• 04:25 We need to put the fire out now.
• 04:28 After the fire is out, we may do a Lean Six Sigma project to find out what
• 04:32 happened and how it can be prevented or controlled.
• 04:35 But during the crisis, use crisis project management techniques.
• 04:39 The final point I want to discuss is the actual selection process.
• 04:44 In most of the companies that I work with that have a mature Lean Six Sigma program
• 04:48 in place, the company maintains a list of potential projects.
• 04:51 Stakeholders and managers routinely add new projects to that list.
• 04:55 And as one project is finished, the resources are available to start another.
• 04:59 Another criteria in the selection is based upon who in the organization is
• 05:03 a candidate for Green Belt or Black Belt.
• 05:06 When someone is aspiring to attain a Lean Six Sigma belt,
• 05:09 the business management will often select a project that is well-suited to that
• 05:13 individual's background and position.
• 05:15 It may not be the most important project on the list, but
• 05:18 it's an excellent project to prepare a person for the certification exam.
• 05:23 The person who is administering and managing the project selection process is
• 05:26 normally the Master Black Belt for the organization.
• 05:29 That individual will work closely with some of the senior stakeholders to
• 05:34 select and staff the Lean Six Sigma projects.
• 05:37 The general area of focus for Lean Six Sigma project
• 05:40 Is normally made by stakeholders based upon the business needs and priorities.
• 05:45 This selection is often done early in the Define phase,
• 05:48 many times even before the project team is selected.

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