Project Selection

Quick reference

• 00:05 Hello again, I'm Ray Sheen.
• 00:07 On these next few modules, we'll 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.
• 00:16 But 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.
• 00:29 Let's look at a few of the best practices for doing that.
• 00:32 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 a process,
• 00:45 then there's 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
• 01:06 innovation, but that's a very different approach.
• 01:09 Another reason for looking at products and
• 01:10 processes where you currently have problems is that
• 01:13 stakeholders will easily 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
• 01:23 operations environment, 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 other types of operational defects beyond 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
• 01:47 to support the normal lead 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 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
• 02:06 is applying the methodology to administrative or support processes.
• 02:10 Error 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.
• 02:24 Does that generate complaints?
• 02:27 So let's say we have a list of potential projects based upon customer complaints
• 02:31 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,
• 02:46 ordering, billing or delivery?
• 02:48 Don't forget to check with your employee and
• 02:50 business associates which processes give them the biggest problems.
• 02:55 It will also be important to have stakeholders' support
• 02:57 especially when preparing to implement a solution.
• 03:00 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 thrusts for the business will ensure stakeholder support.
• 03:17 One other way to get support,
• 03:18 I know this sounds crass, but what are the stakeholders' bonuses based upon?
• 03:23 They will be much more supportive of doing projects that improve the key performance
• 03:27 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
• 03:40 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's already being collected you may be able to get
• 03:50 through the Measure phase very quickly and into the Analyze phase.
• 03:54 Another helpful criteria is to determine the availability of subject matter
• 03:58 experts to be on the team.
• 04:00 While this is not a show stopper for project selection, a team without subject
• 04:04 matter experts will need to educate themselves on the product or
• 04:07 process technology.
• 04:09 And this will take additional time and possibly money.
• 04:12 The last point I wanna make concerning private selection
• 04:14 is that this is not a good methodology for a crisis project.
• 04:18 When the house is on fire, we don't want to take the time to
• 04:21 validate our 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.
• 04:40 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 and
• 04:56 as one project is finished, the resources are available to start another.
• 05:00 Another criteria in this selection is based upon
• 05:03 who in the organization is a candidate for green belt or black belt.
• 05:06 When someone is aspiring,
• 05:08 to attain the Lean Six Sigma belt, the business management will often select
• 05:11 the project that is well suited to that individual's background or 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 select
• 05:34 and staff the Lean Six Sigma projects.
• 05:39 The general area of focus for a Lean Six Sigma project is normally made by stakeholders
• 05:43 based upon business needs and priorities.
• 05:47 This selection is often done early in the Define phase, many
• 05:50 times even before the project team is selected.

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