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Project Selection
Six Sigma Foundations
Continuous Improvement Training
Six Sigma Simplicity
Key Learning Points

Ask yourself the Question:



Is the project VIABLE now?
Is the project SIGNIFICANT?
Is there a MOTIVATED Team?
Six Sigma Simplicity
Project Selection remains the single
most important element of the
process.
Six Sigma Simplicity
Project Selection

Organizations must develop a process to
define strategic focus area and then
effectively scope them into manageable
DMAIC improvement projects
Six Sigma Simplicity
Process map on selecting CI projects
Determine the needs of
key customers and
strategic business needs
Determine
metrics and
goals
Scope the
project
Project
execution
applying CI
methodology
Determine a
baseline and
bottom line
benefits
Create a
project charter
and overall
plan
Project reportsout to upper
management
Identify project
opportunities
Prioritize projects
opportunities
Yes
Viable CI
Project now ?
No
Store project ideas for
future reference
Yes
Communicate
and leverage
success
Signifiant
contribution
to QMS?
No
No
Six Sigma Simplicity
Yes
Motivated
team?
Determine the needs of key customers and
strategic business needs
Example: Break out core processes
Function
Head
count
WIP Backlog
Cycle
time
6S
Waste
Feedback
Accounts
3
20 days
1 hour
C
Waiting,
Motion
Needs quicker
data
Dispatch
2
1 day
1 hour
D
Scrap
Incorrect
paperwork,
hockey sticks
Assembly
10
4 weeks
1 week
E
Scrap, Motion
Not enough
parts
Manufacture
50
1 week
1 week
B
Transport,
Rework, over
production
Tooling down
Purchasing
8
2 months
1 week
C
Over
production,
rework,
transport,
waiting
Reducing cost
Engineering
20
4 months
1 month
C
Rework,
waiting, motion
Unclean orders
Applications/Order Entry
10
5 days
1 day
E
Scrap
Workload
Six Sigma Simplicity
Identify project opportunities
Non- Value added / Value added work
Process/Activities
Value added
2% - 15%
Non-value added
85% - 98%
Essential
Non-essential
Minimize
Now Categorize into the 7W’s!
Six Sigma Simplicity
Eliminate
Identify project opportunities
Combine 7W and TOC.
Cost
X
X
X
x
7W’s
Waiting
Transportation
Motion
Defects
Overproduction
Process, long cycles
Inspection
Six Sigma Simplicity
Throughput
X
X
X
X
Identify project opportunities
6S is the foundation for CI. Target 6S at the worst areas.
The Six S’s
Cost
Throughput
Sort
Separate
Motion, Transport
Waiting
Straighten
i.e.: Inventory –
put in order
Shine
Standardise
Safety
Over production,
Looking, Waiting
Don’t impede flow
Scrap
Over processing
Scrap
Waiting
Sustain
Discipline
(*Safety – 1st in everything.)
Six Sigma Simplicity
Eliminate waste
Prioritize project opportunities
Ranking goals and CIP per goal
CIP Projects
3
4
3
3
3
3
CIP Ranking per effect on Y(x)
3
2,5
2,5
2,5
Gr an
Tot al
i ng
R ank
C ham
pi on
Goal
D at a
er
C hart
on ti m
e
deli ve
ry
R ank
i ng
qual i
ty
W. I.P
.
ables
recei
v
inven
tory
l cost
Mat er
ia
Goal Total Y
Meet EMA profit plan – 15 % over 2001
Reduce
EMA working capital
example
onlyfrom
€ 29.5 M. to € 26.5 M.
Vol um
e
XY matrix - example
2,5
Total
Total Total
X1
Implementation DOS Engineering
2
0
0
5
0
8
10
75
10
0
10
10
75
150
X2
Implementation DOS Test Field
1
0
0
5
0
8
10
72
10
0
10
10
75
147
X3
Implementation DOS Assembly and Repair
1
0
0
5
0
8
10
72
10
0
10
10
75
147
X4
increase processtime for manufactor GASPAC
parts
8
0
0
0
9
10
10
111
0
0
0
10
25
136
X5
Implementation DOS QA
0
0
0
5
0
8
10
69
0
0
0
10
25
94
X6
Reduction of manual effort of preodering for
duplicate orders
7
8
1
0
0
0
10
86
0
0
0
0
0
86
X7
Reduction / Standardization of raw material
0
8
10
0
0
4
3
83
0
0
0
0
0
83
5
0
0
5
0
5
10
75
0
0
0
0
0
75
0
0
5
0
0
5
10
60
0
0
0
0
0
60
0
0
0
5
0
10
0
45
0
0
0
0
0
45
X8
X9
X10
Reduce cycle time of panel documentation from
45 to 25 days
Increase avalibility of tools for manufactoring a
Gaspac
Implementation DOS Reliability
Six Sigma Simplicity
Project Desirability Matrix
The three attributes of a potential project can be visualized
on the following matrix:
Probability
of Success
IMPACT
Hi
Low
Med
Med
Hi
Low
Low
Med
EFFORT
Six Sigma Simplicity
Hi
Project Desirability
Here are three Attributes for evaluating Project
Desirability:

Business impact
 Effort required
 Probability of success
Meaningful & Manageable
Six Sigma Simplicity
Business Impact
Improve Corporate credit ratings
20% RONA / 15% Primary working capital to sales
Implement and sustain Quality Mgm’t System
15% Operating Profit / 15% OP % Sales
Acquisition growth of $X.X B
Organic growth of $X.X B
Top Level Goal Deployment (example)
Six Sigma Simplicity
Examples of Little or No Business Impact





Creating or revising a report
Installing a measurement system
Quantifying the performance of a process
Improving a supplier’s performance without
any arrangement to create benefits for the
Organization
Reducing cycle time of a non-bottleneck
operation
Six Sigma Simplicity
Effort Required

Definition 

This includes not only Black Belt time, but also
the time that will be required of the team
members, and any expenditure of money.
Typical High Effort 
installing a new computer system

improving profitability of an entire product line
or channel

“fixing” the annual planning process
Six Sigma Simplicity
Definition of Probability of Success


An assessment that takes into account
the various risk factors 
Time - uncertainty of the completion date

Effort - uncertainty of the investment required

Implementation - uncertainty of roadblocks
Typical Low Probability of Success 
won’t show the benefits within a year

depends upon completion of other risky projects

requires help from extremely busy people

is not aligned with your Company objectives (QMS)
Six Sigma Simplicity
Project Desirability Matrix
The desirability of a project increases as you move from the
lower right to the upper left, and as the circle gets larger
Probability
of Success
IMPACT
Hi
Low
Med
Med
Hi
Low
Low
Med
EFFORT
Six Sigma Simplicity
Hi
Scope the project
Project Selection






Champion
Process Owner
Financial Controller
12000
9000
6000
3000
0
Scratches
Cracked
Light
Other
12000
9000
6000
3000
0
Operato r Dro pped
M aterial Cuts
Other
8000
6000
PPM

Aligned with Strategic Plan
Not solving world hunger
(Scope)
Significant Business Impact
Supported by & with Data
Agreed to by:
PPM

PPM

4000
2000
0
P art Sticks To Rack
P ackaging
Other
Champions should "pick battles big enough to matter, small enough to win"
Six Sigma Simplicity
Project Selection
Six Sigma Foundations
Continuous Improvement Training
Six Sigma Simplicity