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Chapter 3. Project Organization, Selection, and Definition. Organizing for Six Sigma. Project – a temporary work structure that starts up, produces some output or outcome, and then shuts down. Project management – all activities associated with planning, scheduling and controlling projects.
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Chapter 3 Project Organization, Selection, and Definition
Organizing for Six Sigma • Project – a temporary work structure that starts up, produces some output or outcome, and then shuts down. • Project management – all activities associated with planning, scheduling and controlling projects.
Six Sigma Project Teams • Champions - senior-level managers who promote and lead Six Sigma deployment • Master Black Belts – Full-time Six Sigma experts • Black Belts – Six Sigma technical analysts • Green Belts – Functional employees who work on projects on a part-time basis • Team Members – Individuals from functional areas who support specific projects
Project Management for Six Sigma • Project management involves all activities associated with planning, scheduling, and controlling projects. • Six Sigma projects cut across organizational boundaries and require the coordination of many different departments and functions. • The ability to manage a large portfolio of projects, as is typically found in Six Sigma environments, is vital to organizational success.
Project Life Cycle • Initiation - Define directions, priorities, limitations, and constraints. • Planning -Create a blueprint for the scope of the project and resources needed to accomplish it. • Assurance - Use appropriate, qualified processes to meet technical project design specifications. • Control - Use appropriate communication and management tools to ensure that managerial performance, process improvements, and customer satisfaction is tracked. • Closure - Evaluate customer satisfaction with project deliverables and assess success and failures that provide learning for future projects and referrals from satisfied customers.
Project Reviews • Project review – status check that serves to evaluate progress toward achieving the project plan. Good reviews: • Monitor progress • Provide guidance • Check focus and alignment • Display support • Knock down barriers • Share best practices • Recognize and reward
Project Review Agenda • Introduction by project champion or sponsor • Project team presentation • Evaluation • Closing by project champion or sponsor
People Skills • Technical skills • Soft skills • Shared vision • Behavioral skills
Skills for Team Leaders • Conflict management and resolution • Team management • Leadership skills • Decision making • Communication • Negotiation • Cross-cultural training
Skills for Team Members • Communication • Meetings • Shared decision making Stopped on 11/08/16
Team Dynamics • Team life cycle • Forming - the team is introduced, meets together, and explores their new assignment. • Storming - team members disagree on team roles and challenge the way that the team functions. • Norming - issues of the previous stage have been worked out, and team members agree on roles, ground rules, and acceptable behavior • Performing - the productive phase of the life cycle when team members cooperate to solve problems and complete the goals of their assigned work • Adjourning - the team wraps up the project, satisfactorily completes its goals, and prepares to disband or move on to another project.
Ingredients for Successful Teams • Clarity in team goals • Improvement plan • Clearly defined roles • Clear communication • Beneficial team behaviors • Well-defined decision procedures • Balanced participation • Established ground rules • Awareness of group process • Use of scientific approach
Six Sigma Project Selection • Top Down: tied to business strategy and aligned with customer needs • Bottom Up: Black belts and master black belts choose projects suited to the capabilities of teams
Mess Management • Mess - a system of external conditions that produces dissatisfaction. • High costs • Excessive defects • Customer complaints • Low customer satisfaction
Process Analysis for Project Identification • Define the process • Describe the process • Describe the players • Define customer expectations • Determine available data • Describe the perceived problems associated with the process • Stopped on 17th August 2016
Six Sigma Project Levels • “Level 1” projects directly affect an organization’s profit margin (projects have a clear, hard dollar impact on profitability). • “Level 2” projects result in redeployment of resources inside an organization to increase operating efficiency or productivity. • “Level 3” projects directly affect operations by avoiding expenditures or increasing the chances of obtaining higher future revenues.
Key Factors in Six Sigma Project Selection • Impacts on customers and organizational effectiveness • Probability of success • Impact on employees • Fit to strategy and competitive advantage • Financial return, as measured by costs associated with quality and process performance, and impacts on revenues and market share
The Cost of Quality (COQ) • COQ – the cost of avoiding poor quality, or incurred as a result of poor quality • Translates defects, errors, etc. into the “language of management” – $$$ • Provides a basis for identifying improvement opportunities and success of improvement programs
Quality Cost Classification • Prevention • Appraisal • Internal failure • External failure
COQ Analysis Tools • Cost indexes • Pareto analysis • Sampling and work measurement
Pareto Analysis • Pareto analysis – technique to identify the “vital few” from the “trivial many” • Pareto distribution–a frequency distribution in which the characteristics observed are ordered from largest frequency to smallest. • Pareto diagram– a histogram of the data from the largest frequency to the smallest.
Pareto Diagram • Helps a team focus on causes that have the greatest impact • Displays the relative importance of problems in a simple visual format • Helps prevent “shifting the problem” where the solution removes some causes but worsens others
Project Definition • Project charter - formal mission statement that defines the project, its objectives, and deliverables. • High-level process map (SIPOC) • Customer requirements
SIPOC Diagrams • SIPOC - Suppliers, Inputs, Process, Outputs, and Customers • Provides a broad view of a process and who is the process owner, how inputs are acquired, who the process serves, and how it adds value Process Suppliers Inputs Outputs Customers
Identifying Customers • What goods or services are produced by my work? • Who uses these products and services? • Who do I call, write to, or answer questions for? • Who supplies the inputs to my process?
Customer Requirements – Manufactured Products • Product characteristics • Performance • Features • Reliability • Conformance • Durability • Serviceability • Aesthetics
Customer Requirements - Services • Reliability • Assurance • Tangibles • Empathy • Responsiveness
Kano Model of Customer Needs • Dissatisfiers (“must haves”): expected requirements • Satisfiers (“wants”): expressed requirements • Exciters/delighters (“never thought of”): unexpected features
Customer Listening Posts • Comment cards and formal surveys • Focus groups • Direct customer contact • Field intelligence • Complaint analysis • Internet and social media monitoring
Performance-Importance Analysis Performance Low High Who cares? Overkill Low High Importance Strengths Vulnerable
Critical-to-Quality (CTQ) Characteristics • Characteristics: • it is critical to a customer’s perception of quality; • It can be measured; • a specification can be defined so that it is easy to determine whether the characteristic is achieved
The Seven Management and Planning Tools • Affinity diagrams • Interrelationship digraphs • Tree diagrams • Matrix diagrams • Matrix data analysis • Process decision program charts • Arrow diagrams 38
Project Review – Define (1 of 2) • The team has reached agreement on and has clearly defined the problem or opportunity to address • The project charter is developed and agreed upon • The team understands the strategic and financial impact of the project • The team agrees that the project can be completed successfully • A project plan and timeline have been developed to guide the entire Six Sigma project • The right mix of people are on the team
Project Review – Define (2 of 2) • Key stakeholders outside of the team have been identified • All team members have consistent expectations • Team members have received any necessary “just-in-time” training • Appropriate resources – financial and human – have been committed to conduct the project • The voice of the customer and CTQs are fully understood and documented • The team has developed a high-level process map. • Key performance measures have been identified for measuring success of the project