1. Project Selection Process Copyright OpenSourceSixSigma.com 1 OSSS LSS Black Belt v9.0 - Control Phase Project Selection Training Materials

2. Project Selection Process Copyright OpenSourceSixSigma.com Course Contents 2 OSSS LSS Black Belt v9.0 - Control Phase Class Presentation 57 slide PowerPoint Presentation Facilitator Guide Facilitator Notes Recognize Phase Opportunity Definition Problematic Areas

3. Project Selection Process Copyright OpenSourceSixSigma.com Course Contents 3 OSSS LSS Black Belt v9.0 - Control Phase Problem Statement Creation Problem Statement Objectives Examples – Good and Bad Affinity Diagramming Step-by-Step Process Affinity Diagramming Outputs

4. Project Selection Process Copyright OpenSourceSixSigma.com Course Contents 4 OSSS LSS Black Belt v9.0 - Control Phase Define Phase Steps for Defining a Project Champion Project Worksheet Objective Statement Creation Development of Project List Link to Corporate Strategies Launch Phase Identify People Associated with Projects Obtain Approvals and Launch DMAIC

5. Project Selection Process Copyright OpenSourceSixSigma.com Course Contents 5 OSSS LSS Black Belt v9.0 - Control Phase Templates Problem Statement Template Opportunity Analysis Matrix – Template Opportunity Analysis Matrix – Sample Project List – Template Project List – Sample Champion Project Worksheet – Template Champion Project Worksheet – Sample Project List – Template Project List ‐ Sample

6. Project Selection Process Copyright OpenSourceSixSigma.com A SMALL SNEAK PEAK… 6 OSSS LSS Black Belt v9.0 - Control Phase

7. Project Selection Process Copyright OpenSourceSixSigma.com Management “Belt” Project Identification and Launch (support given from “Belt”). Solution to the problem and a Final Report (support given from a Champion). Implement solution and maintain ongoing benefits (support given from “Belt”). The Project Roadmap Realize Control Improve Analyze Measure Define Recognize Management Finding the solution of Y = f(X) Management owns 80% of the responsibility here.

8. Project Selection Process Copyright OpenSourceSixSigma.com Results The Six Sigma Project Practical Solution Control Plan Statistical Solution Statistical Problem Six Sigma Project Practical Problem Generally a systemic or chronic problem which is impacting the success of a process or function. A well defined effort that states the problem in quantifiable terms with known expectations. Data oriented problem that is addressed with facts and data analysis methods. Data driven solution with known confidence/risk levels versus an “I think” solution. A method of assuring the long- term sustainability of the fix to the problem. The solution is not complex, expensive or irrational and is readily implement-able. Finding the solution of Y = f(X) +  Tangible results measurable in metrics with quantifiable financial or strategic value. Characteristics of a Project  Has a financial impact to Earnings or a significant strategic value  The problem is not easily or quickly solvable using traditional methods  It is targeted to reduce the problem by >70% over existing performance levels Focus is to solve a business problem that is:  Affecting the success of the organization  Affecting costs  Affecting employee satisfaction  Impacting a Customer (external and/or internal)

9. Project Selection Process Copyright OpenSourceSixSigma.com Project Difficulty Distribution Solving “World Hunger,” “Boil the Ocean” Type Problems. Solving “Fruit on the Ground,” “Logic & Intuition” Type Problems – Yellow and Green Belt. Solving “Process Optimization” “Complex Interaction” “Process Entitlement” Black and Master Black Belt Projects. Difficulty and Cost of Problems Quantity of Problems Too Hard - Are Usually Management or Market Caused Too Easy Six Sigma Projects

10. Project Selection Process Copyright OpenSourceSixSigma.com The Following People Typically Identify Potential Projects: Champions “Belts” Process Leaders Functional Managers/Process Owners Any Employee Can Suggest a Project and Should Be Encouraged To Do So……However, It Should Be Considered and Sponsored by One of the Above People Project Originators

11. Project Selection Process Copyright OpenSourceSixSigma.com The most common mistakes in defining a potential project are: Scope is too broad (solving world hunger or boiling the ocean). Symptoms include: too many output Y’s, multiple goals, numerous Process Owners, multiple departments. Solution: Divide problem into several projects. Problem is too easy. Problem solution is known. It is a “just do it”; no problem analysis required. Problem is a management or market issue – not a good “Belt” project. Long term research or development project, not a problem to be solved with Six Sigma tools. Common Mistakes in Defining Projects

12. Project Selection Process Copyright OpenSourceSixSigma.com Facts about Project Selection: Project Recognition & Definition are critical activities to the success of any project and to the Six Sigma improvement effort. Project Recognition & Definition are among the more important tasks a Champion performs. “When I seek a project, it usually stinks. But when the projects find me, they’re usually very good projects.” Six Sigma Black Belt International Truck & Engine Importance of Selection Process

13. TM RECOGNIZE PHASE Finding Areas Needing Improvement “Writing the Business Case” RECOGNIZE PHASE Finding Areas Needing Improvement “Writing the Business Case” Recognize

14. Project Selection Process Copyright OpenSourceSixSigma.com Opportunity Definition Strategic Step 1 Opportunity Definition Enabling ProcessesCore ProcessesEnabling ProcessesCore Processes Structure of the Business Case As a company, our__________performance for the ___________area is not meeting__________.Overall this is causing____________problems which are costing us a much as$_______per______. Examples 1. As a company, ouraccounts receivablesperformance for the finance invoicingarea is not meetingthe goal of 47 DSO. Overall this is causingcash flow and budgetproblems which are costing us as much as$4Mperyear. Structure of the Business Case As a company, our__________performance for the ___________area is not meeting__________.Overall this is causing____________problems which are costing us a much as$_______per______. Examples 1. As a company, ouraccounts receivablesperformance for the finance invoicingarea is not meetingthe goal of 47 DSO. Overall this is causingcash flow and budgetproblems which are costing us as much as$4Mperyear. Structure of the Business Case As a company, our__________performance for the ___________area is not meeting__________.Overall this is causing____________problems which are costing us a much as$_______per______. Examples 1. As a company, ouraccounts receivablesperformance for the finance invoicingarea is not meetingthe goal of 47 DSO. Overall this is causingcash flow and budgetproblems which are costing us as much as$4Mperyear. Structure of the Business Case As a company, our__________performance for the ___________area is not meeting__________.Overall this is causing____________problems which are costing us a much as$_______per______. Examples 1. As a company, ouraccounts receivablesperformance for the finance invoicingarea is not meetingthe goal of 47 DSO. Overall this is causingcash flow and budgetproblems which are costing us as much as$4Mperyear. As a company, ouraccounts receivables performance for thefinance invoicingarea is not meetingthe goal of 47 DSO. Overall this is causingcash flow and budget problems which are costing us as much as $4Mperyear. As a company, ouraccounts receivables performance for thefinance invoicingarea is not meetingthe goal of 47 DSO. Overall this is causingcash flow and budget problems which are costing us as much as $4Mperyear. As a company, ouraccounts receivables performance for thefinance invoicingarea is not meetingthe goal of 47 DSO. Overall this is causingcash flow and budget problems which are costing us as much as $4Mperyear. As a company, ouraccounts receivables performance for thefinance invoicingarea is not meetingthe goal of 47 DSO. Overall this is causingcash flow and budget problems which are costing us as much as $4Mperyear. As a company, ouraccounts receivables performance for thefinance invoicingarea is not meetingthe goal of 47 DSO. Overall this is causingcash flow and budget problems which are costing us as much as $4Mperyear. As a company, ouraccounts receivables performance for thefinance invoicingarea is not meetingthe goal of 47 DSO. Overall this is causingcash flow and budget problems which are costing us as much as $4Mperyear. As a company, ouraccounts receivables performance for thefinance invoicingarea is not meetingthe goal of 47 DSO. Overall this is causingcash flow and budget problems which are costing us as much as $4Mperyear. As a company, ouraccounts receivables performance for thefinance invoicingarea is not meetingthe goal of 47 DSO. Overall this is causingcash flow and budget problems which are costing us as much as $4Mperyear. As a company, ouraccounts receivables performance for thefinance invoicingarea is not meetingthe goal of 47 DSO. Overall this is causingcash flow and budget problems which are costing us as much as $4Mperyear. As a company, ouraccounts receivables performance for thefinance invoicingarea is not meetingthe goal of 47 DSO. Overall this is causingcash flow and budget problems which are costing us as much as $4Mperyear. As a company, ouraccounts receivables performance for thefinance invoicingarea is not meetingthe goal of 47 DSO. Overall this is causingcash flow and budget problems which are costing us as much as $4Mperyear. As a company, ouraccounts receivables performance for thefinance invoicingarea is not meetingthe goal of 47 DSO. Overall this is causingcash flow and budget problems which are costing us as much as $4Mperyear. As a company, ouraccounts receivables performance for thefinance invoicingarea is not meetingthe goal of 47 DSO. Overall this is causingcash flow and budget problems which are costing us as much as $4Mperyear. As a company, ouraccounts receivables performance for thefinance invoicingarea is not meetingthe goal of 47 DSO. Overall this is causingcash flow and budget problems which are costing us as much as $4Mperyear. As a company, ouraccounts receivables performance for thefinance invoicingarea is not meetingthe goal of 47 DSO. Overall this is causingcash flow and budget problems which are costing us as much as $4Mperyear. As a company, ouraccounts receivables performance for thefinance invoicingarea is not meetingthe goal of 47 DSO. Overall this is causingcash flow and budget problems which are costing us as much as $4Mperyear. As a company, ouraccounts receivables performance for thefinance invoicingarea is not meetingthe goal of 47 DSO. Overall this is causingcash flow and budget problems which are costing us as much as $4Mperyear. As a company, ouraccounts receivables performance for thefinance invoicingarea is not meetingthe goal of 47 DSO. Overall this is causingcash flow and budget problems which are costing us as much as $4Mperyear. ReceivablesWarrantyCycle timeDefects Strategic Opportunity Identification Issues and Problems Matrix Scope Statement of Work Prioritized Business Improvement Plan Opportunity Identification Issues and Problems Matrix Scope Statement of Work Prioritized Business Improvement Plan Opportunity Definition Enabling ProcessesCore ProcessesEnabling ProcessesCore ProcessesEnabling ProcessesCore ProcessesEnabling ProcessesCore Processes Structure of the Business Case As a company, our__________performance for the ___________area is not meeting__________.Overall this is causing____________problems which are costing us a much as$_______per______. Examples 1. As a company, ouraccounts receivablesperformance for the finance invoicingarea is not meetingthe goal of 47 DSO. Overall this is causingcash flow and budgetproblems which are costing us as much as$4Mperyear. Structure of the Business Case As a company, our__________performance for the ___________area is not meeting__________.Overall this is causing____________problems which are costing us a much as$_______per______. Examples 1. As a company, ouraccounts receivablesperformance for the finance invoicingarea is not meetingthe goal of 47 DSO. Overall this is causingcash flow and budgetproblems which are costing us as much as$4Mperyear. Structure of the Business Case As a company, our__________performance for the ___________area is not meeting__________.Overall this is causing____________problems which are costing us a much as$_______per______. Examples 1. As a company, ouraccounts receivablesperformance for the finance invoicingarea is not meetingthe goal of 47 DSO. Overall this is causingcash flow and budgetproblems which are costing us as much as$4Mperyear. Structure of the Business Case As a company, our__________performance for the ___________area is not meeting__________.Overall this is causing____________problems which are costing us a much as$_______per______. Examples 1. As a company, ouraccounts receivablesperformance for the finance invoicingarea is not meetingthe goal of 47 DSO. Overall this is causingcash flow and budgetproblems which are costing us as much as$4Mperyear. Finding Problematic Areas of the Business As a company, ouraccounts receivables performance for thefinance invoicingarea is not meetingthe goal of 47 DSO. Overall this is causingcash flow and budget problems which are costing us as much as $4Mperyear. As a company, ouraccounts receivables performance for thefinance invoicingarea is not meetingthe goal of 47 DSO. Overall this is causingcash flow and budget problems which are costing us as much as $4Mperyear. As a company, ouraccounts receivables performance for thefinance invoicingarea is not meetingthe goal of 47 DSO. Overall this is causingcash flow and budget problems which are costing us as much as $4Mperyear. As a company, ouraccounts receivables performance for thefinance invoicingarea is not meetingthe goal of 47 DSO. Overall this is causingcash flow and budget problems which are costing us as much as $4Mperyear. As a company, ouraccounts receivables performance for thefinance invoicingarea is not meetingthe goal of 47 DSO. Overall this is causingcash flow and budget problems which are costing us as much as $4Mperyear. As a company, ouraccounts receivables performance for thefinance invoicingarea is not meetingthe goal of 47 DSO. Overall this is causingcash flow and budget problems which are costing us as much as $4Mperyear. As a company, ouraccounts receivables performance for thefinance invoicingarea is not meetingthe goal of 47 DSO. Overall this is causingcash flow and budget problems which are costing us as much as $4Mperyear. As a company, ouraccounts receivables performance for thefinance invoicingarea is not meetingthe goal of 47 DSO. Overall this is causingcash flow and budget problems which are costing us as much as $4Mperyear. As a company, ouraccounts receivables performance for thefinance invoicingarea is not meetingthe goal of 47 DSO. Overall this is causingcash flow and budget problems which are costing us as much as $4Mperyear. As a company, ouraccounts receivables performance for thefinance invoicingarea is not meetingthe goal of 47 DSO. Overall this is causingcash flow and budget problems which are costing us as much as $4Mperyear. As a company, ouraccounts receivables performance for thefinance invoicingarea is not meetingthe goal of 47 DSO. Overall this is causingcash flow and budget problems which are costing us as much as $4Mperyear. As a company, ouraccounts receivables performance for thefinance invoicingarea is not meetingthe goal of 47 DSO. Overall this is causingcash flow and budget problems which are costing us as much as $4Mperyear. As a company, ouraccounts receivables performance for thefinance invoicingarea is not meetingthe goal of 47 DSO. Overall this is causingcash flow and budget problems which are costing us as much as $4Mperyear. As a company, ouraccounts receivables performance for thefinance invoicingarea is not meetingthe goal of 47 DSO. Overall this is causingcash flow and budget problems which are costing us as much as $4Mperyear. As a company, ouraccounts receivables performance for thefinance invoicingarea is not meetingthe goal of 47 DSO. Overall this is causingcash flow and budget problems which are costing us as much as $4Mperyear. As a company, ouraccounts receivables performance for thefinance invoicingarea is not meetingthe goal of 47 DSO. Overall this is causingcash flow and budget problems which are costing us as much as $4Mperyear. As a company, ouraccounts receivables performance for thefinance invoicingarea is not meetingthe goal of 47 DSO. Overall this is causingcash flow and budget problems which are costing us as much as $4Mperyear. As a company, ouraccounts receivables performance for thefinance invoicingarea is not meetingthe goal of 47 DSO. Overall this is causingcash flow and budget problems which are costing us as much as $4Mperyear. ReceivablesWarrantyCycle timeDefects Creating Logical Grouping Using Affinity Diagramming Objective Statement Reduce the overall personnel recruiting time from an average of 155 days to 75 days, with an upper limit of 110 days. This will meet the current maximum goal of 100 days greater than 95% of the time. The new goal which will be achieved by June 1, 2002, will support our Employer of Choice goal and achieve a savings of $145,000. Problem Statement Recruiting time for Production Planners is missing the goal 81% of the time. The average time to fill a request is 155 days in the Human Resources employee recruitment process over the past 15 months. This is costing us $145,000 per year of additional laborand rework costs. Improvement Plan Objective Statement Reduce the overall personnel recruiting time from an average of 155 days to 75 days, with an upper limit of 110 days. This will meet the current maximum goal of 100 days greater than 95% of the time. The new goal which will be achieved by June 1, 2002, will support our Employer of Choice goal and achieve a savings of $145,000. Problem Statement Recruiting time for Production Planners is missing the goal 81% of the time. The average time to fill a request is 155 days in the Human Resources employee recruitment process over the past 15 months. This is costing us $145,000 per year of additional laborand rework costs. Improvement Plan Statement of Work PriorityBusiness CaseOwner Financial ImpactSponsor 1 As a company, our accounts receivables performance for the finance invoicing area is not meeting the goal of 47 DSO. Overall this is causing cash flow and budget problems which are costing us as much as $4M per year. Bob Smith$4MEllen West 2 As a company our product recall performance for the ice cream market area is not meeting the budget of 1.5%. Overall this is causing logistics, materials and cost problems which are costing us as much as $2M per year.Mary Jones$2MBill Jones 3 As a company our final process yield performance for the culture area is not meeting the targeted 88% yield. Overall this is causing Floor space, shipment and resource problems which are costing us as much as $900K per year. Ken Parks$900KKathy Shank 4 As a company our shipping logistics performance for the Smith’s market segment is not meeting the scheduling and cost requirements. Overall this is causing delivery issues and customer dissatisfaction problems which are costing us as much as $3M in lost revenues and $1.5M in expenses per year. Jill Williams$1.5MEarl Johnson Business Opportunity Analysis Summary