Six Sigma Project Identification and Selection

 This is my first post on the blog. I have started this blog with an intention of keeping all my learnings of Six Sigma in one place and I expect no financial benefits out of it. So, if you are reading this blog. I welcome you and request you to read my posts and give your valuable comments too.

PROJECT IDENTIFICATION & SELECTION

Since Six Sigma's whole purpose is to improve performance, the first step in the Define phase of the

D-M-A-I-C cycle is to identify what to work on - a project. That selection is based on an evaluation of

three characteristics. 

1. Project Payoff analysis tells us whether the project is worth doing. 
2. Project Scope tells us whether the project can be done. 
3. Project Alignment tells us whether the project is consistent with the overall mission of the business.

1. Project Pay- off analysis can be done using Cost-Benefit Analysis:

• Calculate the cost involved to complete the project

• Calculate the Benefits Expected out of the project

Cost Benefit Analysis = (Cost / Benefit)

2 & 3. Use the below matrix (the parameters can be added or removed as per your choice).

To find these, you can take the help of the Project Selection matrix as shown below, Where you can rate the project you are thinking of taking up.

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Generally, there are two types of Six Sigma projects :

Methods to Identify a Six Sigma Project are :

1. VOC (Voice of Customer)

• What do my customers complain about most frequently?

• Queries

2. Lean tool - VSM

• Which process does not add value, but we still do it?

• Which process is always broken?

3. COQ (Cost of Quality)

• Rework

4. Trend Analysis

• Processes where Quality, Productivity & cost on –ve trend

• Look for variation in the process

5. BenchMarking

• How our peers (Internally/External) are performing the process?

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